March 30, 2004
THESE CHANGES SHOULD DO LOTS TO MAKE CLEAR WHAT INDIVIDUALS ARE CHARGED FOR BUYING FROM VARIOUS BROKERS/DEALERS. IT IS ESPECIALLY IMPORTANT FOR ELDERLY PEOPLE WHO ARE EITHER CONFUSED OR DO NOT KNOW BUT RELY ON FRIENDLY BROKERS FOR ADVICE. TWO INCIDENTS THAT I HAD FIRST HAND KNOWLEDGE WITH INCLUDE MY MOTHER-IN-LAW WHO AT 85 WAS TALKED INTO A HIGH YIELD JUNK BOND FUND BY A TRUSTED BROKER. ANOTHER NOW INVOLVES A NEIGHBOR AND HIS WIFE, BOTH LATE 70S, WHO DUE TO THEIR TRUSTING BROKER, WAS PUT INTO A HIGH YIELD JUNK BOND FUND THAT LOST 65-75 OF ITS PRINCIPLE VALUE OVER A 2 YEAR PERIOD. TO ME IT IS CRIMINAL THAT OLDER PEOPLES LIFE SAVINGS ARE ERODED BY WELL KNOW INVESTMENT COMPANIES WHO KNOW AND PROBABLY TARGET THESE INDIVIDUALS THAT THIS PRACTICE CONTINUES. MY SUGGESTION IS: ANY BROKER/DEALER WHO SELLS A PRODUCT TO ANY PERSON OVER 70, MUST PUT IN WRITING A CLARIFICATION MEMO TO EXPLAIN THE COSTS, RISKS OF LOSSES TO THAT PARTICULAR INVESTMENT, AND LASTLY, SIGNED PERSONALLY WITH A STIPULATION OF REFUND IF ANY CONFUSION EXIST IN REGARD TO THE INVESTMEN OVER A 30 DAY PERIOD. THIS MIGHT JUST CLEAR OUT THOSE WHO PREY ON OLDER PEOPLE.
SINCERELY,
DAVE DOBROWSKI