My Hyip Escapade - Global Pension Plan (Part 3)

Global Pension Plan (Part 3)

By Casey Lim, on 02-08-2007 06:12

Published in : HYIP

There was a post in the forum of talkgold.com who was doubtful. Understandable... and this is what he posted.

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Originally Posted by smashandgrab82
LOL this scam is so dumb!

Does anyone know what INFLATION is?

They claim that they will get 200.000 euro for every endowment in 30-40 years or so? and YOU will get 50-100K
but what is 200.000 euro worth in 30-40 years?
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So I went about doing so research on whether the business model from the insurance company is workable.

As dumb as this plan looks, it might be possible. If you read the brochure of GPP or from my previous post Global Pension Plan (Part 2)

It says
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A summary of the costs for the financier looks like this:
Average cost for one policy: $41.000 (x 100.000 = $4.1 billion)
Payout to each member: $55.000 (x 100.000 = $5.5 billion)
Loyalty Program Bonus, $2.000 x 12 levels $ 24.000 ( x 100.000 = $2.4 billion)
TOTALLY: $120.000 (x 100.000 = $12 billion)
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This 4.1 billion is actually used by insurance company to trade or invest or do whatever it maybe.... ---------------------------
THE INSURANCE COMPANY will get an average of $41,000 for each policy, a total of $4.1 billion. Then their traders will have an average of 33 years to make the funds grow until they have to do the payout of $200,000 on each policy. In fact the funds will grow much more than that, and of course these Endowment Policies would not exist if the insurance company would not make any profit.
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Now base on the calculations, the insurance company will have 4.1b to start investing/trading or whatever insurance company do with the premium gathered.

If they are working at 2% annual return after 33 years it would be 7.88b
If they are working at 5% annual return after 33 years it would be 20.59b
If they are working at 7% annual return after 33 years it would be 38.23b
If they are working at 10% annual return after 33 years it would be 95.22b

If this calculations were true and on an average, unit/mutual trust are reporting on an average of 8% returns on equity annually then it is possible that they can achieve 20bil (which is the total at maturity of the pension plan for 100,000 members) which would cover the total cost of the plan + administrative cost and maybe + inflation and probably some profits for the company

UPDATE BEGIN
I have verified my calculations after doing more research on the internet about equity growth calculations.

Equity Growth Calculations verified using Excel formula

UPDATE END

Thus it venture makes sense no??

If it is a scam then it is a very smart scam rather than a dumb one because they are not claiming the world. They are claiming what is viable if they get a minimum annual return of 5%..... (of course provided my calculations are correct)

I am no expert but this is what I can understand base on what insurance people tells me about how Insurance company make money from our premium....

What I understand is that Reverse Pension Plan is actually an escape route for the very rich and very famous to hide or evade tax how true I don't know.

Now after posting this in both talkgold.com and goldentalk.com, I got a reply from a member at goldentalk.com and this is what he said....

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A couple of points have been made overnight (for me at least).

Firstly, the calculations. I cannot verify the calculations, but I can verify that the endowments are highly valuable documents in the financial world. They may have many purposes, but one of them is pensions.

Many pensions now are endowment based and certainly many people don't make regular pension contributions (me included). Instead you can buy a pension in later life, by offering property value, for instance, as collateral. You can actually buy a TEP that was taken out many years ago by someone else.

I have sold two TEP's that I took out ten years previously. I sold them at a considerable profit, even though though were a long way from maturity. Obviously I didin't receive the kind of money that I would have, had I waited another fifteen years, but I auctioned them. Someone else bought them and if they contribute to them for the remaining fifteen years they will make the final guaranteed sum.

.....or they could hold them for another ten years and then sell them to someone who is nearing pensionable age, but who doesn't have a pension. That person only has to pay a monthly fee that was established and fixed twenty years previous and therefore, is very low, but which will yield a great return.

It is quite likely that this is what will happen to the TEP's we are all taking out now, but are handing straight back to the company in return for a portion of the final value of the policy.

I am sure it can be explained much simpler by someone in the profession (I am not a financial boffin by any stretch of the imagination.....I play on autosurfs for one thing! lol)

Secondly, the point about promoting GPP or any TEP for that matter. All promotional work is slow and hard work, but if you persevere, you will achieve results.

I have a website that I advertise on several traffic exchanges. Most of them don't cost me anything except a few minutes clicking on buttons each day to earn some credits. A few hundred credits (a lot of clicking) might get you one referral..........but if it has cost thirty dollars for the website fees and say ten hours total work of site building and surfing time........$2000 is a pretty good return don't you think?
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So still think it could be a scam?? Well, maybe.... Only time will tell but for a fee of €30 I think it could be worth it for me.

Global Pension Plan