By now, many are aware of the infamous New York money manager Bernie Madoff, who allegedly bilked investors out of billions of dollars. A local financial expert says the con does offer some lessons that will make us smarter when it comes to managing our money.
Although the alleged Madoff con is making headlines around the world, these schemes are actually don't happen very often. But Scott Laue says we still need to take the appropriate steps to make sure we don't fall victim. One of the biggest things he says we should do is ask questions and understand as much as we can about our money. This means things like making sure our financial statements come from the company holding our money, and not the investment firm we are with.
Another red flag, he says, we should make sure our advisor is not moving money between different accounts on a regular basis. And always, Laue says, monitor our account and the transactions that are made.
"Human nature is we tend not to question good results. We tend to look at bad results. You want to make sure the numbers are in line with appropriate benchmarks and if not you need to ask yourself why."
Laue also says we should make sure we have online access to our account.