Storm Financial Group

[robots]

hello,

i was only nineteen - the herd

thankyou
robots

 

[cuttlefish]

hello,

i was only nineteen - the herd

thankyou
robots

Possibly showing your youth there robots! - my memory of it is when redgum were singing it.

 

[myusernam]

yeah I was always under the impression that they had to act in my best interests. Plainly not the case. Why else would the guy to advise me to sit and do nothing at 92% lvr with only 180K invested paying 70K a year interest?

Self preservation I believe.

Also I would like to cast aspersions at the a certain bank (which bank?). My house was paper revalued (storm had 2 bank employees that just handled storm business) once I had been with storm for a year or so and I had made huge increase in value in a static real estate market. Of course the money was drawn down and thrown into the market. I think the bank representatives may have been on the commision trail also.

Interestingly when I went and saw storm a few days ago I asked about why I had never been switched to cash. The advisor (my normal one on leave) tried to show me the redemptions but they weren't requested redemptions by storm but margin call redemptions by the lender. I wish I had been switched to cash. I think the individual advisor I had decided not to because he had just purchased a new storm franchise in another locality and was in financial distress. Other clients in similar situations were switched to cash and I had not one switching, resulting effectivly in calls at 90 + % each time.

 

[boundless]

I can't believe people who were being greedy investing with Storm Financial are now crying poor.

Give me a break!!

You weren't crying when you were getting big returns compared to the average man on the street.

Sheesh!

 

[Mash]

Even when I contacted our advisor and he emailed me statements that our LVR was over 100% still insisted we hang in there. (Don't worry about what we owed apart from the Margin Loan). Storm had it covered. They had special arrangements to sit it out. Well they thought they did. Now we have to deal with the results. To all you clients who still think the Cassimatis' will bail you out. We had personal asurrances (off the record) ( I never said this but ) blah blah blah... we won't let you lose your home... they'll just write out a cheque.....as usual they just tell you what they think you want to hear.
How foolish we feel now!!!!! Never assume money and friendship can co exist!!

 

[Temjin]

While I have sympathy for those who have lost their life saving, I really do not see it is possible for them to retrieve any sort of money from Storm with their flawed business models and clever manipulation of human psychological biases. Now they are in administration and still own certain banks money, it's unlikely there would be anything left to hand out after they were paid first. Unlike Madoff's massive ponzi scheme, the client's money were invested into REAL assets, albeit with a lot of leveraging on top of that.

Sorry to say this, but greed has got the everyone of you. I know it's a painful lesson, but you aren't the only one on this planet who suffered this fate. Madoff's clients were worse off...they were literally scammed and it wasn't even considered a "black swan" event!

 

[boundless]

Ah that false God called "Greed"

Live to learn within your means. If you can't afford to buy it, don't!

No wonder the world is in the #hit with everyone living on credit and borrowing against their assets

 

[Monario]

I can't believe people who were being greedy investing with Storm Financial are now crying poor.

Give me a break!!

You weren't crying when you were getting big returns compared to the average man on the street.

Sheesh!

1 post, no idea of the situation, obviously have not read the entire thread..

Bad comment, poor form....

No one was greedy investing with storm, infact the majority of people who are in the situation, as with myself and steve reynolds (a long time personal friend of myself) were trying to sell out on many occasions, but were stalled or blocked by storm.... we were trying to sell at a loss, to minimise further damages, is that greedy? yet we were stalled until we were in negative equity... would you not be crying a bit if your advisor was telling you one thing but the outcome is another...


I will never trust another Financial advisor again, as with many others... however if you think were just whinning and think storm is a good company let me know I would be happy to refer you to my advisor...

the reason I am posting here, is to let as many people know what storm are, I feel it morally important for me to at least try and stop this ever happening to another person.....

 

[Jayan]

but were stalled or blocked by storm

I keep reading this sort of comment.
How can they stop you? ... Unless you were tied up with contracts through banks or storm.

Why didn't this ring bells for you?

 

[Solly]

1 post, no idea of the situation, obviously have not read the entire thread..

Bad comment, poor form....

