Unsuitable Investments for Seniors: Recovering Compensation

When seniors are looking for the best investment opportunities to secure their futures, their financial advisors may bring up investing in an annuity. 

Unfortunately, annuities are very rarely a suitable investment recommendation for the elderly, and if you suffered a loss due to such an unsuitable investment, you may be able to hold your stockbroker accountable for misconduct, thereby obtaining the repayment that is rightfully yours. 

Pursuing a Financial Industry Regulatory Authority (FINRA) arbitration claim can be intimidating, but with the help of a qualified unsuitable investment lawyer, the claims process can be much easier than if you were to go at it alone.

What You Need to Know about Annuities

You can think of annuities as a sort of income that you can collect once you are no longer working. It would seem like a great investment opportunity, as you’ll initially invest a large sum of money that will then eventually make you money once ten to twenty years have passed. As you can imagine, this is a tempting and, quite frankly, easy sale for stockbrokers to make, particularly when advising seniors. 

However, it is not uncommon for the broker to fail to disclose pertinent details like how long it will take for you to actually make money off of your annuity. This is important, because the vast majority of seniors wouldn’t benefit from investing in an annuity, as they are unlikely to live long enough to earn money. This is a serious misrepresentation of the investment opportunity.

This means you’re actually going to lose money, as you’ll never get back the money you used to invest in the annuity in the first place. For most people, but the elderly especially, annuities are never the go-to investment opportunity, no matter what your stockbroker has led you to believe.

How to Hold a Negligent Stockbroker Accountable

In order to recover the compensation you’re owed, you’ll need to file a FINRA arbitration request. Since you will more than likely be seeking recovery of losses in excess of $100,000, your hearing will be heard by a panel of three arbitrators. 

Similar to how a trial would go, both you and your broker (or their brokerage firm) will have the chance to present evidence and explain to the arbitrators both how misconduct did or did not occur and why or why not the investor should be awarded compensation for being a victim of an unsuitable investment recommendation

FINRA arbitration decisions are final, and though they are still usually much faster than going to court, it is quite common for arbitrators to deliberate for as much as eighteen months before issuing a decision.

Reach Out to an Experienced Unsuitable Investment Lawyer

If you or someone you love has been sold an unsuitable investment, such as an annuity, you have the right to seek repayment for your stock loss. You can consult with a regarded unsuitable investment lawyer at Meissner Associates to learn more about what to expect from your FINRA arbitration claim. 

You can fill out the online contact form below or give our office a call at 212-764-3100 to schedule your confidential case evaluation.