Including Risks You May Not Realize Are Surprisingly Prevalent

Want to really understand one of the key reasons why having a Tool like Rita℠ is so important, then take a look at this from Violation Tracker.

Recognize any of the names?  Of course you do . . . they’re some of the biggest names / most “iconic brands” in the financial services marketplace.  They’re also the “Top 10” offenders in terms of penalties for financial offenses.

Look at the total amounts of the penalties.  Honestly, I was shocked when I saw this as has everyone to whom I’ve shown this.  What does this mean and why isn’t this more widely known?

Here are some answers that would be worth knowing and keeping in mind:

Advertising works. While news of a particular offense may hit the news, it may be only be regionally or locally reported, and (even if nationally reported) it will typically last in the “news cycle” for only 24 - 48 hours.  Meanwhile, there will be multiple millions of dollars of advertisements on national news telling you how great that company is and how you can trust it to take good care of you and meet your needs.  Is it any wonder that the vast majority of people are unaware of any of this . . . unaware that these companies appear to clearly be repeat offenders. This information is simply buried by their advertising.

The number of offenses and total penalty amounts represent harm that has already been done.  There are real people and companies behind each of the files and penalty amounts, people and companies that have actually been harmed.  The fact that regulators come in and hold someone accountable is great, but that didn’t prevent the harm from occurring or the damage from being done.  And what these numbers show is that there is a whole lot of harm being done, repeatedly.  Worse yet, the shockingly large amounts of the “penalties” do not seem to be deterring it from continuing.  And those offenses that are reported and penalized are likely not all of them.  How many were never discovered, never reported, and never punished? 

Are you a client or customer of any of these companies?  Those listed are not the only ones . . . just the “Top 10.”  You can click on the link above to check for others and you can also find the details of each particular offense. Knowing how others have been damaged can help keep you from being similarly harmed.

In view of this, we firmly believe the “best help” may well be “self-help.” First, you need to be aware that this is the situation that all of us individual investors are in . . . that it’s a fact of life, within the financial services marketplace, that this type of harm is continually occurring while individual investors (like you and me) are being lulled into a sense of complacency through repetitive advertising.  So, being aware and alert in our dealings within the financial services marketplace is the first step. 

Our Retail Investment Tracking Application℠ (“Rita℠”) can help.  While it cannot protect you from all possible harm, it can help protect you from predatory mutual fund and ETF sales practices in which, as a result of incentive sales compensation and other conflicts of interest, you are urged to (or it’s recommended that you) investment in a mutual fund or ETF that does not best match your needs, goals, or preferences.  Rita℠ effectively filters out all conflicts of interest (both known and unknown) and can help you identify and select those that are objectively best for you. That can make a huge difference over time in your financial wellbeing and the wellbeing of those who depend on you.

If you haven’t yet signed up for Rita℠, please click here and sign up now.  Now, you may better understand why you need to and why you’ll likely be glad you did.