Imagine the horror–you wake up one morning only to discover that the bulk of your family financial assets is gone! All that money you saved and entrusted to your financial advisor was funneled into a ponzi scheme–your money was used to pay off earlier investors and the scheme has collapsed. If you’re lucky, after several years of litigation and receivership, you may receive pennies back on your dollar.
Perhaps you caught the recent HBO movie The Wizard of Lies–all about the biggest swindler of all time Bernard Madoff. Hard to believe but Madoff took in over $60 billion in his ponzi scheme, from wealthy individuals, worthy charities and institutional investors. Until the market collapse in 2008, annual requests for withdrawals were modest and orderly, so that Madoff was able easily to pay requested withdrawals out of new contributions and continue to grow his fund. That all changed in 2008-2009 when withdrawal requests overwhelmed available cash, bringing the whole fund down. Bernie Madoff himself admitted he hadn’t actually traded since the early 1990’s–it was all fake!
The good news: Bernard Madoff is in prison for 150 years so you won’t be scammed by him. The bad news: there are plenty of Bernie Madoff wannabes out there, more than ready to rob you of your life savings. In fact, scam artists and frauds steal over $60 billion from us Americans every year! Can you believe it, in the financial services industry alone, 52,000 advisors were disciplined for misconduct in 2016. Perhaps even worse, 44% of bad advisors terminated by their firms for misconduct were back working at another financial firm WITHIN ONE YEAR. So much for effective industry self-policing!
Isn’t it high time to ask yourself, “How well do I know my financial advisor, his or her history and qualifications?” We can help! On the June 26, 2017 edition of my weekly Internet radio program “Middle Age Can Be Your Best Age” I interview former financial services industry executive Bill Francavilla on the dangers of financial scams and how to recognize and avoid them. Tune in to discover the three types of financial advisors to avoid and qualities to look for in evaluating your current advisor or searching for a new one. Arm yourself with the basic financial knowledge needed to spot a fraud and to protect both yourself and your aging parents from the financial scammers among us.
You can tune in to the Bill Francavilla interview at any date and time beginning on June 26; the cost is right–FREE. To access our program from your computer, tablet or smart phone, simply Google “middle age your best age.” Our program link will appear at the top of the page and clicking it will take you right to our program.
Remember also to visit our website MiddleAgeRenewal.com. While there, you can preview Roy Richards’ two prized books on midlife renewal and view ten high-powered videos on overcoming various challenges of middle age.