The wild stock market rides of the last six years, investors have moved towards self-directed IRAs, which allow traditional investments, such as stocks, bonds, and mutual funds, as well as alternative investments like real estate, private equity, and gold.
Cleveland, OH (PRWEB) August 27, 2013
Self-directed Individual Retirement Accounts (IRAs) can provide a safe and beneficial way to invest retirement account funds; however, all investors need to perform due diligence, and be aware of the risks that come with any investment opportunity. The North American Securities Administration Association (NASAA) issued an Investor Alert to help educate investors on the risk of fraud attacks of self-directed IRA accounts. With the wild stock market rides of the last six years, investors have moved towards self-directed IRAs, which allow traditional investments, such as stocks, bonds, and mutual funds, as well as alternative investments like real estate, private equity, and gold or other precious metals.
Although alternative investments in self-direct IRAs are possible, NASAA cautions investors to be aware of the potential of fraud. Performing due diligence, and thoroughly researching any investment opportunity is a common starting point. This approach is needed to determine if an investment is both legitimate, and the right approach for your goals.
Self-directed IRA custodians, such as Equity Trust Company, are passive custodians, and do not provide investment guidance or advice. Passive custodians allow investors the benefit of diversifying their holdings into traditional and alternative assets, but do not investigate or validate the quality or legitimacy of the investment. It is considered in the best interest of the investor to seek out guidance in the form of a qualified, disinterested third-party, such as a CPA, tax attorney, or financial advisor, when making investment decisions. Educational resources from organizations such as NASAA are also options to use when researching opportunities.
Equity Trust Company is one of the country’s leading providers of self-directed IRAs and 401(k)s, with more than 130,000 clients in all 50 states, and over $12 billion of plan assets under administration. The Company believes self-directed retirement accounts are an ideal alternative to portfolio diversity by allowing investors the freedom to invest funds as they determine.