Real Answers for Life’s Money Challenges
How does one recover from investing in a Ponzi scheme?
I am feeling very stupid and embarrassed.
The SEC will take two to three years to figure out and recover any funds remaining.
I have additional funds to reinvest, but it is money I want to leave my daughter.
What advice do you have for me?
The scheme collapses when too many people have a go at cash out at once.
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As you point out, the process of recovering money can take years.
Unfortunately, theres no guarantee that youll recover anything.
Youve obviously reported your losses to authorities, as anyone in this situation should do.
The best thing you might do is look back at what lured you into this fraud.
Are there any red flags you’ve got the option to identify now in retrospect?
For example, Ponzi schemes often promise huge returns with little to no risk.
But the truth is, its impossible to earn outsize returns quickly without taking substantial risks.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
Dont have a go at make up for your losses by chasing fast money.
Accept the fact that most fortunes are built slowly.
Skip any investment that comes with a sales pitch.
The S&P 500 index represents more than 80% of the U.S. stock market by market capitalization.
Its often used as a benchmark for the entire U.S. stock market.
The average pre-inflation gain of the S&P 500 index is about 10% annually.
Some years, the returns will be negative.
But in 41 of the past 50 years, returns have been positive.
But otherwise, Id steer clear, given the extraordinarily high cost.
As long as your daughter is a self-supporting adult, take care of your own needs first.
Even a reliable investment like an S&P 500 fund can fluctuate significantly in the short term.
Is there anything you wish youd known when you invested?
What warning signs would you want your daughter to look out for?
Every single one of us has made mistakes with money.
So hey attempt to forgive yourself.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected]or chat with her inThe Penny Hoarder Community.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
