After our client worked for more than 30 years to grow her 401(k) account, she was directed to an investment advisor. This advisor told her, backed up by many color charts and even the guest appearance of his manager, the president of the investment advisor company, that concentrated risk, not diversification, was best for a significant part of her overall account. Much of her money was then placed into two stocks, which lost more than 50% of their value in the next 2 months.The advisor told her to "sit tight" and "look to the long term" taking no further action. In the following 2 months, she lost another 25% of her account. Our client then withdrew all of her money, but had to return to part-time work.
We sued the financial advisor and the investment company, and recovered substantial amount for the client, and were able to return the client’s retirement security.
