Most of us did not get directly burned by the Madoff fraud. We
are not Kevin Bacon or Steven Spielberg. We are not Palm Beach
matrons. We didn't run multimillion dollar hedge funds or
charities. But investment fraud doesn't always target the rich.
Just the opposite. Small, less sophisticated, investors are usually
its victims.
How can you protect yourself from losing everything when you
invest? There are a number of ways, some of which sound like
clichés. But clichés are clichés because they
tend to be true. For example: "Money doesn't grow on
trees." Something to remember when you invest. Here are some
pointers to help you invest safely.
- Don't put all your eggs in one basket. In other
words: "Diversify." This applies not only to what you
invest in, but who you invest with. Many Madoff investors gave him
their life savings. Now they have nothing. If something goes wrong
or the sector you invested in takes a tumble (financials, real
estate), the impact will be
