It requires a significant amount of work to discover a competent and trustworthy financial counselor. However, if you have an idea of which consultants you should steer clear of, you will have an easier time narrowing down your options. Jon Newman Ameriprise is a financial advisor who you should steer clear of at all costs.
At first glance, Jon appears to be a typical financial advisor; however, his terms and conditions include numerous predatory features that put you in a situation that is adverse to your interests. In addition to this, as a direct result of these regulations, he has been involved in several legal conflicts with his clients.
The following analysis will throw light on what these provisions are, as well as the reasons why you should proceed with extreme caution if you are working with Jon Newman Ameriprise:
Who is Jon Newman Ameriprise?
Financial advice is provided by Jon Newman Ameriprise, who has an office in Greenwich, Connecticut. His office may be reached at 203-861-1700 and is situated at 51 Church Street, Greenwich, Connecticut 06830, in the United States.
He is a Certified Financial Planner and currently serves as the manager of Newman & Associates at Ameriprise Financial Services. Jon asserts that he provides service that is both high-quality and disciplined to a clientele that is both exclusive and targeted. Jon and his colleagues provide a variety of services, such as financial advice on your goals and progress, investment advisory solutions, annuity management solutions, cash management solutions, and progress meetings, amongst other services.
In spite of the fact that Jon Newman makes such pompous boasts about his dependability, his disclosures give the impression that he is not very concerned with his clients.
Working with him and his staff comes with a number of negatives, all of which he will do his utmost to conceal from you and any other potential customers he may have. To give you an example, were you aware that Jon Newman Ameriprise has been involved in three different legal disputes? In the following part of my review, I have emphasized not just this material but also additional details.
Legal Trouble and Shady Provisions of Jon Newman Ameriprise
Multiple disagreements in court with customers
It is essential that you search for a potential financial advisor in the FINRA BrokerCheck database at all times. You will be able to find out a great deal of essential information about the advisor, such as their credentials, their level of experience, the tests they have successfully completed, the state licenses they hold, and the legal conflicts they have had in the course of their professional lives.
The year 2001 was also the year of his second conflict. The clients’ SOM had stated on behalf of the clients that their investments were unsuitable and as a result, caused them a loss of $222,000 in a year’s time. The clients’ SOM had alleged this on behalf of the clients.
They asked for compensation of 222,000 dollars. Nevertheless, the company asserted that they had provided them with complete notice of the danger, and as a result, they refused the claim.
This is a common tactic utilized by shady advisors in the process of disproving the claims made by their clients. Greg Fullmer, Morgan Stanley, and other financial institutions utilize this strategy to sidestep responsibilities.
The year 2003 saw Jon get into his third argument. In this case, the customer asserted that their investments were inappropriate for their level of comfort with risk as well as their age. They asked that Jon Newman pay them $5,000 in damages, but he refuted their allegation by explaining that the customer had the ability to alter the risk profile but chose not to.
These disagreements demonstrate that Jon Newman Ameriprise does not prioritize the interests of his clients above his own, which is a major warning sign for any investor. In addition, they suggest that Jon has a history of providing recommendations to his customers that are not appropriate for them.
Why does he provide his clients with advice that isn’t appropriate?
This is something he does because he is incentivized to do the same thing. The stipulations that follow in his terms and conditions will explain to you why you ought to proceed with caution while collaborating with him.
Putting Clients at Excessive Risk
Jon Newman and his firm, Newman & Associates, charge performance-based fees. When an advisor charges performance-based fees, it means their pay depends on the performance of your portfolio against a benchmark. So, if your portfolio outperforms a set benchmark, your advisor can charge you more.
To enhance the performance of their client’s funds, advisors tend to double down on the risk, which yields poor returns. On paper, following a performance-based fee structure seems like the perfect choice but in reality, it’s the worst thing possible for most investors.
Obtaining Fees and Profits Through Investments
If you decide to deal with Jon Newman Ameriprise, there is one more thing you need to bear in mind. Rather than “recommending” investments, he actually “sells” them. Your financial advisor’s recommendations for investments should, ideally, be made purely on the basis of how well such investments correspond with your objectives.
However, once he starts earning commissions from particular investments, they begin ignoring your criteria in order to make a few extra bucks for themselves. Because of this, it can be very challenging to put your faith in financial consultants who make significant commissions.
One of the primary motivations for financial advisers to provide clients with suggestions that are not in their client’s best interest is to earn commissions from investment products.
It is clear that Jon Newman Ameriprise is a self-centered and greedy advisor after reading through the disagreements and the questionable aspects of his disclosures. Because he is solely concerned with his own financial well-being, he gives neither the expansion nor the needs of his customers any thought.
You need to search in other places and find a counsel who is both more caring and more serious. There is a very wide variety of choices accessible.