Even though it's been established that "structured products" are inappropriate for the average investor, seniors and those approaching retirement age have been a major target for these investments - making them a common type of elder fraud. The product appears to guarantee an income, but can be illiquid and there is a risk of losing everything.
Concerns over looming health issues and economic uncertainty along with potential cognitive disabilities can make these products seem like safer investments than they are. Financial professionals are supposed to keep the best interest of their clients in mind when recommending these products, but some financial advisors concentrate on the high commissions they can earn selling these products and believe that seniors are easily taken in by charm and exaggerated claims of high yields.
Structured product investments may seem like a good idea at first glance, but there are several reasons why they are actually bad for investors. One reason is that they are often sold by commission-based salespeople, who may not have the investor's best interests at heart. Another reason is that they are often complex financial instruments that can be difficult to understand. These products are often also very illiquid, meaning that investors may not be able to sell them when they want to. This can trap investors in a losing position, as they may be forced to sell at a lower price than they paid. Finally, structured products typically have high fees and expenses, which eat into any potential return on investment. In short, it is best to avoid structured product investment schemes.
If you feel you have been tricked into investing in "structured products," you may have an investment misconduct case. Contact an experienced securities arbitration attorney today. At Meyer Wilson, we represent victims of stockbroker misconduct nationwide, recovering losses for our clients in arbitration, litigation and mediation.