This week we are going to focus on the story of the wronged widow, Diane. See, when Diane’s husband died late last year, she was left a sizable inheritance. At first, she didn’t want to spend any of the life insurance and inheritance because she felt as though she was not respecting the memory of her husband by doing so.
After a few months had passed, Diane got a little more comfortable with spending her money. She upgraded her kitchen stove, planned to get central air conditioning in her home so she would feel safe in the summertime (no window AC units), and even rented a little cottage on the beach for a week in the upcoming summer.
But that was all she wanted to do. She wanted to be careful with her money, so she reached out to her financial advisor (the one who had advised her husband for years prior to his death) so she could figure out what her next move was.
Unfortunately, Diane didn’t take the time to look into her trusted financial advisor beforehand. If she had checked his BrokerCheck record, she would have discovered that this man had more than 12 complaints made against him in his 20 year career as a financial advisor!
The complaints made against him included unauthorized trading, making unsuitable investments, and misrepresentation.
When Diane spoke with her financial advisor, she told him she wanted to be able to count on this money for the rest of her life. She was 72 years old at the time.
The financial advisor recommended she invest her money in an annuity, of all things. Annuities are rarely suitable for the elderly, and Diane being 72 meant that the annuity was not likely to benefit her in the long run.
The hundreds of thousands of dollars she put into the annuity were never able to be recovered.
Had she contacted an investment loss lawyer at Wolper Law Firm or another respected investment loss attorney, she may have been able to get her money back and hold the irresponsible financial advisor accountable for his negligence.
The moral of the story here is whenever you are planning to invest or work with a financial advisor, you need to do your homework and research. Look into your potential financial advisor on BrokerCheck, make sure to educate yourself about any investments they recommend, and always get a second opinion before you invest. These steps could save you considerable money in the long run.