Seems so simple. Yet, Madoff was siphoning away $50 billion dollars of OPM (other people’s money). You may not know about this, but the Sarbanes-Oxley Act of 2002 has placed greater standards on accounting and management firms.
The more money you have equates to higher responsibility, not less.
Here’s a few things to do when searching for a broker, investor, or anyone in a position to manage your money.
• Research their accounting firm or whoever audits their books. Check their reputation.
• Never take anyone’s word as golden. Just as with a doctor diagnosis, it’s key to get several opinions. Take the financial advice, and shop it around in financial forums for additional opinions.
• Stay involved. Never hand over your hard earned money to others. It’s yours. Keep it yours.
*Image courtesy of BusinessWeek.
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