February 24th, 2009 
admin 
Tags: A 401k is a retirement savings plan.
On December 11, 2008, it was learned that well-known stock market expert and financial expert Bernard Madoff was not an expert investor after all. What was he? The mastermind and operator of a giant scheme. Individuals and companies invested money into his firm. They did so believing they were making a wise investment. Most are still reeling from what came next. It was all a scam. He was using new money from new “investors,” to payoff the old.
Those of us not affected by the Bernard Madoff swindle often just wonder how this could happen and then think about the people who lost money. Some had their entire retirement savings wiped clean. Those who desired to retire in 5 years, now do not have enough money. Worse yet, those who are already retired and continue to draw money have no more money left. Yes, it’s normal to show compassion for those impacted and wonder how this could happen, but it’s best to look at the situation from a lesson learned. Those who had their entire retirement savings wiped out made a costly mistake. That mistake wasn’t investing in a scammer, as even the “experts,” were none the wiser. The mistake was putting all their eggs in one basket.