Scott R. Hillford
Author & Founder Gold Is Money 2
Disclaimer: Some or all of the companies reported here may provide compensation to us, at no cost to our readers. This is how we keep our reporting free for readers. Compensation and detailed analysis are what determines how companies appear on this website.
An individual Retirement Account (IRA) is an excellent tool for investors who want to invest in long-term planning for retirement. However, with so many companies offering gold IRAs, it can be difficult to find the one that’s right for you.
With this in mind, we’ve created the following review of the Edward Jones Gold IRA. This company is one of the leaders in the field of retirement investing.
Our purpose is to present an open and honest review highlighting the pros and cons of Edward Jones. We want to give you the opportunity to decide for yourself if this company is right for your retirement savings needs.
Prior reading further, it is important to acknowledge that investing your savings is a not easy. When it comes to incorporating precious metals into your investment portfolio, how can you tell which companies are reliable?
After devoting extensive time and effort, we have conducted thorough research within the precious metals industry and compiled a selection of the most trustworthy companies.
Take a moment to read our list and determine if Edward Jones has what it takes to make the list this year!
This lets you to quickly compare the leading companies in this field and select the one that aligns with your specific requirements and investment objectives.
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An Overview of Edward Jones Gold IRA
Edwards Jones has more than 15,000 branches around the world. Their customer base is in excess of 10 million worldwide. This has allowed them to manage more than $1.7 trillion in assets. This makes Edward Jones one of the largest financial firms on the planet.
Their focus is giving clients personalized investment advice with a focus on retirement planning. Customers learn about asset management, and they have access to a variety of asset management services.
Founded in St. Louis by Edward D. Jones in 1922, this company started with branches in the United States and Canada. Edward D. Jones is a legend in the financial services industry. He was known as someone committed to excellence and integrity, and this was represented in the services he offered.
Building relationships with customers and providing personalized, tailored advice to meet their preferences and goals was the hallmark of Mr. Jones. This has been embedded in the company’s culture and is why Edward Jones is successful in modern times.
The firm was built and continues to thrive on the philosophy of personalized service to clients, whether they are individual investors or businesses. This focus on personalization backed up with research into clients' profile options means that clients can make informed decisions. Clients feel appreciated and like a person, not just a cog in a large bank or brokerage.
Services Provided by Edward Jones
Edward Jones has a personalized approach to investment management. This is seen in their traditional investment management services. They focus on long-term growth by encouraging investments in stocks, bonds, mutual funds, and other securities.
The Edward Jones approach to retirement planning encourages customers to set strategies and goals for saving and investing while managing their money to build a secure retirement. They do this by recommending appropriate investments to help clients achieve their goals.
Unfortunately, Edward Jones has no gold IRA that can hold physical precious metals. However, several gold investment firms specialize in gold IRAs. We will mention some of them at the end of this review.
What Is a Gold IRA?
A gold IRA is a self-directed retirement account. It is an IRA that lets you, as an investor, own gold. Regular IRAs do not allow you to own gold in a physical form. However, investing in various assets linked to gold is possible. This includes things like gold exchange-traded funds (EFTs). There are also stocks for gold mining companies.
A self-directed IRA allows you to invest in alternative assets, like physical precious metals, real estate, and cryptocurrencies. With a gold IRA, you must still adhere to the same rules as a conventional IRA.
These include contribution limits, tax benefits, and withdrawal rules. However, the IRS has added some additional requirements connected to tax reporting for self-directed gold IRAs because they are a more complicated asset.
Understanding a Self-Directed IRA
Let’s take a small detour to define what a self-directed IRA is. This is a retirement account type that lets you use assets that can’t typically be used in a conventional IRA for your retirement savings. However, a self-directed IRA follows the same pattern as a standard IRA.
Contribution limits are the same for individuals under and over the age of 55. A self-directed IRA can be a traditional IRA or a Roth IRA. The difference is post-tax or pretax rules for contribution.
When you purchase a traditional IRA, the custodian is a brokerage firm or a bank. They put limits on the options you have when it comes to investing in approved mutual funds, bonds, EFTs, or stocks. Some custodians have self-directed IRAs that allow you to hold gold bars or even cryptocurrencies.
Getting a Custodian
Conventional and large brokerage agencies like Edward Jones do not offer gold IRAs. You need to work with custodians that specialize in the administration of gold IRAs. Your custodian will help you with tax reporting and the paperwork.
They will make sure that you meet all of the requirements laid out by the IRS when it comes to retirement planning. The most important job for your custodian is to manage the storage requirements when it comes to holding precious gold and other metals.
By IRS regulation, you can’t store precious metals that you own in a gold IRA in your home. If you do take custody of those precious metals, it is seen by the IRS as a withdrawal and could be subject to IRS early withdrawal penalties or taxation.
The rules of a gold IRA require that you store all of your eligible precious metals with a national depository, a bank, or a third-party trustee that has the approval of the IRS. Your custodian will walk you through choosing the best facilities. They will transfer the gold to help you set up your gold IRA.
Types of Gold That Are Allowed and Not Allowed in a Gold IRA
The IRS is very strict regarding their requirements on the form of physical precious metals you can have in your gold IRA. When it comes to gold in particular, you can only buy gold bars that have a purity of at least 99.5%.
