Inherited IRA to Gold - My Experience & Questions

Sandra Green

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Inherited IRA to Gold - My Experience & Questions

sandra_green📊Growing (50-100k)

about 2 months ago

Key Takeaways

•After seeing what happened to my folks during the '08 crash and now with all the talk of inflation, I really wanted something more...
•We're farmers here in Kansas City; we understand tangible assets!
•So, we started looking into converting a chunk of it to physical gold.

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Okay, so my husband and I inherited my father-in-law's Roth IRA last year, and honestly, the thought of leaving it all in stocks just didn't sit right with me. After seeing what happened to my folks during the '08 crash and now with all the talk of inflation, I really wanted something more... tangible. We're farmers here in Kansas City; we understand tangible assets! So, we started looking into converting a chunk of it to physical gold.

We ended up converting about $75,000 of the inherited IRA into a Roth Gold IRA. The process itself was a bit more paperwork than I anticipated, but the company we worked with (I won't name them here, but they were local and well-reviewed) was really helpful. They explained the "in-kind" transfer vs. liquidation and repurchase, and we ultimately went with an in-kind transfer of the funds that were already in the Roth IRA to keep the tax-free growth. We chose specific types of gold coins – mostly American Gold Eagles and some Canadian Maples. It's such a relief knowing that part of our inherited wealth is now safely tucked away in something that's always held value.

My biggest concern now is really just monitoring its performance. I know gold isn't meant for quick gains, but steady preservation. I check the spot price fairly regularly, but I'm wondering what other folks do to track their Gold IRA's value. Do you just rely on your custodian's statements? I also worry a little about liquidity if we ever needed to sell quickly, though the plan is to hold this for the long haul. My husband keeps joking about burying it in the back forty, but I keep reminding him it's in a vault!

Has anyone else here done an inherited IRA to gold conversion? What were your experiences? Any advice on managing it postpartum-conversion? I'm curious what steps others take to feel secure with their investments, especially after watching a lifetime of hard work turn to numbers on a screen.

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4 comments

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Best Answer▲ 9 upvotes

daniel_wright💎Premium (500k-1m)

Hey, I totally get where you're coming from. My grandma had a similar situation with an inherited IRA a few years back, and she moved a portion of it into a gold IRA too. She actually felt a lot more secure after doing it, especially with all the economic uncertainty. It's definitely a peace of mind thing for some people. Good luck with your questions!

Comments (4)

daniel_wright💎Premium (500k-1m)Real Investor✓ Verified•about 2 months ago

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

Super interesting to hear your perspective! I've been thinking a lot about inflation too. Out of curiosity, did you look into any other tangible assets or was gold always kind of at the top of your list for the IRA conversion?

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

Hey, totally get the desire for tangibles and wanting to protect your inheritance, especially after seeing '08. It's a valid concern for sure.

My only thought, though, is that while gold can be a great hedge, it's also not immune to market fluctuations. It's a different kind of risk, maybe less volatile than some stocks, but still not a guaranteed steady climb. Also, with an inherited Roth, you might have some specific distribution rules to consider that could be impacted by a full conversion to a less liquid asset. Just something to keep in mind!

ronald_morris👑Elite (1m-5m)Real Investor•about 2 months ago

Hey, totally get where you're coming from about wanting something more tangible, especially after seeing market volatility. A lot of people feel that way about their inherited IRAs.

One thing to keep in mind, since you mentioned it was a *Roth* IRA, is the five-year rule for distributions if you're not the original owner's spouse. You generally have to take distributions within five years, or roll it into an inherited IRA. Fidelity has a pretty good breakdown on the different options for inherited Roth IRAs, especially spousal vs. non-spousal beneficiaries. Might be worth a read as you're figuring out your next steps!

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