n the early 1990s in New Hampshire, when I was not as sceptical about the investment industry as I should have been, I truly thought that most brokers and advisors did the right thing for their clients.

There had been rumours circulating about inappropriate selling techniques used by one of the financial services firms. At the end of that tax year, my clients, who had been saving for their children? college educations, a situation where preservation of capital is crucial, produced brokerage statements to show that of the $40,000 they had originally invested, only $24,000 was left, in just over a year.

Their financial advisor, a music teacher turned broker, had sold them a variable annuity product with a triple penalty trigger for premature redemption ? they paid a tax, and two large penalties for cashing in early. They had absolutely no idea how the investment was structured or the penalties involved for redeeming early. The only person who benefited, in this case, was the ex-music teacher as variable annuities pay a seven percent commission, one of the highest in the industry. It turned out that this was the same firm that other investors had filed claims against ? the local branch of American Express Financial Advisors.

At that time, most advisors were paid solely on commission, with very few receiving compensation from assets under management or holding non-conflicted salaried positions. Thus, the temptation to push the envelope by going for the highest paying investment product was always in play. Firms routinely promoted their own proprietary mutual funds over proven ?brand name? performance winners because those paid the sales advisor (and the firm) a higher commission. Variable annuities were sold to everyone, whether they needed them or not. Who could resist that big payout?

Variable annuities are a complex investment product structured as a contract, and generally issued by an insurance company. Not to be confused with fixed annuities where the contracted income stream is guaranteed, variable annuities have underlying units (mutual funds) that are invested in capital markets. Their value and their ultimate payout is determined by market performance. Invest too aggressively, and the results are predictably poor. And because they are generally long-term contracts, in the US, they offer some tax-deferral components, but are subject to high early surrender penalties as well.

Fast forward ten years, in 2002, the AMFA name crops up again, with improper sales of variable annuities and life insurance.

And again in 2004, several times, then in 2005 it is fined $13 million for improper sales of Class A and B mutual fund shares along with another $12 million fine for directed broker violations.

In the meantime, the financial advisory section of American Express was spun off into a new firm called Ameriprise that flooded the media with a new series of ads. Pounding upbeat music, they promised to be the best for you with the largest number of financial planners in any firm in the United States. They?ve never said how many of these planners are CFP? certificants and with the latest bit of news, I hope there were not many.

The Wall Street Journal reported on Wednesday that Amerprise yet again was held fully liable by the National Association of Securities Dealers arbitration panel for a total award to former Exxon workers of $22 million. Thirty-two individuals who were told by their Ameriprise advisor to retire because they would have more than enough money to spend. Instead they lost as much as two-thirds of the pensions in, you guessed it, variable annuities and Class B mutual fund shares. One pay day alone for the advisor was a commission of $66,679 while his client now works at Walmart to stay solvent. Let?s multiply that by 32 investment accounts!

Why is this important? Not because it involves American Express or Ameriprise, but because of the broader lessons. The advisor not only lost their money in risky investments, but he failed to disclose his full compensation package adequately to these individuals. They felt that their trust in him was enough and assumed that he would do the right thing.

Most of us find that investments are not easy to understand. We know that we need them, but they are a chore to wade through, particularly when you?d rather plan a nice vacation. Instead, we place our confidence and trust in an individual that we hope will do the right thing for us. And still, in spite of my cynicism, most investment industry sales people do adhere to a personal code of ethics.

But, and this may not be taken lightly, as an investor and saver, you cannot totally rely upon your sales person. You owe it to yourself to learn as much as you can about your finances ? your future financial position depends on it. I will go so far as to say that you have a responsibility to yourself and your family to ramp up that investment knowledge.

Having said that, and in the commitment to always bring current objective investment information to you, the following articles and subjects have been planned for the next few months. Each subject will encompass two to four detailed articles. I hope you will enjoy them as well as take away a new understanding of your investments:

1. Making mutual fund information fun (101)

2. Balance in your asset investment allocations (and your life)

3. Risk management (insurance) ramp up

4. Pensions, your key to long-term success

5. Rewarding yourself with a rich retirement

6. Estate planning stepped up

7. Suddenly, terrifyingly single again

8. Demystifying the hedge fund mystique

9. Are commodities credible investments for you?

Keep reading, and I thank all of you for your support over the last six and a half years.