Complaint Review: Midland National
Let me preface that I am a teacher, and I have a reasonable amount of knowledge about investing, etc.
I met with a local representative out of Anaheim, Matthew Korsmo to review my retirement.
I already have heavy investments in my teacher retirement account but I was looking to supplement with a 403b (TSA)
Matthew stated that my investment has a minimal risk. He stated that I would be guaranteed 2% regardless of the market, and I would get a 10% premium bonus for any premium. I invested 150.00 a month so I received a 15.00 bonus. Thought I was making a smart investment.
Forward to September 2013. My wife's boss is also a financial planner and offered to look over my TSA for me.
What I found out is that there is an index cap on my account of 4.5%: which means that I cannot earn more than 4.5% on my investment regardless of the market. Meanwhile, the index % gain on my account was/is 16.51%: which is the money I could've earned on my money had their not been a cap.
First, Matt never explained to me that their was a cap on the investment. Why would I agree to a cap on my money--the purpose is to maximize returns.
Secondly, how is it that Midland makes more money on my investments than I do (difference between 16.51-4.5% = their profit of 12%).
When I called and spoke to Matt regarding the cap, he said "well, that is how our company makes money."
Additionally, I am in this policy for 10 years. I called Midland to see about removing my money or trying to do something else with it, and they stated I can't do anything unless my employment is terminated, or I become 59 1/2 ( I am 42 and still employed).
I am researching how to do an investment loss recovery action for "failure to explain risks and dangers of investments recommended."
This is a highly deceptive practice and the agent and company were not honest about my investment. I never would have agreed to a cap if I had knowingly known what it was. And, the response from the agent and company has been "well, we have your money and there is nothing you can do..ha, ha.--thanks for the profit."
This report was posted on Ripoff Report on 04/21/2014 01:11 PM and is a permanent record located here: http://www.ripoffreport.com/reports/midland-national/nationwide/midland-national-sammons-financial-group-failure-to-explain-contract-properly-anaheim-nat-1140496. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content
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