Fantasy Financial Twittering:

Los Padres Salesianos taking major $$$$ hits?


Source:

Letter by some computer - generated blow - off entity calling itself Anna Maria Lang / Annuity Officer / Accounting Department.

Website: www.salesianmissions.org.

Good news:

A $10,000 cash fixed rate annuity investment right here and now will yield $510.00 per annum.

Bad news:

Folks, this all looks to me like we're talking about an annual return rate of 5.1 %.

Period.

Bad News II:

We bought into this program with an initial cash investment of $6,000 approximately ten (10) years ago @ a promised annual yield of 5.9 % total.

Thus, six (6) months later, we got our first annuity check for $177.00, which was 1/2 of the yearly total of $354.00.

And so it has been, going on 9 consecutive years this coming March 27, 2009.

Now: A Simple Financial Fact, Brother Jack??!!

Traditionally, the Salesians computed their interest rates based upon age of the investor at the time of her / his initial lump - sum investment.

Yours truly is about ten years older now, then he was then.

That means that @ a rate of increase of roughly +.1% per calendar year, any investments made now should be theoretically yielding a 6.9% return.

Thus:

Does all this merely reflect a routine periodic adjustment to preexisting financial market realities?

Or, is it the beginning of the gradual unraveling of a once super - stable Salesian investment empire?