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Self Directed IRA Investing Tips – Finding the Right Investment

Video Highlights

[0:26] Do your own due diligence and locate information on self directed IRAs.

[0:49] Keep your ears open when you’re driving around town

[0:58] The State Securities Division in Utah is creating a white collar crime registry.

[1:57] Call your State Securities Division and ask them if they have any list like that

[2:18] Don’t look just for things in your area, but look all over the country

[2:29] There are a lot of great places to find information

[2:48] It’s important in your area, in your geographic area, if you have friends who have self-directed IRAs, to get together with them and talk about what you invest in and how you invested in it

[3:28] We’re going to start talking about a new marketing idea, the way that we market Sunwest Trust

[3:44] If you have questions or suggestions for topics, we would really appreciate you putting that in the comments or email a question

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Self Directed IRA Investing Tips Finding the Right Investment

This is our last post of the series on where to find good information about IRAs. In past posts, we have discussed a variety of ways to find IRA information, but maybe one of the most obvious ways to find information is to Google it.

Smart Investing Tips– Thoroughly Research the Investment

Google the investment. Has this type of investment been done in an IRA? Are there any case studies that involve this investment type? Are other people doing it? Did the different retirement planning articles have commonalities? Can you cross reference different articles to get an overview of the investment as a whole?

Google the company or companies. These days every company should have a decent website. Websites are easy and inexpensive to create, so don’t get swept up in a pretty website, but look for content within the site. There are also websites like Social Mention, Yelp, and Linkedin that can help you get a better idea of the company and their business practices by seeing customer/client reviews.

Google the individual or individuals. It’s hard to shake a bad reputation on the Internet. A simple Google search will drum up more information on an individual than you could possibly find useful. Be sure that the individuals you’re working with are who they say they are.

 Best Advice for New IRA Information

Maybe the best advice for finding new or important information is just to keep your ears open. While Terry was driving home from Santa Fe to Albuquerque yesterday he heard something that peaked his interest. It was about a “White Collar Crime Registry” in Utah. The State Securities Division is forming a registry that names the crime and the offender, much like a sex offenders registry, of white-collar crimes to prevent future offenses of fraud. If the State Securities Division, or the SEC has shut down a particular company, or investment, then the company or investment will be placed in a public registry. The aim of this registry is prevention by knowledge; it lists the nature of each offense. Utah is the first state to create this type of registry, that I’m aware of, but check in your state as well. Call your State Securities Division and ask a few questions. Also, be sure to check multiple states.

Take note: Often times a crime is committed in one state and the investments and companies are shut down, just to move to another state and try again. So be sure not only to search the investment type, the company and individual in your state, but also search in other states for red flags.

Talk to your Friends for Smart Investing Tips and Ideas

Along the lines of keeping your ears open, talk to your friends, the best retirement news, planning tips, and resources comes from people you trust. The best way to gather information is to learn from someone who has had personal experience with investing their IRA. Ask them where they find information about retirement, self directed IRAs, or information about alternative investments. It’s alos a good idea to ask them for references of honest realtors, lawyers, accountants, self directed ira companies, custodians, or self directed IRA LLCs.

IRA Answers Read them Carefully

We provided four blogs on finding information, but truth be told, we could have probably spent ten to twenty blogs. The information is out there it just needs to be found and read with a new perspective. The best part of a self directed IRA is that the IRS specifically tells you what is prohibited, but it doesn’t hinder the endless possibilities that are waiting to be discovered.

This blog is strictly for informational purposes and should not be taken as legal advice. A large part of self directed IRA investments involves doing your due diligence on every investment. Be sure to speak with a lawyer, or tax professional who is knowledgeable in the types of investments your are making.

Key Takeaways

  • Know what you’re dealing with: ask the right questions about the potential investment. Know who you’re working with and their history. Don’t just Google, Google smarter.
  • Keep you eyes and ears open for changes in the news: Latest: white collar crime registry in Utah. Does your state have one?
  • Crowdsource investment information: talk to your network of family, friends, business contacts. What are they investing in, how and why?

Transcript

Okay, so this is the last Tuesday at 2 for the month of April. It seems like these months are just flying by. What I want to do is sum up all the things we talked about, about doing your own due diligence, where you find information for self-directed IRAs and the unusual places that you can find it.

First off, I would always encourage people to go to Google and Google the investment that you’re looking at doing. Google the company that you’re looking at doing business with, Google the individuals that work for that company, all those things, just every aspect of that, of the thing that you’re thinking about investing in, just run that through Google and see what you’ll find—there is always some great information.

The other thing is just to keep your ears open when you’re driving around town. Just yesterday, I was driving back from Santa Fe and I heard about a white collar crime registry that is being created in Utah that the state’s Security Division – I think they’re the first one in the country that’s creating this white collar crime registry. It’s like a sex offender’s registry where you can get online and look for sex offenders in your area and know where they are and know where to keep your kids away.

Well, the same idea is for people that are out there doing frauds on people, getting them into invest in things, Ponzi schemes and bad investments. If the SEC has shut them down or the State Securities Division has shut down a particular investment, that person’s name will go into this white collar crime registry and you’ll be able to look it up and you’ll know that they have done something. I’m not sure how much detail there is there or anything, but it seems like a great idea.

Look in your state and see if there is something like that. Call your State Securities Division and ask them if they have any list like that, of people that have done something, done some kind of a fraud or something, then you can check those names there. A lot of times what these people do is they may do something in a particular state, they get caught, they just move to another state and keep doing the same thing there.

Don’t look just for things in your area, but look all over the country and see if that name pops up somewhere else, if that investment sponsor’s name pops up somewhere else.

There are a lot of great places to find information, and as we move into the more crowdfunding ideas, there are a lot of places where a lot of investors, a lot of people, will look at something. Especially with crowdfunding, you’re getting due diligence by a lot more people, which is really a cool idea.

I also think it’s important in your area, in your geographic area, if you have friends who have self-directed IRAs, to get together with them and talk about what you invest in and how you invested in it. You can also share the good things and the bad things. You can learn from each other I think that’s a really important resource, just the people you know, your CPA, your financial advisor and your friends who are like-minded and like to do their own investing. Those would be great people to visit with and talk about the different kinds of investments and the things that you’ve done.

Now, look forward to the month of May, we’re going to start talking about a new marketing idea, the way that we market Sunwest Trust, and the way that we explain what we do and what is self-directed IRAs and how it can help you. So watch for Tuesday at Two during the month of May. There is going to be some exciting news there.

If you have questions or suggestions for topics, we would really appreciate you putting that in the comments or email a question to us and we will do our best to get you the answer and we may use that question for a Tuesday at Two topic.

I look forward to seeing you during the month of May again at Tuesday at Two.

 

Terry White

About Terry White

I started my business career after getting my degree in Accounting from the University of New Mexico in 1983. My first job was as a controller for a local title company, and in 1987 I started First Financial Escrow, Inc. Over the years I played a part in several startup companies including First Financial Equities, Inc., First Financial Trust, Inc., First Financial Marketing, Inc. and Asset Ventures, Inc. In 1997 First Financial Escrow, Inc. was able to purchase the escrow accounts from Sunwest Bank and changed its name to Sunwest Escrow. As the market changes, Sunwest has grown and changed along with it. Besides my wife, Sheila, we have three boys, two daughters-in-law, one grandson, another grandson on the way and a future daughter-in-law. Sunwest is my passion, and I enjoy coming to work every day to see what will happen next. I enjoy fly fishing, spending time in Colorado, biking and watching my boys play soccer.