I am posting this in order that people would be careful what they get involved with.
The company WFG and their associates should be ashamed of themselves. They prey on middle income families and mislead them into purchasing their products. People who read this post, please do your homework. I have many friends who have had their savings and future earnings essentially stolen from them. Let me explain. Their pitch is one of two: one they will tell you your need for life insurance.
This is true any family should protect their family with life insurance. However, they will ask how much you can afford and talk you into the advantages of buying their number one product, the VUL. They push this like crack on a street corner. All of their company recognition is based on the sale of this product.
For those who don't know, it is life insurance with a savings attached to it. Sounds good right? Not so much. The cost is ridiculous. There is monthly policy charges, per unit charges, cost of insurance charges(that go up every year,its annual renewable term insurance), plus fees on the savings part of the contract. You never really know how much is going into savings each month.
The scariest part is that your charges can become so high that it will start eating at your savings until you have nothing left, it will implode(lapse, terminate, expire). If thats not bad enough, lets explore number two. They will talk to you about saving for retirement. Guess what the best way to do that is. You got it the VUL. This time they hit hard on the ability, once you have millions saved in it, to take loans out on it tax free.
Wow, can't beat that right. NOT!!! First of all the only reason its tax free is that it is a loan(can't tax loans). Why would you borrow your own money in the first place. Any ways lets explore another option. How about the Roth IRA. This vehicle can be funded $5000 a year or $10000 for husband and wife($416-$833 a month). This money does grow and can be withdrawn at retirement completely tax free.
Wait what if I need money before retirement? Is there penalties? Glad you asked, the principal(money you put in, not the growth) you can take out at anytime no penalties..... So if over 10 years you have put in 100K and it has grown to 200K then you can access the 100K. This is almost never even discussed to the potential clients.
I have also known people that were told by an agent of WFG, not to put money into their 401K and put it into their policy. This can be extremely painful come tax time at the end of the year. You see the 401K is funded pretaxed,it lowers your tax bracket. If you don't fund the 401K you can be paying more in taxes. The worst scenarios I have heard of is when these agents tell middle income families, doing their best to get by and build wealth, that they are house rich and not cash rich.
They then tell the family to take all of their equity out of their home and fund a VUL policy. This is worst because they market the loan as well, they get these families into pick a pay option ARM loans that end up screwing the family on their insurance and their loan. There may be a few good agents that start out with good intentions with WFG, but you become who you associate with.
If they have worked in that enviornment for 6 months or longer then they have no excuse. They have now bought in on the hype and are now peddling the same garbage. You can't be around those people pushing and cheering on the sales of those products and not start selling and believing the hype. Bottom line is that they make a ton of commission on these products, hence the need to market them.
As you do your homework, checkout consumer reports, suze orman on youtube, dave ramsey on youtube, you will find that their products stink..... As far as their business opp. they might make a good chunk of change but at what cost..... just don't let me catch you peddling your trash in my neighborhood .... I will file charges and submit any and all notifications to the proper authorities(SEC, NASD, FINRA, Better Business Bureau...you get the hint)
San Dimas, California
U.S.A. Click here to read other Rip Off Reports on WFS Financial