The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  BruceM, et. al. Date:  8/14/2007  2:47 PM
Author:  Hawkwin Number:  58875 of 88498

Calling all resident experts:

I have a client that was recently advised by an elder care attorney to cash in all of his investments (even his IRAs) and buy an immediate annuity as a means to get his wife qualified for Medicaid. He paid thousands of dollars in fees and taxes to cash in those investments, only to learn that the attorney was a $*&$#(*& idiot and did not even find out that the guy had a 400K IRA that would disqualify his wife from ever getting Medicaid.

She ended up returning a PORTION of her fee, but I feel she is responsible for the expenses the client incured for her advice. Do you or anyone else know the section of the law that governs those that give investment advice, making them legally liable, even if they are not licensed to give advice? I am trying to convince the guy to threaten to take her before the regulatory bodies unless she covers his expenses. I had thought it was Rule 3040 but that deals with Selling Away.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us