No one was greedy investing with storm, infact the majority of people who are in the situation, as with myself and steve reynolds (a long time personal friend of myself) were trying to sell out on many occasions, but were stalled or blocked by storm.... we were trying to sell at a loss, to minimise further damages, is that greedy? yet we were stalled until we were in negative equity... would you not be crying a bit if your advisor was telling you one thing but the outcome is another...


I will never trust another Financial advisor again, as with many others... however if you think were just whinning and think storm is a good company let me know I would be happy to refer you to my advisor...

the reason I am posting here, is to let as many people know what storm are, I feel it morally important for me to at least try and stop this ever happening to another person.....

What are the red flags to look out for?

GG reckons to look out for fountains in the foyer, gold turds in the dunny, eh sorry gold taps etc....
Sounds like they were a polished operation spouting fear and despair and you had to be with them because they were the only ones who knew the answer.
Hope the place isn't known as Clownsville after all of this...

I wonder what is the real reason Comm Bank dumped them...?

 

[boundless]

1 post, no idea of the situation, obviously have not read the entire thread..

Bad comment, poor form....

...

Mate I have lost my life savings over the past 18 months in 3 companies that have gone into administration, but I know I was gambling with spec stocks.

You guys know you were being greedy. They are one and the same thing. It didn't pay off. The owners of this company will pop up in 6 months with a new business and carry on like nothing happened. It's been like that for 100 years and will continue for another 100 years. The rich get richer the poor get poorer.

Life sucks big time.

 

[Julia]

No one was greedy investing with storm, infact the majority of people who are in the situation, as with myself and steve reynolds (a long time personal friend of myself) were trying to sell out on many occasions, but were stalled or blocked by storm.... we were trying to sell at a loss, to minimise further damages, is that greedy? yet we were stalled until we were in negative equity... would you not be crying a bit if your advisor was telling you one thing but the outcome is another...

I think what many of us are wondering is why you became involved with Storm in the first place?

Were you unable to make ends meet on your existing income?

I gather they ran "seminars" in an attempt to attract new business.

Presumably they explained at the outset that you would be leveraging to the high levels we've seen quoted on this thread. Didn't that ring any alarm bells?

Sure, we've got the picture that Storm were plausible and persuasive salespeople, but even so, how is it possible that any Storm clients didn't understand that the same leverage that brought you greater returns in a bull market would likewise be devastating if the market turned?

 

[Monario]

I think what many of us are wondering is why you became involved with Storm in the first place?

Were you unable to make ends meet on your existing income?

I gather they ran "seminars" in an attempt to attract new business.

Presumably they explained at the outset that you would be leveraging to the high levels we've seen quoted on this thread. Didn't that ring any alarm bells?

Sure, we've got the picture that Storm were plausible and persuasive salespeople, but even so, how is it possible that any Storm clients didn't understand that the same leverage that brought you greater returns in a bull market would likewise be devastating if the market turned?

I started to invest with storm at age 23 (now 30) to help self fund my retirment, and generally make life easier in the future, I DID NOT draw an income of any kind from my investment.. This was my first investment of any kind, and I openly admit I was naive and did not know much, this been the main factor to why I was paying for advice and managment rather than doing it myself....

The high leverage, that people claim we were set up with is not entirely true, if I remember correctly my initial LVI was 50-55%, as the market began to tip I noticed this changing, I asked the questions.... and was assured that we would be safe, and considering I was in it for retirement and not short term gains, it would be unwise to sell out... And it was specifically stated that storm did not operate in this manner, as it was not effecient to try and pick the top and bottoms of spikes and falls, and selling and buying would be a costly excersise..

As the LVI grew higher and higher and repeatedly asked about selling, and at one point contacted challenger, who explained to me I must go through storm fo rany dealings, Storm continued with the advice that things were safe and that in time markets would return...

I had a face to face update with my advisor late october, I asked for an exact figure of when I would be in margin call, and he explained that I had nothing to worry about as that could not happen, and an exact figure would be hard to calculate, I had a rough idea, and asked if I was already in Margin call... The reply was NO!, I recieved a phone call 5weeks later from macquarie explaining that I had been in margin call from the 5th of oct.

Hindsight is 20/20, I should have got seperate advice, should have forced them to sell etc. etc.. but I was investing through an advisor who was giving me false and misleading info, not to mention lying to me about my margin...

