How Much Loss Can You Take Before Going Legal Against A Broker?

Posted by on Aug 17, 2021 | 0 comments

The world of investment is more mysterious than you can imagine. Each year, tens of thousands of people invest their life savings in various financial securities, hoping that this one decision will make them rich and help them achieve all of their goals. While some are able to do it, many fail to fulfill their financial goals due to a lack of understanding of how the financial markets work. 

They keep on bearing losses in some schemes for years just because their brokers ask them to do it. But is it really worth the wait? Let’s find out. 

Losses In Financial Schemes:

Investments are made with two objectives — short-term gains and long-term gains. Short-term gains are those where you will need money after about a year or two. Such investments are made to fulfill short-term goals like buying a bigger car, marriage, foreign trips, etc. 

Since you already have a significant amount of money in your bank account, there is no way you must invest it somewhere that cannot guarantee you a fixed return. In long-term investments, you have around 10-15 years or even more to grow your funds, so you can afford some losses here and there. 

You should never make an investment decision solely based on your broker’s advice. There are chances that the broker is going to make a whopping amount of profit from the suggested securities. Instead, what you can do is take advice from your broker and then do your own research before making the final call. 

If you come across any incident where the broker made money whereas your overall investment value decreased due to the nature of the scheme, then you must take legal advice from Erez Law Investment Lawyers and see what options are available for you to exercise. 

Whatever be the case, never take losses just because your broker has promised you out-of-the-world returns in the long run. Research about any investment scheme before investing money in it, and go ahead only if you are confident.

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