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(NBC News)   Greedy old person cashes out retirement saving to join a get rich scheme, gets ripped off, and then is shocked, SHOCKED, she has to still pay the tax penalty for clearing out her IRA   (nbcnews.com) divider line 111
    More: Dumbass, Ponzi schemes, IRA, Franchise Tax Board, rate of returns, retirement, United States Department of the Treasury, credit bureaus  
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10834 clicks; posted to Main » on 04 Aug 2013 at 5:40 PM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-08-04 06:52:00 PM  
She should have invested in Beanie Babies.
 
2013-08-04 06:53:07 PM  
and promised to deliver more than 25 percent returns by investing in his company.

How do you diligently save $1M and then fall for a claim like that?
 
2013-08-04 06:57:34 PM  
The only thing that can make this better is an investigation into how this idiot accrued 1.3 mil in the first place.
 
2013-08-04 06:57:42 PM  

madgonad: Adolf Oliver Nipples: EvilEgg: You have to be suspicious of 25%.  If someone is offering it to you, you have to wonder why they haven't bought it all up themselves already.

This. If you're smart enough to save your money in sufficient quantity that you can retire comfortably, how can you fall for such an obvious scam? 25%? Bullshiat.

You must not know how to invest.

My investments - across 401k, Roth and Traditional IRAs have provided me a 21% return to far this year.




You guys sound like amateur investors.

On the Internet I make a 50% return every year.
 
2013-08-04 06:59:09 PM  
She can always go on Welfare.
 
2013-08-04 07:00:19 PM  
haha!

stupid greedy low-esteem coont
 
2013-08-04 07:00:47 PM  
She would have been better off cashing out and playing Powerball
 
2013-08-04 07:01:32 PM  
Here she is a couple years ago on an infomercial for a self-help book:  http://www.youtube.com/watch?v=bkAdeus1AMI .    Assuming this is the same lady, she retired from Pacific Bell as a project manager.   http://bernicetingle.com/
 
2013-08-04 07:05:06 PM  
msnbcmedia1.msn.comfs02.androidpit.info
 
2013-08-04 07:07:34 PM  
Free market!
 
2013-08-04 07:17:42 PM  

Lachwen: How did this lady manage to get as much money as she did without learning that someone promising huge returns on an investment is full of shiat?


Wondered that myself. And you'd think $1.3 million would be enough to scrape by on for two people.
 
2013-08-04 07:23:36 PM  

fusillade762: Lachwen: How did this lady manage to get as much money as she did without learning that someone promising huge returns on an investment is full of shiat?

Wondered that myself. And you'd think $1.3 million would be enough to scrape by on for two people.


It depends on your living expenses and expectations of living. If you are used to blowing money left and right going out for dinner, taking vacations often then you can burn through money mighty fast. If you set a budget for yourself at the start of the money and actually document everything that comes and goes, you'd be mighty surprised how much you spend.

/for example its my birthday tomarrow, wife wants to take me out to a seafood restaurant for king crab, I am waiting to see what the price of king crab is at the local seafood market. If its over $20 a pound, I will probably just get a case of beer and two dozen oysters instead. I really just don't want to give restaurants money I worked for just so they can cook and charge me 500%.
 
2013-08-04 07:26:36 PM  

Misconduc: atomic-age: If you are fortunate enough to retire at 45, yet shady enough to "invest" 1.3 million with Billionaire Catt, I have to wonder where the 1.3 million came from. You can't scam an honest person.

Just because she's smart in one area does not mean she's a criminal or stupid. My father in the 70s and 80s bought up a crapload of rental property, thing about rental property is you have to buy and maintain it for many years before you sell on it. Rental property however makes aboslutely no money, you just hope the cost of property rises, thus is when you sell and enjoy your retirement. He sold all of it and invested the money, sure enough when the economy tanked he got a bunch back in foreclosure.

He acquired over a million in retirement, and invested it back into mortgages on grounds if they foreclose, he gets the property. It worked out for him, not me however now I'm stuck with over 15 houses and 30 apartments.

It seemed smart investing on his part, problem is I gotta take care of houses that are up to 200 miles away. And you can't sell them if theres a mortgage on them or you walk away with nothing, even worse if the housing market hasn't gone up.


