I wrote and published my book, “Crisis Investing and Entrepreneuring” in 2009, and no doubt helped a few thousand who suffered losses in the Great Recession.
Yet a few years earlier I, like many of Moriarty’s victims, lost everything (though not in a Ponzi-type scheme): business, home and spouse.
Over time, I recovered.
Life Lesson No. 1: Never totally trust an individual financial adviser, however honest and highly recommended he/she may be. Perhaps take some of their advice, but certainly don’t invest large sums with them.
Life Lesson No. 2: As stated in my book, diversify into as many asset classes as you can — real estate, collectibles, the stock market, commodities, maybe your own small business.
Life Lesson No. 3: If it looks too good to be true, it probably is. Ten percent promised returns are always risky, but 5 to 8 percent are possible (but still have some risk).
Bank CDs once paid much better interest that was essentially safe, but not anymore. This encourages many to take even more risk. But look into MLPs, indexed funds and possibly online lending outfits like prosper.com .