A few years ago, I had the opportunity to look into a financial product called a variable annuity. It was so complex and had so many restrictions and stipulations that the legal document associated with it was over 200 pages long. Likewise, many people have gotten themselves into trouble during the current downturn in housing because they did not fully understand the risks associated with their mortgage.
The financial industry is always striving to come up with new and ingenious ways to separate consumers from their money. Xin Liu over at Wisebread has put together a nice article that details six financial products that most individuals should avoid.
Even though I am disappointed that adjustable-rate mortgages and variable annuities did not make the list, it’s a good read.
You can view it here…
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A 401k debit card?! ...
Possibly the worst idea ever in personal finance?! ;-)