This title came out of a conversation when all of the Financial Bloggers got together. Michael James discussed how an “Investment Advisor” from a well known firm, convinced a loved one who was over the age of 70 to take out a loan to purchase investment vehicles. This kind of dangerous investment advice worries me a great deal.
There was much discussion about how slimy that was, and Rob Carrick (I believe) then turned the phrase,
How many folks have loved ones (or worse themselves) that have fallen victim to this kind of “investment skull duggery”?
Before I get my standard tsunami of “Margin Investing is a Perfectly Valid Investment Strategy”, it might be for you, but it really is not for someone on a fixed income that is over the age of 60 (possibly 50, but let’s not rehash that for now).
Where does this atrocious investment advice come from? Everywhere, from what I can tell (including the Internet, or maybe especially the Internet). There is a “seedy under belly” of investment advice that is out there solely to trick investors into making their “Investment Helpers” (for lack of a better legal term (that I won’t get sued for using)) more money.
I cannot comprehend how anyone could give this advice (I am willing to listen to arguments where it might be plausible to have a 70+ year old take out a loan to buy Mutual Funds, but I don’t think there are any cogent reasons), and sleep at night.
Is Dangerous Investment Advice Rampant ?
I guess the question I have for you, good reader, is whether this is common place? Have you heard of this, or is this an isolated incident?