Triple-Leveraged ETFs For Retirees? Caveat Emptor

Two years ago, Citigroup Inc. (NYSE:C), Morgan Stanley (NYSE:MS), UBS AG (NYSE:UBS) and Wells Fargo & Company (NYSE:WFC) were fined a combined $9.1 million, including $1.8 million in restitution, by the Financial Industry Regulatory Authority (FINRA) for selling leveraged ETFs to investors without adequately explaining how they work and why they are so risky. Now, two financial advisors at California-based Financial Engines think retirees should consider allocating 15% of their portfolios to triple-leveraged ETFs, reports Anna Prior for The Wall Street Journal. Jason Scott and John Watson argued in an article published by the CFA Institute’s Financial Analysts Journal last…