Fraudsters like to victimize investors strategizing for retirement. The scammers know that many potential targets are less than satisfied with the position they see for themselves for the future, hoping to push their gains into overdrive. This is when a financial advisor would be beneficial, but not all investors take that approach.
The problem is when shady individuals promote higher yields, these non-savvy investors are anxious to jump at the opportunities.
Unethical companies convince those near retirement age to transition their funds into investments that they would typically avoid with the premise that they will receive significant returns.
The thing to be mindful of is if the annuity is minimal in comparison to the cost. That should be a red flag that it is what it appears to be – too good to be true, a scam.
That is why investors are encouraged to do due diligence in researching adequate professionals owning credible reputations and established experience in the industry (click here for reviews) plus educate on physical commodity value to be informed on the products.
Let’s dive deeper into preventing fraud from self-directed IRAs backed by physical commodities.
Tips For Avoiding Fraud With Self-Directed IRA Accounts
Self-Directed individual retirement accounts allow clients to invest in assets that they otherwise would not have access to with traditional IRA accounts. The “Securities and Exchange Commission” duly notes you will find unique risks with these as well include (quote) “a lack of disclosure and liquidity – as well as an increased risk for fraud.” (end quote)
An ideal way for you to avoid these instances is with due diligence in researching the companies you intend to work with as well as the commodities you’re interested in purchasing, followed by paying steady attention to those investments. That is the investor’s sole responsibility with the help of a financial advisor or a tax attorney.
When involved in active research, a priority is to check with authoritative agencies to see where potential dealers and even custodians stand with these organizations. Let’s look at a few res that would be ideal for including in your search.
● The BBB or Better Business Bureau
The Better Business Bureau has offices nationwide, with offices in each of the 50 states and some throughout the larger and even medium-sized cities. The agency has the capacity to notify inquiring individuals of problems on local companies, remote programs, sales/routes, distributors, and any schemes.
The authority generally carries lists of suspect online promotions or offers, or you can peruse through a galley of complaints against varied individuals, real-time companies, or online businesses.
The national website is available to everyone, plus you can maneuver to your individual state or the chapter for your specific city.
● The SEC or United States Securities And Exchange Commission
The SEC alerts mean to offer investors as many safeguards as possible to minimize the potential for becoming a victim to fraudulent investing. Still, it’s virtually impossible to eliminate fraud risk for IRA or, in particular, self-directed accounts altogether.
Investors can find all information regarding fraud on securities as well as scams relating to investing, plus open a personal complaint or report suspicious activity. You can remain anonymous or give only little details to protect yourself and your personal information.
The problem with being vague is the agency will be better able to assist when they have a greater amount of information.
The authority will require specific details on the events that transpired and the company or individual’s contact information. If you need to confirm a U.S. business’s “regulatory standing” or financial status, reach the “EDGAR Database with the SEC.”
For those who are having fraud issues within their state and local jurisdiction, you should contact, first, your State Attorney General’s office and can also contact the police department.
Make sure to protect yourself as well. Ensure that you are mindful of your checking and savings account along with credit cards and other primary financial records for any unauthorized withdrawals or charges.
Your financial organization needs contact right away if there is any suspicion that you have been victimized. Detail the situation to the provider and learn your options so you can proceed.
If an investment opportunity sounds “too good to be true,” it often is. Investors genuinely need to go with gut instinct and learn about the opportunity in depth before committing.
Do due diligence on researching the company, educate on the products, including checking with the agencies we mentioned here. There’s no such thing as being too careful when it comes to your financial future.
When you follow a ” get-rich-quick ” scheme, the risk of losing everything you strategically worked to accumulate is very real. If you feel you want to jump into an accelerated approach, reach out to your financial advisor for guidance on doing so with a legitimate team.