So, now.... I ask, can you explain how I was been greedy? I was following advice I paid for, are they not liable in some fashion for what they have done?

Yes by the way, alarm bells were ringing, and I agree I am partly to blame for the extent of the losses, but when you are been advised... well do I have to go on?

Is the finance industry regulated in anyway to control this sort of activity?

 

[Monario]

Mate I have lost my life savings over the past 18 months in 3 companies that have gone into administration, but I know I was gambling with spec stocks.

You guys know you were being greedy. They are one and the same thing. It didn't pay off. The owners of this company will pop up in 6 months with a new business and carry on like nothing happened. It's been like that for 100 years and will continue for another 100 years. The rich get richer the poor get poorer.

Life sucks big time.

? pouring your life savings into 3 speculative stocks compared to investing in a broad market index of 300companies, through a financial planner. how do the 2 even compare?

And as stated this was a retirement plan for the future that I was told was conservative and geared for the long term investment I had asked for...

 

[ShareGuy]

Were you unable to make ends meet on your existing income?

Oh please, what a comment! Why are we all here talking about investing????
Just because someone wants to earn a good return on their assets but doesn't know how (and thus goes to see a FP) does not make them greedy! On the other hand an FP company who seeks out these people and exploits them.... Greedy!

As for Boundless do you really think thowing some money at some specs is the same as investing in index funds (regardless of leverage)?? More poor form there mate.

Enough with the comments about how people should have seen alarm bells, how is a pensioner with a $500,000 unmortgaged house and no idea how to turn a computer on ment to know what was going on? That why they went to see an FP!

And for younger people with good incomes - debt was not the problem, inaction was, how bout a simple hedge Storm?????? Oh no thats right CBA was going to let them rack up debt and not ask any questions or was that cassimartis's ego speaking?

 

[Monario]

What are the red flags to look out for?

GG reckons to look out for fountains in the foyer, gold turds in the dunny, eh sorry gold taps etc....
Sounds like they were a polished operation spouting fear and despair and you had to be with them because they were the only ones who knew the answer.
Hope the place isn't known as Clownsville after all of this...

I wonder what is the real reason Comm Bank dumped them...?

Fear and despair where did that come from?

They were spouting, healthy returns on long term investments....

Clownsville? I live in brisbane thanks......

 

[cuttlefish]

I started to invest with storm at age 23 (now 30) to help self fund my retirment, and generally make life easier in the future, I DID NOT draw an income of any kind from my investment.. This was my first investment of any kind, and I openly admit I was naive and did not know much, this been the main factor to why I was paying for advice and managment rather than doing it myself....

The high leverage, that people claim we were set up with is not entirely true, if I remember correctly my initial LVI was 50-55%, as the market began to tip I noticed this changing, I asked the questions.... and was assured that we would be safe, and considering I was in it for retirement and not short term gains, it would be unwise to sell out... And it was specifically stated that storm did not operate in this manner, as it was not effecient to try and pick the top and bottoms of spikes and falls, and selling and buying would be a costly excersise..

As the LVI grew higher and higher and repeatedly asked about selling, and at one point contacted challenger, who explained to me I must go through storm fo rany dealings, Storm continued with the advice that things were safe and that in time markets would return...

I had a face to face update with my advisor late october, I asked for an exact figure of when I would be in margin call, and he explained that I had nothing to worry about as that could not happen, and an exact figure would be hard to calculate, I had a rough idea, and asked if I was already in Margin call... The reply was NO!, I recieved a phone call 5weeks later from macquarie explaining that I had been in margin call from the 5th of oct.

Cheers Monario - the way that you describe how things unfolded - its easy to see how people got attracted to Storm and also to see how those that did take the time to ask the pertinent questions and take action seemed to be hampered.

 

[Monario]

Oh please, what a comment! Why are we all here talking about investing????
Just because someone wants to earn a good return on their assets but doesn't know how (and thus goes to see a FP) does not make them greedy! On the other hand an FP company who seeks out these people and exploits them.... Greedy!

As for Boundless do you really think thowing some money at some specs is the same as investing in index funds (regardless of leverage)?? More poor form there mate.

