Schwab Gold IRA has been in business for almost 50 years. However, it does not yet offer precious metals IRAs. While they provide other investment possibilities such as gold mutual funds, ETFs, and individual equities.
Keep reading to learn more about Schwab Gold IRA.
Find the Best Rated Gold IRA Company of your State
What is Schwab Gold IRA?
Charles Schwab Corporation is well-known among investors because it provides almost every banking and investing option available in the industry. From checking to trading accounts, Schwab is a widely recognized name.
They currently provide a few alternative items, such as cryptocurrency. This product expansion is appreciated by savvy investors, but they may be looking for a specific service, such as gold IRAs or Individual Retirement Accounts.
Schwab accepts regular, Roth, rollover, beneficiary, minor, and small business IRAs. However, investors will not be able to find a precious metals IRA with Schwab right now.
Other sources, however, have greater experience with precious metals IRAs than Schwab Gold IRA.
Who owns Schwab Gold IRA?
On its website, Schwab Gold IRA provides several team member details, including the following few important members of the company:
Charles Robert Schwab: Founder
Charles Robert Schwab Sr. is an American investor and financial executive. He is the founder and chairman of the Charles Schwab Corporation. In 1975, he pioneered discount sales of equities securities. His company grew to become the biggest discount securities dealer in the United States. He stepped down as CEO in 2008, but he remains chairman and the company’s largest stakeholder to this day.
Forbes estimates his net worth to be $10.6 billion as of May 2021, ranking him as the 210th richest man in the entire world.
Walt Bettinger: Chief Executive Officer
Walt Bettinger has been the Chief Executive Officer of The Charles Schwab Corporation since late 2008. He also serves as Co-Chairman of the Board of Directors.
Walt’s primary responsibilities include managing the development of strategies and services that enable tens of millions of people around the world to save and invest – either directly, with the assistance of an independent investment advisor or through a company-sponsored retirement or benefit plan.
Walt attended Delta State University in Cleveland, Mississippi, and has a bachelor of business administration degree with a major in finance from Ohio University, summa cum laude. He has also finished the Harvard Business School’s General Management program.
Bernard J. Clark: EVP & Head of Schwab Advisor
Bernard “Bernie” J. Clark is the head of Schwab Advisor Services and a member of the Executive Committee of Charles Schwab. He is in charge of the company that provides custodial, operational, and trading support to around 8,000 independent investment advising companies with a total asset value of $1.90 trillion.
Brendan Kerr: Senior Portfolio Manager
Brendan Kerr works as a Senior Portfolio Manager at Schwab Asset Management, supporting the Wasmer Schroeder municipal bond strategies.
Kerr formerly worked as a vice president and portfolio manager at Wasmer Schroeder, where he was in charge of co-managing the tax-exempt investment strategy. He joined Wasmer Schroeder’s municipal research team.
Kerr previously worked at Lloyds Banking Group plc, where he analyzed credit risk on the bank’s municipal and asset-backed securities portfolio. He began his career as an associate director at Fitch Ratings.
What Products Does Schwab Gold IRA Offer?
Charles Schwab Corporation offers a comprehensive variety of brokerage, banking, and financial advisory services through its operating subsidiaries. Charles Schwab & Co., Inc. (Member SIPC) is its broker-dealer subsidiary that provides investment services and products, including Schwab brokerage accounts.
Shwab Gold IRA does not provide precious metals in its IRAs. Because Schwab does not permit the direct purchase of precious metals, customers cannot store precious metals in their IRA.
I’m safe from the recession, are you?
Schwab customers can only receive precious metal exposure in their retirement account through a precious metal derivative (such as an ETF, mutual fund, etc.) that is exposed to the desired precious metal(s).
Charles Schwab provides several financial instruments that allow investors to gain exposure to precious metals. These are some examples:
Mutual Funds
Gold mutual funds invest in gold and gold-related assets, such as gold mining company equities. On its OneSource Select List, Schwab offers its selection of funds. These mutual funds have no fees and have been pre-vetted by the company’s experienced staff. Among the funds on this list for gold investors are:
- U.S. Global Investors Gold and Precious Metals Fund (USERX)
- First Eagle Gold Fund Class A (SGGDX)
- Gabelli Gold Fund (GLDAX)
ETFs
Gold exchange-traded funds (ETFs) trade on the open market in the same way that individual stocks do, but they are funds that hold a certain amount of precious metals. ETFs enable you to buy shares backed by physical gold in an asset that can be traded on the open market.
