Protecting Your Assets: What Retirees Need to Know About Stock Broker Liability

Are you a baby boomer nearing retirement? If so, it’s never been more important to safeguard your assets. With stock prices at all-time highs and the market appearing to be climbing ever onward, investing in the stock market goes without saying — but what happens when everything falls apart? Stockbroker negligence is real, and understanding their liability can be vital if misfortune should come knocking on your door. Today we’ll uncover the basics of stock broker protection and how older investors – like yourselves – can arm themselves with an extra layer of security against financial devastation.

What is stockbroker negligence and why is it important for baby boomers nearing retirement to be aware of it?

Most people think of a stockbroker as someone who helps them invest their money so they can make more of it. And while that is certainly one of the things a stockbroker does, they can also be held liable if they make investment decisions that end up costing their clients money. This is called stockbroker negligence, and it’s something baby boomers nearing retirement need to be aware of.

There are a few different ways a stockbroker can be negligent. One is if they don’t do their due diligence before recommending an investment to a client. For example, if they recommend a penny stock to someone who doesn’t have the knowledge or means to understand the risks involved, that would be considered negligence. Another way stockbrokers can be negligent is if they don’t properly manage their client’s investments. This could include not diversifying their portfolio enough, or not selling when it’s time to sell and vice versa.

The bottom line is that if you’re retired or getting close to retirement, it’s important to do your research before choosing a stockbroker. Make sure you ask them about their experience with negligence cases, what kind of due diligence they do before recommending investments, and how they manage their clients’ portfolios. You don’t want to risk losing your hard-earned retirement savings because of your stockbroker’s negligence.

A stockbroker is a professional who helps people invest money in the stock market. They are supposed to provide their clients with sound investment advice, but sometimes they make mistakes. If a stockbroker negligently recommends a bad investment to their client, and the client suffers losses as a result, the stockbroker can be held liable for their negligence.

To prove that a stockbroker was negligent, the injured party would need to show that the broker owed them a duty of care, that the broker breached that duty, and that the breach caused the injuries. In most cases, it will be fairly easy to show that the stockbroker owed a duty of care to their clients. After all, they are giving investment advice! It will then be up to the injured party to show that the broker breached their duty by recommending a bad investment, and that this breach caused them harm.

If you have been injured as a result of your stockbroker’s negligence, you may be able to file a lawsuit against them. It is important to speak with an experienced personal securities lawyer to find out if you have a case.

What are damages that can be caused by stockbroker negligence?

There are a few different types of damages that can typically be caused by stockbroker negligence. One type is direct financial losses, which can include things like losses in principal, missed opportunities to make money on investments, and fees and commissions that were paid but should not have been. Another type of damage is emotional distress, which can be quite severe in some cases. Other damages that can be caused by stockbroker negligence include lost wages if the person was unable to work due to the negligence and even physical injuries in some cases.

Here are a few tips on how to protect yourself from stockbroker negligence.

When you work with a stockbroker, you are trusting them to handle your money in a responsible and competent manner. Unfortunately, this is not always the case, and stockbroker negligence can lead to significant financial losses for investors. Here are a few tips on how to protect yourself from stockbroker negligence:

1. Research your broker thoroughly before you invest with them. Make sure they have a good reputation and that they are registered with the SEC.

2. Review your account statements regularly, and be sure to report any discrepancies immediately.

3. Keep a close eye on your investments, and be alert to any sudden changes in their value.

4. Don’t be afraid to ask questions! If something doesn’t make sense, don’t hesitate to speak up.

5. Invest only what you can afford to lose. No investment is guaranteed, so always remember to diversify your portfolio.

By following these tips, you can help protect yourself from the potential consequences of stockbroker negligence.

Stockbroker negligence can cost baby boomers nearing retirement dearly. It’s important to be aware of what it is, how to protect yourself from it, and what your options are if you’ve been a victim. If you have any questions or would like to speak to someone about your situation, please don’t hesitate to reach out to us.

Sean M. Sweeney is a shareholder at Halling and Cayo, a full service law firm in Milwaukee, WI and the head of its Securities Litigation team.

He represents individual and institutional investors in FINRA arbitration and court nationwide. He recovers investment losses from fraud or breach of duty from their broker-dealer.

Contact him at (414) 755-5020 or via e-mail at to see if he can help recover funds.