Edward Jones Gold & Precious Metals IRA

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Edward Jones is one of the traditional brokerage firms and when you compare them to an ever-expanding market of online robo-advisors and discount brokers, they provide a service that is much more personal to investors. 

The fees associated with full-service brokers like Edward Jones are usually higher. But the most important question about these fees is whether the investment decisions are in line with it. 

Edward Jones provides in-person advice as well as professional investment management services from its 19,000 advisors spread across Canada and the U.S.

The fees may be high but they provide premium customer service levels and several resources for all types of investors.

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About Edward Jones


a couple speaking with a financial advisor

Edward Jones is one of the full-service brokerage agencies that operates across Canada and the U.S.

Founded in 1922 in St. Louis, this brand has built a solid reputation throughout the 20th century as one of the most reputable portfolio managers that invests deeply in all its clients. 

The company first started opening branches in the U.S, before spreading into Canada. Today there are more than 15,000 Edward Jones branches, and close to 19,000 qualified and experienced financial advisors that work for this firm.

The ratio may sound strange, but it has to do with the goal of the company to consistently reach clients in the areas where they live while providing premium services, rather than clusters of offices in large cities. 

The founder, Edward Jones, was a truly legendary figure when it came to the world of personal finance and is partly responsible for why this brand continues to thrive after a hundred years of trading.

Today, all the broker advisors earn their money through combinations of revenue sharing and commission fees. 

In an era where many customer services are now automated and the online brokers frequently direct clients to "Knowledge Base" FAQ pages, a more personal and committed level of customer care provided by Edward Jones is regarded as highly valuable to its base of loyal customers.

This company has close to $1.7 trillion in AUM (assets under management) and it currently serves around 7 million clients. The firm mainly specializes in longer-term investment prospects.

Unfortunately, Edward Jones does not offer a gold IRA that can hold physical precious metals.  

But do not worry, we have researched over 215 gold investment firms that specialize in these types of accounts and compiled a detailed list of the best companies to invest with.

What You Need To Know About A Gold IRA


Gold IRAs are individual self-directed retirement accounts, better known as IRAs that allow investors to own gold.

You can't own gold in a physical form in the regular IRAs, but you can still invest in various assets that are linked to gold exposure including gold exchange-traded funds (ETFs) or stocks from the gold mining companies. 

When you open a self-directed IRA it allows you to start investing in some alternative assets such as cryptocurrencies, physical precious metals, and real estate. 

A gold IRA follows the same standard rules as the conventional IRAs in association with contribution limits, withdrawal rules, and tax benefits (Roth or traditional).

However, additional record-keeping requirements and tax reporting have been implemented by the IRS for the self-directed gold IRAs since they hold more complicated assets.

What Are Self-Directed IRAs?


The self-directed IRA is an individual retirement account type that will allow the investor to use assets regarded as off-limits to the conventional IRAs for their retirement savings.

This includes cryptocurrencies, real-estate assets, and precious metals. 

man looking at a clipboard

In a lot of ways, the self-directed IRAs follow similar templates to the standard IRAs. For example, annual contribution limits remain the same at $6,000 or $7000 for people 50 and over for the years 2021 and 2022. 

You can also open your self-directed IRA as a Roth IRA or a traditional IRA, which is linked to the same post-tax and pre-tax contribution rules. 

With a regular IRA, the custodian which is usually either brokerage firms or banks will limit your options when it comes to investment to approved security such as mutual funds, ETFs (exchange-funded funds), bonds, or stocks. 

Some custodians do offer self-directed IRAs where you are allowed to own silver ingots, gold bars, and sometimes even cryptocurrencies.

Certain types of investors are interested in tax advantages derived from an IRA when investing in the non-traditional classes of assets to achieve a more lucrative return or for diversification.

A Custodian Needs to Manage Your Gold IRA


Conventional and large brokerage agencies do not offer gold IRAs. 

You will need to find custodians that specialize in the administration of gold IRAs.

A custodian can help you with tax reporting and managing the paperwork involved to make sure you have met the requirements set out by the IRS when it comes to retirement planning.   

Most importantly, a custodian will manage the storage requirements involved in holding physical precious metals and gold bullion. The IRS doesn't allow investors to store any precious metals personally that they own through a gold IRA stored at their home. 

If you take control of your physical gold personally from your self-directed IRA, the IRS considers this as a "withdrawal" which could put you at risk of an early withdrawal penalty or taxation.

In certain cases, the IRS has the power to completely close down your account.  Here at BMOGAM Viewpoints our advice to our readers has always been to stay away from home storage gold IRAs.

The rules surrounding gold IRAs require that you always store any of the eligible precious metals with either a third-party trustee, a bank, or one of the national depositories that have approval from the IRS.

Your custodian will be able to give you advice on the best-approved facilities and they will handle the transfer of the gold to help you set up your gold IRA.

Tips On How To Purchase Precious Metals For Your Gold IRA


Once you have opened your self-directed Gold IRA, you will need to transfer money into this account to fund purchasing precious metals such as gold.

One of the common options involves rolling over one of your existing retirement accounts to a self-directed IRA. You won't be liable for any tax when you use this option since the money will stay in a retirement plan that qualifies. 

a couple listening to a financial advisor

You can also choose to deposit money in cash every year, after the annual IRA contribution limits. With these funds in the account, you can buy gold for the Gold IRA.

What Types Of Gold Are You Allowed to Own in a Gold IRA?


The IRS has stringent rules and requirements when it comes to the form of physical precious metals you are allowed to own in your Gold IRA. When it comes to gold you are only allowed to buy gold bars with a purity of at least 99.5%.

