Red Rock Secured is just one player in the vast arena of precious metals IRA service providers. They strive to protect your retirement savings by anchoring them in valuable metals. This market is intensely contested and, unfortunately, not free from scams. So where does Red Rock Secured stand in this landscape?
At the outset, they appear reliable. Their impressive BBB rating and the high praises on Consumer Affairs add credibility to their reputation. Indeed, customer feedback is overwhelmingly positive. Is there anything that could go wrong?
You may be taken aback by what we've unearthed. You'll undoubtedly want to continue reading before entrusting your investment with this firm.
Before we delve into the finer aspects, let's familiarize ourselves with Red Rock Secured and its offerings.
This privately held firm, nestled in the southern part of California, purports that its primary objective is to enlighten its customers, provide suitable and safe products, and ensure satisfactory customer service. They also profess to hold honesty and integrity in the highest esteem.
Multiple pages on their website, including the Business Consumer Alliance, Better Business Bureau, and Trustpilot, feature customer reviews.
However, amidst all this talk about integrity and honesty, it's rather peculiar that most of the reviews they link to appear fabricated. But let's hold that thought for now.
The company flaunts a solid commitment to its principles and policies. They assure that their experts can guide individuals about the intricacies of the precious metals market and suggest the right strategy for your retirement portfolio. A call to the company will equip you with insights to diversify your portfolio according to your personal aspirations.
They also claim that protection is one of their primary virtues. They assure you that should you invest in their products, your portfolio will always be somewhat valuable. In their terms: The portfolio won't ever depreciate to nothing. They technically haven't deceived you if you purchase it for 16,000 dollars, and it's worth a single dollar.
They acknowledge that investments carry high risks but also high rewards. Further, they assert that they strive to safeguard their clients, insulating them from risk. This claim seems paradoxical as most investors gravitate towards precious metals for stability, not high-risk ventures.
The company provides an extensive educational resource base through its website. It includes information about the precious metals industry, historical pricing data for various products, and general knowledge of portfolio diversification.
They cite client care as a fundamental value, asserting that they prioritize their clients' welfare over business profits. Although our third-party examination doesn't corroborate this, they assert their trustworthiness, effective communication, and honesty, declaring their success contingent on their client's success.
Their website's final listed value is portfolio diversification. They affirm that diversifying assets is the best way to secure wealth. They claim their products aid diversification, though they do not elaborate on how much they'll motivate you to invest.
Like numerous other firms, Red Rock Secured prioritizes precious metals IRAs. You can leverage your retirement assets to buy IRS-sanctioned precious metals for your retirement fund. These must be stored in a certified facility and meet all the paperwork and regulatory requirements.
The complexity of these tasks can be daunting, particularly if you're new to investing in precious metals. Selecting a storage depository, custodian, and broker for your transaction, not to mention handling the paperwork for account transfer and setup, can take time and effort.
Firms like Red Rock Secured exist to assist with these.
The Red Rock Secured website only offers a little information about the account setup procedure for a gold IRA. They suggest that if you're interested in getting started, you should contact them or call them.
They do claim to work with certified custodial partners. When you wish to open an account, they will aid you in transferring your funds from your current 401(k) or another retirement account into your precious metals IRA.
One potential warning sign is their reference to stocks as "unpredictable paper investments." While this statement isn't incorrect, it insinuates that precious metals are superior investments to stocks. In reality, investment experts suggest allocating only a small portion of your assets to metals.
This is because, although precious metals offer protection against inflation and stock market downturns, they don't yield dividends. If you seek investments that provide actual returns, a combination of stocks and metals is advisable.
Upon account opening with them, you'll be paired with a specialist offering investment advice. They will offer insights on the precious metals that align best with your goals and then provide specific suggestions.
However, there's evidence that these salespersons operate on commission. Commission-based sales typically don't favor the client. When an employee earns from what they sell, they're likely to say anything to encourage you to part with more money. This could lead to poor advice about your asset distribution.
Unlike conventional IRAs managed by investment professionals, a gold IRA grants you complete control. This implies you will only receive warnings if you're about to make a risky investment. Moreover, the company disclaims any responsibility for potential losses you may incur from purchasing precious metals.
The firm posits that the IRS guidelines contain "loopholes" which permit you to make tax-advantaged decisions. These are standard features of how the IRS retirement regulations function.
The initial "loophole" they point out is the penalty-free asset transfer. If your assets are tied up in stocks and bonds, you can switch them into precious metals without incurring early withdrawal penalties.
This suggests that the firm might urge you to transform all your retirement assets into precious metals, which, as previously stated, isn't advisable.
The subsequent "loophole" pertains to privacy. The firm maintains that you can house your metals in an IRS-approved facility near you. While this is technically accurate, licensed depositories in the U.S. are not widely distributed. They're scarce and dispersed, so many people consider themselves fortunate to have storage options within their broader locality.
