Fed rate decision and my portfolio - feeling the crunch from recent hikes
- •Man, another Fed rate decision and it’s just making me think about how much things have changed for my portfolio in the last year or so.
- •I rolled over a good chunk of my old 401k into a Gold IRA back in late 2021, probably around $150k at the time.
- •Our business loan for the new tour vehicle is on a variable rate, and that monthly payment just keeps creeping up.
Man, another Fed rate decision and it’s just making me think about how much things have changed for my portfolio in the last year or so. I rolled over a good chunk of my old 401k into a Gold IRA back in late 2021, probably around $150k at the time. My wife and I run a tourism business here in Savannah, and with all the talk about inflation and economic uncertainty, it just felt like the smartest move to protect what we had and diversify out of traditional stocks.
I’m looking at the value now, and while gold has held its own way better than a lot of the market, the rising interest rates are definitely hitting other parts of our financial life. Our business loan for the new tour vehicle is on a variable rate, and that monthly payment just keeps creeping up. It makes me wonder if I should have held onto more cash, or even bought some short-term bonds, just to have more liquidity for our operational costs, especially since tourism can be so feast or famine.
On the one hand, I’m glad the gold is there as a hedge; it’s a bit of a psychological comfort knowing that a chunk of our retirement isn't directly tied to the whims of the stock market right now. But sometimes I feel a little stuck, especially when cash flow for the business gets tight. Has anyone else who rolled over into gold felt this push and pull about liquidity versus long-term protection as interest rates have climbed? What are your strategies for balancing that?