First let’s make sure you know the definition of “self-directed” IRA’s. This is where you pick investments of your own choosing, such as precious metals
, real estate etc. which lack transparency because you don’t have that second party looking into it on your behalf therefore there is an increasing appearance of bitcoin and other cryptocurrencies in these retirement accounts thus the Securities and Exchange Commission has issued a new warning.
“The types of investments permitted in a self-directed IRA can be ripe for elder abuse. A self-directed IRA’s unique risks “include lack of disclosure and liquidity, as well the risk of fraud,” according to a report done by the SEC and the Association of International Certified Professional Accountants.”
Most importantly we suggest you do your due diligence before making any investments with your hard earned money.
Here are a couple:
1. Find a good custodian
2. Familiarize yourself with IRS rules and regulations
3. Do your homework on investments
4. Read all materials pertaining to the investment
5. Involve a trusted professional
If you click on the link above it will give you more detailed information.