How Long til Madoff Losses Are Recovered ?

January 8, 2009 11:45am by Barry Ritholtz

Earlier today, we looked at the NYT interactive graphic that calculates how long it will take to return to breakeven for typical portfolio losses.

But what if you were one of 8000 Madoff investors, and your portfolio is now worth zero?

For starters, you should get $500k from SIPIC. Then, there is the $830 million of liquid assets of the firm; that will be returned pro-rata to investors.

So if you had $10 million with Madoff, and its now worth close to zero, and you contribute $10,000 per month and earn 10% per year, it will only take 18 years to get your original 10 million back.

UPDATE JANUARY 8 2009 1:21PM

Madoff Had More Than $173 Million in Checks

Federal prosecutors said Thursday that investigators who searched Bernard Madoff’s office desk after the money manager’s arrest on Dec. 11 found about 100 signed checks totaling more than $173 million.

Source:
Calculate Your Financial Comeback
NYT, January 6, 2009
http://www.nytimes.com/interactive/2009/01/06/business/20090106-comeback-graphic.html

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