10 Steps to Avoiding Ponzi Schemes & Financial Fraud


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

  • Steps to Smoothly Transfer Control of Your Family’s Finances: Succession planning for the “family CFO” is the most commonly neglected component of most families’ financial planning, but it is one of the most important actions that will determine the ability of your “Family Inc.” to thrive over multiple generations.
  • Due Diligence: 10 Steps to Avoiding Ponzi Schemes and Financial Fraud: Financial hucksters such as Bernie Madoff highlight 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 flags for potential trouble down the road.
  • The Tax Consequences of Investing: Investors holding stocks and other investments in taxable accounts must take tax rules into account when making portfolio decisions. Though taxes should never be the tail that wags the investing dog, they are a drag on realized returns. Even with a tax-wise approach to portfolio management, understanding the tax rules can help you not only reduce tax liabilities but also have better clarity on what your tax bill may be.
  • 10 Common Mistakes Made With Beneficiary Designations: A comprehensive estate plan should always include a review of the titles and beneficiary designations for all assets. You want to ensure that they are consistent with your estate planning goals. Otherwise, unintended consequences may ensue. Knowledge of the most common errors made with beneficiary designations can help you avoid the same mistakes.

Our Member Question for this week is:

How much do you trust the financial services industry to do what is in the best interest of its clients?


Last Week’s Results:

What is your view of activist investing?


Click here to learn about the results of last week’s AAII Special Question.


AAII Asset Allocation Models

Many investors assume that the basic asset allocation decision is an easy one. After all, at this level, you are focusing on only two choices–stocks and bonds. While the choices are few, the way you allocate your portfolio between these two categories will have by far the greatest impact on your performance of any investment decision you make. The AAII Asset Allocation area was developed to ensure that you receive the information and insights needed to find the best asset allocation for your particular situation.


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


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