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Powerball winner sues son, says money invested poorly

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  • Powerball winner sues son, says money invested poorly

    Interesting article in the local news this morning--a woman sues her son and financial advisor after her Powerball earnings were put into low-return investments (CDs, money market accounts), she didn't get the expected returns, and she was charged with $2 million in advisory fees. She didn't lose any money, but didn't like the low returns and high advisory fees

    https://www.newscentermaine.com/article/news/local/powerball-winner-and-former-east-millinocket-resident-sues-son-says-money-invested-poorly/97-24c9c9bc-5f51-497f-980f-7c9d54d1e275

  • #2
    I wonder if she would have sued if it was more aggressively invested and it went down?

    This is why just like in medicine you document what you do and why you are doing it and get consent.

    I do not blame her for being mad about the fees but I imagine she was told what she was signing up for.  I realize not everyone can calculate 1% of 200MM

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    • #3


      I do not blame her for being mad about the fees but I imagine she was told what she was signing up for.  I realize not everyone can calculate 1% of 200MM
      Click to expand...


      The low returns... is fine.... she is 90, meaning that if she were to spend it, it would have to be fairly soon, right?

      The fees, that is crazy! You know the time they spent was just as much as if they were investing $100K or $10K!

      But to sue your own son, crazy! She already has over $200MM!

       

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      • #4





        I do not blame her for being mad about the fees but I imagine she was told what she was signing up for.  I realize not everyone can calculate 1% of 200MM 
        Click to expand…


        The low returns… is fine…. she is 90, meaning that if she were to spend it, it would have to be fairly soon, right?

        The fees, that is crazy! You know the time they spent was just as much as if they were investing $100K or $10K!

        But to sue your own son, crazy! She already has over $200MM!

         
        Click to expand...


        I agree that it is outrageous they can charge so much but if you hire someone at a price and then realize later that it was a high price I do not think you have a legal ground to stand on.  Especially since there are unfortunately a lot of advisors charging in that range.

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        • #5








          I do not blame her for being mad about the fees but I imagine she was told what she was signing up for.  I realize not everyone can calculate 1% of 200MM 
          Click to expand…


          The low returns… is fine…. she is 90, meaning that if she were to spend it, it would have to be fairly soon, right?

          The fees, that is crazy! You know the time they spent was just as much as if they were investing $100K or $10K!

          But to sue your own son, crazy! She already has over $200MM!

           
          Click to expand…


          I agree that it is outrageous they can charge so much but if you hire someone at a price and then realize later that it was a high price I do not think you have a legal ground to stand on.  Especially since there are unfortunately a lot of advisors charging in that range.
          Click to expand...


          Yes, someone should have calculated it for her... did she not notice the first 5 years of the investments? It's been 6 years!

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          • #6




            Interesting article in the local news this morning–a woman sues her son and financial advisor after her Powerball earnings were put into low-return investments (CDs, money market accounts), she didn’t get the expected returns, and she was charged with $2 million in advisory fees. She didn’t lose any money, but didn’t like the low returns and high advisory fees

            https://www.newscentermaine.com/article/news/local/powerball-winner-and-former-east-millinocket-resident-sues-son-says-money-invested-poorly/97-24c9c9bc-5f51-497f-980f-7c9d54d1e275
            Click to expand...


            these advisors deserve every cent of the 2 million by preserving the money, otherwise it surely would have gone out the window to some alternative investments. this old lady sounds like a real weirdo.

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            • #7
              IMO you should get a fee discount at that level but it doesn't seem egregious.  Definitely a lot though for picking a few money market funds though.

              There is mention of undue influence, son with power of attorney.  Again, at some point she agreed to pay him the fee, at some point in her life she agreed to give him the power of attorney.

              I wonder if there is more to the case.

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              • #8




                IMO you should get a fee discount at that level but it doesn’t seem egregious.  Definitely a lot though for picking a few money market funds though.

                There is mention of undue influence, son with power of attorney.  Again, at some point she agreed to pay him the fee, at some point in her life she agreed to give him the power of attorney.

                I wonder if there is more to the case.
                Click to expand...


                Of course there is more to it. Can't imagine she'll win this suit.
                Helping those who wear the white coat get a fair shake on Wall Street since 2011

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                • #9
                  Wow, a lot I could say about this.  I mean, 90 years old and you're sitting around complaining about losing 1% of your 200 million dollars. What the heck do you care at that point??  Who does she think she is? Warren Buffet gave all his money away at 90.  How much does she want to be buried with anyway?  Go spend it and enjoy what's left of your life. And if you're not going to do that, stop complaining.

                  On top of that, how dumb does she want to make herself look?  Of course you're going to lose money hiring a financial advisor to do something as easy as that.  Like duh.  People these days!

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                  • #10




                    Wow, a lot I could say about this.  I mean, 90 years old and you’re sitting around complaining about losing 1% of your 200 million dollars. What the heck do you care at that point??  Who does she think she is? Warren Buffet gave all his money away at 90.  How much does she want to be buried with anyway?  Go spend it and enjoy what’s left of your life. And if you’re not going to do that, stop complaining.

                    On top of that, how dumb does she want to make herself look?  Of course you’re going to lose money hiring a financial advisor to do something as easy as that.  Like duh.  People these days!
                    Click to expand...


                    If the snippet is to be believed it sounds more like sibling jousting through the poor parent.

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                    • #11
                      If you think AUM fees are wasteful, litigation costs will quickly exceed those. If you’re using a contingency-based lawyer, they’re an order of magnitude higher, so generally at best offer only a Pyrrhic victory. Definitely seen this with divorce litigation, and was interested to read about newer models that seek to disrupt the costly approach to that: https://www.forbes.com/sites/cherylsnappconner/2018/01/25/its-over-easy-lessons-from-laura-wassers-divorce-platform-for-entrepreneurs/

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                      • #12
                        Brings to mind a story I would love to share with you about my financial life. Some people are just greedy spiteful jerks and some of those greedy spiteful jerks happen to be related to you...

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                        • #13
                          The other sad aspect of this story is all the comments siding with the woman placing the suit, complaining about money hungry family members and financial advisors

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