This is a story of a women who trusted her advisor and had problems. The problem I see is that she did not seem to have even glanced at her statements until it was too late.
If you have an advisor, you do have the responsibility of oversight. Why would you expect someone else to take care of your money if you show no interest in it? No matter how little or great your knowledge is of investments, if someone else is handling yours, you should ask questions. You should look at your statements. This is an absolute minimum.
Has anyone learned from the story of Madoff? Note that he only took money from people who did not question him. He also promised consistent returns every year. This alone should have set off alarm bells. No one has consistent returns when investing. It is not possible. There is an Wikipedia entry on Bernard Madoff
Because Madoff had a Ponzi scheme, anyone that he gave more back to as "profit" has to return that money. That is because Madoff never invested any money, but just gave new money that came in to people who took out their money and their "profits". That must have been a shock to those who thought that they actually earned some money investing with Madoff. All investor lost.
Just remember that no one cares about your money as much as you do. If you do not care about it, do not expect anyone else to.
On my other blog I wrote yesterday about Innergex Renewable Energy (TSX-INE, OTC-INGXF)... learn more. Next, I will write about Crescent Point Energy Corp. (TSX-CPG, NYSE-CPG)... learn more on Wednesday, November 29, 2017 around 5 pm.
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Well said. It is not hard to learn how to invest. But it takes a person to care sufficiently about the money to make it grow. Too many people trust financial advisors to handle their money for them. These so called advisors probably look at their clients' portfolio a few times a year. Big mistake to let someone who doesn't care about our hard earned money to handle it.
ReplyDeleteRenewed investor