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An Investor Who Was Unsure about His Current Financial Planning Relationship

 

Imagine the person you trust to manage your money loses tens of thousands of your dollars to make commission. Investors often misunderstand or are simply unaware of the differences between brokers and financial advisors. They can look and sound exactly the same.

One of our advisors was working with a new prospect who was dissatisfied with his current situation. After looking through the prospect’s paperwork to develop a financial plan proposal, the advisor and his portfolio management team discovered that the prospect was in a potentially dangerous situation with his broker, who was constantly trading his clients’ assets, with a focus on short-term buys and sells. In fact, one position purchased and sold within two days and lost the prospect $40,000. The prospect was completely unaware of the damage to his principal investment. The advisor and his team did some due diligence and discovered the broker was facing legal action from other investors with similar complaints. As part of the prospect’s personalized plan proposal, the advisor created an immediate strategy to transfer the assets into more appropriate investments based on the goals and risk tolerance laid out by the prospect.

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