Investors may have feelings that their investment account is being mishandled, but many times, they don't know exactly what to look for, or when to speak up. Fortunately, most broker improprieties fall into a handful of categories. When you know...
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Investors may have feelings that their investment account is being mishandled, but many times, they don't know exactly what to look for, or when to speak up. Fortunately, most broker improprieties fall into a handful of categories. When you know where to look, mismanagement is pretty easy to spot. Each year, hundreds of thousands of investors fall victim to advisors who mishandle their money – and, in some cases, perpetrate outright fraud. Sadly, only a small percentage of these injustices are actually reported. Here are a few behaviors that should send up red flags: Many investors move their monthly account statement straight from the inbox to the file cabinet without really reading the information. However, a close examination of your investment account statement will give you a very clear idea of how your broker or investment advisor views your risk tolerance, investment goals, and net worth. If the account overview doesn't match your expectation, it's a red flag. See less
Highlights:
Learn exactly what to look for, and when to speak up if you feel your investment account is being mishandled.