Investment Recovery Counsel

09/01/2019

Here is a suggestion, Google “San Diego Investment Scams.” Your screen will be filled with stories about offshore investment scams, Ponzi schemes, reverse life insurance policies and other opportunities that sound too good to be true. We all need to be reminded that “too good to be true” is exactly that. Check the newest video on our site - How To Spot an Investment Scam in 5 Simple Steps:

https://www.investmentrecoverycounsel.com/san-diego-investment-scams/

08/16/2019

Are you worried about investment fraud? Check out our newest article.

As in many areas of our lives, prevention is the key to avoiding many pitfalls of modern society. The U.S. Securities and Exchange Commission website contains

07/25/2019

Investment Recovery Counsel represents investors who have been abused or neglected by their financial advisers.
Visit our website here: https://www.investmentrecoverycounsel.com

01/30/2018

New Year’s Resolution - Remember the Eagles

As the calendar rolled over to 2018, like many people, I resolved to lose some weight. Like many others, I have found this resolution to be very difficult and slow going. However, there is one area where I can trim the fat quickly and very easily. I am referring to the fat in my retirement account. While this may sound strange, it is a good thing to do. Let me explain.

Last year, I attended a presentation given by Ken Frost at WFA Wealth Managers. WFA is a respected San Diego investment advisory firm founded by Pete Wheeler and Ken Frost. I view Ken as the “numbers guy” at WFA. Ken’s presentation included the requisite charts and graphs about the current lengthy bull market; or as my favorite band, the Eagles, would call it, The Long Run.

My take away from Ken’s presentation: I should be concerned with my equity position growing too large in proportion to my overall portfolio. For example, my retirement account was set up to consist of roughly 60% equities, 35% bonds and 5% cash. After The Long Run, the value of my account was 75% in equities, 20% bonds and 5% cash. This was good news, right? Not necessarily. The Long Run will eventually end. When the market turns downward, it is important to protect against significant losses. If the equities market suffers most of the losses, my account will take a big hit. Ken suggested the best way to limit losses is to re-balance your account periodically to match your desired percentages of equities, bonds and cash. If you are closer to retirement, perhaps readjust your account to add more bonds, fixed income and cash.

My advice: Don’t be a desperado, don’t take it to the limit and find your retirement already gone. Follow Ken’s advice so you can have a peaceful easy feeling.

Mark Brewer represents investors in disputes with their financial advisors. For more information, check out www.investmentrecoverycounsel.com

11/02/2016

I have recently received a number of calls regarding "L" share variable annuities. A few of the callers now believe the L in L share stands for loser. It is important to understand what you buy --- or more likely --- what is sold to you.

Variable annuities are insurance products with the rate of return tied to underlying securities, such as mutual funds. The mutual funds associated with variable annuities generally come in the form of A shares (fees paid up front) or B shares (no fees upfront, however subject to a surrender charge for early withdrawal.) L share variable annuities are complex investments combining insurance and securities that allow for a short term hold. However, L share variable annuities pay higher fees to brokers in exchange for shorter surrender periods. The lure of higher fees has caused many brokers to sell L shares, when A or B shares would be more appropriate.

FINRA announced today that it has fined eight firms, including First Allied Securities of San Diego, a total of $6.2 million for failing to supervise the sale of variable annuities. Check out the full story at
http://www.businesswire.com/news/home/20161102006125/en/FINRA-Fines-Firms-Total-6.2-Million-Supervisory

The Financial Industry Regulatory Authority (FINRA) announced today that it has fined eight firms, including VOYA Financial Advisors, five broker-deal

06/17/2016

Many investors know that "churning an account" (the recommendation to buy and sell stocks for the primary purpose of generating fees) is illegal. Unfortunately, churning happens all the time. The article below is an excellent explanation of "reverse churning." With the looming Department of Labor Fiduciary Duty rule, reverse churning will likely be on the rise. Be aware.

Another reminder of the need to become well-versed on the fiduciary rule's conditions for rollover advice.

04/04/2016

Back in 2008 and 2009, stockbrokers and financial advisors were flooded with telephone calls from frightened and panicked customers. Most customers simply

02/29/2016

If your broker is continuously moving firms, don't be afraid to ask why. You have a right to know!

Recently, I was asked to review investment account statements for a number of individual investors who were surprised to learn their broker had unexpectedly

02/09/2016

The "Wealthy Client" Defense is something everyone should be educated on. Don't let this defense prohibit you from what you are entitled to. New post up on the blog!

After 20+ years of representing individual investors in Wall Street disputes, I have heard hundreds of defense arguments presented by Wall Street attorneys.

01/15/2016

New post up on the blog. Make sure your stock broker isn't skinny dipping!

Warren Buffet famously once said, “Only when the tide goes out do you discover who has been swimming naked.” Mr. Buffet was explaining that rising tides (or