Wanna trade for the waterlogged 6.6 acres in Hickistan, Alabama that I haven't fully inherited yet? (It's still in probate.) There's a gun toting redneck whose trailer is across the property line, half the trees are beetle-killed, and the redneck neighbor's been using the land for free for 40 years.

I didn't think so.
 
2013-08-04 07:33:19 PM  

atomic-age: Misconduc: atomic-age: If you are fortunate enough to retire at 45, yet shady enough to "invest" 1.3 million with Billionaire Catt, I have to wonder where the 1.3 million came from. You can't scam an honest person.

Just because she's smart in one area does not mean she's a criminal or stupid. My father in the 70s and 80s bought up a crapload of rental property, thing about rental property is you have to buy and maintain it for many years before you sell on it. Rental property however makes aboslutely no money, you just hope the cost of property rises, thus is when you sell and enjoy your retirement. He sold all of it and invested the money, sure enough when the economy tanked he got a bunch back in foreclosure.

He acquired over a million in retirement, and invested it back into mortgages on grounds if they foreclose, he gets the property. It worked out for him, not me however now I'm stuck with over 15 houses and 30 apartments.

It seemed smart investing on his part, problem is I gotta take care of houses that are up to 200 miles away. And you can't sell them if theres a mortgage on them or you walk away with nothing, even worse if the housing market hasn't gone up.

Wanna trade for the waterlogged 6.6 acres in Hickistan, Alabama that I haven't fully inherited yet? (It's still in probate.) There's a gun toting redneck whose trailer is across the property line, half the trees are beetle-killed, and the redneck neighbor's been using the land for free for 40 years.

I didn't think so.


Honestly I'd be interested in getting out of florida, I am looking to trade up some houses for land. I haven't set my eyes on anything in particular but I want the fark out of florida. I did have an offer once that temped me, 17 acres in Montana, boat and trailer with a House, I almost took the offer but frankly I was actually losing on the deal and backed out (if he had 50k in cash as well I would of accepted). Guy wanted to trade his ranch so his kid could have a business, I would stay 6 months to train him up and hand it over. We just ran short on evening out the deal.
 
2013-08-04 07:33:41 PM  
Mrbogey (farkied: More like Mrbogus): She needs to do the patriotic thing and pay her tax bill. Others less fortunate than her need that money.

1) FTFA:  "she retired at age 45 in 1991".  That makes her about 67 now, above the minimum age (59 1/2) needed to cash out an IRA without paying the 10 percent penalty.

2) So the tax she owes is the ordinary income tax on the disbursements.

3) She did not pay tax on the money she put into the account.  So she owes tax on what she takes out.  That's the deal.  That's how an IRA works.  It is mathematically equivalent to paying tax when you contribute and getting the investment income tax free.

4) How do you wingnuts plan to pay for the War on Terra, for rounding up the wetbacks and for building the Great Wall of Texas, if not with taxes?  Do you expect the Pentagon and the Vaterlandssicherheitsdepartment to hold a bake sale?
 
2013-08-04 07:36:45 PM  
"Get rich quick scheme" AKA gold. LOL
 
2013-08-04 07:45:01 PM  
Why is it acceptable to pay a penalty to get one's own money?
 
2013-08-04 07:46:03 PM  

rumpelstiltskin: "For a little over a year, monies were coming in like they were supposed to and allowing me to sustain,"

Not just one money; many monies. I like the word monies. Monies, bunnies, fo-wunnies on a sunny day. Of course, if I were to use it in a sentence like in the article, a nearby banker might overhear me and correctly decide I'm too much of a farking rube to not rob.


andys-backing-tracks.webs.com
 
2013-08-04 07:47:35 PM  
i183.photobucket.com
 
2013-08-04 07:48:50 PM  
when you've experienced many relatives aging you'll see first hand they are no longer as sharp as they were in their younger day. as honest and helpful as you may want to be there is no helping someone who is convinced they know better.

normal every day senior citizens being conned out of every penny is nothing new. since this does not happen to the wealthy powerful families who own corporate/government it's going to be a really long time before honest relatives and overseers are tasked with making sure the aging do not fall victim to scumbags.

my mom pissed away three inheritances that amounted to a fortune. she's as mad as a hatter (mental illness runs heavy in the family) but her being a sole surviving niece saw $$$, houses and property come her way three times. her 4 adult children had no legal standing to make certain she was not a victim of her own doing.

thanks a lot, Obama. 'murica can always count on their leaders to make certain the population is taken care of.
 
