Everyone has read about illegal Ponzi schemes and Wall Street’s fraudulent investment scams that have resulted in major fines to companies.
What you don’t read about are legal investment scams that impact millions of investors. Following are examples of frequent abuses.
Definition: Legal scams benefit the advisor or the advisor’s company more than they benefit you.
Advisors sell inferior investment products because they pay bigger commissions.
Advisors sell company products so they can continue receiving subsidized health insurance.
Advisors tell you they are investment experts when they are new to the industry.
Advisors recommend equity investments that exceed your tolerance for risk because they produce bigger fees and pay higher commissions.
Advisors require you to sign one-sided service agreements.
Advisors recommend a variable, tax-deferred annuity investment for your tax-deferred IRA assets because the commissions are higher.
Advisor do not provide a performance report so you do not know how your assets are performing on an absolute and relative bases.
How can you protect your assets and future financial security from these legal scams? Use the free tools and services on the Investor Watchdog website.