December 16, 2008
Keeping in touch
and why your assets invested by us can not be subject to any theft
The following is an email sent to friends
We wish you all the best of the holiday
season. We wanted to make it clear that what has happened to investors via the
Madoff debacle, can NOT happen to accounts which we manage. Here is some
information. Please feel comfortable calling TD Ameritrade and externally
confirming what I mention in this note. Their number is 800 431 3500. There
is also a phone number on your statement.
1. We do not have custody of your
money. TD Ameritrade is custodial of your assets which we manage. TD Ameritrade is a member of Securities Investor Protection
Corporation (SIPC). TD Ameritrade also carries excess SIPC Coverage of up to
2. You have probably read about the
apparent Ponzi scheme of Bernard Madoff and Madoff Securities. Bernard Madoff
apparently was the investment manager and the custodian of the assets.
Apparently he acted as a broker as well. There was not an independent
separation of the Investment Advisor and the Broker.
3. All accounts are in our clients' own
name or entity. None of the monies we manage are commingled, nor would the
system allow for any co-mingling of assets.
4. You have internet
access to your accounts at TD Ameritrade Institutional (TDAI). You also get
copies of all activity from the external broker (TDAI) and copies of all
monthly statements from the external broker.
5. We are transparent about our
strategy. We try to be extremely forthcoming and open in all that we do.
6. As a general rule of thumb, you
should always have external verification available to you. For example, if we
send you a performance report which indicates you have $XYZ as of a certain
period, you should externally verify this with your TD Ameritrade
We are quite cognizant of the immense
responsibility we have as stewards of your assets.
One other non-related mention. We update
our website on a sporadic basis. For example in the last 30 days or so, we
have added over 5 articles or notes to our site. We hear from clients and
friends that these articles and notes are informative and often enjoyable
reading for our clients. Typically you can find these articles in date order
at this link
Here are some recent updates to
the current commentary section of our site.
As always please call us with any questions
or concerns. We are happy to talk with friends and clients. Both John
O'Shaughnessy and I will be away from December 24th till the New Year. So if
you need to speak, please call or email us before then.
Have a wonderful and healthy holiday season
and a Happy New Year.
Ronald R. Redfield cpa, pfs
Redfield, Blonsky & Co. LLC
15 North Union Avenue
Cranford, NJ 07016-1103