2013-08-04 07:50:24 PM  
Always not surprised to see the fark liberals celebrate an old person / retiree getting scammed, lose everything, then get stuck with a huge tax bill. The same douche-bag 47% who pay nothing in federal income tax, who demand every imaginable service, and who contribute absolute jack sh*t to the common good. F*cking scum of the Earth.
 
2013-08-04 07:55:58 PM  

WhoopAssWayne: Always not surprised to see the fark liberals celebrate an old person / retiree getting scammed, lose everything, then get stuck with a huge tax bill. The same douche-bag 47% who pay nothing in federal income tax, who demand every imaginable service, and who contribute absolute jack sh*t to the common good. F*cking scum of the Earth.


0/10.  Free market theory states that a fool and his(her) money are soon parted.
 
2013-08-04 08:00:31 PM  

WhoopAssWayne: Always not surprised to see the fark liberals celebrate an old person / retiree getting scammed, lose everything, then get stuck with a huge tax bill. The same douche-bag 47% who pay nothing in federal income tax, who demand every imaginable service, and who contribute absolute jack sh*t to the common good. F*cking scum of the Earth.


This also made me LiberaLOL. Good job, Comrade.
 
2013-08-04 08:02:43 PM  
Sounds like she was very smart with her money, right up until she wasn't.
 
2013-08-04 08:05:32 PM  

YouFarkingIdiot: Broke-arse Farkers spew hate against successful person.  News at 10!


I'm really not sure that word applies to the subject of TFA.
 
2013-08-04 08:08:11 PM  

HempHead: madgonad: Adolf Oliver Nipples: EvilEgg: You have to be suspicious of 25%.  If someone is offering it to you, you have to wonder why they haven't bought it all up themselves already.

This. If you're smart enough to save your money in sufficient quantity that you can retire comfortably, how can you fall for such an obvious scam? 25%? Bullshiat.

You must not know how to invest.

My investments - across 401k, Roth and Traditional IRAs have provided me a 21% return to far this year.

You guys sound like amateur investors.

On the Internet I make a 50% return every year.


You're all amateurs. MY investments make over 150% per year tax free, and provide a side benefit of new BMWs and gorgeous women once a month.

/Typical Fark Investor
 
2013-08-04 08:11:21 PM  

Eapoe6: Why is it acceptable to pay a penalty to get one's own money?


It counts as income once you take it out to use it.
 
2013-08-04 08:11:53 PM  
People are inclined to trust other people.  That's how scam artists work.  It's not a matter of her having sat down and crunched the numbers and not been discerning enough.  It was a matter of her disregarding her suspicions because a schemingly charismatic actor made sure to constantly reassure her, play off her better nature and vulnerabilities, and entice her to do something she wouldn't normally do.

As far as being taxed on it, I don't see why she should be, assuming it was all directly lost to the scam.  Taxes are not a punishment meant to befall anyone who dares to touch our sacred green pieces of paper.  The theory is supposed to be "Oh, you have a lot of money, you can certainly afford to spare a portion  to support the society in which you live."  If you got really drunk and won $50 billion from Bill Gates in a bar bet, then immediately lost it back, would it make sense that you leave the bar owing $50 million for the initial transaction, even though you don't have any more money than when you arrived?  If the government doesn't want to risk losing their cut of the IRA withdrawal, they should collect it at the time of withdrawal, or annually from the interest itself.
 
2013-08-04 08:12:23 PM  

vincentfox: YouFarkingIdiot: Broke-arse Farkers spew hate against successful person.

Indubitably!

She was a SOPHISTICATED INVESTOR, the man who happened to lose ALL her money is not at fault.


Didn't say it is not her fault.  And didn't say that we should expect a different set of rules for her instead of having to pay the early withdrawal taxes.

But nothing here says that the woman did anything wrong (like making her million by dishonest means) other than fall for a scam.  If someone had done the same with $10k being their full retirement, there would be much less envy and hate here.
 
2013-08-04 08:13:18 PM  

stiletto_the_wise: HempHead: madgonad: Adolf Oliver Nipples: EvilEgg: You have to be suspicious of 25%.  If someone is offering it to you, you have to wonder why they haven't bought it all up themselves already.

This. If you're smart enough to save your money in sufficient quantity that you can retire comfortably, how can you fall for such an obvious scam? 25%? Bullshiat.

