In recent years, employees have been filing an increasing number of meritorious lawsuits against employers for 401(k) mismanagement. These claims are in the tens of millions of dollars and range from disloyalty to imprudence to disregarding conflicts of interest. Some of the more egregious claims come when employers populate 401(k) plans with their own expensive and poorly performing proprietary investment…
The average person seeking financial advice for their retirement is unaware that the persons giving them advice are under no obligation to be loyal to their needs, to make prudent investment recommendations for them, or overall to act in their best interest. As a result, over the years many financial advisers motivated by their own self-interest have taken advantage of…
is currently investigating the way E* Trade recently handled the assignment of a naked in-the-money put on the S&P 500 ETF (symbol SPY). A volatile price drop in SPY on the Friday of expiration triggered a likely assignment of 5,000 SPY shares. Rather than closing out the put contract before the close of options trading on Friday, or waiting until…
In an effort to enhance investor protections, the Securities and Exchange Commission (SEC) is proposing a new rule – Regulation Best Interest – that may come as a surprise to some investors. The SEC’s proposed rule requires your stockbroker to act in your best interest at the time he or she recommends an investment to you, something that the average…
Did you know that, except in a few unusual circumstances, lenders and bank loan officers do NOT owe you a duty to act in your best interest? Did you know that it is legal for them to offer you, and even recommend, a loan that you are not equipped to payback? Oftentimes, when people decide to take out a loan,…
We want to share with you a disturbing tale we heard recently from an investor in a private investment fund. We share this to alert you to “red flags” that signal the high likelihood of investor fraud. If you can spot them, you can better protect yourself from financial predators. The enactment of the Dodd-Frank Act ushered in a new…
As the U.S. population ages, senior investors increasingly have become more vulnerable to securities fraud. Too often, caregivers ingratiate themselves with vulnerable seniors, only to secure powers of attorney and then use their new powers to drain the senior’s investment account. The so-called trusted caregiver then vanishes never to be seen or heard from again. The victim soon learns they…
Cryptocurrencies, such as bitcoin and ethereum, are intended to serve as a type of digital money that consumers can use in everyday commercial transactions. They may be traded on online exchanges for conventional currencies, including the U.S. dollar, or be used to purchase goods or services, usually online. But with one bitcoin recently trading at around $15,000, an increase of…
America’s population is aging. As people age, their mental faculties can diminish. They can become isolated, dependent, and frightened. Seniors who accumulated wealth over their lifetimes become attractive targets for unscrupulous people who prey on their vulnerabilities. It generally begins rather simply. A senior citizen with limited investment knowledge and/or limited English skills opens a brokerage account and deposits some…
Financial matters can be bewildering. Stockbrokers are supposed to help simplify the complexities and steer us in the right direction. But sometimes, stockbrokers care more about earning commissions than they do your well-being. It results in customers being stuck with dismal investments. Customers who complain are met with vigorous denials often supported by reams of “gotcha” paperwork that bear your…