All right, so you're thinking about your retirement
savings, huh? Yeah. And maybe you're considering
a gold IRA. A big decision. Yeah. It is a big
decision. Yeah. We want to make sure you have
the knowledge you need to do it safely. For sure.
And that's what we're diving into today. We're
going to be looking at this piece called Best
Tips to Avoid Gold IRA Scams and Fraud. By Doug
Young? By Doug Young, who's got a lot of experience
with financial investing and precious metals.
He really does. So we want to kind of distill
this down to the essentials you need to know
to protect yourself. Exactly like your focus
guide. Exactly. Yeah. All right, so what we're
gonna do in this deep dive is we're gonna give
you some ways to recognize some red flags. Like
right off the bat. Right off the bat, yeah. So
you know, something's not right. Yeah. We're
gonna talk about some of the common scam tactics
that people use in the gold IRA market. Yeah,
those are good to be aware of. And then we're
gonna talk about how you can protect your investment.
Some reliable strategies. Exactly. And then by
the end of this, you should feel informed and
secure and ready to make some sound decisions.
Sounds like a good plan. All right. So where
should we start? Well, let's start with those
red flags like you mentioned. OK. It's interesting.
A lot of these scam tactics, they rely on kind
of pushing your emotional buttons, you know.
So Doug Young points out a big red flag is if
someone's trying to pressure you into making
a decision quickly. Oh, yeah, that makes sense.
Like that sense of urgency or even using fear
as a motivator. Oh, for sure. Sure. You know,
legitimate investments. They'll let you take
your time. Think it over. do your due diligence.
Right, it's like if they're rushing you, it's
probably because they don't want you to think
about it. Exactly, they don't want you to maybe
get a second opinion. Like, you have to act now.
That just always feels a little... Yeah, like
your spidey sense is tingling. Yeah, yeah, exactly.
And of course, there's the promises that sound
just too good to be true. Oh, yeah. Which kind
of goes back to that emotional trigger. Doug
Young points out, you know, if someone's promising
unrealistically high returns... Oh, yeah. Especially
with gold, which fluctuates... you know, nothing's
guaranteed. So someone's saying you're gonna
get huge profits, almost certainly that's a sign
to really back off and be careful. Yeah, if it
sounds too good to be true, it probably is. Right,
exactly. You gotta have that healthy skepticism.
All right, so we're looking out for the pressure
tactics, the unbelievable promises. What are
some specific gold IRA scams that we should be
aware of? Okay, so Doug Young outlines a couple
of really common ones. One is this idea that
you should... put all of your retirement money
into precious metals. Into gold. Into gold. Yeah,
like everything. Oh, that's interesting. Which,
right away, if you think about basic financial
health, that's a red flag, right? OK. Diversification
is so important, spraying your risk. Big sense.
Different assets behave differently. Oh, yeah,
for sure. So if you put all your retirement savings
into just one thing, especially something like
gold, that can be volatile. You're really exposed
if the market takes a downturn. Oh, I see. A
reputable advisor is always going to tell you
to have a balanced portfolio. It's like all your
eggs in one basket. Exactly. Doug Young says
that's rarely a good strategy. So don't put all
your eggs in the gold basket. Right. OK, so what's
another common scam? So, another one is promoting
what they call collectible coins. Collectible
coins? Yeah, so this is a little tricky. Okay.
The IRS, they have rules about what kind of gold
can be in a gold IRA. Okay. It has to be bullion
coins or bars that meet certain standards. They
have to be pure enough. They have to be from
a recognized mint or assair. Wow. So, the scam
is they push these collectible coins. Okay. And
they say, oh, they're rare. They're going to
go up in value. Right. But those coins, they
often have a huge markup over the actual value
of the gold. Oh, wow. So you're paying a lot
extra. I see. And they might not even be that
liquid in an IRA. So you're paying extra for
something that might not even be worth that much
in the long run. Exactly. Doug Young says, always
check the spot price of gold and see what the
dealer is charging you above that. That's called
the spread. OK. Those collectible coins? They
can have really high spreads. Compared to just
regular bullions. So you're losing money right
there. So it's like they're making money off
the rarity. Right. It's like a perceived rarity.
But not the actual... Yeah. It might not actually
translate into better returns in your IRA. OK.
Yeah. So we've got the pressure tactics. We've
got these collectible coins. Right. What about
this high pressure sales thing? Oh, yeah. Doug
Young had a great quote about that. What did
he say? He said, if a salesperson is pushing
you to make a quick decision, it's a major red
flag. Makes sense. Always take your time to research
and verify the company's legitimacy. Oh, yeah.
Like, that's so important. You don't want to
be rushed into a big financial commitment. Right.
Legitimate advisors, they get it. They know this
is serious. They'll let you do your research.
Yeah, you don't get a prize for making a decision
the fastest. Exactly. There's no benefit to you
for rushing. Yeah. But there might be a big benefit
for them. OK, and there's that whole guaranteed
returns thing. Oh, yeah, that's another big one.