You must not know how to invest.

My investments - across 401k, Roth and Traditional IRAs have provided me a 21% return to far this year.

You guys sound like amateur investors.

On the Internet I make a 50% return every year.

You're all amateurs. MY investments make over 150% per year tax free, and provide a side benefit of new BMWs and gorgeous women once a month.

/Typical Fark Investor


and once I withdraw it, the IRS will give me money.
 
2013-08-04 08:16:53 PM  

Lee Jackson Beauregard: Mrbogey (farkied: More like Mrbogus): She needs to do the patriotic thing and pay her tax bill. Others less fortunate than her need that money.

1) FTFA:  "she retired at age 45 in 1991".  That makes her about 67 now, above the minimum age (59 1/2) needed to cash out an IRA without paying the 10 percent penalty.

2) So the tax she owes is the ordinary income tax on the disbursements.

3) She did not pay tax on the money she put into the account.  So she owes tax on what she takes out.  That's the deal.  That's how an IRA works.  It is mathematically equivalent to paying tax when you contribute and getting the investment income tax free.

4) How do you wingnuts plan to pay for the War on Terra, for rounding up the wetbacks and for building the Great Wall of Texas, if not with taxes?  Do you expect the Pentagon and the Vaterlandssicherheitsdepartment to hold a bake sale?


I'm agreeing with you that this fat cat needs to pay her damn fair share and society shouldn't suffer because she made a mistake.
 
2013-08-04 08:23:04 PM  

KrispyKritter: when you've experienced many relatives aging you'll see first hand they are no longer as sharp as they were in their younger day. as honest and helpful as you may want to be there is no helping someone who is convinced they know better.


I've had to help out an older relative several times, and she kept saying, "You'll get that back when you inherit the house." Not that I relied on it, but that's already worked out to nothing because she took out a second mortgage during the boom and "invested it" in something another relative pushed her into, which is of course now worth nothing. If she's lucky, she'll get to keep the house...

People get old and not as sharp, and do stupid crap.
 
2013-08-04 08:29:27 PM  

YouFarkingIdiot: If someone had done the same with $10k being their full retirement, there would be much less envy and hate here.


There would be exactly as much mocking, which is what we're doing to this, *cough* successful person here.

/don't envy her idiocy
//certainly don't hate her for it
 
2013-08-04 08:36:48 PM  

Eapoe6: Why is it acceptable to pay a penalty to get one's own money?


That's the other part of the deal you make when you use pre-tax money for your IRA.
 
2013-08-04 08:40:14 PM  
how the hell do you retire at 45 on a million? that would give her 20k per year if she planned to live as long as her mommy-do. granted, you can live on the high hog nowadays on 20k, but think of how much it will be worth in 50 years....

and the feds let her off the hook for 85% of the tax bill, so she should be partly grateful...
 
2013-08-04 08:47:30 PM  

madgonad: Adolf Oliver Nipples: EvilEgg: You have to be suspicious of 25%.  If someone is offering it to you, you have to wonder why they haven't bought it all up themselves already.

This. If you're smart enough to save your money in sufficient quantity that you can retire comfortably, how can you fall for such an obvious scam? 25%? Bullshiat.

You must not know how to invest.

My investments - across 401k, Roth and Traditional IRAs have provided me a 21% return to far this year.


Yes, your investment(s). You didn't give it all to me and take my word for it.
 
2013-08-04 08:59:54 PM  

proteus_b: how the hell do you retire at 45 on a million? that would give her 20k per year if she planned to live as long as her mommy-do. granted, you can live on the high hog nowadays on 20k, but think of how much it will be worth in 50 years....

and the feds let her off the hook for 85% of the tax bill, so she should be partly grateful...


I know a woman who bought my fathers rental property a decade ago. Story goes like this - one of her relatives got ran over by an 18 wheeler and her family sued the trucking company and she got 2.3 million dollars inherited. She was a paralegal and her husband owned an automotive repair shop.
She jumped into the high class society right off the bat and bought a bunch of rental property without a single clue how to operate them. Fast forward to a few years ago, she foreclosed on the property and gave it back to us instead of going to court. She lives in a $750,000 house (with chickens in the back yard might i add) and drives a bran new $70,000 Lexus suv which she just bought before she handed over the property to us. Far as I know quite a few of her other rental investments fell through, but reality is my dad worked over 35 years to sell and walk away with $3,000 a month, and she struck it rich with family dying.

