The President's Account

[Joey Smith]

http://pros.palmbeachletter.com/1309PBL ... 06/?h=true

Oh grief.

[Famspear]

Duhh.....

And this super-secret double naught spy "770 account" is based on a U.S. tax code section "770"?



Sorry. There is no such Internal Revenue Code section.

EDIT: Based on a quick google search, it appears that this is just a clumsy way to try to sell insurance or some such thing (I didn't have the patience to listen to the entire spiel). It's full of the usual garbage references to supposedly secret stuff that the speaker (of course) has found.

Presumably, the British accent of the speaker was used to counter-act the effect of the otherwise unsophisticated sales pitch -- complete with a reference to a non-existent "IRS legal code section."

By the way, if this bozo actually knew anything about what he is talking about, he would know what every tax lawyer would know -- that even if there were an Internal Revenue Code section "770", such a provision would have nothing to do with the subject matter of the sales pitch in the linked web page.

[LaVidaRoja]

I TRIED to listen to the whole thing. Part of it is his trying to sell you on his investment newsletter. From what he was pushing, sounds like a lot of "pump and dump". I LOVED the inconsistencies--This "secret account" has been around for over (or roughly) 150 years! However, one of the Rothschilds invested in it in 1824!! Also, he has 1929 as being the "heart" of the great depression. Nice try. The marked crashed in September of 1929, the full and worst effects of the depression weren't until about 1932.
He speaks of being a forensic account, and of working on the London exchange. He also claims to have hired a certified actuary to analyze stocks?
770 accounts are not stock, real estate, mortgage or any other similar investment. So, what ARE they?

[AndyK]

Various Google and Yahoo searches came up with http://www.sec.gov/litigation/complaints/comp18090.htm

It's an SEC complaint agains Agora, Inc. -- the company behind the "770 Account" nonsense (which, BTW, turns out to be some form of Whole Life insurance)

Perhaps if anyone has the interest, they can follow up on the SEC issue.

[Famspear]

Here's a link to another web site. This one contains what appears to be the written text of the spiel that is found at the web site linked at the top of the thread.

http://www.lifetrustfinancialgroup.com/ ... gs-vehicle

[Pottapaug1938]

Here's a link to another web site. This one contains what appears to be the written text of the spiel that is found at the web site linked at the top of the thread.

http://www.lifetrustfinancialgroup.com/ ... gs-vehicle

Just the fact that their spiel is thrown together in one big blob, without paragraphs, would be enough to snap my wallet shut.

[fortinbras]

It appears that this "770 account" is really whole life insurance ....

http://stockgumshoe.com/reviews/palm-be ... explained/

[LPC]

As someone else has already pointed out, there is no section 770 of the Internal Revenue Code. If there were a section 770, it would be part of Subchapter K, which is about the taxation of partnerships.

However, the definition of life insurance for income tax purposes is found in section 7702, so it's possible that the idiots either accidentally dropped the last digit, or dropped it deliberately in order to create an bubble of mystery that would be too easily burst if someone could look up section 7702 and realize that they're just trying to sell life insurance.

[LPC]

And the claims that life insurance can produce gains that are income tax free and not reportable are simply wrong.

The death benefits from a life insurance are not taxable income, but if a policy owner withdraws cash from the policy during lifetime and if the withdrawals exceed the premiums that have been paid (meaning that the owner has taken out more money than he has put in, which is the classic definition of "gain" or "profit"), then the withdrawals are income. And the insurance company issues a Form 1099-R showing the gross amount of the distribution and the taxable amount of the distribution.

It's possible to defer the realization of income by borrowing against the cash surrender value instead of withdrawing cash, but then you have to pay interest on the loan.

These rules are well known within the life insurance industry, and financial advisors are always looking to exploit them, so the idea that there is some unadvertised "secret" plan is (of course) ridiculous.

[AndyK]

...

so the idea that there is some unadvertised "secret" plan is (of course) ridiculous.

Except that the "I've been conspired against" folks are falling all over themselves to take advantage of some double-secret financial gimmick which, until the guru-du-jour revealed it, has been the exclusive property of the Kennedys, Rockefellers, etc ad nauseum.

It seems that every generation of tax-evasion gurus has come up with another of these concealed tax breaks. These have included off-shore accounts, limited liability corporations, and several others which escape me at the moment.

The only things which these concealed plans have in common it that someone would be pleased to relieve you of some of your FRNs to explain the details to you or to set up some form of bullet-proof structure for you.

Unfortunately, even after the gurus crash down in flames, there is always a new generation of bottom-feeders to move in on the marks.

[notorial dissent]

It seems to me that this particular scam has been around the block a number of times before, as I remember hearing about similar versions of this years ago. I don't remember what they were calling it then, but something of a similar vein.

It would seem the old saw about history still runs true.

[rogfulton]

http://pros.palmbeachletter.com/1309PBL ... 06/?h=true

Oh grief.

And I can see a True Believer(TM) seeing the end of that URL and saying "See, even the Internet says it's true".

BTW, how do you get superscript to show up?

[Pottapaug1938]

In a story, appearing tonight on www.nbcnews.com, about the government shutdown, I saw an add from www.palmbeachletter.com about the "770 accounts".

I guess that the hustle -- I mean, the promoters -- know how to find an audience....

[AFTP]

Found this advertized on facebook of all places.

http://pros.palmbeachletter.com/1309PBL ... /PPBLPB06/

[LPC]

We've already had a thread under the name of the "President's Account," so I'm going to merge the threads.

[AFTP]

I've heard this is some type of insurance thing.

[Famspear]

I've heard this is some type of insurance thing.

Yeah, it's life insurance, apparently some form of whole life insurance. I think the people pushing it are trying to make it sound mysterious.

[rogfulton]

I found this link at the bottom of a page on rawstory(dot)com.

Some brief excerpts:

I just interviewed a man named "Tom" who discovered a secret bank account that pays 30-40 times more than a traditional savings account or CD. This account is 100% tax-free. And it pays dividends every year regardless of the markets or economy.

In addition to guaranteed impressive returns, these accounts are 100% tax free. You can even pass your hard earned money along to your heirs without paying a single penny to the IRS. That means 5% annual growth in one of these accounts is equivalent to a mutual fund that returns about 9.2%. And you get to keep ALL of it.

All of the links in the article and sidebar are described as information on 'these secret accounts' that 'they aren't telling you about' and 'paid dividends for 121 consecutive years' and that they are 'invisible to the IRS' but they all lead to the same place - palmbeachletter(dot)com.

There is even the smiling visage of Sen John McCain inviting you to 'click here' to find out how he recession-proofed his portfolio.

[notorial dissent]

So Raw story . com is really totally made up story . com!!!


I'm really sure that John McCain and his political machine might be really interested in knowing that they were shilling for something like this.

[rogfulton]

So Raw story . com is really totally made up story . com!!!


I'm really sure that John McCain and his political machine might be really interested in knowing that they were shilling for something like this.

Slanted? Perhaps.

Totally made up? Not the article on rawstory I found the link on - it was about how Bob Schieffer was unable to keep a straight face while interviewing Ted Cruz on CBS. The link was at the bottom of the page where there are paid links, like you see on almost all media web sites.