Worried About Fraud with your Self Directed IRA? SEC says, Ask a Financial Advisor
In their September 2011 Investor Alert, Self Directed IRAs and the risk of fraud , the SEC outlined typical fraud risks when using a self directed IRA.
If you are worried about the risks of fraud when using a self directed IRA, then do as the SEC recommends in their Fraud Alert, “Ask a professional”.
The top three fraud risks with self directed IRAs that they focus on are:
- Misrepresentations regarding custodial responsibilities
- Exploitation of tax-deferred account characteristics
- Lack of information for alternative investments
While these may be common fraud risks that the SEC sees with their enforcement efforts, the risks attributable to alternative investments inside self directed IRAs expand beyond just fraud risks. There are other risks which are important to consider when using a self directed IRA. Investors should also consider: