FinanceDude
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Aug 3, 2006
- Messages
- 12,483
There's a huge discrepancy between what he says and the actual account value. I see margin activity when I get in to few statements. Plus, I have a huge margin buying power, which explained to me is basically an extended line of credit if we want to use it. I have no idea where monthly contributions have gone--can only assume the've been gobbled up on expired margins.
The service rep I talked to said he didn't see any big red flags and only show an unrealized loss of $4k. But still, my statements shrink.
I have a bad feeling about it, thinking he's leveraged what we did have to "make it big" and now it's all falling apart. He's done margins before but told me 10 years ago that we were done because of the risks/stress. So, I'm assuming he's trying to hide his mistake if he started back up.
I will talk to him tonight.
Get RID of the margin on the account. It is a very expensive line of credit and it seems he already struggles with financial literacy. Margin to people not paying attention is like throwing a 55 gallon drum of oil on a roaring fire, it rarely ends well.
Maybe you need to take control of the finances, he obviously is in avoidance mode because he either does not know what to do, or does not want to admit he made mistakes, etc. Take him off the hook gently..............best of luck........