SCARY article in today’s NY Times on the looting of aged parents’ investments. Their daughter discovered that the account, which had been “worth roughly $1.3 million at the start of 2017, had been charged $128,000 in commissions that year — nearly 10 percent of its value, and about 10 times what many financial planners would charge to manage accounts that size. In August 2017 alone, Mr. Rahn had sold two-thirds of the portfolio, or about $822,000, and then reinvested most of the proceeds, yielding about $47,600 in commissions, according to monthly financial statements and an analysis by Genesis Forensic Consulting… Mr. Rahn, who still works at J.P. Morgan, and the two managers at the firm with whom Ms. Dewart dealt did not respond to emails seeking comment.”
Please please please remember, whether you have money socked away in what you assume are great investments shepherded by someone looking after YOUR best intesests. It ain’t necessarily so.
For me, this story hits close to the bone. A trusted investment broker lost every penny of the money my father left for my mother & dependents because Mom paid no attention to transactions, once the misappropriation was discovered had more concern for the broker (“He has children!”) than herself or her children, balked – out of affection & desire to protect – at taking any action once the dirty deed was discovered.
Read the article. Be informed. Be vigilant. Ask tough questions, expected detailed, documented answers. The daughter didn’t try to track down the problem all by herself – she did part of the leg work (she does research & policy analysis), but hired a lawyer & a forensic consultant.
Read, share, learn, discuss.