Wednesday, January 7, 2009

Bernie Madoff - Made Off with $50 Billion
Could Your Advisor Make Off with Your Life Savings?

Maybe.

Madoff is being accused of bilking hundreds (maybe thousands) of investors (real people, foundations, companies, charities, the list goes on and on) out of more than $50 billion. Many of these people were very smart, very successful, and very savvy - and they got taken to the cleaners. What chance does an average joe have?

Pretty good actually. Take three steps to protect your investment accounts:

- Work with an advisor you trust - if you're not one hundred per cent sure - get out of there
- Only allow your assets to be held by a third party custodian (Schwab, Pershing, Fidelity, etc.)
- Confirm (regularly - by phone or on-line) that your funds exist in the amounts and assets you expect

If you want a no cost review of your accounts and a