Rule #6: I Have Personally Investigated the Character of the People with Whom I Associate and Do Business. I Did Not Delegate This Critical Responsibility to a Third Party

In the case of Bernie Madoff’s multibillion dollar Ponzi scheme that was exposed in 2008, clients knew someone who knew him, heard of him, read about him, knew someone who made a lot of money, or tried to invest with him. How many people knew him very well, associated with him intimately, spent time with him, and truly knew his character?

When you’re considering an advisor, there are two basic skills sets to look for, and clients often become fixated on the one of lesser importance: the doing of the investments. “If I become your client, how will you invest my money? I want ...

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