Don't let RMDs eat your gold - advice for smaller accounts?

Donald Nelson

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Don't let RMDs eat your gold - advice for smaller accounts?

donald_nelson💎Premium (500k-1m)

about 1 month ago

Key Takeaways

•Been seeing a lot of chatter lately from folks just starting out, or with smaller accounts.
•I'm talking under the $200k range.
•My portfolio's a bit heavier now, pushing towards that million mark after decades, but I remember those early days.

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

Been seeing a lot of chatter lately from folks just starting out, or with smaller accounts. I'm talking under the $200k range. My portfolio's a bit heavier now, pushing towards that million mark after decades, but I remember those early days. I started converting my 401k to gold way back in the late 90s, after seeing what the dot-com bust did to some of my buddies' pensions. Best decision I ever made, especially living through the ups and downs here in Detroit with the auto industry.

My first move was pretty small. Had maybe $50k I rolled over into a gold IRA back then. It felt like a massive risk, but I just bought into the idea of a tangible asset. Over the years, I've had a few different custodians, finding some to be better than others, especially as my holdings grew. What's working for me now probably wouldn't make sense for someone just dipping their toes in with, say, $25-50k. My fees are higher, but the level of service and specialized storage they offer makes it worthwhile for my larger position in gold coins and bars.

So, for those of you with smaller amounts, maybe $10k, $25k, $50k – what are you finding to be the best companies for gold IRAs right now? Are there any that offer lower minimums or more competitive fees for those kinds of balances? I’m particularly interested in experiences with storing actual physical gold coins, not just paper gold. Also, important for later down the line, when you hit those RMDs. I’ve been using the RMD Calculator at Gold IRA Blueprint to plan out my distributions, and you really want a custodian that makes liquidating a small portion of your gold easy without gouging you on fees. Any good experiences there?

It's always a bit different when you're not moving hundreds of thousands, and I want to make sure the new generation of gold bugs are getting solid advice. What are your stories?

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5 comments

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Best Answer▲ 10 upvotes

brian_edwards🌟Ultra (5m+)

Interesting post! When you say "RMDs eat your gold," are you mostly talking about the hassle of liquidating just enough physical metal to meet the RMD, or is there a bigger tax/fee implication you're worried about for folks with smaller accounts?

Comments (5)

ronald_morris👑Elite (1m-5m)Real Investor•about 1 month ago

Oh man, this is a topic close to my heart! I had a similar panic a few years back when I started seeing those RMD calculators. My account wasn't huge by any stretch, like maybe a quarter of what you're talking about for smaller accounts, and I was so worried about having to liquidate my precious metals just to meet the withdrawal requirements. It felt like I'd lose the whole point of having them in the first place.

Following this thread for sure! Hopefully, some seasoned folks have some good strategies beyond just "grow your account bigger."

brian_edwards🌟Ultra (5m+)Real Investor✓ Verified•about 1 month ago

margaret_chen🏆Advanced (250-500k)Real Investor•about 1 month ago

I hear you on the RMDs, they're definitely a beast to plan for. But I'm not sure if "eating your gold" is the right way to frame it, even for smaller accounts. If you've got a decent amount of your portfolio in physical gold, an RMD often just means a shift in assets, not necessarily a loss.

You might be selling some gold to meet the RMD, but that capital is still in your pocket, just in a different form. The key is planning for that liquidity. It's not ideal if you *HAVE* to sell right at a market low, but that's more about overall portfolio management than a unique problem to gold IRAs, in my opinion.

ashley_baker💼Starter (0-50k)✓ Verified•about 1 month ago

This is a great point! RMDs can definitely sneak up on you, especially if you're not planning ahead. For folks with smaller accounts, it might be worth looking into whether your custodian offers options for in-kind distributions of physical gold. Not all do, but it could potentially save you some headache (and fees) if you want to avoid selling and then immediately re-buying your metals.

You can sometimes find lists of custodians that offer this or at least explicitly state their policies on their websites. Might be worth a quick search for "gold IRA in-kind distribution" plus your custodian's name to see what comes up.

joseph_harris📊Growing (50-100k)•about 1 month ago

Yeah, this is a super important point. It's easy to get caught up in the "bigger is better" mentality with gold IRAs, but the RMDs are a real consideration no matter your account size.

I started with a much smaller gold IRA, probably similar to what you're describing, around $50K when I first opened it. The fees were definitely a bigger percentage of my overall holdings back then compared to now. Glad to see someone bringing this up for those just getting started!

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