Lawsuits for Inappropriate Selling of Annuities
If you are a fairly new investor, you may have heard the term annuities floating around when looking into your investment options. However, annuities aren’t actually an investment, and in many cases, they are not suitable for investors.
But that doesn’t always stop stockbrokers, firms, and financial advisors from trying to sell them, as the sale of annuities can generate a substantial commission for the broker.
When this happens, and you lose investment money as a result of being sold an unsuitable annuity, you may be able to get your money back by taking legal action against the responsible party. Read on to learn more about what an annuity is and when they are inappropriate to purchase.
What Are Annuities?
An annuity is basically a contract between an investor and an insurance company. There are many different types of annuities, but the ones that most people have heard of include annuities that provide you with income after you’ve retired, ones that cover the costs of long-term care, and legacy-planning annuities.
Although annuities can be a great option if you purchase them at the right time, they are not without risk, and annuities are not suitable for everyone.
When Are Annuities Inappropriate?
The problem with annuities is that you are putting a significant amount of money upfront and are unable to withdraw these funds without penalty until the account has matured.
This often means annuities are not a suitable investment for the elderly, as they may not live the thirty or more years it takes for the annuity to perform and provide them with the income and long-term benefits they thought they were purchasing. If a broker has sold an unsuitable annuity, the investor could recover the funds they lost by pursuing arbitration through the FInancial Industry Regulatory Authority (FINRA).
Meet with a Stockbroker Misconduct Lawyer
If you believe your broker sold you an inappropriate or unsuitable annuity, and you are interested in recovering your financial losses, reach out to a dedicated stockbroker misconduct lawyer at Wolper Law Firm. We can be reached by phone at 800.931.8452 or though the online contact form below when you are ready to schedule a free consultation.