Self-Directed IRA Fraud Exposed!
When you invest in self-directed IRAs, you must be very careful because there is always a risk that you will make a bad investment. There just aren’t as many safeguards with this type of investment and you’re pretty much out of your mind when you’re deciding what to do with your money.
Many investors make the mistake of thinking that since their self-directed IRA is in the hands of a reputable company, they have nothing to worry about. This is simply not the case. Although a trustworthy company will hold your money for you, they don’t have to help you make good investments and probably won’t offer much advice.
According to NASAA or the North American Securities Administrators Association, self-directed IRA account owners have recently become the target of many scammers. They know that many investors are simply not as knowledgeable as they should be, and this makes them relatively easy targets.
schematics
When looking for ways to invest with your Self-Directed IRA, be sure to do your own research. If an offer comes along that sounds really great, it might be too good to be true. Always rely on regulatory boards to try to verify whether an investment is valid or not. Pay close attention to any valuation information you receive, such as the original purchase price of an investment, and verify that this information is accurate.
One thing you really want to keep in mind is a guaranteed investment. There are scammers who will tell you that an investment is guaranteed to make money no matter what. Every investor should be nervous when hearing about such a deal because they simply don’t exist in the investment world unless they are backed by a government agency or bank, and even then there are risks.
While looking for an investment, also be on the lookout for any false information, even if it’s not something very important. If an investor assures you that your “opportunity” is reliable and that you don’t have to worry about custodians having to verify investment deals before allowing you to participate in them, stop listening immediately because they are setting you up for failure. Custodians are only responsible for keeping your money and distributing it the way you want, they don’t verify investments and they certainly don’t verify anything.
When taking control of your own retirement funds and investing them yourself, you really need to make sure you don’t get caught up in a scam. The last thing you want to do is lose your retirement fund to a scheme designed to steal your money. If you are unsure about choosing an investment yourself, it may be best to seek professional help or stick with more protected IRAs.