Horror story involving advisor
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He didn't do everything right, even in the limited context of someone who had limited financial insight.
-- He didn't keep his money at ML, he apparently let this broker take it with her when she transferred/left.
-- Did he get an independent lawyer/accountant working >for him< to review the paperwork he signed? Every time?
There's no substitute for looking out for yourself directly whenever possible. If a person can't/won't do that, then the alternative is to get someone to work for you who is bound by law to look out for your best interests and who has deep enough pockets to make you whole if they screw up and you take them to court. That's a big law firm, big accounting firm, etc, not Suzy the broker who he thinks is just super.
PhrugalPhan
Recycles dryer sheets
Are you referring to Koy Detmer, the backup QB behind McNabb for years? He was famous for buying the worst car he could to go to camp each year. He would pack almost nothing for away games other than the barest of essentials. And he made a couple million each year. He is more than set for life and then some.
I have to disagree. He had his money at ML. His advisor left, I assume to start her own agency. He kept his money with her because he had a financial relationship with her already. Why would he have any reason to think that someone who worked at ML would leave and become a crook?
I dont know the whole story, but just based on those facts, it seems to me that he did what most non financially literate people would do.
That's it.
drives me crazy when a name is on the tip of my tongue. Now compare him to Allen Iverson who every time you saw him had a "posse" of 10-20 hanger-on with him. His ex wife use to complain about the number of "friends" Allen had.
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I don't know Explanade. if you look at this video, the running tag line says "pro athletes "scammed" out of their money".
I guess when you say "scammed" I think of a different problem. Scammed to me says an outside force came in and ran a game on them.
Like the brother in the video said, most of the time these guys spend like they are fortune 500 ceo's and that the gravy train will last forever.
I think that is a bigger issue.
Texas Proud
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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I know that people here talk about hiring a top account/lawyer etc etc.... but even they will milk the athlete... not outright steal, but the high fees add up...
When I was first out of college I worked at a Big 8 accounting firm (yes, 8 back then).... we had a few pro athletes that were clients... we did their tax returns... however, we paid the bills for a couple of them... the famous pro football player actually did not make that much money (compared to today... IIRC he was making $250K in the early 80s)....
But, paying a top accounting firm the high hourly rate to pay bills added up...
We also had another top athlete who lost everything investing in RE just before the crash in Texas... lost everything... got injured and never made good money again... and the IRS wanted a few million in back taxes...
When I was first out of college I worked at a Big 8 accounting firm (yes, 8 back then).... we had a few pro athletes that were clients... we did their tax returns... however, we paid the bills for a couple of them... the famous pro football player actually did not make that much money (compared to today... IIRC he was making $250K in the early 80s)....
But, paying a top accounting firm the high hourly rate to pay bills added up...
We also had another top athlete who lost everything investing in RE just before the crash in Texas... lost everything... got injured and never made good money again... and the IRS wanted a few million in back taxes...
Why would he think his protections would be the same if he left ML? Wouldn't he know that it's shady for her to drag him with her? Anyway, the results speak for themselves, don't they? Was he adequately protected?
His protections wouldn't be the same (not that he would know that), but assuming she was honest and handled his money well while she was at ML, why would he think she would suddenly steal his money when she left?
Maybe she was "asked to leave" ML and she was already a crook? Who knows.
I'm sure there are lots of situations where a person has a lawyer, who then starts their own firm and they bring clients with them. If no clients came with them, no new firms would ever be started. What about n accountant who starts his own firm after working at a big accounting firm? I don't see any difference in that and this.
Bold added:
Truthfully, he shouldn't have been taking investment advice from any broker or anyone employed by a broker. The guy had 20 million dollars, he needed better advice than he got. Or he got the advice and didn't heed it--same result.
The bold part is the only part that matters, and I think Dwight Freeney would agree right about now. When he was with ML, he had the benefit of their internal checks and balances, their external auditors, their desire to protect their well-known name, and if nothing else they had pockets deep enough to make him whole if there was malfeasance. He "trusted her", gave up all of that, and we see what happened.
Truthfully, he shouldn't have been taking investment advice from any broker or anyone employed by a broker. The guy had 20 million dollars, he needed better advice than he got. Or he got the advice and didn't heed it--same result.
Rick_Head
Recycles dryer sheets
Sam, I think you bolded the wrong part. How about this:
A good friend said you take risks to build a big portfolio... When you have one you play it safe to keep it. What a pity ML needs to be fined heavily for violation of their failure to properly execute fiduciary responsibility over his account.
