Posted on 12/16/2008 7:17:43 AM PST by Red Badger
A lifelong New Jersey resident, Bette Greenfield (left) retired in March and moved to Florida in July.
I'm not from a wealthy family living on a big estate in Palm Beach or in an Upper East Side apartment. I'm 71. I've worked hard and lived a quiet life - and have just lost my retire ment savings in the blink of an eye, thanks to Bernie Madoff.
When my brother told me the news, I said, "I guess I'm going to have to live in a refrigerator box now."
I made jokes because it was the only thing I could do to not burst into tears.
How did this happen?
My father, a CPA, was smart and an extremely knowledgeable financial ad viser. As he aged, he wanted to have something where he could put his savings and live off the interest.
He was told by one of his wealthy Palm Beach friends that Bernie Madoff was a miracle worker with invest ments, and that he could pull strings to get Dad into a trust fund with Madoff Securities.
It was less than $400,000 - not a large amount by Madoff standards - but his friend helped him get into a fund. Dad was sure that he had made a wise investment and that he and his wife could be comfortable for the rest of their lives.
For 10 years, he did live off the interest and totally believed in the way the money was increasing.
Dad told me, "Bernie Madoff is brilliant. When I pass away, keep the money with him, and you and your brothers will always have something to fall back on."
(Excerpt) Read more at nypost.com ...
After 15 years, they got more back from the original investment than they would have gotten from a regular investment. Madoff was paying, what, 20-30% per year? They got their principle back in the first 5 years, and for the next 10 they were living high off of other peoples money.
Keep in mind that many of these folks have been invested with the guy for years — including some major up and down years in the stock market. In years when the stock market rose substantially, a 1% monthly rate of return in a hedge fund would have seemed almost disappointing — or at least “safe” in comparison to other alternatives.
The article said she had $400,000 invested, that's a pretty shiny dime.
I feel very sorry for this woman. Nobody sets out to be swindled, and there wasn’t any indication that this was anything other than a very good investment: it kept making decent returns and sent no signals to an UNSOPHISTICATED investor that anything could possibly be wrong.
Everyone who says she should have known better are only being wise in hindsight, and ought to thank their lucky stars that they didn’t get caught by this swindler.
“Believing you are investing money so that you can retire comfortably and not depend on SS is greed?
What am I missing here?”
What do you call hot blind uneducated pursuit promises of 15% returns in a 2-4% market? Good luck?
Well, let's see. Most of my co-workers are down about 30-35%, while my portfolio (that I and I ALONE decide how to invest) is up about 3% this year. So, compared to those around me, I AM up about 40%!
Seriously, this tells you everything you need to know about these so-called "professional" advisors. I used them when I was younger and got little return. When I realized that their "advice" wasn't worth the paper it was written on, much less their commissions, I started doing some reading and stufying on my own and, guess what? I can do it as well as them, if not better!
Am I always right? Heck, no. But, because I'm my one and only client, I'm my first priority, not another phone number on a prospect/sucker list. So, when an investment goes south (as happened to me just last month), I told my client, all one of me, to dump the loser.
I do feel sympathy for such an ignorant fool. I also get very irritated with the willful ignorance of people concerning money. Instead of exercising some caution this woman, as many others have, saw the big returns and took the short term money.
Bailout syndrome now calls for us to make these fools whole and tell them to never do it again. Why change behavior if there are no consequences.
Did not even read the article.
Once a person turns fifty and from that point forward if the DOW hits an all time high, you exit the market. Anyone who is retired and has their “nest egg” in anything but a capital preservation fund is foolish.
Ya know what cracks me up? The financial Gurus at Lehman and Bear Sterns, AIG et all can drive a company bankrupt with crappy investments, but Joe sixpack and Suzy lunchpail are supposed to be wiser than that.
see #49
Inheritance, or in Zuckerman's case they got so big they had managers handling funds that didn't do their homework.
Of course all the yahoos that drove the ship up on the rocks got bonus’s and a bail out
Proves there is a better way to save.
It’s spelled M A T T R E S S !!!
What a lot of people are failing to see is that this is a precursor to the greatest scam ever pulled, social security. (yes I know we are forced to contribute)
It was her father that made the investment, not her. From the article:
“It was less than $400,000 - not a large amount by Madoff standards - but his friend helped him get into a fund. Dad was sure that he had made a wise investment and that he and his wife could be comfortable for the rest of their lives.”
There is, or was, or used to be, a thing called “due diligence” .......
Should have bought some gold and silver coins.
1st National Bank of Sealy?.............
There is and was also a thing called grifters.
Lets prosecute them instead of the poor sap that got fleeced.
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