Late this afternnoon, I met with new clients. He manages a stock brokerage branch and she is a local newscaster.They have recently relocated to the San Diego area from Conecticut, and we spent time looking at beach properties and sharing stories.
His tale took the cake.
When he revently opened the Edward James brokerage office in east county, he was referred some clients--a husband and wife, ages 51 and 52. They both wished to liquidate their IRA accounts, pay the 40 percent penalties, so they could invest their money in Nevada real estate, where they were told they could double their money. They did so, despite strong admonishments not to do so from this principled broker.
I felt sick. How could anyone with a conscience or a brain, especially a real estate professional, ever suggest such a thing? And we wonder why pundits call this a bubble???