All Your Eggs in One Basket

I was just reading an article about how Bernard Madoff swindled $50 billion from investors. It is sad that someone would want to take advantage to so many people.  It is also sad that some of these people had put all their investments with this guy.  When it comes to investing, diversity is key. I am now convinced that not only should you diversify, but it maybe a good idea to keep your investments spread across a few different holders.

The old addage, “don’t put all your eggs in one basket” says it all in this instance. It is not a good idea to trust one person or entity with all your savings. What would you do if all the money you had worked so hard to save was suddenly gone? You’d probably have to work the rest of your life instead of enjoying your golden years. So be wise. Invest with reputable companies and through several companies. Keep your investments diverse and pay attention to your your investments and you should be able to recover should someone con you.