Tuesday, April 17, 2007

Money to the Rats

To help my parents decide which policies to keep and which ones to give up. I created a spreadsheet listing all of the information available for each policy. I also inserted the United States Social Security actuary tables for both men and women and used that information to estimate as best I can future premium costs. Then I added up all of the purchase costs, administration fees, proposed premium fees, estimated future costs and divided the proposed payout by the total costs to give me a rate of principal return. On the seven policies I have information. I have computed a principal rate of return of 0.702 or 70 cents on the dollar. This number would of course be more accurate if I had better data and could even be improved if our percent of ownership of the policy increases. I don’t think there is a possibility of making a profit on this venture and have given my parents the analogy that for the past several years they weren’t investing THEY WERE KEEPING THEIR MONEY IN A MATTRESS AND THAT THE RATS ATE SOME, but maybe not all.

1 comment:

True 165 said...

Anyone who lost their ability to collect on the loss for not keeping up with the insurance premiums should contact me immediately about how this loss can now directly affect your 2007 tax return.

I also sent a letter to the receiver to see if he'd share this information with others.

I don't have the names of the investors and no way to distribute this information, maybe this blog can help.

Steve Mead
Senior Consultant
JK Harris 165 Services
1-800-830-7617 (Ext. 229)


Frequently, the tax benefit we specialize in creates more recovery through tax refunds over any efforts by a receiver.

Curtis Miner, Esq.
Colson Hicks Eidson
255 Aragon Avenue 2nd Floor
Coral Gables, FL 33134

October 10, 2007

Dear Mr. Miner,

Excerpted from your website:

Q. My investment is stuck in the Receivership. May I take a tax write-off for the investment as a loss?
A. The Receiver is not able to provide investors tax advice.

Is it possible the receivership could lead the investors to advice about their income tax options? Here is an example of a Receiver's efforts in an unrelated case; tailored as an example for the Mutual Benefits, et al. injured taxpayers.

Dear Investors,

Many of you have requested information concerning the tax ramifications of your investment into Mutual Benefits. Certain Investors may qualify for an accelerated deduction treatment under the Internal Revenue Code § 165, which allows fraud victims to lower their tax bills by claiming theft losses. If you qualify, you can potentially write off the Mutual Benefits losses and recapture taxes from previous years.

We are providing investors with a link to JK Harris 165 Services website. JK Harris 165 Services, as well as any other qualified tax professional, may be able to assist you in filing for this special tax treatment.

Please note, the Receiver and his staff are not affiliated with JK Harris 165 Services and do not derive any benefit for their services rendered in any capacity whatsoever. The information being provided herein is solely for the purpose of informing investors of this possible tax advantage.

Please remember that the Receiver and his staff are not qualified to answer your tax questions and request that you not contact our office for tax advice. You are strongly urged to seek the advice from your own tax advisor concerning this matter.

To read more information about IRC § 165 from JK Harris 165 Services website, please click the following link: