The CEO of Wealthfront, which started offering potentially risky securities-based loans last year, wasn’t too impressed when the New York Post asked him why their weren’t more disclosures for the product.
You’re getting hung up on the disclosures,” Andy Rachleff said. “Look: we have to do these things, we have to make these disclosures for regulatory reasons, but very few people read these disclosures. And if you don’t read the disclosure, you don’t get confused about it.
“We limit the amount you can borrow, so you’re not going to ever run into a situation where you get a margin call,” he added.
This is not what you want your CEO saying, even in private. Amazing how quickly we forget past mistakes…
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