Pension Advances Are a deal that is shaky Borrowers and Investors Alike
DANA NESSEL ATTORNEY GENERAL
The Attorney General provides Consumer Alerts to tell the general public of unjust, misleading, or misleading company techniques, also to offer information and help with other problems of concern. Customer Alerts aren’t advice that is appropriate legal authority, or even a binding appropriate viewpoint through the Department of Attorney General.
Pension Advances Are A shaky deal for Borrowers and Investors Alike
You may be the target of salespeople offering you a lump sum payment today in exchange for signing over some or all of your monthly pension checks for a future period of timeвЂ”typically 5 to 10 years if you receive a pension from your former employer. The pitch goes something similar to this: вЂњTurn your personal future retirement income into cool, income today. ItвЂ™s your hard earned money, you deserve it.вЂќ
Also in the event that you donвЂ™t have retirement, these exact same salespeople might approach you to definitely spend money on funding this type of loan or вЂњadvanceвЂќ designed to a retirement debtor. In return for your investment of a fixed buck amount, you are guaranteed payment associated with the quantity spent plus an interest rate of return (typically 5.75% to 7.75percent) for a group period of time. The amount of money you spend is paid back for youвЂ”and you may well be told it is вЂњguaranteedвЂќ or вЂњsecuredвЂќвЂ”by the retirement borrowerвЂ™s pension that is future.
Seem like a whole lot for every person? Continue reading