Grossman & Associates Financial Services

Dear Client,We have received your initial complaint and have reached out to the parent company that held your investment for a detailed explanation of your financial transactionWe apologize for any perceived misinformation received and hope to get a better understanding of the outcome of your investment to relay to youPlease allow 5-business days a formal response once we have received the requested information from the parent company We will contact you directly regarding this matter.Sincerely,Stuart G [redacted]

From: STUART G*** Sent: Tuesday, March 27, 12:PM To: *** *** Subject: Complaint ID: *** Hello ***, Here is a copy of the letter that was emailed out to *** today, I have blocked out the financial information in your letterPlease let me know if there is anything else you needThank you. Dear *** ***, I am responding to your complaint regarding your investment made from Hannah’s inherited $20,The original strategy we discussed was to shelter her inheritance into the life insurance policy to lower her EFC and potentially get more financial aid for collegeBased on projected dividend rates at the time, the projected illustration predicated that you would break even by year five (please see attached illustration)The non-guaranteed dividends received ended up being less than illustrated because interest rates remained low, which caused the dividends to be lower than anticipated I want to explain why there is a gain on the policy even though there is a total loss of $Lafayette Life received the first deposit of $10,around 02/11/Lafayette applied the funds as follows: $toward the first year's life insurance policy premiums, $9,to the Level Paadditions (LPUA) rider, and $toward the term riderLafayette applied the funds on your second deposit of $10,as follows: $toward the year's life insurance policy cost, $9,to the Level Paadditions rider, and $toward the term riderFrom there the policy funded itself for the next three years as follows: $towards the years' life insurance policy premiums and $towards the term riderThe way Lafayette came up with the total premium paid is by taking the total premiums paid at $times years equaling $3,055.40, and total LPUA contributions of $9,for two years equaling $18,212.34, minus the surrendered value from the policy rider of $to fund the policy in years 3, and at $2,Based on the anticipated strategy at the time, there was no foreseeable indication that the projected funding would cause a taxable situation However, these policies are designed for long-term growth and benefits, of which any loans from the policy not repaid would impact the projected outcome, as well as any early surrendering of the policyAt the time of surrender, the policy had a cash value of $19,with an outstanding loan of $18,908.90, and interest due on that loan of $for a total of $19,460.22. Additionally, if the policy loan had been repaid as per the original strategy, the overall growth would have been realizedRegardless, your investment, unfortunately, did not perform to its anticipated potential and I do apologize for your inconvenience I would like to address this matter by offering you a settlement payment of $The net loss appears to be the difference between the $20,you invested, less the cash value of $19,at the time of surrender which equals $285, and the taxable income based on Lafayette Life’s calculations of $1,taxable gainBased on a 25% tax bracket, the tax on the gain should be approximately $I do not feel there was any misrepresentation or wrongdoing on my part; however, I hope my settlement offer eases the inconvenience you have experiencedAgain, my apologies that this investment strategy did not favor your satisfaction

Dear Client,We have received your initial complaint and have reached out to the parent company that held your investment for a detailed explanation of your financial transaction. We apologize for any perceived misinformation received and hope to get a better understanding of the outcome of your...

investment to relay to you. Please allow 5-10 business days a formal response once we have received the requested information from the parent company.   We will contact you directly regarding this matter.Sincerely,Stuart G[redacted]