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How Do I Know If My Investments Are Suitable?

An investment is “suitable” when it is consistent with your investment objectives and risk tolerance and when it is reasonable given your age, your current asset mix and your employment status. Not all unsuitable investments result in losses, nor do all suitable investments achieve gains.

For example, older investors should not make investments that carry a high degree of risk, because recovering from an investment loss will be difficult — if not impossible — given their limited ability to earn income. Similarly, younger investors with a lifetime’s worth of earnings ahead of them, can tolerate increased risk. An unsuitable investment for a younger worker is one that yields unacceptably low rates of return.

When considering whether an investment is suitable, investors should consider the rate of return they hope to obtain, the risk of loss and the liquidity of the proposed investment.

Suitability is also dependent on asset allocation. Older investors should weigh their portfolios toward low-risk investments and away from most equities. An otherwise unobjectionable investment that tips an older investor’s portfolio toward equities might not be suitable for that investor.

Finally, the “suitability” calculation changes over time. A suitable investment for a younger person might become unsuitable if the person marries, has children or loses their job. Monitoring investments for suitability over time is the responsibility of both the stock broker and the individual investor.

Now is the time to talk to an investment loss recovery lawyer. We can help recover your investment loss. Free consultations, always.

Main Office - Fort Lauderdale

1250 S. Pine Island Road
Suite 325
Plantation, FL 33324
Phone: (866) 330-5167
(954)-406-1231

We represent clients nationwide, including, but not limited to: Miami, Boca Raton, West Palm Beach, Sarasota, Tampa, Stuart, St. Petersburg, Vero Beach, Orlando, Jacksonville, Austin, Houston, Dallas, Washington DC, Charlotte, Boston, Baltimore, Phoenix, Scottsdale, Las Vegas, Los Angeles, San Diego, San Francisco, Chicago, Seattle, Portland, Denver, Salt Lake City, Fargo, Atlanta, Little Rock, Newark and St. Louis

Additional Office Locations (by appointment only)

Atlanta

3355 Lenox Road
Suite 7
Atlanta, GA 30326

Indianapolis

13295 N. Illinois St.
Suite 314
Indianapolis, IN 46032

New York City

275 Madison Avenue
Suite 705
New York, NY 10016

Dallas

3102 Maple Ave.
Suite 400
Dallas, TX 75201

Irvine

2600 Michelson Drive
Suite 1700
Irvine, CA 92612

Portland

5933 NE Win Sivers Drive
Suite 205
Portland, OR 97220

Denver

7900 E. Union Ave.
Suite 1100
Denver, CO 80237

Naperville

1700 Park Street
Suite 103
Naperville, IL 60563

Seattle

1001 Fourth Ave.
#3200
Seattle, WA 98154

We represent clients nationwide, including, but not limited to: Miami, Boca Raton, West Palm Beach, Sarasota, Tampa, Stuart, St. Petersburg, Vero Beach, Orlando, Jacksonville, Austin, Houston, Dallas, Washington DC, Charlotte, Boston, Baltimore, Phoenix, Scottsdale, Las Vegas, Los Angeles, San Diego, San Francisco, Chicago, Seattle, Portland, Denver, Salt Lake City, Fargo, Atlanta, Little Rock, Newark and St. Louis