How to Spot a Ponzi Scheme: What We Can Learn from Bernie Madoff

Money Talks News: The Podcast

You probably remember the Bernie Madoff saga: His famous Ponzi scheme destroyed the life savings of hundreds of sophisticated investors and money managers. Billions vanished into thin air.

So, how do smart people end up in these situations? More to the point, how can you avoid being the victim of a scam?

There are red flags that you should recognize and today we're going to talk about them.

As usual, host Stacy Johnson is joined by financial journalist Miranda Marquit. Listening in and sometimes contributing is producer Aaron Freeman. Today, we're joined by one of the show's best friends, Pam Krueger from Wealthramp.

Be aware that anything you hear on this podcast doesn't constitute financial advice. Always do your own research and consult your own experts before acting on anything you learn here.

You can listen with the player at the top of this article or download the episode wherever you get your podcasts:

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Don't forget to check out our podcast page for more episodes designed to help you make the most of your money.

Are you watching out for scams and Ponzi schemes?

We review the Bernie Madoff Ponzi scheme and its fallout. But we do more than talk about that one scam. We give you red flags to watch out for and mention other scams to be on the alert for. Don't get caught off-guard. Here are some of our best articles about scams—and how to avoid them.

• 7 Text Message Scams to Avoid and Report Immediately
• 8 Job Scams and 10 Signs to Watch For
• The 10 Worst Tax Cheats of 2022, According to the IRS
• 6 Ways to Become a Successful Scam Artist
• 9 States Where People Face the Highest Risk of Identity Theft and Fraud
• How You Can Help Your Aging Parents Avoid Financial Abuse
• 6 Things Scammers Do With Your Cellphone Number
• How to Tell If Fraudsters Have Opened Bank Accounts in Your Name
• 7 Ways to Protect Your Retirement From Investment Fraud
• Beware These 8 Signs of Identity Theft
• Trying to Stop Identity Theft? Go Beyond a Credit Freeze

Build wealth—without getting scammedRather than relying on scammers, we've got plenty of other ways for you to build your wealth, including through investing. Try saving, put your money to work for you and avoid the get-rich-quick schemes.

• Investing In Commercial Real Estate with CrowdStreet
• How to Choose Between Active and Passive Investing
• 28 Investing Tips From Today's Financial Geniuses
• 7 Things You Should Know Before Investing in I Bonds
• Environmental, Social and Governance (ESG) Investing: Hope or Hype?
• The Lazy Person's Guide to Flawless Investing
• 5 Effortless Ways to Boost Your Retirement Savings
• How the Secure Act Could Make or Break Your Retirement Savings
• 7 Obvious Money-Saving Tips People Often Forget
• 5 Ways to Earn 5% on Your Savings, Guaranteed
• 5 Fast Ways to Turbocharge Your Retirement Savings
• How to Know if You Are Earning or Saving for Optimal Happiness
• Health Savings Accounts and Why They Are Great for Retirement
• How to Prepare Your Savings for a Recession

Meet this week's guest, Pam Krueger

Pam Krueger is a recognized investor advocate and award-winning personal finance journalist and author. She is the founder and CEO of Wealthramp, an advisor matching platform that connects consumers with rigorously vetted and qualified fee-only financial advisors. It is the only advisor referral service that gives people full control over when and how they talk to their referred advisors.

Her perspectives on personal finance regularly appear in Marketwatch, Forbes, PBS Next Avenue, and she is a frequent speaker on fiduciary financial advice. In addition, Pam is an active volunteer member of the Retirement Income Committee at the Defined Contribution Institutional Investment Association (DCIIA), a non-profit dedicated to enhancing the retirement security of America's workers. She has also served on the California Jump$tart Coalition, an organization dedicated to increasing financial literacy among children and teens, where she created one of their most successful curricula available for K-12 teachers called, Investing Pays Off For Kids.

Each year, she spends part of her time in San Francisco, California and lives in Cape Cod, Massachusetts.

• Wealthramp
• Podcast: MoneyTrack
• Podcast: Friends Talk Money
• Twitter
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About the hosts

Stacy Johnson founded Money Talks News in 1991. He's a CPA, and he has also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.

Miranda Marquit, MBA, is a financial expert, writer and speaker. She's been covering personal finance and investing topics for almost 20 years. When not writing and podcasting, she enjoys travel, reading and the outdoors.

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