We get “rebate” and “refund” and “enrollment” check teasers all the time, it’s a popular way to give investors, especially inexperienced investors, the illusion that there’s some free way to get money that they don’t know about (which many people always suspect, anyway)… the story typically is that all you have to do is sign up for a newsletter to get all that valuable inside info, and before you know it checks of $1,000, $2,000, $5,000 or more will just start appearing in your mailbox every month.
That’s never how it works, of course, but let’s look at the specifics of this latest one — the ad is from Mike Burnick, selling his Infinite Income newsletter, and he begins by providing some context that makes you start to believe that maybe there is really free money out there waiting for you:
“It doesn’t matter if you use Medicare every single day…
“Or if you’ve never used it a single time in your life…
“You’ve been paying into the Medicare fund your whole life in taxes….
“$672 BILLION and growing FAST….
“And every year, that much money is taken from YOUR pockets and housed in the Medicare Trust Funds.
“But it doesn’t stay there for long.
“In fact, some smart Americans have found an investment that actually taps into this cash flow…
“And they get to cash regular checks — ranging from up to $640… to $3,200… to some as much as $9,600 or more…
“Capturing income from the very companies that profit the most from Medicare’s $670+ BILLION-per-year payout!”
When you throw that $672 billion number out there, it starts to anchor your expectations. Then you set a range of $640 to $9,600, and that’s what sticks in the reader’s mind… subtly pushing us to think, “hey, even the bottom end of that range ain’t bad!”
To Burnick’s credit, he does use the word “investment” — some of these pitches never mention the word “invest” or give you any context about the fact that what you get back is a function of how much you invest. More of his words:
“It’s finally a chance to capture income from a VICIOUS healthcare market.
“Now… these “Medical Rebate Checks” aren’t literal rebates.
“In fact, they’re actually much better…
“Since this isn’t some handout from the government…
“It means ANYONE can invest in order to collect this cash.”
And he pulls in some quotes from respected sources, which ads use to buttress their claims and get people to keep reading… after all, if they talk about Forbes and the Wall Street Journal it can’t be scammy, right?
“Maybe that’s why Forbes describes a few of these specific ‘Rebate Checks’ a ‘No-Brainer’ and ‘Perfect for Retirement.’
“Barron’s reports that these ‘rebates’ are ‘an important part of the story and generally reliable.’
“And The Wall Street Journal says, ‘Follow the [‘Medical Rebate Checks’]’.”