This title came out of a conversation when all of the Financial Bloggers got together, a while ago, and 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,
I wonder 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), but there does seem to be 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?