Ambulance Chaser Ads target Investors
Annoying lawyer ads… We see them so often on TV that we literally tune them out – unless they happen to be about something that is relevant to our life.
You know the ones I’m referring to; I call them ambulance chaser ads. They have a common theme; “Have you been hurt in accident?” “Have you had your arm ripped off in a farm machinery accident through no fault of your own?” “Do you and/or anybody that you may know now, in the past or in the future, have mesothelioma? You can get paid for that!”
Yes, I know, it’s a ridiculous example, but I’m making a point.
Ambulance chaser ads have become so numerous and inane that we tune them out more often than not. However, one broke through my filter the other day. It went like this: “Have you lost money in the stock market? You may be able to recoup those losses if your broker…”
The rest was the dreary legalese, but the point that hit me is that brokers are not above the law. When they are the cause of loss you can (and probably should) sue them.
I thought about this a bit and visited their website to see what constitutes a legal case against a broker. I found it interesting, and, quite responsible. There are many ways brokers can violate legal and ethical obligations to a customer. Most of lawsuits are the result of; broker misconduct, recommending unsuitable investments, Misrepresenting or Omitting Facts, Excessive Trading or “Churning”, and Concentration (another way of saying your portfolio is poorly structured).
As a fiduciary Investment Coach, (when it comes to analyzing investor portfolios), I’ve seen portfolio construction based entirely on commissions- for the broker! I’ve seen cookie-cutter portfolios- the one-size fits all- for all from certain brokerage firms. I’ve seen portfolios loaded up with actively-managed mutual funds, which are not even diversified.
I’m often shocked to see how brokers have violated the 3 simple rules of investing. And I’ve seen way more losses caused by broker malfeasance and incompetence than you can imagine.
As a Fiduciary Investment Coach, based on my fiduciary duty, I can’t put a client in a mutual fund knowing that the fund manager is statistically not going to beat his index. It is my legal obligation to put the client in the ‘right’ funds, achieve market rate of return, and eliminate activities such as unsuitable investments, excessive trading & churning, and concentration.
Work with a Coach and get your portfolio broker-proof. Oh, and if you’ve lost money due to a broker’s incompetence, give me a buzz. I’ll give you the link to this firm’s website so you can see if suing the broker makes sense for you.