Primerica
Representative advised selling stock without understanding taxes

Just finished with a customer who came to me from a Primerica Regional VP with instructions to sell the stock out of his brokerage account and get a cashiers check.

Being a registered stock broker in a banking environment for 12 years, I knew something was wrong with this request. I spoke longer with the customer, his girl friend, the Primerica rep himself. He didn't know that stocks take 3 days to turn in to cash. This is investing 101.

He was advising the customer to sell stock that had no cost basis and may mean a significant tax implication and yet didn't advise the customer to check with his tax-advisor.

I couldn't understand why he was advising the customer to sell the stock and get a check. In our industry, we transfer entire accounts, sell the stock, if needed and we get the commission. This guy was allowing me to take the stock commission. We finally decided he didn't have the more advance license that would allow him to advise or sell individual stocks.

I advised the customer that this person had not been in the financial services industry for long and probably didn't have the experience needed to advise him on investment his life savings.

I'll keep an eye on Primerica, my customers deserve better.

Company: Primerica
Country: USA

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