Here's how investors can spot the next Bernie Madoff

Here's how investors can spot the next Bernie Madoff  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  VIEW IN BROWSER | SUBSCRIBE WED, APR 21, 2021 YOUR WEALTH Editor's Note Bernie Madoff's death last week put him back in the news. And that was a good thing, because stories were again resurfaced and reported and brought to everyone's attention about the man who was the mastermind behind the biggest investment fraud in U.S. history. Those stories should serve as important lessons for all investors. Of course, a majority of Madoff's victims were celebrities and the very wealthy. The takeaway, however, is you don't have to be famous and uber-rich to get ripped off. It could happen to anyone. So, what can an investor do to make sure they are hiring a reputable financial professional? I spoke with a few financial advisors and they offered some good guidance. To start, investors need to thoroughly vet prospective advisors, and that starts with asking the right questions. Of course, most investors know that they should do some research before engaging the services of a financial advisor. The problem is they don't know how to do it, these experts say. Vetting a financial advisor doesn't have to be a daunting task. Set up interviews with several advisors and, before meeting with them, you should check out their website and social media profiles. If you can't find a clear message about who they are, what services they offer and what fees they charge for their services, you may decide to cancel that initial meeting. Experts also suggest you work your personal network. Talk to people whom you truly trust and see who they use for financial advice and ask them for a referral. Here are some other things to do during your advisor interview process: Prepare a detailed checklist of interview questions; clarify the services you need (like cash management and budgeting, tax planning, estate planning, insurance needs or retirement planning); clarify the fees for those services; and ask for client references and check them. Here are some key questions to ask the advisor on that interview: Who pays you? How do you make your money? Are any commissions or third-party payments involved whatsoever? Who is custodian over the funds? What are your professional qualifications? Are you a fiduciary and how do you define "fiduciary"? What is your investment philosophy? How does it work in practice? Finally, an easy way to check out an investment professional is to use the SEC's free search tool. By utilizing the SEC's Investment Adviser site, any investor can find key information about a financial advisor or an advisory firm. The bottom line is this: It's your hard-earned money, so take the time to do your research to find a trusted person to help you invest and manage that money. For more key stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. Jim Pavia @JIMPAVIA Here's how investors can spot the next Bernie Madoff Bernie Madoff, who ran the biggest Ponzi scheme in U.S. history, died Wednesday. Here are some ways investors can spot the next would-be investment fraudster. Bipartisan plan to fix Social Security draws criticism A new bill calls for committees to address funding shortfalls faced by some federal programs. Some worry that could lead Social Security benefit cuts. Bitcoin rally this year is the start of going mainstream, not a bubble, says investor Bill Miller Value investor Bill Miller told CNBC on Tuesday he believes bitcoin is still going higher because demand is growing faster than supply. Repeal of $10,000 SALT cap could be paid for by tax audits, Democrat proposes According to Rep. Josh Gottheimer, D-N.J., striking the $10,000 cap on state and local tax deductions could be paid for by increased IRS audits. Biden's recovery plan for families set to cost more than $1 trillion, extend enhanced child tax credit Biden aims to approve the second phase of his infrastructure package based around child care and paid leave after passage of the first piece. Here are smart steps to take now to make tax filing easier for 2021 Filing taxes will not get any easier going forward, thanks to past policy changes, sunset provisions, pandemic tweaks and new Biden administration rules. Op-ed: Here's how to reduce exposure to tax increases with charitable contributions The wealthy can reduce exposure to tax increases by making charitable donations. Among these vehicles are charitable remainder trusts and donor-advised funds. Here are the top public and private colleges with the most generous financial aid packages Here are the schools that are doling out the most aid to offset the cost of college, according to The Princeton Review. These are the money moves to make during an economic recovery Here's what experts recommend Americans focus on financially as the economy reopens and recovers from the pandemic. Five superpowers "These are some superpowers that I've observed in business and investing over the years, in no particular order of importance. They're all important ..." CONTRIBUTORS Sharon Epperson @sharon_epperson Josh Brown @ReformedBroker Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel   Digital Products Feedback Privacy Policy CNBC Events   © 2021 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS