9.12.19 The dangers of annuities; Criminal investigations of insurance claims are on the rise; Clark's advice using instant payment apps

Beware of annuity sales. Annuity sales subsided when fiduciary rules were in place - rules that have now been pushed aside, causing new sales to skyrocket. Insurance companies and banks push these because they have humongous fees and commissions. These contracts allow the insurance companies to change the terms at any time and the tax treatment is generally not favorable. When you're getting a vague investment pitch ASK if it's an annuity. If so, walk away.

File an insurance claim, and the next thing you know police are accusing you of a criminal act. It's happened. When shopping insurance, make sure the company is solid. Clark routinely recommends choosing insurance  companies that get the highest ratings. Cost is secondary in this area. A Buzzfeed investigation reveals some insurers investigating big claims, will direct law enforcement against the insured. Clark had a co-worker who had just moved, suffered a fire, and was accused of torching his own house. Insurers working with police to start a criminal investigation to delay or deny a claim - this is hopefully rare but raises the stakes on how important it is to be with a company that rates high in serving customers. Don't just go with the cheapest insurance company.  

The Cash app has now eclipsed Venmo as the top app for sending money to family and friends - special emphasis on family and friends only. These apps operate efficiently, making it easy to send money. When shopping online, particularly with sites like Craigslist, eBay etc - if the seller requests payment by one of these apps, consider that a red flag for a con. They vanish and your money is gone. ONLY use apps to pay someone you know because once you pay, the money is gone. Zelle is being pushed by banks but does not have any meaningful consumer protections compared to Cash app and Venmo. 

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