To fund your gold IRA, you can also purchase coins like the American Gold Eagle, Canadian Maple Leaf coins, and the Australian Golden Nugget/Kangaroo. However, the IRS does not permit collectible gold coins.
These included the South African Kruger, United Kingdom Sovereign, and Rand coins. You also cannot invest any type of gold collectibles in an IRA. The IRS has a permitted list of gold objects that you can discuss with your custodian before you try to move any gold into an IRA.
It’s important to be careful before moving any type of gold into an IRA. If you make the wrong transaction, the IRS won’t allow it, and it will be counted as a withdrawal. This could mean you would face some tax implications and might be charged a 10% early withdrawal penalty.
The Benefits of Having Physical Gold in an IRA
Regarding asset classes, precious metals have an advantage over standard investment choices. One advantage is financial stability, especially when there is economic upheaval.
Gold Versus the Stock Market
When looking at the stock market versus gold, the stock market offers the possibility for explosive growth, but that same volatility can lead to loss.
When planning for retirement, you want to make sure that the money you have earned over the years is there for you when it’s time to stop working. Precious metals provide this type of assurance and peace of mind. They can serve as a hedge against more volatile investments.
Gold Versus the US Dollar
The US dollar is quickly losing its purchasing power. Consumer goods are getting more expensive year by year.
With inflation out of control, funds that seem safe in an interest-bearing account are losing purchasing power because the dollar's value is being diluted. Most investment vehicles are linked to fiat currency. Gold has an intrinsic value that makes it a powerful hedge against inflation.
Who Should and Who Should Not Be Investing with Edward Jones?
Edward Jones is a great investment option for individuals with have high net worth and who are comfortable with the higher fees that Edward Jones charges. Edward Jones offers a face-to-face interaction that many high-net-worth customers require.
Average investors who are looking at setting up a college savings account or looking for a standard taxable brokerage account may not find the value for their money with Edward Jones. The returns usually do not justify the fees.
Additionally, Edward Jones is not a good option for an investor who wants to use a self-directed IRA. It is not a good fit if you want to add physical gold to your IRA.
Top Three Companies to Choose Over Edward Jones
If you’re looking for a self-directed IRA that can hold precious metals, Edward Jones is not the right option for you. However, there are three other companies that we recommend you look into.
1. Goldco - Best for Beginners
If you’re considering investing in precious metals, Goldco may be the option for you. Goldco is a trustworthy, reliable precious metal dealer.
They have a phenomenal reputation and offer direct purchases of high-quality products, IRA accounts, and education on investing in gold.
Even before you become a customer, Goldco offers a free guide on precious metal investment. This outlines what you need to know about the pros and cons of investing in gold and silver.
Goldco has an A+ rating on the Better Business Bureau and a positive reputation, thanks to thousands of glowing reviews. They offer low fees and competitive pricing to help customers get the most bang for their buck.
A potential drawback is that Goldco requires a $25,000 investment to open a gold IRA account. This may not be possible for all investors. Another downside is that the company's products are limited to gold and silver. Palladium and platinum are not options. In addition to IRA services, Goldco lets investors buy gold and silver directly.
2. Augusta Precious Metals - Best for Education
Augusta Precious Metals is another trusted gold and silver IRA provider.
Endorsed by legendary celebrities like Joe Montana, Augusta Precious Metals is one of the only IRA companies with zero negative complaints on the Better Business Bureau as of this writing.
This company offers IRA-compliant precious metals, gold storage using IRS-complaint depositories, the ability to purchase gold and silver directly, and lifetime support from financial professionals.
A drawback for some is that to open a gold IRA, you need to have a minimum of $50,000. However, if that entrance price is not a barrier for you, you are rewarded with lower annual fees than most other companies.
With an A+ Better Business Bureau rating, assistance opening an IRA, and a company prioritizing educating customers, Augusta Precious Metals is a quality option for many.
3. American Hartford Gold
American Hartford Gold has an A+ rating with the Better Business Bureau and a 4.94-star rating with over 400 reviews. Customers benefit from free consultations with knowledgeable financial representatives.
American Hartford Gold offers price matching, fee waiver promotions, and transparent cost disclosures before sale finalization. Individuals like Bill O’Reilly and Rick Harrison endorse this company.
The downside to working with this organization is that they lack product price transparency on their website, their products are limited to gold and silver, and there is no shipping outside the United States.
What is the deadline for making IRA contributions?
Contributions can be made throughout the year up to the tax filing deadline. This does not include time granted for extensions. The deadline for 2023 contributions is April 15, 2024.
Can a new IRA be opened up with a contribution?
Yes. Annual contributions can be made up to the limits approved by the IRS. For 2023, your precious metal IRA contribution cannot exceed $6,500 if you’re under 50 and $7,500 if you are over 50.
Is it expensive to have a precious metal IRA?
No. A precious metal IRA is usually less expensive than other retirement plans. The typical annual cost is between $160 and $200 on an investment of $50,000. That’s less than one-half of 1%.
What types of metals can be used in a precious metal IRA?
There are several options, including palladium, silver, gold, and platinum bars and coins, that can be used. Some popular IRA-approved bullion coins include American Silver Eagles, American Gold Eagles, and Austrian Philharmonics.
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