Posted on 12/31/2008 5:23:01 PM PST by TigerLikesRooster
Is your money manager a crook?
If the rich, famous and sophisticated can get bilked (and the Madoff scandal makes it clear they can), how can you know whom to trust? Here are 5 red flags that should get your attention.
By Catherine Holahan
The list of Bernard Madoff's victims reads like a who's who of prominent business people, banks and financial firms. DreamWorks CEO Jeffrey Katzenberg reportedly invested millions. Banks such as HSBC (HBC, news, msgs) and Austria's Bank Medici could lose billions. An estimated dozens of "funds of funds," which exist to vet and choose the right hedge funds and mutual funds for investors, could lose billions more.
As a former chairman of the Nasdaq stock exchange, Madoff had connections and credentials that kept many investors from seeing -- or taking seriously -- complaints against his companies. Had investors delved deeply into his activities, they would have seen his businesses were not as squeaky-clean as his résumé would suggest.
/snip
The background check doesn't check out
/snip
You don't understand the strategy
/snip
Your manager makes a bundle even if you don't
/snip
No one else is watching the books
/snip
Your fund manager doesn't invest alongside you
/snip
(Excerpt) Read more at articles.moneycentral.msn.com ...
Ping!
Tough question. My money manager is myself but I tend to think I’m getting cheated sometimes.
“Is your money manager a crook?”
Nope. Because She is Me. :)
The question should be “is your money manager a crook or a dope?”
It truly is Upside Down World!
Gosh I hope not because he is me.
Latest news is Kevin Bacon got ripped off. Amount unspecified
It was a tough year to be a broker. Yet honest brokers can be found.
Larry Summers repealed the Glass-Steagall Act so Citicorp could ...
yes
and its me
Here’s my list; the MM drives an 100K car; golfs three times a week, has multiple vacation homes, travels internationally twice a year, talks too much about restaurants and great wine.
As I say, “Looks good, smells good and doesn’t sweat.” He’s a phony.
No, but I’ve had a scrape or two
No, but I’ve had a scrape or two
But after all this sh*t who will believe them?
You should always be able to go online and see your account, including what's in it.
You should always be able to get your advisor on the phone.
You should receive stellar service from your advisor.
You should expect to lose money sometimes.
You should be able to get a good, simple explanation of the assets in your account. (No weird sh*t).
You should always go over your quarterly statements and they should not get strange all of a sudden.
You have a manager who makes money when the market goes up, down and sideways - and you double your money every 4 to 6 years.
If it's too good to be true, it's either not that good or not that true. No one can do what Madoff claimed - not even Madoff.
It doesn’t look like your getting your money’s worth since your money manager is surfing the net reading political sites.
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