8 years Ago, MarcWites
“Risk tolerance” refers to your comfort level with the level of risk associated with investments in your portfolio. Some people cringe at the thought of investing in anything which does not result in a guaranteed rate of return, no matter how modest. Others relish the thought of putting their money into cutting-edge companies which could be “The Next Big Thing,” or which could fail dramatically. Most of us are comfortable with investments whose risks fall somewhere else along that spectrum. Furthermore, the older a person gets, the more important it is to steer away from risky investments unless they are fortunate to have funds which they can afford to gamble – and potentially lose.
Virtually all stock brokers or investment advisors will quiz you about your “risk tolerance” and your short and long-term goals before advising you what mix of investments is best for you, under your particular circumstances, your present finances and your financial objectives. A good stockbroker will propose a mix of investments which meet these goals. Unless you have absolutely no tolerance for any risk, many investments run the risk of intermittent losses, such as those resulting from dips in the stock market or other market forces, although they are considered good long-term investments.
What happens, though, when you have clearly communicated to your broker the level of risk that you are willing to shoulder, and you believe he or she convinced you to put in your money in high risk investments which exceeded the risks with which you were comfortable? What happens if the loss is not just consistent with the current state of the stock market or other companies in the same industry, but completely wiped out the funds you put in the investment? While not all investment losses can be blamed on wrongful advice, your stockbroker could be liable for your losses if the investments were “unsuitable” to your risk tolerance and investment goals. A recommendation by a broker that you invest in “unsuitable” products is a violation of Federal law, and you may have a valid legal claim for securities fraud and may be able to recover your losses.
Specifically, your stockbroker or investment advisor may be financially responsible for your losses if they counseled or urged you to put your money in investments which, at the time the advice was given, were inconsistent with your risk tolerance. For example, if you are an individual approaching or in retirement who told your broker that you want to preserve your assets and create a steady flow of income for the future, your investments should be concentrated in bonds or low-risk money-market funds, not private offerings of new companies, or other high-risk investments such as options, futures or other complicated – and confusing — investments. An investment advisor must have a “reasonable basis” for recommending any particular investment to you.
If you believe that your financial losses were not caused by normal market conditions, and that they exceeded those with which you told your broker you would be comfortable with, you should consult with an attorney who specializes in cases involving stockbroker wrongdoing. Your attorney can review your documentation to determine whether or not there appears that the recommended investments were unsuitable to your needs, and whether your stockbroker may be financially responsible for your losses.
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Marc: Congratulations on the School Board settlement! Glad you were about to get a good result for your clients. Having been your adversary early on in the case, I can say it was a long battle and the great result was due to your persistence and creative approach to the litigation. Well done!Josh Eggnatz
Attorneys often convey a sterile attitude toward clients that is often void of sincerity and compassion, and may even be condescending. Marc Wites has not lost his humanity!! Mr. Wites is an attorney that continues to stay abreast of the law, which results in excellent results for his clients. Marc Wites is my “go to” attorney when I am looking for A-rated service and quality representation. I consider Marc as not only my attorney but a friend as well.David
An impressive chamber of knowledgeable attorneys/staff that stand ready to work tirelessly on behalf of their clients. Marc Wites is the quintessential Perry Mason advocate–erudite, prepared, and brilliant. He is ready to take on any legal challenge. Above all, he is understanding of the working class. Surely, he’s not just in it for the money; he genuinely wants to help people. Overall outstanding law firm.Raymond Brown
Mr. Wites accepted my case when other lawyers would not. He never promised what he couldn’t deliver. He was realistic, upfront and honest. He actually returns phone calls. And he is willing to explain the legal process and to take time to answer questions. I would definitely contact Mr. Wites if I ever needed a lawyer again.Karla