Senior Life Settlements

I know this is not an investing website, but I also know that there are some pretty savvy people on here.
My family got this investment pitched to them and are thinking about investing in it. Any opinions, pro, con or prior experience (or with similar investments?)

http://www.armsecurities.com/index.php

Thanks
Chuck

 

Isn't this the second time that you posted this.

 

Those look like CDOs, are they now selling them to the public? They are one reason for the financial collapse, I would be curious how they offer such high returns when all other fixed income doesn't. (Must be very high risk) And I would be curious what assets back up those bonds. And if I had my money at a bank or money manager that was offering me this stuff, I would immediately withdraw all my funds.

5yr

 

Looks like viaticals.

 

Assuming you are not a spammer (as someone mentioned above),

then anytime you are "pitched" a serious moneymaking offer for an affordable price, you have to ask:

1) why are they letting you in to a Holy Grail for a low price?
2) Since almost every time we hear about these things, people later complain about being shafted
3) even if it works, most of these "opportunities" will require huge amounts of your time, money, energy, labour, and likely trying to talk your family and friends into "joining"
4) They usually start you with a "free training" presentation that is little more than a marketing pitch that blares the occasional successful person (if any) and glosses over the details that are really worth hearing. Such as "are these powerpoint" slides just your cherry picked examples?
5) How come in testominials, you never hear anything from all the people who are UNhappy?

So why not instead, use your noodle and

 

Yes, no responses 1st time.

 

The way it was explained to us was that the life insurance policies were the assets.

 

Right. The investment entity gives terminally ill people a cash settlement to become owner and beneficiary of the policies.

Underwriters try to determine the proper amount to pay based upon the insured's medical condition (how long before the insured dies, how long the investment entity must continue to pay premiums).

As an investment, likely a deal with decent "economics".... how much of that flows through to the investor is always questionable... But basically, the investment entity gives investors a seemingly attractive yield/gain or whatever... in reality the investment entity/promoters (not the investors) reap the lion's share of the profits...

Not to be especially critical of this business plan... LOTS of deals work this way.

 

The "running joke" about those things is that policyholders who sell their policies in exchange for money are much more likely to die sooner......as a result of murder.

 

Tony Soprano is the #1 investor in life settlements