Examining the risks of fixed annuities shows that this type of investment doesn’t have protection against inflation. Investors should understand this and the other downsides of fixed annuities before purchasing one. If you’ve lost money because your financial advisor invested your money in a fixed annuity, you may have grounds for a legal claim.
If your advisor made an unsuitable investment recommendation or failed to uphold a certain standard of care, they could be held liable for damages. An experienced Ohio financial advisor negligence lawyer can assess your situation, determine if you’re entitled to compensation, and explain the risks of fixed annuities further.
Understanding Fixed Annuities
A fixed annuity is a financial product offered by insurance companies that provides a guaranteed rate of return on the money you invest. When investing in a fixed annuity, you provide a lump-sum payment or a series of payments in exchange for periodic payouts.
Fixed annuities are often used for retirement planning, as they can offer a steady stream of income. However, fixed annuities come with several risks that should be examined carefully. Learning about the pros and cons of this type of investment can help you make an informed financial decision.
If you’ve lost money after being pressured into investing in a fixed annuity by a financial consultant, you could be entitled to compensation. A lawyer can take a look at your case to determine if you have grounds for a claim. A winning claim could replace your losses and give you the confidence you need to move forward with your investment portfolio.
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Lack of Inflation Protection Is a Risk of Fixed Annuities
As mentioned above, one of the main risks of fixed annuities is their lack of protection against inflation. This issue is made worse by the fact that fixed annuities are a long-term investment. Since inflation often occurs over a long period of time, investing in a fixed annuity may not be advisable.
If your advisor has put your money in fixed annuities despite the fact that you are looking for a long-term investment strategy, they may be held responsible for any losses you incur. A skilled broker misconduct lawyer can take on your case and pursue the damages you’re owed.
Additional Risks of Fixed Annuities
Lack of inflation protection is only one of the risks of fixed annuities you should consider before investing. Another downside to this type of investment is its limited liquidity and potential for high fees and surrender charges. If, for some reason, you wanted to sell your annuity, liquidity limitations, and fees could make it difficult for you to do so in a timely manner.
It’s important to note that the majority of fixed annuities are purchased from insurance companies. As a result, the health of your fixed annuity investment also depends on the financial stability of the insurer you purchase it through.
This adds another level of risk that some investors don’t want to deal with. If you’ve told your investment consultant that you’re a risk-averse investor and they put your money in a fixed annuity anyway, you could take action against them if you lose money in the investment.
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How a Lawyer Can Help You From Fixed Annuity Losses
If you’ve lost money in fixed annuities because your financial advisor made an unsuitable recommendation, you’re probably frustrated with their conduct and wondering how you’ll recover your losses. The good news is that a skilled unsuitability claims lawyer can help you seek the remedies you’re owed.
An attorney can investigate your unique situation, construct a strong arbitration claim, and represent you during the arbitration process. Arbitration is a process where you and your financial advisor meet with a third-party arbitrator.
The arbitrator will give both sides time to present evidence and explain their side of the dispute. Then, the arbitrator will work with you and the advisor to come to a resolution. Your lawyer will represent you throughout this process and push for a resolution that replaces your investment losses.
If your claim is successful you could receive compensatory damages, punitive damages, attorney’s fees, and a number of other forms of compensation. Make sure to reach out to a lawyer soon so they can get started on your case and pursue the results you deserve.
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Losing money to investment fraud or broker misconduct can be an incredibly aggravating experience. Fortunately, there’s a path to financial recovery, and the team at Meyer Wilson is here to help you take it. Our firm has over 75 years of combined experience and has won over $350 million for clients like you.
Contact us today to schedule a free consultation with an experienced lawyer and learn more about your legal options moving forward. We’ll meet with you to discuss your case and determine if you have grounds for a claim. We look forward to hearing from you soon and representing your best interests throughout the legal process.
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