There are no guarantees. In The Wall Street Journal, Jason Zweig tells the story of Richard Whitacre, who is now hoping to get some of his money back after investing in what was billed as a “guaranteed” 15.25% return. Zweig writes:
Richard Whitacre’s life turned upside down in 2023. First the industrial mechanic in Pasadena, Md., got laid off from his longtime job. Soon after, he was diagnosed with colon cancer.
Then, out of nowhere, it seemed that a single investment would put Whitacre’s life back on track. Through a friend, he heard about a firm called Yield Wealth and the “guaranteed” 15.25% return it was offering to investors on some products.
“I figured this is an amazing opportunity and I’ll be set for life,” recalls Whitacre, 60. He talked about it so obsessively, says his wife, Kimberly, that despite her misgivings she eventually told him, “It’s your money, I have no clue, I don’t care anymore, do what you gotta do.”
In March, Whitacre withdrew his entire 401(k) from Fidelity—$763,094.21—and rolled it over into an individual retirement account with Yield, which was affiliated with a firm called Next Level Holdings.
Next Level is run by Paul Regan, whose history of financial infractions I detailed in columns on Aug. 30 and Sept. 20.
Now Whitacre, like hundreds of other investors who altogether put at least $50 million into these products, wonders if he’ll ever see his money again. Many of these people may be in desperate tax trouble.
Action Line: Whitacre’s experience with saving is sadly the opposite of Your Survival Guy’s “Save Til It Hurts Hall of Fame.” Whereas Hall of Famers like Ronald Read saved diligently in a life of frugality, Whitacre was hit with hardship and then bet it all on a “guarantee.” When you want to talk about your savings approach, email me at ejsmith@yoursurvivalguy.com. In the meantime, click here to subscribe to my free monthly Survive & Thrive letter.
