When Smart People Lose Money in the Market

You thought you were on track to retire. You listened to the advice, bought all the funds they said you should have, maxed out the 401(k) contributions, sacrificed some dream vacations along the way, and you were all ready to quit your job in a couple years. Then the market was doing so well, you were advised that you could retire even sooner.

So you did.

And market volatility now has you concerned about whether you made the right choice. Your portfolio today isn’t going to generate the rosy returns you thought it would a year ago.

And that annuity product you didn’t understand to begin with? What the heck is that thing? How long are you locked up? And are the deferred tax features really needed in your retirement account anyway?

Do you feel totally stupid?

Perhaps you’re scared, embarrassed, maybe just angry. And feel guilty as heck for following advice given by someone else that led you to where you are now.

If any of this sounds familiar – either because it happened to you or you know someone else in the same boat – it can be easy to feel like there’s nothing that can be done about it. It may be something you’re ashamed of and don’t want to talk about. You think it’s all your fault.

In some cases, that may be true.

But in many other cases, being in a tenuous financial position after following the advice of a financial professional may not be your fault. You may have been the victim of some wrongdoing.

And you may be able to get some – or even all – your money back.

Here are a few examples of situations that may result in recovering investment losses:

1) The investments in your account were inconsistent with your risk profile. If your risk profile was low or moderate, and your investments high risk, then there’s a good chance that compliance or some other supervisory people were asleep at the wheel. Or perhaps your financial advisor never updated your account profile after convincing you to retire.

2) The investments or insurance products you purchased declined in value much more than the “average” comparable products did. While this factor alone doesn’t mean you have a case, it can be an indicator that is worth further investigation and that there was something wrong with the investment itself.

3) Your broker has been fired and has multiple customer complaints. While this alone is not a reason you have a case against the financial firm, it is often a sign that something was going wrong with that broker, his or her manager, or the firm in general. Where there’s smoke, there’s often fire….

4) Your gut tells you there’s something wrong…. This one may seem a bit out there, but often our gut feeling is the right feeling. If you feel something isn’t right, then at least have your case looked at by a lawyer or another financial professional, just to see.

Sure, investing can be risky. But if you lost your shirt, it may not have been the result of market risk that you assumed – it may be the result of something bigger and badder than you ever realized.

If you’re wondering if your situation is one worth looking into, reach out and talk to use. We’ll be happy to share our thoughts. And if we’re not sure and think maybe you should connect with another lawyer, we’re always happy to make an introduction.

But most importantly, don’t be embarrassed.

Lots of smart people lose money. You’re not alone.