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Subject:  Re: Friend for a Financial Planner Date:  8/31/2000  9:44 PM
Author:  JFKequal Number:  24525 of 88830

Whoa!!!! AmEx employees are not independent Financial Planners. First and formost it is there job to steer folks into AmEx products... the incentive is greater commission and residuals on house products.

Watchout for the life insurance as an investment ploy. This is one of the biggest scams known to man. But it reaps (or I should say "rapes the consumer") the biggest commissions and residuals for the agent (your AmEx planner) and the biggest gains for the company (AmEx). And guess who gets the short end of the stick? I trust your AmEx "agent" supplied a large jar of vasoline to make it more comfortable for you.

Then watchout for the annuity used as a funding vehicle for an IRA, Roth or Traditional. If you're a school teacher don't let your "friend" sell you a 403(b), with an annuity as the funding vehicle. Use mutual funds or a discretionary account with the proper paper making it a Roth IRA and/or the 403(b) if a school teacher. (Why do agents and friends like the AmEx "planner" use annuities? Answer: Commissions of course... up to 10% using the annuity vs. 2% using mutual funds outside of the annuity.)
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