Quote:
Originally Posted by MDFlyer
The reason he continued to ignore his responsibility to be a fiduciary is MONEY. As a business grows and is successful the management gets used to the lifestyle that comes with that success. It is very hard to admit to friends and family that you need to adjust your lifestyle so you find alternative ways to keep the income flowing. In the case of GWG, high commissions meant the income could continue and the lifestyle did not have to change, at least not right then. We have focused on GWG but buying and selling clients' stocks, putting them in risky investments that were not appropriate for their age and portfolio, and other income-producers were also used by Michael L Whitaker and Associates.
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Note that a typical stock broker or insurance salesperson is not required to be a fiduciary, unless they are providing advice on a retirement account. So, they usually cannot be held liable for selling a risky product that may not be appropriate for a client of a certain age or financial situation. It's buyer beware. The investment and insurance industries have many lobbyists working fulltime to prevent these salespeople from being required to act as fiduciaries. They are also trying to repeal the retirement account requirement. So, when you hire any financial advisor, you should demand that they certify to you, in writing, that they will act as a fiduciary when giving you advice. Although, I doubt that many insurance salespeople will provide this certification.