5 years with a Gold IRA - My thoughts and returns

Thomas Walker

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5 years with a Gold IRA - My thoughts and returns

thomas_walker🏆Advanced (250-500k)

about 2 months ago

Key Takeaways

•I rolled over a portion of my military pension into a Gold IRA back in late 2018, just after retiring and moving back to San Diego.
•I started with roughly $300k in the gold IRA, which was about half my total retirement funds at the time.
•The other half is still in a more traditional brokerage account with a mix of ETFs and some dividend stocks.

See what your 401(k) could look like in gold

Thought I'd share my experience with a Gold IRA over the past five years, especially since I've seen a few posts lately about people just starting out. I rolled over a portion of my military pension into a Gold IRA back in late 2018, just after retiring and moving back to San Diego. My thinking was pretty simple: I wanted a solid hedge against inflation and market volatility, something tangible that felt more secure than just stocks and bonds. I started with roughly $300k in the gold IRA, which was about half my total retirement funds at the time. The other half is still in a more traditional brokerage account with a mix of ETFs and some dividend stocks.

My main goal wasn't to get rich quick, but rather to preserve capital and have some peace of mind. Let me tell you, when the pandemic hit and the market went nuts, I was SO glad I had that gold. While my stock portfolio took a decent hit, the gold held its value remarkably well, acting as a real ballast. It wasn't always smooth sailing, obviously. There were periods when the gold price dipped, and for a minute, I wondered if I'd made the right call. But looking at the overall five-year picture, I'm genuinely pleased.

Quantifying the "returns" is a bit tricky with gold because it's not like a dividend stock, but if I look at my initial investment versus the current market value of the physical gold in my account, I'm up around 35-40% on that initial $300k. That's not factoring in custodian fees, which are reasonable for me at around $200 a year, but still something to consider. That's a good chunk of change and definitely contributes to that financial security I'm always looking for.

For those of you thinking about it, what are your biggest reservations? And for the seasoned gold investors out there, what advice would you give to someone just starting their journey with precious metals in retirement accounts? I'm always curious to hear other people's perspectives, especially given the current economic climate.

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8 comments

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Best Answer▲ 17 upvotes

sandra_green📊Growing (50-100k)

Just started my rollover process last month. The paperwork alone almost made me quit lol.

Comments (8)

helen_turner💰Established (100-250k)Real Investor•about 2 months ago

This is super timely! I did something similar, though with a much smaller chunk of a 401k, back in 2019. It wasn't my whole retirement plan, just a small hedge.

I'm really curious to hear more about your returns and what your strategy has been. I've mostly just held, but I'm thinking about re-evaluating soon.

michael_anderson🏆Advanced (250-500k)Real Investor•about 2 months ago

Interesting! San Diego, huh? I'm curious, did you look into any local dealers there, or did you go with a national company for your Gold IRA? Just wondering if location played a part in your choice of custodian or dealer.

dorothy_lopez💰Established (100-250k)Real Investor•about 2 months ago

Interesting read! I appreciate you sharing your experience. While it's great that you've seen some positive movement, I do wonder a bit about the opportunity cost. Five years, especially from late 2018 to now, has been a pretty wild ride for the stock market too. Did you ever compare what that same chunk of your pension might have done in a broader market index fund over the same period? Just curious if the "peace of mind" and stability of gold truly outweighed other potential gains.

gary_stewart📊Growing (50-100k)•about 2 months ago

Awesome to hear about your positive experience! Five years is a great data point, and it's cool you're sharing for those just starting out.

For anyone reading this and wondering about the nitty-gritty of choosing a custodian, I found this Investopedia article on the best Gold IRA companies super helpful when I was doing my research. It breaks down fees and services really well. Cheers!

diane_bailey💰Established (100-250k)Real Investor•about 1 month ago

Ngl I came here expecting the usual affiliate spam but the discussions are actually decent. Way better info than what I was getting from my old advisor.