Alert is regarding self-directed IRAs and the risk of fraud
Nashville – As part of its ongoing effort to raise investor awareness, the Tennessee Securities Division has issued an investor advisory alert regarding self-directed IRAs, an IRA held by a custodian that allows investment in a broader set of assets than most IRA custodians permit. The advisory explains in more detail what a self-directed IRA is, the associated risks of fraud and how consumers can avoid becoming victims to a scam.
“While all investments carry some degree of risk, self-directed IRAs have risks that differ from those involved with IRAs offered by registered broker-dealers and investment advisers,” Securities Division Assistant Commissioner Elizabeth Bowling said. “Fraudsters may also be more likely to exploit self-directed IRAs because custodians or trustees of these accounts may offer only limited protections. We encourage all Tennessee consumers who are considering this investment type to review this advisory alert and become familiar with the ways to avoid fraud.”
The full advisory is available on the agency’s website. Before making any financial investment decisions, the Tennessee Securities Division recommends consumers ask questions, do their research, and contact the Securities Division at tn.gov/securities or 800-863-9117 for more information or if securities fraud is suspected.
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