• Report: #949222

Complaint Review: Broad Financial

  • Submitted: Mon, October 01, 2012
  • Updated: Mon, October 01, 2012

  • Reported By: 123juddly — United States of America
Broad Financial
21 Robert Pitt Dr. Suite 202 Monsey, NY 10952 Monsey, New York United States of America

Broad Financial Lied, dishonest, shady Monsey, New York

*General Comment: Do more Due Diligence, this is an incorrect posting

*Consumer Comment: Satisfied Customer

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So, I hear of this new concept called the "self directed IRA LLC". It's great, I have a few buddies of mine that have been using it for years. Basically, these companies have created a structure called an IRA LLC where the LLCs that they formed are designed to be owned by IRA accounts, thus ending in having checkbook control over your IRA. It has been around for well over a decade, it just isn't something exactly "mainstream" yet. 

Anyway, I Googled the concept, and found "Broad Financial".

Now, I am not someone who believes everything someone tells me right off the bat, I dig deep in and ask lots of questions before I request information. 

So, one of the questions I asked this company when one of the employees answered was "How long have you all been setting up IRA LLCs?", they told me 2004.

Then I was asking about the IRA LLC program, and the man I was talking to was literally thinking of any way he could to talk me into buying their "Solo 401(k)". Basically this has a lot of the same interests that an IRA LLC has, only you borrow against it, and run a business with it.

This guy was asking me all sorts of things about me and my wife - "Have you guys ever thought of running a business, have any ideas for one?", "Do you buy and sell things on craigslist ever, do you buy things on Ebay, have you ever thought of doing that?", "does your wife do any cooking for neighbors, anything?". After I said NO about a million times, this guy finally fell back and said we can talk about the IRA LLC now. 

After I got off the strange phone call, I did some research of my own, and talked about the hassle with one of my buddies who happens to be an attorney who knows all about these things. He informed me that with the "Solo 401(K)", it is basically a cookie cutter if you will. You buy a document for it that costs about $500, and then you can sell it hundreds, thousands of times without paying a cent on it. So, no wonder they were pushing it on me, because with the IRA LLC, they are built from scratch, you have to pay attorneys to do them, they take a lot more time etc.

I also later found out that Broad Financial has NOT been setting up IRA LLCs since 2004, but rather 2010. They have been in business since 2004 doing real estate, but had nothing to do with the IRA LLC. I called back, and asked "How long have you people been setting up the IRA LLC?", the man told me "We have been doing that since 2004". I said again, "Have you been in business since 2004, or setting up the IRA LLC since 2004?". He stuttered, and said,  "Well we didn't start the IRA LLC since 2010 but we have been in business since 2004".

So there you have it, another company giving false advertising and lying about how long they have been doing something, and running a shady business trying to sell me a solo 401(k) off of an Ebay business!

I also found out things about how the solo 401(k) rules change just about every month, and how there is much more room for scrutiny that can get you in trouble if you don't hire someone to watch out for it, which in the end costs way more than the IRA LLC custodian. I just hate that, how companies put people at risk just to get paid a few hundred more dollars. Broad Financial is a shady company, that gives shaky advise, they lie about who they are, and mislead you to make an extra buck.

This report was posted on Ripoff Report on 10/01/2012 02:05 PM and is a permanent record located here: http://www.ripoffreport.com/r/Broad-Financial/Monsey-New-York-/Broad-Financial-Lied-dishonest-shady-Monsey-New-York-949222. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 General Comment

Do more Due Diligence, this is an incorrect posting

AUTHOR: sksiazki - ()

I have never worked with or for Broad.  I am an individual investor with knowledge in this area.

Your post is quite innacurate in many places as to the positives and negatives of a Solo K/Solo 401k.  In many instances a Solo K is a much better, safer and less costly tool than a Self Directed IRA.  I invest actively in both of my own but really only have the SD IRA anymore because you cannot roll a Roth IRA into a Solo K.  

In order to have checkbook control in a SD IRA you need to create an LLC inside of it.  This can get expensive, especially in states such as California, where there is a yearly $800 llc tax.  A Solo K does not require an LLC.  As for as safer, the SD Ira with LLC checkbook control has only recently been challenged, and upheld in court.  The Solo K does not run into the same legal issues with the IRS as are possible when using a SD IRA.

As to the fees the company charges, I cannot speak on that but they do not sound abnormal for this sector.  You will find many companies, some of which are quite good, charging over $1,500 to set up an LLC for a Self Directed IRA.

If they lied about how long they were in this business, that is of course unsatisfactory.

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#2 Consumer Comment

Satisfied Customer

AUTHOR: whm - ()

We established an LLC with Broad Financial and I am very satisfied.  The process went smothly and we have now rolled over funds from a 401K and invested in precious metals that we have control over.  We also have precious metals "held" with a dealer.  We feel much more secure having access to our assets when we want them than having them with a dealer.

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