No. of Recommendations: 10
Bruce, unfortunately a lot of seniors are being pushed into these NON-traded REITS and/or indexed annuities. Many of these seniors were very happy with 5% CD's which provided a real return of 2.5% to 3.0%. They are civilian casualties of the FED's ZIRP policy.

Chairman Ben is increasingly successful in pushing this money from low risk CD' into higher risk instruments like this. Seniors fall for the "the values are stable" argument and think they are safer than traded equities. Of course, none of these seniors suffered through the crash when their non-traded shares were either unsaleable or at a huge discount.

Of course the sales force, like the LPL planner mentioned in the article are more than happy to sell them. You might recall that LPL as a firm, ran into big trouble for inappropriately selling non-traded REITs. They paid a fine and agreed to better training.

Hopefully this story will have a good ending . . .

Although I would not bet on it. . .


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