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.
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 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.
he could try getting a job doing something else..... maybe making sandwiches
I'd think these senior citizens would be aware of the dangers of it.
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)
As an individual I feel compassion for him and the other that lost money in this scheme and if there is a silver lining, perhaps others will learn from their misfortune.
One of the first rules I learned as a young man was if it looks too good to be true, then it is most likely not true.
In investing, if the returns are much higher than anyone else is offering that means the risk is much higher as well.
The second rule is do not bet with the rent money. What this means unless you have all your necessities covered, you have no business taking risk. There are a lot of safe boring investments where you can park your retirement money. They may not provide a lot, but you are not going to lose it all either.
The last rule, if you are going to gamble, the odds are always in favor of the house, that includes stocks and bonds and anything else you care to gamble on.
sorry...stupid is as stupid does...why should the taxpayers be responsible for someones stupidity???
This is sad, but the fact is the following rules still hold true:
Buyer beware.
If it looks too good to be true, it probably is.
You can’t cheat an honest man.
If these people are just plain dumb, then I feel sorry for their loss. I doubt they are dumb. More than likely, their greed did them in. OK, it is not “greedy” to want a high return, but it is “greedy” to convince yourself that somebody will guarantee you a 100% risk-free 12% return, when banks are giving 2% and CDs are giving 5%.
If you look around and every other safe investmenet is giving 5% or less and you find something guaranteeing a safe 12%, then you have to be an idiot or greedy to believe that. If it was a safe 12%, then either everyone would invest there or every other institution would have to raise their return on safety to match this competitor.
This is just another story of greed. Of course, the evil fraudulant scum should have the book thrown at him and then burn in hell. That goes without saying.
Con men are never in short supply. If you are a lifelong hard working bus driver, it is your responsiblity to guard your lifelong savings and be skeptical against promises that are too good to be true.
I have a hard time sympathising with these greedy victims, unless they are just really stupid people, then yes sorry for your loss.
I think they were just greedy. Get smart and better luck next time. Teach your kids by your mistake. And grandkids.
Dollar cost averaging
75% low-fee broad-market index fund
10% investment quality bond fund
10% well-managed no-load foreign equity fund
5% gold & silver (physical ownership)
Don’t touch for the next 40 years
Sleep well at night
Feels good man.
How can one feel sorry for people who are so damn dumb that they can’t recognize a shyster when they see one. If you’re offered a great, great deal, one better than your bank (for example) could come close to, then it’s a set-up!