Annuity for 25 Year Old Client

[Paul K.]

To say thats its definitely unethical is a stretch.

You have no basis to know whats ethical and what isnt without knowing his risk tolerance, investment horizon, and investment purpose.

If the RoR of an IA meets his need for return, then recommending the stocks which risk his principle, would be an unethical recommendation...

Firstly, my ethics is exactly my basis to know what is ethical and unethical to me. I posted about my perspective if you read my post correctly.

Secondly, read the earlier posts so that you know what situation we are talking about.

Thirdly, your absolutely right,

If the RoR of an IA meets his need for return, then recommending the stocks which risk his principle, would be an unethical recommendation...

according to YOUR ethics, not mine.

My point here is that neither of us are wrong or right, just different views and opinions.

 

[scagnt83]

Firstly, my ethics is exactly my basis to know what is ethical and unethical to me. I posted about my perspective if you read my post correctly.

Secondly, read the earlier posts so that you know what situation we are talking about.

Thirdly, your absolutely right, according to YOUR ethics, not mine.

My point here is that neither of us are wrong or right, just different views and opinions.

No, I am right according to 800 years of trust law. (which is what modern Fiduciary Standards are based on)

If you are acting as a true Fiduciary then there are multiple case laws citing the fact that you dont put a clients assets unnecessarily at risk.


The only way to even define risk (relative to a clients assets) is based on a clients objectives and needs. Without this, its all just shots in the dark.

 

[Paul K.]

No, I am right according to 800 years of trust law. (which is what modern Fiduciary Standards are based on)

If you are acting as a true Fiduciary then there are multiple case laws citing the fact that you dont put a clients assets unnecessarily at risk.

The only way to even define risk (relative to a clients assets) is based on a clients objectives and needs. Without this, its all just shots in the dark.

Not once did I say that I was intending to

put a clients assets unnecessarily at risk

, it seems to me that you pretty much made that up in order to make a point and be right about it.

I realize that you are a "Guru" with 1700+ posts and probably a heavily experienced trust attorney or financial adviser with decades of knowledge beyond anything that I can imagine, however it might actually serve you well in life to realize that there is no right or wrong, just different. Try putting the need to "be right" aside and try thinking outside the box for a moment because this could be the difference between good and being Great!

 

[scagnt83]

You said that "an annuity for a 25 year old" was "definitely unethical" if it was a recommendation under an advisory capacity.
It is an untrue statement, not per my opinion, but per fact.

You made the definitive comment, not me.


And I never said that your recommendation was wrong; just that your comment of "definitely unethical" was a totally false comment because you have no basis on which to judge this..

You then say that its unethical based on your ethics; which is just a cop out, because your ethics have to have a base to be ethical from; and we have already established that we have no base on which to judge the ethics of the recommendation..

What would be unethical would be to recommend a product (or bad mouth a product) without knowing the clients investment objectives.