Huffington Post, February 9, 2016
This is a story to make you weep.
Several years ago a Portland, Oregon public schools retiree hired financial adviser Shayne Kniss to help him with retirement planning. The retiree would seem to have had no need for Mr. Knissâ€™s services. He already had a guaranteed life pension coming from his years of public service. But Kniss talked him into cashing out the guaranteed pension and turning the resulting $729,000 into an investment account in his Iris Capital firm.Â Kniss confidently estimated 8-12% returns, which would have been higher than the guaranteed pension payments.
You can guess where this story is going.
Last September, as reported in The Oregonian, the retireeâ€™s $3,500 payments stopped. Iris Capital was tanking. Most of its $5 million capital, collected from 50 people like the public schools retiree, had been invested in a shaky real estate flipping operation that was collapsing.
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