As a professional, you likely understand the benefit of specialization. You focus your career and professional development on the niche area to which you are best suited or which will earn you the most money. Instead of always attempting to perform certain tasks for yourself, you may choose to hire that work out to other people who have specialized in their field.
Money management and finance are a perfect example. They can take a lot of learning to understand the different financial instruments available and the way that the modern markets fluctuate. Instead of attempting to internalize and analyze that information, you may choose to work with an investment professional or financial advisor.
You likely place a lot of trust in this professional, including allowing them control over the assets you will rely on for retirement. When that person makes a mistake or is negligent of their duty to you, the consequences can impact your financial future. Thankfully, there are situations in which you can hold that professional accountable for their mistakes.
Simple changes in the market will not be grounds for legal action
It is the nature of financial markets to fluctuate based on a wide variety of factors. Supply and demand, for example, impact the value of physical commodities. Stocks and currency trading can mirror geopolitical and economic tensions. Investments can rapidly change in value, either for the benefit or to the detriment of the individuals who hold the investments.
If you lose a portion of your retirement simply because of a change in the market or the value of an individual investment, that is likely not the result of professional negligence on the part of your investment advisor and will not be grounds for a lawsuit for professional negligence.
Professional negligence can have devastating consequences for investors
It is impossible for a financial advisor or professional investor to accurately predict every change in the market. It is likely that you will have to deal with some losses and fluctuations in your retirement funds. Anyone can make investment mistakes. However, the professional that you trust should monitor the market and consistently provide advice and make trades in order to maximize your retirement assets.
When it is clear that the professional you entrusted with your retirement funds did not do their due diligence, you may have the right to seek compensation for professional negligence. For example, failing to assign temporary control of your accounts to someone else when your advisor goes on vacation could be negligence if there is a major market turn that drastically impacts your retirement account.
Failing to monitor trends or vet individual investments could also lead to successful claims of negligence. If you have recently lost a large portion of your retirement account, it may be time to explore whether professional negligence played a role in that loss.