Righting the Ship (Part 1)

Do investors have rights?

It’s a fair question. After all, it’s their money. But the financial industry is filled with fast-talking rogues who might make you think twice about that. Ponzi schemes and outright fraud are only the tip of the iceberg. There are all sorts of ways for advisors can take advantage of the folks with capital that can fall short of what’s illegal.

First, investors have a right to honest, objective, competent advice. That seems like a no-brainer, but it can be harder than you think. Honest advice means that the advisor needs to know the laws—securities laws, tax laws, fiduciary laws—that govern the instruments under consideration. In today’s complex world, there are frequently conflicting issues that need to be sorted out.

For example, is it legal to own a limited partnership in an IRA? How about real-estate? Sometimes the answer can surprise you. It may be legal, but there can be significant tax implications—especially if you or a relative use the real estate that the IRA holds.

Honesty isn’t just telling the truth. It also means being clear and forthright. Anything less is simply unacceptable.

Douglas R. Tengdin, CFA

Chief Investment Officer

By | 2013-06-24T09:25:22+00:00 June 24th, 2013|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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