these aren't scams. they're shitty investments, unless you take into account the fact that her life expectancy is around two years and the investments can be cashed out if she dies. instead of getting 5% at a bank, she could be getting 14% on these stupid "annuities", as well as diversifying her risk away from the big banks. if the banks start failing, then all of them will go at once -- it will be 2009 all over again, when every weekend had another friday evening announcement from the fdic of another bunch of banks they'd shuttered. except that this time, federal law has been changed to allow "bail-ins", so that instead of the fdic telling you your money is now "safe" and just being managed by a different bank, the fdic will be telling you "congratulations, you now own stock in a bankrupt institution, and if they ever manage to turn it around you'll make a profit!"
United States