There is a variety of gold ETFs offered by Schwab, including:
- SPDR Gold Shares (GLD)
- iShares Gold Trust (IAU)
- SPDR Gold MiniShares Trust (GLDM)
Individual stocks
Individual stocks with significant exposure to gold are one option to invest in the precious metal. These Individual stocks typically include gold mining companies that earn from the extraction and sale of gold. Because Charles Schwab is a full-service broker, its customers have access to any over-the-counter traded stock. Are gold equities available for buying on Schwab include:
- Newmont Goldcorp (NEM)
- Barrick Gold (GOLD)
- Freeport-McMoRan (FCX)
- Agnico Eagle Mines (AEM)
- Kirkland Lake Gold (KL)
What are Schwab Gold IRA Fees and Charges?
Schwab Gold IRA has no account fees and no required minimum balance for all of its regular account options.
The costs for Charles Schwab vary depending on whether you use a Schwab broker or place your trades. Trading online has substantially cheaper expenses, and fundamental financial products such as stocks and ETFs can be exchanged for free.
The company claims that if a client is not happy for any reason, they will refund any relevant fee or commission to the customer.
Have any customers sued Schwab Gold IRA?
Justia
A former participant in an ERISA retirement plan, alleges that the defendants, Charles Schwab Corporation & its subsidiary violated ERISA and breached their fiduciary duties by including certain investment funds in the plan.
What are the Pros & Cons of Schwab Gold IRA?
Before making a buying decision, consider the following Schwab Gold IRA pros and cons:
Pros:
- A well-recognized brand
- Commission-free stock, options and ETF trades
Cons:
- Faced multiple lawsuits and client disputes
- Too many negative customers reviews
- Not BBB-accredited business
- Does not allow clients to store precious metals in an IRA
- Investments are too dependent on the USD
- Complex fee structure
My Recommended Schwab Gold IRA Alternative
I don’t recommend investing in a gold IRA with Schwab. Why? Because they don’t specialize in this area.
I recommend going with our top-rated company: Augusta Precious Metals. You can check out my review of them here.
Augusta Precious Metals is regarded as one of the most trustworthy companies in the market. Their company was founded in 2012, and their main goal is to help their clients have a better retirement.
Thousands of good reviews about their products and services can be found on numerous websites. This shows how successfully they achieve their tasks and handle their customers regardless of their needs.
Augusta Precious Metals maintains its leadership position by providing its clients with educational resources. This is excellent for people who need more field experience and understanding.
It is also significantly easier to open an account with them. You will still have to deal with paperwork, but they will assist you through the process to ensure everything is in order.
The only disadvantage of the company is its high minimum investment requirement of $50,000. Others may think this is overpriced, but rest assured that they will keep your assets and cash protected.
Pros:
- Kingdom Trust, which manages over $12 billion in assets, has been a long-term partner.
- A wide range of products are offered.
- A long list of coins
- All orders receive free shipping.
Cons:
- The minimum investment cost is high ($50,000).
What Makes Gold an Ideal Investment For Your IRA?
Invest in an Individual Retirement Account (IRA) to safeguard your retirement and the financial stability of your family.
To guarantee your future, you must devote a major amount of your long-term savings to reliable assets.
As the value of cash in an IRA depreciates rapidly and inflation rises, you need a stable asset that will retain its value and expand over time. Without question, gold is the best alternative for this purpose.
As the global economy struggles with lockdowns, shortages, conflicts, and inflation, investors are concerned. Many people invest in gold IRAs to protect their wealth and achieve a better future.
During a crisis, when other assets suffer, a gold IRA investment thrives. The greatest risk is failing to protect yourself and your family, but you can simply ensure your financial future with a Gold IRA. You achieve safety by being aware of economic risks and taking proactive steps to prevent them.
Is Schwab Gold IRA a Scam or Legit?
Charles Schwab is one of the largest discount brokers in the United States, regulated by top-tier authorities. Starting in late 2019, it was one of the first brokers to charge no fees on stock and ETF trading.
However, It does have a few drawbacks. Mutual fund charges are high, the product selection only covers the US and Canadian markets as well as the educational platform is not well-structured.
Additionally, they do not allow clients to store precious metals in an IRA, which is disappointing too.
So, I do not recommend investing with them. Instead, I recommend checking out our top gold IRA providers.
There, you can find out what the industry’s best has to offer.
Alternatively, you can find the best precious metals dealer of your state below: