Consumers invest money every day in an attempt to realize higher returns than they would get with a bank. Many rely upon their brokers for advice on what to invest in and when. Sometimes the investment pays off; sometimes it doesn't. When it doesn't, could it be your broker'sfault?
How would you know when you have a claim against a broker for a securities loss? According to securities fraud attorneys, it would occur when you have a loss anywhere over 20% of the principle amount of your investment where you used a broker. So, if you took $100,000 to an investment firm and all of a sudden you're sitting there with a 20% loss of that principle, you certainly haven't made money on it and should seek out a securities fraud attorney.
However, there are some complicated situations these days. For instance, one of the hottest products of late has been something called a variable annuity. You may be in a variable annuity and not even understand that you're in it. Variable annuities are virtually unacceptable and what we call unsuitable products for the majority for people. So, if you're in a variable annuity, then you should contact a securities fraud attorney as to whether or not that's a good product for you to be in.
Investing money can be a complicated issue. Unfortunately, stock fraud lawyers say that many consumers don't fully understand some of the terminology or tax implications surrounding those investments. For example, other things that have happened of late that are very popular are what are known as a 72(t) – (having to do with early withdrawals on retirement accounts). The average consumer isn't going to understand what that means.
The same holds true for planning your retirement by way of 401(k) accounts or other funds. Most consumers don't have the capacity to concoct complicated hypotheticals to make sure that they have enough money available to live off of depending upon life expectancy. That's where a broker comes in. However, turning the whole thing over to a broker, without keeping tabs it, can be dangerous an may result in broker misconduct.
You're probably not going to discover discrepancies for seven to 10 years down the road when all of a sudden you don't have any money left. Anyone who has questions about what's going on in their accounts, and they may not even understand how much they've lost, should contact a securities fraud lawyer to review their documents. It's a simple process and is generally free.