Reverse Pension Plans

[Daxin]

Anyone on this board familiar with Reverse Pension Plans? The whole idea of it all seems too good to be true. I know, I know, if its too good to be true, then it is. Just wanna know if this is legit or has anyone been taken by this concept.

Thanx

[Canmorite]

Never heard of it, but I assume its like getting your pension before you retire.

Ok here we go, thanks Google.

Reverse pension plans are innovative and highly profitable projects initiated and run by venture capitalists – in pre-arranged cooperation with their insurance company and their mortgage company.

To gather a target number of eligible members, the venture capitalists set up a network-marketing operation (for example, Global Pension Plan or Global Connect Pension Plan), offering very generous referral commissions to those who will help get the word out.

When the “Reverse Pension Plan” has reached its' goal number of contracts/members, the venture capitalists will purchase a pension insurance policy on each member which will, of course, mature when the member reaches 67 years of age.

A quick Google search will reveal many entities who are willing to purchase these policies for immediate lump sum payout. This should assure those unfamiliar with endowment policies of their legitimate value. However, Reverse Pension Plan members agree to transfer ownership of their policies to the venture capitalists who purchased them on the members' behalf for a one-time sum.

Then, as each member reaches the age of 67 years, the venture capitalists will collect the full value (about $250,000) of each policy - an assured, substantial, long-term income for them! Also, the cost of the policies, the compensation, and the referral commissions are all tax-deductible business expenses, too.

Additionally, with possession of these policies as collateral, the venture capitalists are eligible for massive loans. This leaves them with plenty to cover cost of the network-marketing operation – referral commissions and administration . By using the loan to finance the program, they now own a pension policy with a significant value upon maturity.

http://www.reversepensionplan.net/

When searching I came along quite a few 'scams' in this reverse pension plan deal. I'd talk to a financial advisor before going for it.

[Xtrema]

My 15min of google search led me to believe this is a very clever MLM.

Just like those free Ipod or PS3 type MLM with downline, referral, membership and admin fees.

So, you may get lucky and get paid but don't bet on it.

They are selling hope for a small fee and using the line "heck, at worst I can be out $30 but I could gain $30K!"

But in the end, they will pay out to the few to keep hopes alive and profit from fees and possibility gather capital for investment. And just like all MLM, member never bad mouths it because they want downline to grow in order to collect their payout.

Rule 1 of investing. If it's too good to be true, it usually is.
http://en.wikipedia.org/wiki/High-yi...stment_program

So start walking away now......