Madoff Anniversary Tip: How Not to Get Sucked Into a Ponzi Scheme

Tuesday, Dec. 11, will be the fourth anniversary of the Bernie Madoff investor scandal -- one of the biggest ponzi schemes in Wall Street history. Madoff was sentenced to 150 years in prison and will never touch investor money again. But what about all those other advisors out there? Can they be trusted with your money?  Nicholas Stuller, who runs AdviceIQ, a firm that evaluates advisors, tells The Daily Ticker that investors should trust but verify the records of investor advisors. Using the lessons learned from the Madoff debacle, Stuller suggests that investors ask the following questions before hiring an advisor:

--Is the custodian who's holding your money the same person who's managing the assets? Stuller says that's not necessarily bad but it could be a signal to dig deeper.

--Has the advisor made clear his or her investment philosophy? If advisors can't specify their investment philosophy or use insider jargon, consider that a red flag.

--Does the advisor use an independent, reputable accountant?

Wait, wait…there’s more at http://finance.yahoo.com/blogs/daily-ticker/madoff-anniversary-tip-not-sucked-ponzi-scheme-184658629.html