You are also allowed to purchase gold coins such as the American Buffalo, the American Gold Eagle, the Australian Gold Nugget/Kangaroo, and Canadian Maple Leaf coins, to fund your Gold IRA. 

Collectible Coins Can Not be Purchased to Fund A Gold IRA 


The IRS doesn't permit popular gold coins such as the United Kingdom Sovereign or the South African Kruger Rand coins to be added to a gold IRA. You are also not allowed to invest in any type of gold collectibles when it comes to an IRA.

You should go over the permitted list of gold objects with a custodian well before you decide to move any type of gold into an IRA. 

If you make an incorrect transaction accidentally, the IRS will not allow it and they will then count this transaction as a "withdrawal".

This means you will be liable for the tax according to the value of these items. If you are under the age of 59 and a half, you will also be charged an additional 10% early-withdrawal penalty.

Why Should You Have Physical Gold in an IRA?


When it comes to asset classes, precious metals such as gold provide several advantages over many other standard investment choices.

Some of the benefits of gold include a long history of favorable financial stability, especially during an economic downturn, improved insulation in association with currency devaluations, along with fixed supplies that cannot and won't be changed anytime soon.

Keep reading to find out more about how a precious metal such as gold compares with a few of the other popular and common investment classes.

The Stock Market vs. Gold


When planning for retirement, there is always a game involving reward versus risk.

At the end of the day, your most important goal for your retirement is to make sure the money you earned over the years is available and preserved when you decide to stop working.

Wise investors, that are thinking about their future, partner with a reputable gold IRA company when they are looking for ways to protect and preserve their retirement plans from stock market volatility, and diversify their portfolios with assets such as precious metals.

This is vital to achieving assurance and peace of mind. It is always a good idea to reserve some of your money by investing in a stable and powerful option such as precious metals.

The U.S. Dollar vs. Gold


Many investors today are starting to notice how fast the U.S. dollar is losing its purchasing power. This mainly has to do with the government's QE (Quantitative Easing) programs and inflation.

Consumer goods that we have to buy from day to day, such as gasoline, clothing, and food, require more dollars every year to buy. 

Inflation is simply out of control.  

This means that while your funds may appear safe in an interest-bearing account or the bank, their overall purchasing power reduces constantly since the government continues to dilute its value by printing more and more money.

While many investment vehicles tend to be linked to fiat currency in one way or another (which means they are subjected to the very same fluctuations in value as the everyday goods) gold is one of the most powerful hedges against inflation.

It also provides a valuable means to improve and protect purchasing power as time goes by.

The National Debt vs. Gold


The current national debt is huge, and it will only carry on growing.

At its current level, many people are now thinking that the national debt is now unmanageable and unstable, which when compared to previous years has resulted in panic in most global theaters and the market.

Physical assets such as gold are regarded as mainly immune to many market cycles and they can offer a hedge against uncertainty in the market, which is vital when you want to protect your retirement savings.

Who Should Be Investing with Edward Jones?


Investors with higher net worth usually don't mind the higher fees that Edward Jones charges. They also seem to prefer the personal face-to-face advice that the team offers. 

But is Edward Jones the right choice for everyday investors?

This will arguably depend on the investor's expertise level. If you have a good idea of how different investments work and you won't need someone to hold your hand, you can save money on the advisory fees when you choose one of the commission-free stock brokers or a low-cost robo-advisor.

Who Is Edward Jones Not Suitable For?


Average investors that are only interested in setting up a college-savings account or a standard taxable brokerage account often find a lot more value in other options.

The fees do not justify the advantages unless you are looking for something long-term. When it comes to customer reviews and feedback for Edward Jones the reviews lean towards the negative on some of the online sites.

And Edward Jones is not a good option for investors that want more control over their retirement investments by using a self-directed IRA.  

As we have mentioned above Edwards Jones is also not a good fit for investors looking to add real assets, like physical gold and silver to their IRA.

Pros


  • Expert Advice

The firm has several qualified and expert financial advisors that you can choose from. You can also find advisors that match your interests.

  • Personalized Service

Many platforms within the financial service industry generally offer limited customer services. When it comes to Edward Jones, the advisor that you choose will be a professional and reliable contact that will assist you in managing your investments.

  • Well-Established Firm

Edward Jones has been in business for a century already. It is a safer option when you compare the firm to newer platforms, especially the ones that haven't been tested.

Cons


  • High Fees

The fees that Edward Jones charges make investments less profitable when compared to many other brokers.

  • Fewer Investment Options

Advisory accounts only permit ETFs and mutual funds.

  • Not For Short-Term Investors

The purpose of this brokerage is to assist with long-term strategies.

  • No Gold & Silver IRAs

The do not have the option of creating a precious metals IRA for investors that want to protect their retirement 

Conclusion

Gold is one of the more common precious metals that are invested into IRAs, which is why the term "Gold IRA" is most often used in this industry when referring to retirement accounts that contain combinations of precious metals (that have been approved).  

You might have no or very little say when it comes to your investments when choosing a conventional 401(k) or IRA with a brokerage firm or a bank.

But when choosing a self-directed IRA, you get to make your own decisions when it comes to investments and you can choose which of the IRA-eligible bullion, bars, and precious metal coins you would like to buy or invest in.

Edward Jones is a decent company but we do not recommend them.  They are not the best company for investors that want to use self-directed IRAs and certainly not an option for investors that want gold IRAs.

There are much better options available, like the ones we have written about extensively on this website.

You can get a Free Gold Investors Guide from our top gold and precious metals company recommendation by clicking the link above or you can read our article of the top companies we reviewed this year:

>> CLICK HERE to read our list of the Top Gold IRA Companies. <<

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