10 Steps to Avoiding Ponzi Schemes and Financial Fraud


This week’s AAII Weekly Digest highlights these “must-read” AAII articles:


Due Diligence: 10 Steps to Avoiding Ponzi Schemes and Financial FraudDue Diligence: 10 Steps to Avoiding Ponzi Schemes and Financial Fraud

Financial fraud is an all-to-often occurrence and highlights the importance of asking the right questions and doing your own due diligence before selecting an adviser or participating in an investment. Here are 10 basic steps all investors can take—as well as certain indicators that should serve as red flag warning signs of the potential for trouble down the road.

Target Wealth: A Better Bet for Achieving Wealth Goals

Peter A. Forsyth

Here is a strategy for equity allocation that depends on accumulated wealth relative to a specified target and time remaining. This is in contrast to popular target date funds that use a point in time to determine the portfolio allocation. The data presented shows that shifting to a conservative allocation once a targeted level of wealth is reached reduces risk without sacrificing financial goals.


Financial Professional Terms: What They Mean and Why You Should CareFinancial Professional Terms: What They Mean and Why You Should Care

Broker, registered investment adviser, financial planner, insurance agent, investment adviser and wealth managers: These are a few of the common terms used to describe various financial professionals. This article will clarify these terms and discuss differences in the duties owed by financial professionals to their clients.


A Guide to Dealing With an Estate Planning Attorney

There is a common misconception that you need to be rich in order to have an estate plan. However, that is not the case. It is sufficiently simple to desire that your personal values about both medical and financial matters be honored in the event that death or incapacity prevents you from acting for yourself. This AAII Blog post walks you through who would benefit from an estate plan and the documents to collect before meeting with an estate planning attorney.

Our Member Question for this week is:

Which of the following best defines financial success to you?


Vote to answer this week’s Special Question: How would you define the “American Dream?”

Last Week’s Results:

What is your age?

Poll results are as of 9 a.m. (Central) on Monday. 2,499 respondents.

Survey: Biggest Fears About Aging

One of the most impactful socio-economic trends taking place in this country is the aging of the population. As people age, people’s perceptions about aging also change. Our latest AAII reader survey asked what is the biggest fear about aging and compiled the results based on age groups. The latest open-ended special question asked in what ways our readers think the country can improve when it comes to meeting the health care and social service needs of seniors. This AAII Blog post compiles the responses.

A Lifetime Investment Strategy

Authored by the chairman and founder of AAII, James B. Cloonan, this valuable publication shows you how you can outperform professional money managers and the market over the long run. In addition, it will help you understand risk and its relationship to return. It’s not available in bookstores but is one of the many benefits of being an AAII member.


The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a 30-day Trial AAII Membership to start becoming an effective manager of your own assets.


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