American IRA Discusses an SEC Warning on Cryptocurrencies Within a Self-Directed IRA

CHARLOTTE, N.C., Oct. 23, 2018 /PRNewswire-PRWeb/ -- Cryptocurrencies are an exciting prospect for a wide range of investors?but investors also need to be wary of schemes and fraudulent investments, according to a recent warning from the Securities and Exchange Commission (SEC). Some of these schemes are specifically targeting individuals who hold Self-Directed IRAs, which in turn can make a wide variety of retirement investors susceptible to crypto-related problems.

"According to the SEC," the post notes, "deceptive promoters may falsely claim that the investment has been signed off on by your IRA custodian, administrator or some other trusted third party. But Self-Directed IRAs do not work like this." Self-Directed IRAs do not require that Self-Directed IRA administrators like American IRA look into the individual investments of their clients. Instead, clients are given a broad amount of freedom when it comes to investment choices. And while this freedom can be very helpful in accessing a broad range of asset types, it also means that the responsibility of each investment ultimately falls on the person who holds the Self-Directed IRA.

In the recent post, American IRA recommended a few key guidelines for those considering crypto investments: conducting due diligence as thoroughly as possible; not falling for assurances, guaranteed returns, or no-risk investments; and being wary of investment offers that come about without solicitation.

"Cryptocurrencies are a fascinating topic," said Jim Hitt, CEO of American IRA. "But what people have to watch out for are those who are trying to take advantage of their wealth by introducing schemes specifically targeted at them. They use a hot buzzword like cryptocurrencies to promise extravagant results, and time after time these fraudulent schemes turn out to do nothing but destroy the wealth of well-meaning people. It is good that the SEC is ringing the warning bells on these schemes, and a great reminder that a Self-Directed IRA requires due diligence in all investments."

The article went on to explain that the SEC pointed out that with the long-term visions of most retirement investors, it can be a long time before investors pick up on the fact that the investment has turned out to be a scam. Due diligence is required for those retirement investors who want to feel confident in investments over the long-term and grow wealth for their post-retirement days.

For more information on Self-Directed IRAs and the SEC's recent announcements, visit http://www.AmericanIRA.com or call 866-7500-IRA.

About: American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC."

SOURCE American IRA, LLC