ED Magedson – Founder
Midland NationalNationwide USA
Midland National Sammons Financial Group failure to explain contract properly Anaheim Nationwide
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.
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