A friend of mine approached me with this big opportunity of learning and investment from World Financial Group, so very excited by the idea, I went to a seminar and signed up on their guest list. Soon enough, this friend and some other people came to my house and urged me to jump in, unsuspecting to my friend, I paid $100 for material fee and thought it was pretty cheap for learning. I was asked to call my other friends to sign up, meanwhile, I was urged to buy their product VUL. Little by little I realized this was actually a MLM, or pyramid scheme, and this VUL sounded too good, I started getting suspicious, and then I realized I was actually targeted for their sales and it was nothing to do with the learning. So I refused to recruit my friends, and refused to buy VUL. I thought that was it, I paid $100 and learned a lesson.
But apparently, these people never gave up, they started calling me to ask a list of my friends' phone number, which I refused to give them. They also kept trying to sell me the VUL which I know better.
So basically the rules are:
1. If you join, you are meant to be their sales target, unless you are more aggressive and to recruit more people.
2. If you don't mind losing friends and money, go ahead.
Regaring VUL, my findings are:
1. if you are rich, that's one way to evade or defer tax
2. if you make $350K a year, it might be good for you
3. Commission and maintenance fee are outrageous, I used a tool to calculate, basically, if the earning is only 4% and you put the minimum investment for about 20 years, after 25 years, the cash value in the account is 0!
4. If you buy it, the salesperson gets commission every year!(that's why they only want to sell VUL)
Thanks God, I only lost $100 but did not lose any friends except the one who cheated me in.
Salem, New Hampshire