Elders and Financial Planners: A Conflict of Interests?

ATTORNEY NEWSLETTER

A recent disclosure from an ex-financial planner reveals a critical insight: what is financially best for your advisor may not be financially best for you. As elders face decisions about the best way to manage their assets and estates, they frequently turn to investment planners, securities brokers, and annuities salespeople for advice. But what happens when a conflict of interest arises between the planner and the investor?

In his revealing article, Roth admits that older clients bore the brunt of financial planners’ unscrupulous advising. Because of their vulnerability and their large “nest eggs,” elderly clients make appealing customers to financial planners whose profit depends on the assets of their investors. Planners make their money through fees, commissions, or a combination, and it is in the personal financial interest of planners to encourage their clients to purchase annuities and investments that give them commissions. At the same time, it is often not in the elder’s best financial interest to purchase these annuities.

As a final word of advice, Roth reminds elders to avoid any planner or salesperson who promises a “no risk” or “guaranteed” returns on an investment. The investment world is unfortunately littered with fraudulent tactics and scams, and all too many of them target elders. If you have been sold a misleading or inappropriate annuity or investment scheme, you may have been the victim of financial elder abuse.

Evans Law Firm, Inc. litigates on behalf of victims of elder abuse, and has extensive experience in annuities litigation. Contact Evans Law Firm, Inc. for a free and confidential consultation with a California lawyer at 415-441-8669 or email [email protected].