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Well, here’s another reader who thinks why Global Pension Plan will work, I’d be sharing, and you tell me your thoughts.
Hi Jude,
I read your comments on why Global Pension Plan would not work, pasted below for your reference. I have the following comments and would appreciate your feedback on my understanding:
If you home is fully paid and has an equity of say 300,000, bank would lend you say, 60% on it using the “reverse” mortgage which enables you to draw cash out of your home equity without having to pay monthly payment for the loan. I assume that the monthly payment comes out of the remaining equity in your home over a certain period of time. Consequently, eventually, your entire equity will be eaten away over a period of time, whereby, you will not own the house but the banker will. If you are exiting at the age of 90 or so, this should be okay as long as your next to kin dont object!
Let us say now instead of the home, you have a paid up endowment insurance policy and it has an asset value of $300,000, meaning that upon your death, your next of kin would receive the face value of the policy. If you however, went to a bank and asked to borrow money against it, I understand that the bank would recognize the equity and loan you money at say, 60% of the value in the form of a reverse mortgage. This means there will be no monthly payments but the deemed payments would come out of the remaining equity in the policy until the policy has no value to you. The bank will eventually own the whole policy with its full value or partial value depending on time elapsed, which the bank would realize upon your death since through the process of the reverse mortgage you have assigned the policy to the bank as a progressively reducing collateral. The bank could also sell the policy as a negotiable security in the open market at a discount to realize partial liquidity.
So as I understand it, between the bank and the insurance company, Global Pension Plan appears to have created this ingenious program, whereby:
- Each member could purchase an endowment life insurance policy with a maturity value of 300,000.
- Through his/her signature or promisory note, enable the bank to create a reverse mortgage on the policy at 60% of the face value of the insurance. In this case the loan value would be 300,000 x60% =180,000.
- Part of the loan would go to pay off the insurance premiums which could be say, 80,000, thereby making it a fully paid up policy with a full face value of 300,000.
- The insurance policy would be assigned to the bank in the form of a progressively reducing collateral without the member having to make any monthly payments.
- The insurance company would instantly benefit by receiving say, 80,000 x 100,000 members = 8 billion.
- The bank could realize the value of the insurance policy as each member passes on less the loan amount to be repaid on the outstanding loan. This too would be in billions.
- Consequently, for each member to receive the $79,000 for ages 28 to 66 or $154,000 for ages 1 to 28 is not unreasonable. The commissions of 3000 per referral paid out are also quite palatable from the loan. The signature of the member on the promissory note should be quite safe as each member has assigned the insurance policy (not his house) as a collateral.
- The whole process is nothing more than what the banks do to create loans using individual signatures on promissory notes as well as Mortgage backed securities. This is normal banking business done in billions every day and approved legally by the legislatures!!
- The only difference is that instead of a mortgage on a real property, it is done on the value of the insurance which too has real monetory value.
- The banks as well as the insurance companies are in need of liquidity. What could be a better method today to create such liquidity than through the process of the Global Pension Plan?
- Absolutely ingenious. My hats off to Global if this is how or similarly the process works.
- I hasten to say that I am no expert and I do not know what the financial industry’s regulations are for such a process. However, what they are doing is no different from what is normally done to issue insurance policies and loans (via reverse mortgages)!
- So I dont see why it would not work. Keep in mind that all money no matter how many billions, are created as debt out of “thin air”. Consequently, there is plenty of it. Truly, God has abundance for us children. We only have to figure out a system to tap into such abundance. I sense that Global has figured this out ingeniously. My hats off to them.
- My only hope is that it is a company of integrity and does everything to meet its commitment to pay the members and pay them on time.
- As a note, it is the individual member who is truly providing the value by his signature on the promissory note to create both the valuable insurance policy and the loan. Without the member participating, the insurance company and the bank OR the Global Pension Program, are helpless!!
- Consequently Global should worship the participating members since truly they are the channel through which such abundance is generated for the bank and the insurance company, combined in the Global Pension Plan..
- I truly hope that Global would have a bigger mission to help the millions out there who are in need of cash including a lot of poor and hungry people.
- Also in terms of creating inflation by creation of the additional funds, assuming that 100,000 units are paid out say, at $180,000 per unit, results in a payout of say, 18 billion. This translates to $60 per every US resident! I dont think this is going to make a dent in inflation!! So it really does not harm the economy overall by the additional funds in the system. In any case they are matched by valuable equity in the creation of additional value in new insurance policies! So additional dollars in the system are matched by additional assets.
What do you think?
What do YOU think?
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i made a load of money on global pension so you cant tell me that its a scam i am now rich because of it.
