Have you considered how your advisor is compensated for the amount of money you committed to the purchase of investment and insurance products? Many of these investments involve costs and penalties that are not clearly understood by investors but impact how your financial advisor is compensated.
Investment and financial products provide an opportunity to enhance our wealth and transfer risk we are unable to assume. Leave it up to Wall Street to take a good thing and let the zeal for profits create unforeseen pitfalls for unwary investors and an unprepared securities industry. The investing public is at risk without a suitability review concerning these new investment and financial products. For example, insurance companies design contracts which seem to simplify yet in fact have contractual provisions which can result in financial entanglement. What do these experiences teach us? It has taught us the value of a suitability review about how investment and financial products work and when are they suitable for you based on your investment objectives and risk tolerances for any of the following:
- Equity Securities;
- Fixed Income Securities;
- Options and Futures Contracts;
- REITs, MLPs and Royalty Trusts;
- Business Development Companies (BDCs);
- Mutual Funds;
- Exchange Traded Funds;
- Alternative Investments;
- Life Insurance;
- Qualified Retirement Plans; and
- Registered Investment Advisor Custodial Accounts.
Throughout a lifetime individuals make purchase decisions based on emotions such as fear, greed, or perhaps a subjective criteria such as a financial advisor’s mannerisms, physical appearance or persuasive abilities about a recommendation. Unfortunately, this decision-making process might not result in suitable investment decisions. In fact, they can take you far from your financial goals and objectives.
Investors are advised to seek competent financial, tax and legal advice concerning the decisions they make with their investments. Klayman & Toskes, P.A. can provide you with a free consultation concerning securities industry violations related to the handling of your investments accounts by a full-service brokerage firm or registered investment advisor.
Information contained on this webpage is for educational purposes only
and should not be considered legal advice.
No Information contained on this website creates an attorney-client relationship.