Horrow Story – Bank Data-mine To Take Away $1m Deposit
A businessman deposits $1m into a bank. Down comes the relationship manager with 2 proposals that total, you guessed it, $1m.
2 hot funds plus a universal life plan were proposed. A whopping 5% sales charge was imposed but there was no attempt to asset allocate at all. The investment was split into 1 hot gold fund and another hot bond fund. The investments were pumped in straight away without any attempt to dollar-cost-average. There was also no attempt to study the characteristic of the fund and the current market condition. What seem to be good funds that are suppose to protect the downside are now are dropping due to the fear and panic in the market.
Good marketing stories can turn into nightmares. And it is the non-discerning and trusting that ends up carrying the baby.