How is the Global pension plan doing now as I have a friend who is waiting for a payout on several policies.
Thanks,
rob
how much money did you make? and how did you get paid when everyone else is still waiting for a pay out date? I think you are just deluding you’r self, keep dreaming
I have no doubt the system can work. My doubts are as if the company is honest or not, and since 99% of Online Investments programs are scam, why should this one be different?
Time is running out for them anyway. 1st of February or some time in February before the payout? Let’s see.
“9. The only difference is that instead of a mortgage on a real property, it is done on the value of the insurance which too has real monetory value.”
And as they say, Aye, there’s the rub.
The difference is that these policies have no monetary value beyond what is paid into them over time and investment gains on that value over time.
A reverse mortgage draws down on equity that has accrued over the life of the property and gains in real value over time. The potential value of a reverse mortgage is based on this accumlated value. It also is collateralized by real, tangible assets which reduces risk and effects a lower cost/higher return to the buyer since lender holds leins against the actual property as a means to reduce risk and if necessary recover its investment. Payments are calculated based on the acculated value. For example, if there is $100K in equity that has been built up in the property, then that amount is divided by the number of years that define the term. Somewhat more complicated in practice, but for purposes of simplicity assume that it roughly equates to $100K/20 years = $5K/year = $416/month. A policy with $50K in equity would yeild $208/month, and so forth reflecting a division of accumulated asset value over time. The point being, in all cases, the return reflects the accumulated real monetary value, not some unsecured potential future value of the underlying asset.
Turning to the RPP-type policies, there is no value inherent in the policy itself and it has no underlying asset value beyond the money paid into it and gains on investment from that money. It’s a note - a piece of paper that reflects a promise to pay a defined amount at a given time in the future. It will have the same inherent value whether held directly or sold to a secondary investor. Regardless who the holder is, it will always be a note yeilding a defined amount at a given time with a cash value equal to money paid in minus fees and expenses. The cash value is calculated based on the premium that is assumed to be paid into the policy over time per a prescribed schedule of payments, plus estimated gains on investment for that money over time, minus fees, expenses, and other costs, and profit to the selling company.
According to GPP, compensation for the investment group relies on a 200,000 future value of the policy - the current-dollar 120,000 invested = 80,000 return. Depending on assumptions for time frame and average age of members comprising the pool, this represents a return equal to about 1% to 2% APR to the party holding the policy regardless who that may be.
Obviously, no investor accepts that deal. Even less believable when considering that they would be putting up 12 billion for the total package. So now we have a major problem. If the return to the investor group is not realistic, then there’s no source of funds for the members, insurance company, or anyone else.
The usual rebuttal to this by supporters is that the policies are in some way “special” and/or “unconventional” and are structured in a way to yield the full 200,000 value on an immediate basis. Also, it’s been suggested that because the Trust represents an “Accredited/Sophisticated Investor,” a term used to reflect a less protected and restricted class of investors with respect to private investments under securities laws, that these policies gain full face value immediately. Unfortunately, this doesn’t wash. For every dollar paid out, there must be some party paying that money in; otherwise, it would not be there to pay out. That would mean that the insurance company would be trading 200,000 out immediately for only 41,000 received without the benefit of the time value of the money invested. It’s clear that’s not happening and that no company would sell a policy that could be instantly converted to full face value regardless who it might be sold to.
It also should be clear that the Accredited Investor reasoning is false since in that case all notes, bonds, and other future-valued investments held by investment groups would be instantly converted on that basis.
Furthermore, if the immediate value scenario were true, then there would be no need for the whole collateralized loan scheme since the policies would have full value as negotiable instruments on their own which contradicts and makes the loan/collateraliztion scenario presented pointless.
Another argument made is that these sophisticated investors can in some unspecified way leverage the value of the policies or sell them to other investors at a higher value. Again, unfortunately, this makes no sense in the case of a fixed, long-term investment. It’s worth $200,000 in N years to anyone who owns it. That’s it. Regardless who it’s sold to or sliced and diced, it’s still only worth 200,000 after N years, and a 1% to 2% return remains equally unattractive to any down-stream investors. It can’t gain value beyond face value and can’t be effectively leveraged. The only way to improve the return is to (1) buy it for less, which means the seller would be taking a loss equal to the difference, or (2) to shorten the time frame for pay out to less than about 10 years.
This deal becomes even more suspect when you consider that on one hand they have the investment group, whose business centers on optimizing returns on their investments, making a capital investment of 12 billion to receive a return only 80,000 for each policy in future-value dollars over a 30-year term, while at the same time for no apparent reason simply giving away to members 55,000 to 100,000 in present-value dollars which are worth far, far more given the time value of money and would not be handed off in this way. Surely, such a sophisticated investment company could find a more beneficial way to attract investors at lower cost and a much greater return to it.
