I was watching Lateline on Channel 2 last night and it featured husband and wife investors that were Storm Financial clients. The husband was a policeman and their combined income was $100,000 p.a. They borrowed $4 million from CBA to invest (per advice from Storm). They were upset with CBA and blame them for this troubles.
In my opinion, if you are silly enough to borrow $4 million when you only earning $100,000 (and not even get a second opinion), then it’s only a matter of time before some clown takes you to the cleaners. Investors must be proactive with this investments. They need to take responsibility for their decisions. Ask questions. Make sure it makes sense to the average person. Speak to friends and family. Do some checking. If these Storm clients had have done their research, I'm sure they would have found out that borrowing $4 million was financial suicide.
If I jump off a building because someone tells me too, who’s the idiot? Who normally gets the blame. It looks like the CBA and Storm were totally wrong and unethical. No argument there. However, the clients need to take some responsibility for their own decisions.
Perhaps the clients should be angry with the government? The government sets school curriculum and school is supposed to prepare you for life. The lack of education about personal financial management is mind numbing. Parents, if there’s anything you can do to help your children its teach them about money.
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