Stock Brokers

In my experience, the primary difference between middle class and wealthy investors is that wealthy investors lose more money in the markets, because they have more to lose.

Joanne Bohnke is a 74 year old widow, hoping to make her $315,000 savings last longer than she does. She turned for advice, as most Americans unfortunately do, to her broker at Smith Barney.

If your broker promises consistent high returns -- "This baby never loses money," is the typical cliché -- don't fall for it. Do remember Bernie Madoff. He never lost a dime -- until he lost it all.

Brokers have worked hard to convince investors to rely on them as trusted advisers. It is high time they were regulated accordingly.

Most of you read and watch the financial media. You have the benefit of advice from expert brokers and advisors -- and all of their analytic resources. But this is what I refer to as "the missile you never saw coming."

The information disseminated by most stock brokers and advisors, and reinforced by the media, is the blueprint for financial disaster, as many investors now realize.