There’s no doubt that investors in the current economic environment
face difficult decisions when it comes to how best to invest their cash.
Increasingly, investors are finding themselves tempted to roll their investment
funds into flashy, new high-yield products that seem to promise a much
better return with little risk. However, investors should take heed: many
of these products are complicated, risky, and poorly understood—and
some high-yield investment pitches could be a cover for investment fraud
or stockbroker misconduct. As an experienced investment misconduct lawyer,
I urge you to consider these types of products carefully before jumping in.
Why You Should Resist the Siren Call of Complicated High-Yield Products
Complicated, high-yield investments, like structured retail products or
floating-rate loans, always come with risks that match the rate of return.
Although some high-yield products are pitched as “completely safe,”
that is rarely—if ever—the case. Many of these investments
are accompanied by high fees or commissions that may not be readily apparent
and may have unexpected tax consequences for investors. Additionally,
some of the newer investment products are poorly understood or extremely
complicated, making them unsuitable for most average investors.
If you are feeling tempted by a flashy structured product or other high-yield
investment, it is important that you do your own research, ask lots of
questions, and determine whether the investment is really right for you
and your financial goals.
Getting Help with High-Yield Investment Fraud or Stockbroker Misconduct
If you lost money because your broker or financial advisor failed to fully
explain the risks of a high-yield investment product, you may be able
to pursue the recovery of your losses through FINRA mediation, arbitration,
or litigation. For help with your potential case, please
contact an experienced investment misconduct attorney with Meyer Wilson today.