I got a text inviting from another nurse I used to work with inviting me to a business launch on Zoom. To show support, I planned on attending. Considering the tagline mentioned health, I thought the person was starting a healthcare business. However, something this morning had me wonder if it was something else. And so I looked at the flyer again and the people on there, besides the nurse, had MBA and other titles. I don't want to disclose too much. I still planned to show up. Although I was busy watching Sumo and too excited after. I got a text later with the link and I joined. My camera on my is off anyway. The nurse was talking about her background. The little bit I heard was about how they weren't of means when she was younger. I then had someone introduce the "Guest Speaker". That's when I muted the sound and did some reading on my Kindle app. Therefore I didn't hear the sales pitch.
But I saw it was a sales pitch from a mile away. Sometime this morning, I had a feeling. I also got a glimpse of what company they were going to talk about because I read bio they put down about the guest speaker. And while sitting here reading, I took a glimpse at the screen and saw three charts showing "Fixed, Variable and Index". That's all I needed to know. They were selling insurance. Specifically, IULs. I kept on reading, eating and when I took a look at the screen again, I saw it was time for Q&A so I turned turned the volume back on and it was another nurse I'd known talking. She was saying that she had been introduced to this before in the past and had lost either "27k" or "47k". I couldn't make out the exact amount due to how she said it. But now, another person has approached her with the "business" and she's contemplating doing it.
This is what I don't like about these pitches. They try to tell certain people that they are creating wealth from people who don't have access. What do you mean you don't have access? Fidelity, Schwab and Vanguard don't bar people from opening accounts based on their nationality or ethnicity. They don't restrict their advisors talking to you because of where your parents are from or whatever. Don't let someone tell you that you don't have access to investment or wealth management. In this day and age where Robo-advisors are on the rise and the big guys have also gotten into it, You can go to Fidelity and Schwab and get started with very little. You too can get access to investing in the market.
The sad part I heard from the beginning when I was listening to the nurse talk about her background was that she had one of these people get on the phone with the custodian to transfer her 401K to an IRA with an Insurance company. Let me say this: Insurance is not investment. I repeat,
Insurance is not investment.
Don't let anyone tell you otherwise. Insurance is to help you manage risk. And investment advisor isn't the same as an insurance salesperson. Those are two different jobs requiring different licenses and regulated by different bodies.
Sometime last summer, I went to an old church and a nurse I barely know wanted to talk to me about retirement planning. I politely said something like "I'm not a candidate". I think I also mentioned that I'm not working currently. I had a feeling she was selling one of these ridiculous insurance things masquerading as retirement planning. She kept pushing and I tried to say in many ways that I'm not a candidate. She doesn't need to know I've FIRE'd because it's none of her business. And so she started using the silent treatment on me. I guess if I won't listen to her sales pitch, she won't talk to me? Okay. Good riddance. I barely know you and I've lived without talking to you. I'm actually benefiting by not having you hound me anymore. I find that despicable and abhorrent and it usually tells me the person is someone to avoid. So I avoided her. Sometime last fall, she was following me around to thank me for something I did for the kids. I almost didn't even stop because I didn't think she was trying to talk to me. I listened to her thank me and went my way. She's changed her attitude. I don't have time to tolerate nonsense lately.
The saying I try to keep in mind is
If a naked man says he will clothe you, listen to him quietly.
Years ago when I wanted to work in Finance, I took the insurance certification although I didn't do anything with it. And I aced it, too. I actually have a textbook on Risk Management which I think is an important thing to consider. My goal was to understand various aspects of finance which led study different things including an 18-month course on taxes as well as taking a program on investment management from a university in the world banking capital. I'll leave you to guess the European country. Anyway, I say that to mean that I understand insurance. It is not an investment. Don't let someone tell you that banks are buying insurance policies so you, too, need to buy one. Have you heard of the term "hedge"? Of course they don't tell you that insurance companies are buying Treasuries 🙄.
That said, please don't let someone convince you to move your money from your 401k to an IRA with an insurance company. If you want to move it to a self-directed IRA with a firm like Vanguard, Fidelity, Schwab, go ahead. But insurance works on commission and You are the product and your money serves to fund the commissions. There is investment and there is insurance. Insurance has it's place. I had a term policy I needed to cancel years ago when I realized I could self-insure. I didn't until this year because there was a major change and there was absolutely no reason to keep the policy. But please be careful with Universal life and whole life policies. I mentioned that one lady was talking when I got back on during the Q&A and she shared that she had one of these policies and after reaching a certain age, they doubled her premiums. There are many aspects to these things that you really need to be careful dabbling in them. Nursing is hard and I know most people were tired and seeking an out when I worked. But an MLM is more trouble that it's worth. And that's what some of these things are.
Recently, I re-read Arnold Bennett's The Human Machine and in it, he says to mind your own business. However, this is something I think people need to be careful of. So I'm using this as an outlet to say something. I'm not going to mention the company that was being peddled this morning because there are others out there. If you are wondering if you should move your 401k to an IRA at an Insurance company? My answer is No. Move your 401k to an IRA at an investment company or custodian who allows you to invest. Don't move it to where you are sold insurance products with hefty fees and commissions along with mutual funds that have performed so poorly. There are many stories you can find online regarding these products. Don't let them tell you that you are going to be a business owner or be your own boss. Sadly, it's most likely your fellow nurses peddling these products to you. As I said, insurance has its place. However, Insurance is not Investment.
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