Posted on 04/20/2011 1:43:05 PM PDT by Signalman
NEW YORK (CNNMoney) -- Bobby Bradley, a 70-year-old retired bus driver, was duped out of $215,000 -- his entire life savings. Now, he's desperate for any work he can get.
"I've been looking for jobs but I'm too old, nobody wants to hire you at this age so it makes it rough -- I drove a bus for 35 years, so what am I supposed to do now?"
Frances Wills, 67 years old and also a former bus operator, has 75 cents to her name and can't pay rent after losing her $156,000 retirement fund.
"I can barely pay for my home or even the utilities bill -- and I live in a mobile home."
Bradley and Wills had transferred their retirement savings into investment accounts run by Thomas Mitchell, an investment adviser who gained the trust of a small community of retired bus and train operators in the Los Angeles area.
The Department of Justice is now charging Mitchell with running a 15-year Ponzi scheme that collected $15 million from a group of 150 retirees, causing them to lose at least $7 million in retirement savings.
Unlike Bernie Madoff's multi billion dollar scam -- which targeted many wealthy investors -- this smaller-scale fraud has stolen lifelines from retirees of modest means.
(Excerpt) Read more at money.cnn.com ...
Social Security?
Oh, that’s the story for a couple decades from now, on a vastly larger scale.
Rules for investors:
1. Control your own money in your own account at a reputable brokerage firm, such as Fidelity or Schwab.
2. Do not invest more than 2-3% of your financial net worth in any one security, or more than 20% in any one sector.
“Do not invest more than 2-3% of your financial net worth in any one security, or more than 20% in any one sector.”
The goldbuggers need to learn that. They go crazy if you so much as suggest the metal isn’t worth $100k an ounce.
I love that there is always way more “what am I going to do now?” aspect to these stories than the “ponzi scheme” part.
YOU made a bad choice. It really sucks. i feel for you.
(no bailout for YOU).
I’ve doubled my worth in 3 years. how are you doing ? /goldbugger (well, silver really)
I think we will see more of these stories, and the purpose it to set up the argument that in this economic climate, it would be safer to turn over your investments to the gubmint and let them handle it for you.
They still want to confiscate our 401K’s and IRA’s.
I suppose Mitchell has blown all of the money? If not—if he’s got it squirreled away somewhere—the fed should be able to find it and get it back to the investors, and of course Mitchell should never see the outside of a jail cell again.
People like that believe they know what is going to happen in the future. Everyone has an opinion about what will happen in the future. However, everyone knows that in the past some of these opinions have turned out to be wrong. I could mention the dto-com boom and the housing boom.
The idea of investing is that you are going to have money no matter what happens. You won’t be as rich as you would be if you did know what was going to happen in the future, but you won’t go broke either.
I won’t say I have never been down in any year, but I have had consistent returns over the years. Maybe not as much as a more aggressive investor, but I am in control and comfortable with the level of risk.
he could try getting a job doing something else..... maybe making sandwiches
I HOPE it is a couple of decades, more like a couple of years.
I remember gold going from like $600/oz to $200 in a few months after Nixon made it legal for Americans to own gold. I’m happy you’ve been lucky so far, but shares in Proctor and Gamble are probably safer.
I'd think these senior citizens would be aware of the dangers of it.
I’m sorry, this story does break my heart. Yeah, they were dumb and made foolish choices, but they worked at crappy jobs all their lives and have little to show for it.
Humina, humina, humina!
I’m sorry for them. But it will become an important life skill to understand and manage your own savings in the future. (Assuming Obama doesn’t just turn us into a wholly-owned subsidiary of ChiCom Inc). Ain’t nobody gonna take care of “you” except YOU, and that includes - especially - Social Security (the very essence of a ponzi scam)
“GET THE BAG, NORTON...WE’RE RICH!”
Dunno ‘bout you, but most bust drivers I know make very good money.
These people lost their money because of their own stupidity and I do not suffer fools, (or their foolishness), gladly.
I’ve doubled my worth in 3 years. how are you doing ? /goldbugger (well, silver really)
I have done great in the last couple years too which is why that question “are you better off now or in 2008 makes me nervous. lol. I mean financially I am big time but I would still say no because it is not about me, it is about the country.
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