Gert-Jan Theunisse not doing so well

[Veloo]

I know the guy doped but I didn't read too much on it back in the day.
Current state is still sad to see/ read. (Unless google translate is totally off)

https://www.hln.be/sport/wielrennen/...e-op~abe0fd6d/

[Peter P.]

I can't view the article with Google Translate. I keep getting a message,
"Blocked by X-Frames Option Policy".

[Veloo]

This is what I got form it.

Sick Gert-Jan Theunisse, mountain king of the Tour 1989, also financially troubled: “Rabobank lights me up”


Dutch ex-cyclist Gert-Jan Theunisse (57) is furious with Rabobank. Theunisse, mountain king and fourth of the Tour in 1989, who lives in Spain, was in serious financial difficulties after the bank informed him at the end of March that she is no longer paying any fees to people who have bought Rabo certificates. “I have hung my whole future on those certificates,” he says at Algemeen Dagblad.

The former cyclist has lived on the Spanish island of Mallorca for almost twenty years. Theunisse suffers from serious health problems and has no income anymore. In 2014, he therefore decided to invest all the money he had left from his professional career, “six zeros”, in Rabobank certificates. Such a certificate is proof of participation in the capital of a company. In this way, he would be assured of a monthly payment of 2,000 euros net until 2035. Theunisse: "That's not much, but you can make a living from that in Spain."
False pretenses

However, on March 30, Rabobank surprised all depository receipt holders with the decision to no longer pay fees until October. This was based on an urgent recommendation from the European Central Bank. To the dismay of Theunisse, who has two children aged 6 and 13. Moreover, they promised me that the monthly benefit was guaranteed. That gave me peace, because with my heart problems I can not be stressed. So I have been scammed: Rabobank has sold me those certificates under false pretenses. The consultant with whom I made the agreements has now retired, but has confirmed to my lawyer that he has given that guarantee. ”
Risky heart surgery

Theunisse excelled in the Tour of 1989, in which he won the prestigious mountain stage to Alpe d'Huez and finished fourth in the general classification. A Round that was won by Greg Lemond. In 1995, "the Blonde Angel" had to end his career because of heart problems and after an accident two years later he ended up completely in the dorky street. His body could no longer cope with the supply of blood to the heart. With various heart attacks as a result. In the intensive department in Mallorca, he was given a specially adapted defibrillator, which he called “the machine”. But due to the decrease in muscle mass, his back problems, including paralysis, started to recur. Two hernias, worn vertebrae and intervertebral discs were diagnosed, after which he had to undergo major back surgery. And in December of last year, risky heart surgery also followed.

[mulp]

Something seems off about this. He paid "six zeros" which would be at least $1M (euros).

If he received $2k a month from 2014 until 2035, that would be a grand total of $504k, not even taking into account the time value of money this is a terrible deal. If this is true he got hoodwinked on every turn.

[steamer]

...after an accident two years later he ended up completely in the dorky street.

Sorry to hear of his troubles, all around.

[72gmc]

A shame for him and his family. It seems to be a risky strategy in the first place rather than a security blanket.

From MBS News, March 29:

"On Friday evening, the European Central Bank (ECB) and De Nederlandsche Bank (DNB) called on banks to suspend their profit distribution for 2019. In the eyes of supervisors, European banks badly need the money to help entrepreneurs and private individuals during the corona crisis, the supervisors said. To keep companies and the economy afloat, the rules for capital buffers were previously relaxed.

The cooperative Rabobank has tradable certificates outstanding on the Amsterdam stock exchange. These investment products are very risky debt securities if the bank gets into financial difficulties. However, due to the high interest that is paid annually, they are very popular among investors. Rabobank acknowledges that certificate holders are financially affected by the decision. After 1 October, it will be examined whether the dividend can still be paid in full or in part."

[Ozz]

Originally Posted by 72gmc

... These investment products are very risky debt securities if the bank gets into financial difficulties. ...

sounds like he got into financial difficulty, got bad advice or rolled the dice it didn't work out.....

Happens to lots of people who were not Tour KOM.....still sucks though.

[jlwdm]

Originally Posted by mulp

Something seems off about this. He paid "six zeros" which would be at least $1M (euros).

If he received $2k a month from 2014 until 2035, that would be a grand total of $504k, not even taking into account the time value of money this is a terrible deal. If this is true he got hoodwinked on every turn.

But he probably still has his investment dollars At the end.

Jeff

[weiwentg]

Originally Posted by jlwdm

But he probably still has his investment dollars At the end.

Jeff

It sounds like those Rabobank certificates are traded on the stock market. Also, the company clearly chose to suspend the dividend, whereas you can't do that with a bond payment (short of declaring bankruptcy, I think). I'm guessing that those certificates are like preferred stock. If so, their share prices might have taken a bad hit, and he might not be able to recoup the principal amount. Basically, it wasn't a great decision to invest in just one security. :-/

[mulp]

That makes sense, sounds like just a stock with dividends. I thought it was more of an annuity which would've been a different story.

[peanutgallery]

Reminds me of a football player who took to many blows to the head and bumbles thru the good part of life, ala Mike Webster. Sad stuff and terrible $ advice. All the heart problems go without saying

He should have hooked up with Och and Thom Weasel Hein Verbruggen can just write a check. Either way, he put on a good show in his day...pro cyclists need better representation...or just pull the plug and let the parasites who profit from them wither for a bit

[Fivethumbs]

He used to race with a pretty good amount of saddle to bar drop. I wonder if his back problems resulted from all the racing in that position. It doesn't get much cooler than this though:

[verticaldoug]

Originally Posted by mulp

Something seems off about this. He paid "six zeros" which would be at least $1M (euros).

If he received $2k a month from 2014 until 2035, that would be a grand total of $504k, not even taking into account the time value of money this is a terrible deal. If this is true he got hoodwinked on every turn.

Not really, you are thinking in $ yields. EURO yields have been low for a very long time. This is the US bond market future going forward.

Back when he bought the certificates, senior bonds were probably paying .75-1% yield to that maturity at that time. Now bonds to that maturity pay 0.10%

He could have bought some other bank hybrids which are listed but they all have callable features.

But as usual business practice of small European banks, they did screw their small bank client.

(Time Value of Money- that concept was thrown out the door in europe and Japan long ago. US not far behind)

[Mackers]

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[el cheapo]

Past performance is no guarantee of future results....or.... never put all your eggs in one basket. This rider got some real bad financial advice.