Quote:
Originally Posted by rain_e
So how responsible is an advisor? I'd gladly hire one to try and make me money and if he loses any of it I'll just sue him?
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That's not we mean at all.
Scenario 1: Your parents are 70 and low-risk, low-knowledge investors. Some guy comes in and gets them to borrow on their mortgage-free house to buy a $200,000 portfolio of high-risk stocks. Market tanks and 10 months later it's worth $100,000 so they sell because they're laying awake at night with worry. He should be sued and the clients would have a very good case.
Scenario 2: You're 35 and a risk taker. You're one of the elite CP earners with an income well into six figures. You ask your advisor for a portfolio of high-risk stocks. He has lengthy discussions with you detailing the risk, all documented in his meeting notes. He fills our a KYC profile that you sign off on. Your $200,000 drops to $100,000. The advisor has done everything right and you have no case.