Hint: look for accounts where the principle is declining faster than account owner withdrawals.
Rocket science eh?
Sent from my iPad using Early Retirement Forum.
Hint: look for accounts where the principle is declining faster than account owner withdrawals.
Rocket science eh?
Sent from my iPad using Early Retirement Forum.
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My only point was that some people here are acting like this is your typical pro athlete who blows his millions on cocaine, hookers and an entourage of his thug friends.
That's not what happened at all. He invested his money wisely with one of the biggest brokers in the world. Most of us here wouldve invested it ourselves but you cant expect him to do that with that much money. 95% of the world knows nothing about investing money.
He had a (long term?) relationship with this broker who worked at ML. He should've been able to trust her. How did Merrill or Lynch get so big in the first place if it is non financially prudent to trust someone starting their own business? They had to start their business at some point. Were every one of their clients back then fools who got lucky that they didnt get ripped off?
That's not what happened at all. He invested his money wisely with one of the biggest brokers in the world. Most of us here wouldve invested it ourselves but you cant expect him to do that with that much money. 95% of the world knows nothing about investing money.
He had a (long term?) relationship with this broker who worked at ML. He should've been able to trust her. How did Merrill or Lynch get so big in the first place if it is non financially prudent to trust someone starting their own business? They had to start their business at some point. Were every one of their clients back then fools who got lucky that they didnt get ripped off?
Ronnieboy
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And I thought that show 'Ballers' on HBO was fiction. Maybe it was more true to life?
Sent from my iPad using Early Retirement Forum
Sent from my iPad using Early Retirement Forum
Bryan Barnfellow
Thinks s/he gets paid by the post
Best line from the referenced TV station story:
"Asking the court for a self-surrender date in two months, Weinberg’s attorney told the court that his client now works at a wig shop in Boca Raton, Fla."
I hope the wig shop inventoried their stock before she left for prison.
-BB
I wouldn't trust ANYONE with my money ---- even family members. Unfortunately, many financial crimes are committed by family members. The temptation is too great. Educate yourself. It is your money and NO ONE will care about it more than you!
HawkeyeNFO
Thinks s/he gets paid by the post
Washington Redskins running back Alfred Morris is famous for driving a 1991 Mazda that he picked up in college. He refuses to get a new car.
Sometimes you can't. That's for sure, and it is even sadder when your family rips you off: The family legal fight over Ryan Howard's finances
That's easy for you to say. I assume you are a financially savy person. What if a not so financially savy person, who also happened to be an NFL superstar, told you to go make your living playing pro football? The NFL superstar does it. It comes natural to him so he probably wont understand why you cant do it.
If you cant make a living playing football, your option is to be realistic and get a job you can realistically do. If a not so financially savy (or intelligent) person cant handle investing millions of dollars, his option is to find a professional to do it for him. He shouldnt have to expect to get ripped off.
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Unfortunately, you're correct. When I was doing fraud investigations I worked a bunch of them involving family members.
However, sometimes one has little choice, as in mental incapacity cases.
Cheesehead
Recycles dryer sheets
There's a new TV series on HBO that explains all this in an entertaining manner: BALLERS. You can still view it although it just had its last episode. Dwayne Johnson plays an ex-NFL star who becomes a CFP and tries to convince young black super stars to invest with him, but they want to blow it on toys:
poorcarver
Recycles dryer sheets
The issue with fraud from a family member is that in addition to the loss, there is the whole family damage issue. If Chase cheats me I sue but I don't get sick when I drive by a Chase bank. If a family member cheats there go the various family occasions out the window as well as the loss. Putting a family member in the slam does not have the same satisfaction.
+1
My late husbands family is now darn near ripped apart over greed.
Three siblings grow up together MIL, Auntie in law and Uncle in law.
After many, many years uncle comes out the closet with his sexuality. MIL immediately disowns him. she is Jehovah witness and does not condone homosexuality. Auntie is furious. this is baby brother, they took baths together, grew up together. cannot believe sister would kick him to the curb like that yada yada yada. Well Uncle, moves to Phoenix starts a successful business, invests and life goes on. Dies from cancer many years later leaving Auntie a couple of million dollars.
MIL is now mad saying he should have left her something (can we say Karma). Now the two haven't spoken in years and when my husband died, sat on opposite sides of the Funeral parlor during services.
some families simply do not do well with wealth.
