Unless you’ve been living in an ice cave north of the Arctic Circle, you’ve probably been at least somewhat aware there was a fund manager by the name of Bernie Madoff who recently bilked investors to the tune of 65 billion dollars. Some say “only” 20 billion in actual losses but what’s 45 billion between friends?
The point is this heretofore king of the investment world was actually nothing but a garden variety scam artist. Sure, he used to be a big mucky muck over at NASDAQ but, these days, Mr. Madoff is looking squarely down the barrel of a 150 year prison sentence. Let’s see, he’s 71 right now, that means he’ll get out in…never mind…this old guy is going to die in jail.
Bernie stole from the rich and he stole from the poor. He stole from his neighbor, Steven Spielberg, as well as Hal of Fame pitcher, Sandy Koufax, and actor, Keven Bacon. The list is long and well known. Many charities lost big money as well. He fooled investors over a 20 year time period at a level that is almost incomprehensible. Even more amazing is Madoff’s claim that only he had knowledge of this Ponzi Scheme. Maybe, at the end, he decided to take one for the team to try and preserve some of the family fortune.
Don’t get confused. This man is no saint. And he’s certainly not one of a kind on Wall Street. Neither is Enron. These are just two cases where the principals got busted in a very big way. What breeds such arrogance that men think they can actually get away with such criminal behavior? Is the pile of money so big and intoxicating that they actually think they can’t be caught?
This forces us at Empowered Investor Network to ask the question, “Why the heck would any investor in their right mind still have a penny invested on Wall Street?” The out-of-control greed and corruption is obviously beyond the scope of the SEC’s power to regulate. It’s clear no one is at the controls. No one is policing this extreme behavior. Yes, they might take one down every few years but the day-to-day-scamming of the average investor proceeds without interruption. Think there’s not another dozen or hundred more Madoff or Enron schemes festering beneath the surface? How do you know your money is with one right now?
Unless you have direct control over your portfolio, you simply don’t know.
Let’s turn to Jason Hartman’s 10 Commandments of Successful Investing. Especially Commandment Number 3, which reads, “Thou shalt maintain control.” By control, Jason means have direct control over your investments. Don’t toss them at a slick con man who promises the world but asks you not to look at his books.
Remember this every time you get the urge to fund more of this Wall Street madness:
1. The person you invest with might be a crook.
2. The person you invest with might be a criminal.
3. The person you invest with is likely charging you huge management fees.
Who knows, the person you invest with might be all three. What we do know is that falling victim to a Madoff type scenario is almost impossible when you control the asset. Nowhere is the advantage of direct control more visible than with income property. Yes, there is a slim chance you might get snookered by an unethical property manager or have an issue evicting tenants who refuse to pay rent. But you won’t wake up one morning and (poof!) lose the entire property like happened to the unfortunate souls who decided to cast their financial lot with Madoff. You own the property and no one can take that from you. And income property has proved itself throughout history to be the best investment ever.
So, while you’re staying up late at night poring over investment options, remember to focus only on those that allow you to stay in control. The list is surprisingly short. If you would like to learn more about how to invest in real estate the right way, click over to https://www.jasonhartman.com and read about The Complete Solution For Real Estate Investors™. What will you find there? Complete strategies for the kind of investing that shoots for a 20% return at a minimum. Don’t try that on Wall Street. In fact, don’t try anything on Wall Street. It is simply the wrong place to be if you want to create life-changing wealth for yourself and family.
Flickr / schatz