[…] Here’s an interesting post I found today.Have a look for your self, Here’s an excerpt, please read the full story at the blogI hasten to say that I am no expert and I do not know what the financial industry’s regulations are for such a process. However, what they are doing is no different from what is normally done to issue insurance policies and loans (via … […]
Just another Pyramid scheme.
It’s worse than pyramid scheme. There isn’t even any payout at all as of now.
I wonder if they have been paying out people for referrals.
I have signed up for that Pension plan as well paid 49 Dollar via e-bullion in 2007 thinking we blow so much money away in HYIP’s so why not give it a try. Still no news now about it, even if the system itself would make sense.
Thanks to the great information received here. Now let see where it goes from here.
The amount is small yes… it seem small, but with 100,000 members filling up the spot, it’s no small money for organisations or scammers to enjoy themselves.
Hope you have positive news and outcome out of this Fred, but it’s really unlikely.
Thanks for visiting nobsInvest
When is the payout?
When was the payout supposed to be?
Why did these internet banks, drop them. Has anyone checked their rating?
How come there has been no solution?
Just questions… Check them out
MikeCheck
Im in the GPP and now they are asking for our copy id docs which I am reluctantly wanting to forward due to identity fraud, but i dont think its the id fraud they are after. Im sure its going to pay out but to them and not us.
I think Stella is a bloke!
hi GPP where are you? When can i accept your competation come on.. i’m in indonesia don’t be hide & seek oK.. I don’t want hear many reason,this the date as your promises. please tell all the sponsor so i know. Help me…
My mom called me today asking me for scaning my passport for the global pension plan thing shes got going! HAHAHAHAHAHAHAHAHAH!
Well GPP hats off, enjoy the cash…..spend it well like on drugs and women…or what ever rocks your boat… but remember you are just theives.
well, I suppose we ALL want to believe there is a magical program that will actually pay out and solve our financial problems and make our dreams come true. That’s apparently what these people are counting on and according to them, the 100,000 member goal was met. But then in August they claimed that it wasn’t just 100,000 members that they needed but 100,000 sets of ID documents from members so guess what… THEY STARTED SELLING MORE “POLICIES” under the guise of finding 100,000 people willing to send in copies of their passports, birth cirtificates, drivers licenses, etc. Yesterday, September 15, 2008 was the SECOND deadline for getting in the required number of documents. As of right now, there is NOTHING in the member forum about either a pay out OR yet another extension. Has Stella and company disappeared to some tropical island with all that money? Only time will tell. Wouldn’t it be nice if the skeptics were proven wrong and the little guy who refuses to stop dreaming finally got his big pay day?? It’s always nice to dream…. I welcome info from any GPP member who knows what the fate of the program is now that the 9/15/08 deadline has come and gone.
My Guess is Stella will say in a couple of days/weeks/months,
“Dear members !!
What an adventure !! We have now received 96,289 documents. Well done everybody !! We only need 3,711 members and we’re there. I am looking at the pile of cash as I speak. It’s right there in enveloppes ready to go. It has your name on it !! But until we receive 100,000 documents, we can not complete the Plan.
In order to help, we have re-opened access to new policies. Are there people you know who would be ready to send in their documents straight away, now that we know for sur pay out is only a couple of weeks away ? “”
then, another 2 days/weeks/months down the track.
” Dear Members ,
WE MADE IT.. I had tears in my eyes this morning when I entered the details of our 100,000 member in our system. Our sophisticated investor couldnt beleive his sophisticated ears when i called him to tell him the news.
IT’s HAPPENING RIGHT NOW !!!
YOu BETTER BELIEVE IT.. Today you will be able to laugh at all the skeptics out there, all the negative people that deemed GPP too good to be true !
All thats left is for us to make the bank transfer to you. In order to do so, our bank is asking you, the beneficiary, to pay a nominal fee of $105 (standard rates).
What is $105 compared to $110,000 that you will receive !!!!
As soon as 100,000 members have paid their nominal fees, the money will be transfered in your bank account, WITHIN 24 HOURS !! Yes, you’ve read it right, WITHIN 24 HOURS !!!
Thank god all the hard work, all the long wait has finally come to an end. A SUCCESSULL END !!
Now hurry up and pay the nominal fee.
Yours trully
STELLA.”
What do you think people ?? sound feasible ?
It sounds like exactly what all the bashers have been expecting all along… you can only get paid if you give us some more money.
This one is most definitely too good to be true i’m afraid.