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" How to protect yourself from the Bernard Madoffs of the world "

I think this one is an easy topic, first off all, what sounds to good to be true, in most cases, is. To think you can get double digit growth, for multiple years, is insane. Just because someone has a nice house, car and many adult toys, doesn't mean they're successful. It just could mean they're in debt up to their eye balls!

Would you let anyone have sex with your spouse? The answer should be, NO, of course not! Yet people, don't manage their own money and they wonder why, they end up broke. It takes time to be good in the sack, and its going to take time to make money in the stock market or any other venture. Remember you are going to be a loser, before your going to be a winner. so be patient and go slow and easy. Remember, loose your money from your own hand and not from others.

There are many Ponzi schemes out there, let me give give you one: There was a nice young man, he went to work everyday, never late, dressed and spoke well. Everyone liked him, especially the ladies. When he talked, people where drawn to listen to him speak. But first, we need to give this guy a name, let's call him, Mike. Mike talked casually, about the stock market and was willing to give free advice about what to buy and what to sell. Incredibly, Mike was spot on, but many of his co-workers were not comfortable with the stock market.

Mike was very verse, with E*trade and Scott-trade and told his co-workers, it would be simple to do. But after his co-workers, checked it out, they were scared to death. Mike already knew this and was ready to take his co-workers for a ride and it wasn't in his car. Mike, was a con-man of the highest degree.He was smart, really smart. He recommended, that, they opened up an account in there own name, for example, Jane Doe.

Also, he suggested that if they would give him their account number and pass word, he would make them money. Mike also said, he would let them decide, what to give for making them money. Mike said, it was in his best interest, to make his co-workers, as much money as he can. Because the more he made in their accounts, the more their accounts grew, the more money, they would be happy to give. Mike's plan, worked, just like he wanted too.

Soon Mike made their accounts grow to a large amount of money and the cash started coming in. For Mike, it was great, extra money, the co-workers were paying him cash,no tax and no proof. Mike was ready to clean out their accounts and head out of the Country. It was easy for Mike and easy to get the cash. Mike had an off shore account set up, so he could drain out 90% of their cash, and wire transfer it to his account.

You see, Mike didn't want to clean out their accounts all the way. The reason, it's simple, the brokerage accounts would call and ask questions and Mike would not get a clean get away. Mike, in the end, got 10 quality accounts, averaging $100.000, do the math. He was able to get 10 people, with $20,000 in their accounts set up and managed. With $20,000 and a 5 year plan, Mike walked away, loaded and retired.

When Mike left, the people he Ponzi scammed got stuck with the taxes and the losses. If you don't think this couldn't happen to you, you might want to think again. Be careful, we live in a corrupt world.

Learn more about this author, Peter Woods.
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