Investor Due Diligence
“Where gold and self-directed IRAs are concerned,” Mr. Kelley continued, “The IRS has made clear that investors have full responsibility for undertaking their own due diligence regarding their investment decisions in this area.”
Financial professionals can assist individuals in validating or disproving their assumptions—but at the end of the day, it’s up to investors to educate themselves on the merits of their self-directed IRA investment. Mr. Kelley added, “Investors or their advisors should be sure to contact their IRA provider if they have any questions about their ability to invest in a particular investment using IRA funds.”
Meanwhile, advisors and broker-dealers are growing more aware of the importance of using the services of specialized custodians in the precious metals marketplace. According to Mr. Kelley, “Managing payments, documentation and reporting may be increasingly important. And, while we don’t provide fiduciary support or compliance services, it takes qualified custodians in this area to understand and handle these complex transactions.”
John Drachman, a Series 7 registered representative with 20 years of experience developing marketing communications initiatives for RIAs, is the founder of AlphaSegment. He can be reached at [email protected].