By Dennis Seid
Investors who get long-awaited access to Stanford Financial accounts are being encouraged to find a temporary place for their money before deciding what to do next.
The advice comes from financial experts who say it's easy to let emotions take over.
Scott Reed, CEO of Hardy Reed Capital Advisors in Tupelo, said his office had received several phone calls from Stanford account holders on Monday, the day that certain Stanford accounts worth $250,000 or less were unfrozen.
All Stanford accounts were frozen last month in what federal authorities call a "massive" Ponzi scheme involving billions of dollars.
The court-appointed receiver overseeing Stanford's assets announced last week the release of some of the accounts under certain conditions, and that customers could transfer the accounts to new brokerage firms.
"The first thing to do is find a place to park it," said Reed. "In this market that it is and with all the emotions, it's best to park the money and then decide in time what to do with it. Maybe we can help. Maybe we can't, but we'll try to help you find someone who can."
The receiver has additional information online at www.stanfordfinancialreceivership.com, including steps on how to transfer accounts.
Stanford brokerage and advisory account customers can contact Stanford's Houston, Texas, headquarters to sell securities in the accounts.. Most of the cash and securities in customer accounts are held by Pershing LLC.
Robin Haire of Haire Wealth Management in Tupelo said some customers can put the money in short-term CDs before deciding their next step.
"I think the most important thing right now for them is to know that their money is safe and that they can get their hands on it," Haire said
Reed and Haire said the investors should later talk with a broker or registered investment adviser about what they want to do with their money.
"But now isn't the time," Reed said. "You really need to step back for a moment."
Contact Dennis Seid at (662) 678-1578 or email@example.com.