A couple of years ago our financial advisor put $45,000 of our money in Fannie Mae and Freddie Mac preferred stock. Within a week, our stock was worth $1,000. If we never get our money back, do we have any recourse toward our ex-financial advisor? – Larry
We’re not sure that making more money than your 401(k) and making mortgage payments with that money were complimentary goals. That aside, have you lodged a written complaint with your former financial advisor’s firm? Since you are questioning the suitability of the investment she selected, that might be a reasonable first option. You could skip the first step or if you don’t like their response, your next move could be to submit a complaint with the U.S. Securities and Exchange Commission. In either case, there’s no reason to wait. You should get the ball rolling.