The firm also professes that your investment remains completely private. Indeed, certain tax disclosures do not apply to precious metals. However, the notion that the IRS would remain oblivious to your holdings is nonsensical. IRS paperwork compliance and coordination with an IRS-sanctioned custodian are mandatory, and when you commence taking distributions, you will have tax obligations.
Each product the firm offers is safeguarded by Lloyd's of London, a premier worldwide insurer for precious metals. The firm proposes that converting all your assets into precious metals eliminates any chance of hacking or pilferage. Not a wise idea!
The firm remains mum on its fee structure. They hint at collaborating with Kingdom Trust as a custodian at times. Custodians levy their own account establishment and upkeep costs, typically annually.
The firm further needs to elaborate on which storage facilities they partner with. Their website uses ambiguous phrasing, suggesting that you can house precious metals of a gold IRA at your residence. However, this is far from the truth. It is prohibited to store IRA precious metals anywhere but a licensed and registered storage facility in the U.S.
At first sight, this organization has nothing to conceal. They hold an A+ accreditation with the Better Business Bureau, extraordinary BBB customer appraisals, and sterling reviews on Consumer Affairs.
However, that's when it starts to get intriguing.
On Trustlink, the organization has a mediocre rating of just 1.4 out of 5 stars from 49 reviews. A recent review from an employee accuses the company of severe misconduct that, according to them, could qualify for criminal liability.
Intriguingly, several previously positive reviews remain... but their star rating has been downgraded to 1, all carrying the same header: THIS IS A FAKE REVIEW.
It's highly plausible that this former staff member has taken such steps to unveil the company's allegedly deceptive review-accumulating tactic. Regardless of the specifics, this page casts serious doubt on the credibility of the Consumer Affairs and BBB reviews. We need help to differentiate between authentic reviews and company-manufactured ones.
Let's then delve into what this past employee has disclosed about the company's purported practices.
The review on Trustlink commences with the reviewer disclosing their prior employment with this company. They claim their motivation to write this review stems from highlighting the hazardous, fraudulent behaviors the company allegedly indulges in.
The reviewer accuses the company of imposing commission fees ranging from 50 to 80 percent and consciously deceiving and misleading their clients. The assertion is that the company exploits senior customers who are more susceptible to confusion and can be convinced into entering deceptive verbal agreements.
The reviewer mentions over ten years of experience in the precious metals industry, yet they have yet to witness more dishonest or intentionally harmful business methods. They claim the company's sales personnel use deceptive information to extract exorbitant commissions of 80 percent from their clients.
Whether these methods qualify as criminal fraud depends on how these representatives execute them. Based on this review alone, it's impossible to determine if the company has partaken in any prosecutable criminal acts. Yet, the reviewer suggests involvement in investment fraud, interstate commerce fraud, and general financial fraud crimes.
The reviewer proposes a criminal investigation should be launched into the company, and they should be held accountable for their alleged conspiracy against the senior clients. Further, they recommend anyone who has ever been associated with this firm should immediately consult their legal advisor about potential recourses for financial recovery.
The advice is to compare the final price charged by the company to the actual market value of the products at that time. As per the reviewer, the cost could be two to three times the accurate market value.
The reviewer insists the company accept its liability and make amends by reimbursing all past clients. They also mention their personal experience as an employee, claiming wage theft and on-the-job harassment. However, they choose to address these issues separately.
They suggest a resolution: The company should promptly reimburse and compensate all former clients' funds.
There has yet to be a response from Red Rock Secured to this complaint. The company's silence on modifying several customer reviews could imply they're oblivious to the situation, or Trustlink does not permit them to erase the alleged evidence of misconduct.
This could be a vengeful employee fabricating stories due to resentment about losing their job. Yet, the company's silence raises concerns. An explanation is warranted, but more needs to be provided.
Furthermore, the exposure of fake reviews makes every positive customer review on the web doubtful. We can no longer believe that the good experiences reported are authentic.
Even if these allegations are false, Red Rock Secured is still not the optimal precious metals dealer. Many dealers are offering better prices, more transparency in fees, and customer reviews that can be authenticated. Engaging with one of them is safer than gambling with this company.
Red Rock Secured may not technically qualify as a fraudulent entity. It's conceivable that they've not committed sufficient deceit to warrant legal charges of criminal fraud. However, this isn't a justification for letting them off the hook, particularly when we need clarification on its validity.
What raises eyebrows about this organization is the revealed fabricated reviews on Trustlink. Other third-party platforms may be overflowing with glowing reviews, but unveiling these sham critiques erodes their trustworthiness.
There's a conspicuous absence of readily available details concerning any legal actions brought against this firm. The former employee, who complained, advised that anyone previously involved with them should scrutinize their financial dealings and seek legal guidance.
We endorse this advice. If you've transacted with the firm previously, ascertain that you were charged an appropriate amount for your metals. And if you've yet to engage them, refrain from doing so. Even if their legitimacy is unchallenged, they don't top the list. It's far more prudent to entrust your investments to a company known for its solid standing in the industry.