This week's Web Winners: Investment help

Jan 13, 2009 By Reid Kanaley

Sophisticated investors were among victims of Bernard L. Madoff's alleged $50 billion Ponzi scheme. Avoiding financial scams must be even trickier than we thought. These sites might make it easier.

___

PONZIS AND PYRAMIDS

Maybe the Securities and Exchange Commission - which is taking heat over its failure for years to take complaints about Madoff more seriously - should have been reading its own definitions. Here are the SEC pages that describe Ponzi and pyramid schemes that masquerade as legitimate investment plans.

Ponzi:

investor.gov/answers/ponzi.htm

Pyramid:

investor.gov/answers/pyramid.htm

___

SCHEME AVOIDANCE

Read here on the Money Under Thirty site how to spot and avoid Ponzi, pyramid and other financial scams. Check out an adviser's credentials; don't let your manager serve also as your broker; don't invest in anything you don't understand; and diversify. Sounds simple enough, but who's listening?

go.philly.com/under30

___

SAVE EGGS

This site, Save Your Nest Egg, asserts that, with few exceptions, the financial-advice industry, if not a scam, is expensive, and it suggests do-it-yourself investing. It provides a variety of resources and tools for getting started. There are links to Vanguard Inc. and MSN Money pages where questionnaires help you figure out your tolerance for financial risk.

www.saveyournestegg.com/

Here are the Vanguard and MSN Money quiz pages:

go.philly.com/vanguard

go.philly.com/msn

___

PERSUASIVE CRIMES

Crimes of Persuasion is a compendium of "schemes, scams and frauds" - credit scams, talent-scout scams, missing-person hoaxes, work-at-home scams, and others - so many, in fact, that it could make you afraid to answer the phone.

www.crimes-of-persuasion.com/

___

ANNIEBIRD'S ADVICE

The blogger "Anniebird" says the fine print of some financial advisers' paperwork may disclose their potential conflicts of interest. But a lot of people don't bother to do the reading - and their investments may suffer as a result.

nobrokers.savingadvice.com/

___

Reid Kanaley: rkanaley at phillynews.com

___

© 2009, The Philadelphia Inquirer.
Visit Philadelphia Online, the Inquirer's World Wide Web site, at www.philly.com/
Distributed by McClatchy-Tribune Information Services.

Explore further: Reddit launches crowdfunding platform Redditmade

add to favorites email to friend print save as pdf

Related Stories

Surge in mobile network infections in 2013, says report

Jan 29, 2014

Alcatel-Lucent today released new data showing that security threats to mobile devices continues its rapid rise, infecting at any time more than 11.6 million devices and putting their owners at increased risk for stolen personal ...

Recommended for you

Tweet much to gain popularity is an inefficient strategy

37 minutes ago

The imbalanced structure of Twitter, where some users have many followers and the large majority barely has several dozen followers, means that messages from the more influential have much more impact. Less ...

Five ways to fight online abuse with good manners

1 hour ago

Online and social media's capacity to enable anyone to communicate their ideas and views is much celebrated. So why do so many people feel nervous about getting involved with online debate?

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.