Rather then be smart about it, she spread that money faster then butter on a biscuit.
 
2013-08-04 09:19:57 PM  

EvilEgg: You have to be suspicious of 25%.  If someone is offering it to you, you have to wonder why they haven't bought it all up themselves already.


I wonder if they had had a romantic relationship.  If so, she may have trusted that guy more than she otherwise would have.
 
2013-08-04 09:28:33 PM  

HempHead: madgonad: 

You guys sound like amateur investors.

On the Internet I make a 50% return every year.


I make more than $21,000 a week working from home on my computer, and so can you.  I thought it was a scam, too, until I saw the money rolling in.  Just PM me and I'll send you the details on how you can have a successful, part-time at-home business.
 
2013-08-04 09:36:22 PM  
You can't cheat an honest man.

That is all.
 
2013-08-04 09:46:52 PM  

SnakeLee: She says: Tingle feels like she was victimized twice: "Even if I live to be as old as my mother, I will never be able to meet that tax bill obligation," she said.

And yet: Of the two federal and state tax bills that Tingle received, almost 85 percent of her federal tax liability was forgiven as it was considered a "theft loss."

Her tax bill was 25% of 1.3 million and 15% of that is under $50k.  I mean, that is a pretty good deal on taking out $1.3 million.  People could just start cashing out their retirements and saying they got scammed


Except for one small fact you seem to have overlooked. They have to prove they were scammed. IE someone has to be convicted for the scam.
 
2013-08-04 09:56:51 PM  
What "old person"? Her mother didn't get scammed; she did.
 
2013-08-04 10:03:23 PM  

madgonad: Adolf Oliver Nipples: EvilEgg: You have to be suspicious of 25%.  If someone is offering it to you, you have to wonder why they haven't bought it all up themselves already.

This. If you're smart enough to save your money in sufficient quantity that you can retire comfortably, how can you fall for such an obvious scam? 25%? Bullshiat.

You must not know how to invest.

My investments - across 401k, Roth and Traditional IRAs have provided me a 21% return to far this year.


See what you wrote there? That's the difference between you and the investor in the article. She got a great return for a year, then threw ALL of her money into ONE investment. That is where she went wrong. Even if he had scammed her out of only half of her investment savings, she'd be ... OK, she'd be only half as screwed/stupid as she is now.

She should have known better to invest all of her money into one venture.
 
2013-08-04 10:06:17 PM  
... *She should have known better  than to invest all of her money ...

/tired
 
2013-08-04 10:10:15 PM  

MadAzza: What "old person"? Her mother didn't get scammed; she did.


She was 61 in 2007 when she met the guy.
 
2013-08-04 10:55:18 PM  

YouFarkingIdiot: Broke-arse Farkers spew hate against successful person another broke person.  News at 10!


ftfy
 
2013-08-04 11:22:07 PM  

Saul T. Balzac: HempHead: madgonad: 

You guys sound like amateur investors.

On the Internet I make a 50% return every year.

I make more than $21,000 a week working from home on my computer, and so can you.  I thought it was a scam, too, until I saw the money rolling in.  Just PM me and I'll send you the details on how you can have a successful, part-time at-home business.


Nice try, but there weren't enough misspelled words.
 
2013-08-04 11:25:30 PM  

DrBrownCow: MadAzza: What "old person"? Her mother didn't get scammed; she did.

She was 61 in 2007 when she met the guy.


Ah, I didn't notice that before, but she's still only 67. Apparently, that's astounding in the bubble-world Subby lives in.

I sound old.
 
2013-08-04 11:34:54 PM  

rindeee: You can't cheat an honest man.

That is all.


Oh...Wrong!. I was forced to cash out my IRA by divorce decree and pay for my ex-'s lawyer AND had to pay the tax penalty.

/she also got half my government pension
//so you Can cheat an honest person
/// lawyers do it all the time
 
2013-08-05 12:35:32 AM  

Mikeyworld: rindeee: You can't cheat an honest man.

That is all.

Oh...Wrong!. I was forced to cash out my IRA by divorce decree and pay for my ex-'s lawyer AND had to pay the tax penalty.

/she also got half my government pension
//so you Can cheat an honest person
/// lawyers do it all the time


 Divorce is expensive because it is worth it.
 
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