There’s no doubt that investors face difficult decisions when it comes to how best to invest their cash. Increasingly, investors are finding themselves tempted to roll their investment funds into flashy, new high-yield products that seem to promise a much better return with little risk. However, investors should take heed: many of these products are complicated, risky, and poorly understood—and some high-yield investment pitches could be a cover for investment fraud or stockbroker misconduct. As an experienced investment misconduct lawyer, I urge you to consider these types of products carefully before jumping in.
Complicated, high-yield investments, like structured retail products or floating-rate loans, always come with risks that match the rate of return. Although some high-yield products are pitched as “completely safe,” that is rarely—if ever—the case. Many of these investments are accompanied by high fees or commissions that may not be readily apparent and may have unexpected tax consequences for investors. Additionally, some of the newer investment products are poorly understood or extremely complicated, making them unsuitable for most average investors.
If you are feeling tempted by a flashy structured product or other high-yield investment, it is important that you do your own research, ask lots of questions, and determine whether the investment is really right for you and your financial goals.
If you lost money because your broker or financial advisor failed to fully explain the risks of a high-yield investment product, you may be able to pursue the recovery of your losses through FINRA mediation, arbitration, or litigation. For help with your potential case, please contact an experienced investment misconduct attorney with Meyer Wilson today.