Which just screams scam to me. Right, it's so
common, but it's so deceptive. No legitimate
investment, especially in gold, can guarantee
returns. The economy is unpredictable. Things
change. If someone's promising you a guaranteed
return, They're either clueless or they're lying.
Yeah, for sure. So focus on realistic growth
over the long term, not on these promises of
huge profits that are just not going to happen.
OK. So don't fall for the guaranteed returns
trap. Right. All right. What about these suspicious
websites? Ah, yes. Doug Young warns about those
two. It's like anybody can make a website these
days, right? It's true. It's so easy to put up
a professional looking site, even if you're not
legitimate. Right. So Doug Young says, Look into
the domain registration. How long has the website
actually been around? You can find that out with
a who lookup. And then look at their contact
info. Is there a real address? Can you call them?
Can you find out who runs the company? If they're
being anonymous or the website's brand new. That's
a big red flag. So do your research. Look into
these companies. Exactly. So we've talked about
how to spot some problems. Now let's talk about
how to protect your gold IRA investment. Yeah,
how to be proactive. Proactive. Exactly. What
should we be doing? Well, the first thing, and
I can't stress this enough, is research. Research.
Research. Research. Research. Any company you're
considering, you've got to dig deep. You have
to dive. Look into their history. How long have
they been in business? Who are the people running
it? Have they had any legal... problems or complaints.
So many things to look into. Yeah, and Doug Young
recommends using resources like the Better Business
Bureau, the BBB. OK, the BBB. Yeah, and the Business
Consumer Alliance, the BCA. The BCM. You can
see what other customers have said. Look for
patterns. I see. Both good and bad. Are there
a lot of unresolved complaints? Are there issues
that keep coming up? That's a sign. OK, so you're
getting the real story, not just their marketing.
Exactly. You want the unvarnished truth. What
about their credentials and reviews? Oh, yeah,
don't just take their word for it Okay, check
those licenses and certifications make sure they're
real and those review sites. We talked about
read them carefully Yeah, are the reviews detailed
are they specific or are they vague and generic?
Okay. If you see a lot of complaints that haven't
been addressed, that's a problem. So really scrutinize
those? Yeah. Due diligence is key. What about
the costs involved? Oh, that's a big one. Doug
Young is really clear about this. Okay. You got
to understand all the costs. upfront. What kind
of costs? Everything. The price of the gold,
the markup, the dealers charging you, that's
the spread. Right. Storage fees, administrative
fees, transaction fees, anything they might charge
you. Oh, wow. There's a lot. There can be. And
if they offer a buyback program, you'll find
out what that costs too. What's the difference
between the price they sell it to you for and
the price they'll buy it back? Ah, the spread
again. Exactly. That buyback spread can be a
big hidden cost if you ever want to sell your
gold. So you're not getting hit with these surprises
later on? Right. You want to know exactly what
you're getting into. OK, so be transparent, be
upfront. Exactly. All right, so let's say we've
done our research. We're ready to choose a gold
IRA company. OK, so Doug Young has some good
advice for that, too. What does he say? He says,
start by asking people you trust for recommendations.
Oh, that makes sense. Friends, family, your financial
advisor, if you have one, see if they've had
any experience with gold IRAs and if they can
recommend a company they trust. Personal recommendations
are great because they cut through the marketing
noise. Yeah, they're not trying to sell you anything.
Exactly. They're just giving you their honest
opinion. And what about this IRS approval thing?
Oh. That's absolutely essential. Okay. The IRS
has very strict rules about who can be a custodian
for a gold IRA. So you got to make sure any company
you're considering is either on the IRS's list
of approved custodians. Okay. Or they can show
you proof that they're approved. I see. That
way you know your gold IRA is legit. Okay. And
you won't have any problems with the tax man.
So make sure they're on the up and up. Exactly.
Dot your I's and cross your T's. And what about
customer service? Oh, that's a good one. Doug
Young says customer service is a really good
indicator of a company's overall quality. Interesting
how so. Think about it. Yeah. If a company...
treats its customer as well, it probably means
they care about doing things right. So call them
up, ask them some questions, see how they respond.
Are they helpful? Are they knowledgeable? Are
they quick to get back to you? I see. If they
are, that's a good sign. OK. But if they're slow
or evasive or rude, that's a red flag. That makes
sense. You want a company that's going to be
there for you, especially when it comes to your
retirement savings. Right. You want to feel supported.
OK. So we've talked about choosing a company.
Right. What about some general financial tips
for making a safe gold IRA investment? Yeah.
Some broader advice. Yeah, exactly. Well, Doug
Young says the first thing is to be realistic
about your expectations. OK. Gold can be a good
part of a long term investment strategy. Right.
But it's not a get rich quick scheme. All right.
The price of gold goes up and down for sure.
So don't get caught up in the hype about making
a ton of money fast. So no Lambos. Probably not,
no. Okay. Focus on slow and steady growth over
time. Okay. And remember diversification. Yeah,
don't put all your eggs in one basket. Exactly.
