Bad to Worse

Talking Real Money - Investing Talk

Don and Tom rip apart a sponsored “news” piece from the Puget Sound Business Journal pushing a company called FISYN, which promises to buy investors out of their annuities and deliver a “safe” 12% tax-free return via raw Texas land. They expose the misleading fine print, the founder’s disciplinary history, and the high-risk, illiquid nature of such private equity deals. Calls and questions cover long-term care insurance riders on annuities, portfolio allocation in deferred comp plans, Roth vs. tax-deferred placement for bonds, managing taxable brokerage cash vs. emergency funds, and dividend-vs.-total-return withdrawal strategies. They also clarify that QCDs can only come from IRAs (not 401(k)s or TSPs) unless funds are rolled over first. Throughout, they hammer home skepticism toward anything that sounds too good to be true, distrust of advertorial financial pitches, and the importance of planning before buying complex products.

1:35 Breaking the “golden handcuffs” of annuities—how FISYN’s pitch hooks investors

3:20 The too-good-to-be-true promise: 12% returns, equity kicker, no volatility, tax-free

3:49 Founder’s BrokerCheck record and lawsuits

5:15 Comparison to Woodbridge Ponzi scheme

6:32 The frying pan-to-fire swap: annuity to raw Texas land

7:37 Bonus shares and “free” Texas trip incentives

8:06 Critique of sponsored content posing as journalism

9:24 Reality check on raw land returns and costs

10:04 Broader issue: pay-to-play financial media

11:18 Caller Robert (TX): Fixed annuity with LTC rider—pros, cons, and better planning sequence

16:29 Insurance industry skepticism and “Wizards of Odds” nickname reveal

17:54 Caller John (WA): Deferred comp allocation—global, small-cap, emerging markets mix

19:18 Roth vs. tax-deferred bond placement and rebalancing flexibility

20:55 Revisiting the “Wizards of Odds” label for insurance companies

21:47 FISYN as a private equity example and why PE risk is often underestimated

23:35 High costs, valuation uncertainty, and past PE meltdowns

25:03 Total-loss potential in private equity investments

26:33 Caller Scott (NY): Using taxable brokerage for overflow cash—emergency fund priority and vehicle choice

30:34 Federal money market funds as short-term parking

31:54 Listener Thomas: Dividend withdrawals vs. total return strategy sustainability

34:43 Caller Pat: QCD rules—only from IRAs, rollover options, and who makes the rules

37:30 Paul Merriman “10 Myths, Lies, and Mistakes” episode plug

38:46 Podcast chart ranking and listener thanks

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