Enough with the comments about how people should have seen alarm bells, how is a pensioner with a $500,000 unmortgaged house and no idea how to turn a computer on ment to know what was going on? That why they went to see an FP!

And for younger people with good incomes - debt was not the problem, inaction was, how bout a simple hedge Storm?????? Oh no thats right CBA was going to let them rack up debt and not ask any questions or was that cassimartis's ego speaking?

Thanks share guy, at least someone agrees with me....

I know I have made mistakes, why is it hard for people to admit that the advisors also have, and that in some respect should be liable, S*#T if they are not I know what the next uni course I will be sudying is...(Why work for the man when I can call myself a financial advisor give bad advice rip off the people and get away with it)


So yes I made mistakes, has anyone got advice on how to invest an avoid these things in the future? how an investment should be run? or are we here just to make people feel worse than we already do?

 

[ShareGuy]

So yes I made mistakes, has anyone got advice on how to invest an avoid these things in the future? how an investment should be run? or are we here just to make people feel worse than we already do?
Today 11:28 PM

HEDGE!!!!!!! You can maintain leverage over the long term if you hedge at a predeterminded point to take out all risk and wait for the market to recover. This also will avoid a hefty brogerage and CGT on your indexed funds as you don't sell them. Only CGT on the hedge to worry about.

 

[Jayan]

The high leverage, that people claim we were set up with is not entirely true, if I remember correctly my initial LVI was 50-55%, as the market began to tip I noticed this changing, I asked the questions.... and was assured that we would be safe, and considering I was in it for retirement and not short term gains, it would be unwise to sell out... And it was specifically stated that storm did not operate in this manner, as it was not effecient to try and pick the top and bottoms of spikes and falls, and selling and buying would be a costly excersise..

As the LVI grew higher and higher and repeatedly asked about selling, and at one point contacted challenger, who explained to me I must go through storm fo rany dealings, Storm continued with the advice that things were safe and that in time markets would return...

I had a face to face update with my advisor late october, I asked for an exact figure of when I would be in margin call, and he explained that I had nothing to worry about as that could not happen, and an exact figure would be hard to calculate, I had a rough idea, and asked if I was already in Margin call... The reply was NO!, I recieved a phone call 5weeks later from macquarie explaining that I had been in margin call from the 5th of oct.

Hindsight is 20/20, I should have got seperate advice, should have forced them to sell etc. etc.. but I was investing through an advisor who was giving me false and misleading info, not to mention lying to me about my margin...

So, now.... I ask, can you explain how I was been greedy? I was following advice I paid for, are they not liable in some fashion for what they have done?

Yes by the way, alarm bells were ringing, and I agree I am partly to blame for the extent of the losses, but when you are been advised... well do I have to go on?

Is the finance industry regulated in anyway to control this sort of activity?

I really feel for you people that lost a lot of money in this mess, especially the pensioners. No way am I making excuses or sticking up for Storm, obviously their strategy was RISKY ... I personally wouldn't have gone near them with a barge pole. I'm in Qld and they advertised heavily on TV here, they had a local office, I could easily have been a victim if I was a risk taker!

That said ... The point I think is being missed here is way back in October, economically speaking things were looking very different to what has come about and how fast it has all happened. The stock market was on a slide but not in freefall. People were getting nervous but no one predicted how fast this debarcle would happen. One minute Australia would be ok because China was booming, a week later China was in trouble and resources bombed!

Every day on every TV, radio and soapbox a different financial guru had an opinion and they were all different, most were saying don't sell shares, they are long term blah blah! Same with Property. No one still knows what will happen, it's all just a opinion fest and everyone has one. There hasn't been anything in history to indicate where this will end and when.

My point is ...Hindsight is 20/20

Storm had an extremely RISKY strategy, it was great when the economy was booming, everyone was happy ... and maybe even ok in a NORMAL economic downturn, losses for sure and I wonder if in a rational world the advice would have been to hold and ride the storm just like you people were told.

Thing Is ... No one realised this isn't a normal cycle or rational, this is doom and gloom central the whole world over and moving like a tsunami day by day ... massive bleeding in every financial institution big and small. World banks collapsing, not your every day occurance! We might have thought it could happen but NOT imagine it WOULD happen!

Way back in October, the world WAS a different place, lets not forget that!