Integrating Retirement Into Financial Literacy At Earlier Stage

In recent years, universities have increased the number of financial literacy courses available to students. A CNBC report shows that 25% of U.S. college students in 2022 had access to financial literacy programs. However, it is believed that these financial literacy programs are incomplete for not including critical education on retirement planning.

Experts are concerned that young people are not getting interested in retirement savings until their late thirties. According to a CNBC report, the average employee contribution rate for Americans between the ages of 30 and 39 is a paltry 8.3%.

Jonathan Rose is an advocate for early financial literacy education. He is a cofounder of Genesis Gold Group, a precious metals investment firm founded alongside other industry-leading brokers, Brad Garrett and Jacob Diaz.

The firm aims to provide both new and experienced investors with the knowledge and trust necessary to use alternative strategies to preserve and grow their wealth. Their motto of “Faith-based Stewardship” is the foundation of their business, and they believe in cultivating strong relationships with their clients. They also aim to inspire more Americans to consider adding physical gold investments to their retirement portfolios.

This reporter sat down with Rose to learn more about his perspective on financial literacy efforts across the industry.

Rod Berger: Tell us a little about yourself and your background.

Jonathan Rose: I was born and raised in London, England. I started my career working with notable companies like Merrill Lynch, Morgan Stanley, and Prudential-Bache Securities. I first got involved in gold while working with the London Metal Exchange, where my passion for the precious metals industry was born.

In 1998, I moved to the U.S. and consulted for HSBC & AIG on an Asian tour covering Hong Kong, Malaysia, and Singapore, establishing gold depositories for these banks. Since then, it's been about 20 years of consistent involvement across the industry, investing and playing advisory roles to companies and individuals regarding corporate and personal investments, building their portfolios, 401ks, and personal investments, especially with regard to precious metals.

Berger: In your experience, would you say that the younger generations are very interested in these conversations about financial health and longevity? What do you think is responsible for the current sentiment among youth?

Rose: The short answer to your question is no. Young people in the U.S. and across the globe tend to get on the bandwagon a little late, and often only once they approach their 40s. It's even getting worse in the younger generation.

We have all seen recent economic events, such as the GameStop debacle, and temporary but significant gains or losses in certain cryptocurrencies. Young people are more attracted to quick gains and instant gratification. Unfortunately, this has led to more losses than gains in the long run amongst many young retail investors.

Yet, given recent growing recession fears and the collapse of several high-profile crypto exchanges, younger people are starting to realize the value of a true tangible asset.

Berger: You have made a name for yourself as an advocate for gold investments. Why gold?

Rose: Well, gold, in my opinion, is durable. It has stood the test of time and has history on its side. When I came to the U.S., gold prices were $264 an ounce. So I've seen all the ups and downs, the sideways markets, and some monumental events in the United States economy.

I remember when Y2K came around, and everyone panicked, thinking computers would shut down, their cameras would stop working, and everyone was running for the hills. I have helped clients navigate the dot.com era, the housing bubble, and the financial crash of 2008. I have been in the industry for so long and have always seen gold maintain its value and thrive, through all of these seasons.

My passion, and that of my co-founders Brad Garrett and Jacob Diaz, is to see more people safeguard their investments by making the right kind of precious metals investments. That is why we founded Genesis Gold Group, to give more guidance because when it comes to gold, there is absolutely a right way to do it.

Berger: How do role does risk play in your area of expertise? Is the narrative around risk [in the precious metal industry] accurate?

Rose: There is no investment on the market today that can provide returns without potential risk. However, historically, gold has been one of the highest-performing assets on the market over the last 50 years.

When a client is preparing to make a change in their financial planning, it is important to understand that change typically comes with uncertainty. We understand that nobody wants to be wrong, and often that fear holds people back from making decisions, even if they strongly believe in the concept.

Most of our clients who transition to gold and silver have held traditional retirement accounts for most of their adult lives, simply riding the highs and lows of the stock market. Our goal is to simply give folks the confidence to make that change if it is truly in their best interest.

Berger: Have you established your own perspective on the psychology of investing and why some investors struggle to be discerning in a volatile world?

Rose: People genuinely seek the best deals, so they fall for cheap gold scams. Fraudulent companies use misleading terms (cheap gold or discount coins) and limited offers to dupe unsuspecting people.

The word 'cheap' is a red flag that should make every gold buyer wary. My rules are simple. First, ensure that the company or individuals running the company have at least ten years of experience and a solid reputation in the gold-buying space. Second, make sure the business is an authorized dealer with the U.S. Mint. And finally, an investor should make sure they have an A+ rating with the Better Business Bureau and avoid cheap offers.

Berger: How do you think about time and the conversation with clients about when or when not to invest?

Rose: With the current economic conditions, many investors are opening up their IRA or 401k statements with great anxiety. I have seen clients who are losing 10% per quarter. Over $2 trillion has been wiped away from the secondary financial market, which houses our 401ks and IRAs. CEOs of banks and companies like JP Morgan, Goldman Sachs, and Tesla, amongst others, have been beating the warning drums and telling investors to fasten their seatbelts.

Historically, gold has been a safe haven during troubled times such as this one. We direct our clients to safeguard their IRAs or 401Ks with a truly self-directed IRA. They can roll over or transfer existing retirement accounts tax deferred and allocate those funds to physical metals held in an insured private depository.

Berger: I am sure that you and your firm have had to make decisions to distance yourselves from misinformation or misleading data in the investment world.

Rose: Our reputations speak for us. As a company, we have moved away from the cold-call approach adopted by much of the financial services industry. However, we make appearances on many podcasts and other publications, aiming to clarify misconceptions about precious metals investments and simplify the process.

We speak about big-picture issues with the U.S. economy and investments in general. Our company is also faith-based, and it is important to give back. Our Director of Philanthropy is a pastor who backs many charitable causes, and through him, we support these charities monthly. Most of our clientele also share the same values and appreciate that their investments trickle down to those in need.

Berger: What is your advice for young college graduates about to enter the job market or perhaps about joining the gig economy or starting a business?

Rose: Don't wait a second longer. The best time to plant a fruit tree was 20 years ago; the second best time is today. Time goes by so fast. Young people who have earned substantial amounts of money from entrepreneurial ventures should not overlook the importance of retirement planning.

According to College Finance, about 56% of college students report having at least one investment account. As the markets continue to swirl with uncertainty, knowledge acquisition will key the decisions that have the potential to impact today and tomorrow for all generations.

Financial education continues to evolve as an industry, and those who have seen the battles understand the value of applying knowledge to decision sets across portfolios. Rose appears to be the individual wanting to add to the knowledge economy without feeling like the canary in the coal mine.

Class is in session.

Interviews have been edited and condensed for clarity.