Be a Careful Investor - IRA Custodians Expect You to Watch Your Investments Closely to Prevent Fraud

So there are new issues arising that are severeown private gain does not mean that Fiserv or
with IRA custodians scamming their clients out ofother IRA custodians are unsafe.
money. In the New York Times, the articleThe point is that whenever anyone is working
describes that Fiserv has been caught up in Ponzitowards investing and has a plan to have a
Schemes and IRAs not just with Bernie Madoff.wealthy IRA in retirement, they must be more
The thought was that no one could ever runcareful and oversee their own retirements.
scams that would include stealing from IRAs butInvestors must be more involved in their financial
that has been debunked with the issuesfutures. Money can either be a terrible master or
surrounding Fiserv.an excellent slave. By managing your retirement
The IRAs were known as "self-directed IRAs"funds directly, it keeps money working for you
which are IRAs that are invested in other assetsand it keeps your money working hard where
besides stocks, bonds, and mutual funds. Theyou want it.
assets are in investment vehicles such as RealThere needs to be a focus on self-directed IRAs,
Estate, hedge funds, and commodities.and investing your IRA in Real Estate is a great
Self-directed IRAs are individually steered by theirway to make sure that you have total control
investors as opposed to sitting in traditional stocksover your financial future. The IRA can also
and bonds for a long period of time.partner with a non-recourse loan that will help the
These issues that Fiserv has been sued forinvestor to purchase up to 70% more Real
wasn't the fact that they steered their clientsEstate using 30% of their IRA funds to purchase
towards specific investments, which they didn't,either commercial or residential properties.
but rather that they didn't do their fiduciary dutyRemember, whether you are choosing an IRA
to oversee that the accounts weren't involved incustodian or directing your IRA yourself, it is
any fraud.always important to be sure to keep a close eye
So is Fiserv a bad IRA custodian? It is tough toon your investments. It is also important to buy
say. The fact that some scammers andthe cheapest Real Estate in fifty years.
fraudulent people used Fiserv as a tool for their