| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 837.1 | Simply amazing... | POBOX::CORSON | Higher, and a bit more to the right | Mon Feb 27 1995 12:33 | 8 |
|
Get her out today, Jeff. Limited partnerships are not for retired
people on fixed income. Put her into nice Treasuries with staggered
monthly payments and maturities.
My bet is the "financial advisor" is getting a hefty commission on
this deal.
the Greyhawk
|
| 837.2 | Tell her to run, not walk to the nearest exit | JOFISH::PEARSON | | Mon Feb 27 1995 12:47 | 3 |
| My instincts would be to call the cops, but what the guy is doing is
probably only immoral, not illegal. With a "financial advisor" like this
one she'll soon be in the poor house.
|
| 837.3 | | PARVAX::SCHUSTAK | My clients are mostly Martians! | Mon Feb 27 1995 13:10 | 10 |
| No, if this "financial advisor" is licensed as a securities broker he
is probably also legally liable for an inappropriate investment
recommendation, and if there IS any loss incurred there COULD be
recourse.
The above notwithstanding, I'd certainly move out of this type of
HIGH-RISK (and as mentioned, probably HIGH COMMISSIONED) speculation
for a 70+ year old.
SteveS
|
| 837.4 | Another No on Ltd Partnerships | MROA::WILKES | | Tue Feb 28 1995 10:35 | 20 |
| On a limited basis I moonlight as a personal financial advisor ( fee
based ). About five years ago I gained a widow as a client. Eighteen
months before
she became my client she had had the misfortune to recieve the advice
of a commission based financial planner.
This scumbag planner had sold a blue chip portfolio of stocks that the
woman's husband had left her which had been worth approx. $360 K. He
put the proceeeds into high commission limited partnerships and rare coins.
When I took
over I claculated that the lady was $120 K worse off than she would
have been if she never met the previous planner ( $60 K from lost
appreciation on the blue chip stocks and $60 K from partnership losses
)
Based on this real life example I would second the opinion that the
elderly do not belong in limited partnerships.
Lyndon
|
| 837.5 | Call the NASDA for help. | MIMS::HOLDER_G | | Tue Feb 28 1995 16:14 | 13 |
| If the person that sold the Oil & Gas partnerships is a stockbroker,
I would suggest calling the NASDA (800-289-9999) and talking with them.
There is a 'rule' for all brokers called Rule 405(?), which states that
any broker must know their clients (i.e. age, investment objective).
Any broker that would try and sell someone that age anything other
than goverment bonds, muni bonds or income stocks should
have their ticket pulled. These type of brokers give all others a bad
name.
Greg
|
| 837.6 | Are MLPs different? | DPDMAI::STILLINGS | What Customer Told You That? | Thu Mar 02 1995 18:51 | 6 |
| Does any of this change if they are partnerships that are publically
traded? Master Limited Partnerships in product distribution, not
exploration and production?
Not sure I understand, if they are listed on the NYSE as claimed, MLP
is different from a stock/equity transaction.
|
| 837.7 | I vote 'no' also | TLE::RICE | | Thu Mar 02 1995 19:39 | 34 |
| Jeff-
I'd guess that LP's listed on the exchange are more likely to be
legitimate than your everyday local garden variety LP. However...I
still think you heard the right advice in the several previous comments.
If possible, get her out of this investment.
There are hundreds of more appropriate investments.
From my limited (sorry;-) experience, Limited Partnerships are at the
upper end of the risk scale of investments - more risky. Some (one
I am personally familiar with) are actually scams. I'm sure there are
many 'good' LP's, but I'd be surprised to find low-risk LPs. There are tax
advantages in some LPs which some high tax-brackets might benefit from,
depending on years of writeoffs from losses before 'possible' large
profits, but that again does not seem appropriate in this situation.
Some LPs (the scam which I personally know of) are actually investment
pyramids in which the early members do make profits - however these
profits were generated from the later investment dollars, and not
sustainable profits from the business.
Although distribution oriented Gas/Oil Partnerships seem less risky to
me than exploration/wildcatting, I still can't imagine how this would be an
appropriate investment of any significant portion of assets (say above 5%,
if at all) for someone who is in their mid-seventies and in need of
current income from the investment.
Then again, if this is a very very small portion of her total assets, and
she understands and enjoys the risk - why not let her? No worst than
buying lottery tickets I guess. We might all be wrong, and she could
strike it rich.
-Chip
|