(Just one recent example)
How can people put all, or most of, their investments into one investment vehicle - and a shaky one at that.
Whenever you see these various Ponzi scheme "victims", there are people, especially older people, who put a huge chunk of their savings into one uninsured
investment vehicle. That's just greedy and stupid both.
I don't have much sympathy for these people. I guess they're not much different than the people who expect to get millions from Nigerian e-mails.
As a general rule of thumb, you should take your age, convert that into a percentage number and invest roughly that amount of your retirement investments into secure investments. If you're 70 years old, invest 70% of your retirement investments in secure (bonds, CDIC GICs, etc). If you've got additional investments outside of what you deem retirement investments, then you can be more aggressive, but don't be overly aggressive with your retirement nest egg.
Younger people obviously can be more aggressive with their retirement investments as indicated by the rule of thumb.
Even when you're being aggressive, you shouldn't put all your eggs into one basket (like a single fund). Spread it around a bit, so that if something terrible happens to one of your funds, everything isn't lost.
I thought that this would be "common sense" to most people, but obviously common sense isn't very common any more.