Another crook stock broker was caught stealing investor's monies. His name is Anthony Davian. He was young, brash, and dumb. He had a hedge fund in Ohio, claimed to have $200 million in investor's monies and promised 40% investment gains. But no, just another ponzi scheme. He spent investor's monies on himself. He used youtube etc to advertise. His employees caught wind and turned him in but it was too late. Later he tried to commit suicide. Hopefully he does lots of time!
http://finance.yahoo.com/blogs/the-exchange/lessons-erstwhile-hedge-fund-king-akron-ohio-235303914.htmlI'm to the point that I don't trust any financial adviser, stock broker, or insurance sales person. And CFPs aren't always trustworthy either even though they're suppose to be fiduciaries. Most in the financial industry are needless, overpriced middlemen stealing money just because the industry has always been that way. The products they sell tend to under perform market indices and their fees are ridiculous.
The good news is there's several new pushes to clean house. Of course, consumers are catching wind and making changes. But also, there are efficient online sources that provide diversified portfolios based on personal risk assessments.
You can go to
www.wealthfront.com, answer 10 non-intrusive questions and receive a personalized, low cost, risk-adjusted portfolio of Vanguard ETFs presented with recommended percentages etc. All at no cost. Of course they'd love to manage your account for a small fee (0.25%) but you can always open a your own brokerage account (Etrade, TDAmeritrade, Scottrade).
There's other similar websites, such as FinancialEngines.com that do the same thing. This one uses Nobel Prize winning financial advice for portfolio selection and management. Hundreds of fortune 500 companies are using them for their employee 401k plans. They also work with investors who have a Vanguard account (no cost if account > $50k, otherwise ~$300 fee).
Silicon Valley has the solution for fewer Wall Street slime balls!