Read the Fine Print

Have you noticed that when Wall Street does not want you to read something it produces a five thousand word document that is loaded with legal and investment jargon. Wall Street is betting you will not commit time to read long, tedious documents. It wins this bet more than 80% of the time.

Fine Print

Fine print is the disclosures and disclaimers at the bottom of the page that are printed in six point type. 

Wall Street is infamous for publishing misleading information and keeping it barely legal with disclosures and disclaimers. For example, marketing hype may include: "We believe we will produce superior performance". Or, "Future performance may not be the same as past performance". Don’t focus on the word “superior”. Focus on the word “believe”. It invalidates the word “superior”. The second statement invalidates any track record that may be provided to you.

Securities Attorneys

If you paid an attorney to review Wall Street's one-sided documents, there is a 90% chance he would recommend not signing the documents without major revisions to the text or adding addendums that protect you. Very few investors have Wall Street documents reviewed by attorneys, but they should.  

Disclosure

Why does Wall Street publish this type of content? It is meeting regulatory requirements for mandatory disclosure. For example, FINRA, the SEC, and state securities commissioners require disclosure for specific types of information and business practices. Wall Street meets the disclosure requirements in a document that it knows you will not read. The regulatory agencies know you do not read the documents, but they do not do anything about it. 

Your Responsibility

You select a nice, friendly Wall Street professional to be your financial advisor. You cannot believe this professional will take advantage of you to make more money for himself and his firm. Based on your selection process and this belief, why take the time to read the advisor's service requirement? Unfortunately, it is your sole responsibility to read the documents you sign. 

Paladin says.....

You need a solution that protects your business interests. You cannot count on Wall Street or regulatory agencies to provide the protection. It has to come from you. You have to require Wall Street advisors to provide one page disclosures for information that impacts the achievement of your financial goals. For example:  Advisor qualifications, investment expenses, and potential conflicts of interest.