"Must-see TV" consists of only two shows for me, i.e., Fareed Zakaria's GPS on CNN and Sixty Minutes on CBS. Last night, I was slow finding the remote after Sixty Minutes, when some fictional show began. Before I could cut off the TV, I heard the word "Ponzi" and was hooked. I had to listen!
It seems a prominent lawyer decided to retire and move to France, because her investment portfolio had done so well. Unfortunately, as soon as she resigns her partnership, she learns she has been a victim of a Ponzi scheme.
I am not insensitive to such victims, but Ponzi schemes are so easy to spot that it is hard to generate a great deal of sympathy. Remember this: if there is not an independent third-party that holds the actual assets and sends reports directly to the client, you should assume it is a Ponzi scheme and stay away.
Please re-read that last sentence again and again. Tell your friends!
For my clients, their assets are held by TD Ameritrade, who also sends monthly statements directly to the client. Other good custodians include Schwab and Pershing. If you don't know who your custodian is, stop what you are doing right now and find out!
It seems a prominent lawyer decided to retire and move to France, because her investment portfolio had done so well. Unfortunately, as soon as she resigns her partnership, she learns she has been a victim of a Ponzi scheme.
I am not insensitive to such victims, but Ponzi schemes are so easy to spot that it is hard to generate a great deal of sympathy. Remember this: if there is not an independent third-party that holds the actual assets and sends reports directly to the client, you should assume it is a Ponzi scheme and stay away.
Please re-read that last sentence again and again. Tell your friends!
For my clients, their assets are held by TD Ameritrade, who also sends monthly statements directly to the client. Other good custodians include Schwab and Pershing. If you don't know who your custodian is, stop what you are doing right now and find out!