And it's important to understand the gold market,
right? It is, yeah. Take some time to learn about
how gold prices work. Okay. What affects them?
Things like the economy, global events, supply
and demand. Yeah, all that stuff. Exactly. The
more you know, the better decisions you can make.
So don't be in the dark. Right. Knowledge is
power. And this is something we keep coming back
to. Yeah. Don't rush into anything. That's so
important. Yeah. Take your time. Do your research.
Understand the risks. Understand the fees. Yeah.
Don't let anyone pressure you. This is a big
decision. It is. It's your future. Right. So
don't rush it. All right. What about the legal
stuff? Ah, yes. Doug Young talks about that too.
What does he say? He says, make sure any company
you're considering is following the rules. Oh,
yeah, of course. There are organizations like
the SEC, the Securities and Exchange Commission.
Right, the SEC. And the CFTC, the Commodity Futures
Trading Commission. Oh, OK. The SEC. They set
rules to protect investors. Makes sense. Now,
not all gold IRA companies are directly regulated
by them. OK. But it's still a good idea to see
if the company has had any problems with regulators
in the past. OK, so. Check their record. Exactly.
And then there's the IRS, right? Oh, yes. The
IRS has specific rules for gold IRAs. What kind
of rules? Well, for one thing, they say what
kind of gold you can have in your IRA. OK. It
has to be certain kinds of bullion points or
bars. It has to be pure enough. And you can't
just keep it at home. Oh. It has to be stored
in an approved depository. So there's rules about
where you keep your gold. Yeah. The IRS is very
specific about that. OK. And if you don't follow
their rules, you could get hit with penalties
or have to pay extra taxes. And make sure you're
following the rules. Exactly. Don't mess with
the IRS. All right. So where can we learn more
about all this? Well, Doug Young has some good
resources for that. What does he recommend? He
recommends checking out some websites like Investopedia.
Oh yeah, Investopedia? Yeah, and the IRS website
itself. Okay. They have a ton of information
about IRAs and investing in precious metals.
Awesome. And he also recommends some books. Okay.
Like The New Case for Gold by James Rickards.
The New Case for Gold? It gives you a bigger
picture view of how gold fits into the economy.
Okay, interesting. Yeah, it's a good read. And
what about financial advisors? Oh yeah. Doug
Young definitely recommends talking to a financial
advisor. Makes sense. A good advisor can give
you personalized advice based on your situation,
your goals, your risk tolerance. Yeah. They can
help you figure out if a gold IRA is right for
you. I see. And how it fits into your overall
investment plan. OK, so get some expert advice.
Exactly. A professional can really help. And
what about these online forums? Oh, those can
be helpful too. How so? Well, you can connect
with other investors. Okay. Share experiences,
learn from each other. I see. There are some
good ones on Reddit and the Bogleheads forum.
You can find out about different companies. Stay
up to date on what's happening in the market.
Oh, that's interesting. Yeah. And sometimes people
will share warnings about scams they've encountered.
Oh, that's helpful. It is. It's like tapping
into a network of knowledge. All right. So Doug
Young also answers some frequently asked questions
in his article. He does, yeah. One is, how can
I verify the legitimacy of a gold IRA company?
Oh, that's a good one. And we've touched on this,
but let's recap. Doug Young says, start by checking
their credentials and reviews on those third
-party websites we talked about. The BBB and
the BCA. Exactly. Look for a good track record
and make absolutely sure they're an IRS -approved
custodian. That's crucial. You can also check
to see if they've had any problems with regulators,
like the SEC or the CFTC. All right, so do your
homework. And the other FAQ is... are guarantees
of high returns on gold IRAs credible? Oh, that's
a big one. Yeah. And Doug Young's answer is a
hard no. A hard no. Hard no guarantees in the
gold market are just not realistic. OK. Gold
prices go up and down. You can't predict the
future. Right. So. Any company making those kinds
of promises is not to be prested. So be wary.
Yeah, be very wary. All right. So as we wrap
up this deep dive, what are the key takeaways
from Doug Young's advice on avoiding gold IRA
scams? OK, so the big things are watch out for
high pressure sales tactics. Yeah. Act now. Exactly.
And any promises of huge guaranteed returns.
Yeah, that's a red flag. Those are big red flags.
Huge red flags. Do your research on any company
you're considering. Check their credentials.
Check their IRS approval status. OK. And understand
all the fees and costs before you commit to anything.
Be informed. Be informed. Yeah. Transparency
is key. All right. So on that note, here's a
final thought for you to consider. OK. Given
all this information, what concrete steps are
you going to take to further investigate and
secure your financial future as you consider
gold IRAs? Yeah, it's about turning knowledge
into action. Exactly. Protecting yourself. It's
about protecting yourself, your peace of mind,
and your financial security. Absolutely. Thanks
for joining us for this deep dive. It's been
a pleasure. We'll see you next time. Sounds good.