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Powerball winner sues son, says money invested poorly

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  • Avatar mainah 
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    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

    #206048 Reply
    Liked by Tim
    Lordosis Lordosis 
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    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

    “Never let your sense of morals prevent you from doing what is right.”

    #206070 Reply
    Liked by Craigy
    Avatar SLC OB 
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    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!

     

    #206072 Reply
    Lordosis Lordosis 
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    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.

    “Never let your sense of morals prevent you from doing what is right.”

    #206074 Reply
    Liked by Craigy, ENT Doc
    Avatar SLC OB 
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    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!

    #206076 Reply
    fatlittlepig fatlittlepig 
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    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.

    #206528 Reply
    Liked by Craigy, ENT Doc
    Craigy Craigy 
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    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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    #206543 Reply
    The White Coat Investor The White Coat Investor 
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    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.

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    #206582 Reply
    Liked by Zaphod, Craigy
    Avatar hightower 
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    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!

    #206637 Reply
    Liked by portlandia
    Zaphod Zaphod 
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    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.

    #206646 Reply
    Avatar Xeno 
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    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/

    #206748 Reply
    Avatar BCBiker 
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    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…

    #207044 Reply
    Avatar mainah 
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    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

    #208215 Reply

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