Insurable Interest Canadian Insurance Blog

Shortly after this, two $100,000 transfers moved from Acevedo’s Fidelity account to his Wells Fargo account, the complaint alleges. Ishimatsu never intended to deposit the money into Acevedo’s account, the complaint states. “As such, Defendant Acevedo knew or should have known that the $200,000 deposited into his account was in error when received in his Fidelity Investments account on or around June 5, 2024, and never should have withdrawn the money knowing that it was not intended to be transferred to him,” it contends. Since the withdrawals to Wells Fargo, Acevedo continues to make those funds unavailable to Ishimatsu, LPL or Fidelity, making it impossible to reverse the erroneous transaction, the lawsuit contends. The lawsuit accuses Acevedo of unjust enrichment and converting the funds to his own use. Ishimatsu’s attorney didn’t immediately respond to an email seeking comment. Efforts to reach Acevedo for comment weren’t immediately successful. Image: Adobe Stock

The cash Alldridge paid into the policy, along with $456,000 he contributed in June 2023 based on Defendants’ recommendation to further secure the plan, “is gone,” it says. Alldridge has forfeited the investment returns that he would have enjoyed had Gottlieb “not instructed him to invest in this ill-fated insurance premium financing scheme and instead provided them with competent investment advice,” the suit contends. “Mr. Alldridge would have enjoyed a record-breaking period for the market instead of investing those monies in Defendants’ plan,” it says. Further, since the life insurance scheme unraveled, it will be impossible now for Alldridge, who has reached age 56 and been diagnosed with Type II diabetes, to obtain life insurance similar to that originally solicited by Gottlieb, leaving him and his family with a less secure financial future, he argues. According to the suit, Gottlieb introduced Alldridge to what he called a “white collar” life insurance plan that provided wholesale cost and exposure to the stock market for growth. Gottlieb told the client he could borrow against the plan at special low rates, allowing for the insurance policy to accumulate wealth through the spread between the low borrowing costs to fund the insurance premium and...

We think that demographics and health care are favorable over the long haul. So health care is a growth area we like to invest in. Johnson & Johnson (JNJ): In the businesses of pharma and medical devices, the diversified company has a super-high-quality triple-A credit rating, a 3% dividend yield and a terrific balance sheet. It’s taken a meaningful step toward final resolution of the multi-year litigation — which will cost $13.7 billion payable over 25 years — concerning the pending talc lawsuits against the company and its affiliates in the U.S. The MedTech segment is expected to grow revenue north of 6% in each of the next few years. We think the litigation will eventually play out, and that certainly could be a catalyst for the stock to come back. The multi-year consolidation in shares offers a great entry point for investors to pick up a defensive, long-term growth opportunity at a reasonable P-E. Molson Coors (TAP): An amalgamation of three brewing companies, Molson, Coors and Miller, the company offers brands across the value spectrum. The stock is inexpensive, trading for less than 10 times earnings per share projected in each of the next few years, though management is faced with...

Behavioral finance uncovered investors’ weaknesses. That’s helpful, as long as their vulnerabilities aren’t subjected to exploitation. Regrettably, that isn’t always the case. “There’s a dark way to use behavioral finance that emphasizes the foibles of the individual investor en route to selling them expensive products and telling them that that’s the only way forward,” Daniel Crosby, psychologist and chief behavioral officer at Orion Advisor Solutions, argues in an interview with ThinkAdvisor. The latest book from Crosby, the bestselling author and ThinkAdvisor 2024 Luminaries finalist who focuses on the intersection of mind and markets, is “The Soul of Wealth: 50 Reflections on Money and Meaning.” While its theme is how love and money coexist, the tome also offers practical financial solutions. Only 33% of Americans have a written plan, the psychologist writes. That’s because “people take a, sort of, ostrich mentality” with their money, he maintains in the interview. With automation’s increasing capabilities to create financial plans and design portfolios, together with clients’ need for their financial advisors to understand them, “the role of an advisor will look a lot more like a life coach,” forecasts Crosby, rather “than someone who deals strictly with people’s money.” Here are excerpts from our conversation:...