Inherited IRA and the Gold Question - My Experience & Yours?

Robert Thompson

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Inherited IRA and the Gold Question - My Experience & Yours?

robert_thompson💰Established (100-250k)

about 2 months ago

Key Takeaways

•Just wanted to share my recent experience with an inherited IRA and see if anyone else has gone through something similar.
•My older brother passed last year, and I ended up as the beneficiary of his traditional IRA.
•It's not a huge amount, maybe around $150k, but it's enough that I'm taking the choices seriously.

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

Just wanted to share my recent experience with an inherited IRA and see if anyone else has gone through something similar. My older brother passed last year, and I ended up as the beneficiary of his traditional IRA. It's not a huge amount, maybe around $150k, but it's enough that I'm taking the choices seriously. I'm a retired teacher here in Phoenix, and after the '08 crash, I really started looking at tangible assets. That's when I first got into gold, and it's been a comfort ever since.

My own IRA has a decent chunk of physical gold in it – probably about 20-25% of my personal ~$220k portfolio. So naturally, my mind went straight to converting a portion of this inherited IRA into gold as well. I've been talking to a couple of different precious metals dealers, and the process for getting it done through a direct rollover to a self-directed IRA with a gold custodian seems pretty straightforward. The main difference I'm seeing is that, unlike my own contributions, these funds are already post-tax for RMD purposes once I start taking them out, which is a consideration. It feels like a smart move to further diversify and protect against inflation, especially with all the economic uncertainty.

The main thing I'm wrestling with is the timing. Gold has had a nice run lately, which is great for my existing holdings, but it also makes me wonder if I'm buying near a peak for this new money. On the other hand, the dollar just seems to be getting weaker every day. It's a classic "damned if you do, damned if you don't" feeling. My gut says to just do it now and dollar-cost average if gold dips, but my head is telling me to be patient.

Has anyone here inherited an IRA and then converted a significant portion into physical gold or other precious metals? What was your experience like with the rollover process and selecting a custodian? Did you face any unexpected challenges? And most importantly, how did you decide on your entry point? Any advice for a fellow investor looking to secure their future a bit more?

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7 comments

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margaret_chen🏆Advanced (250-500k)

Been looking into this myself — the fees on some of these custodians are wild. Anyone found one that doesn't gouge you?

Comments (7)

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

Hey, totally get where you're coming from. My aunt passed a few years back and I inherited an old 401k that was rolled into an IRA. I actually ended up diversifying a small portion into physical gold through a Gold IRA, mostly for peace of mind given all the market craziness. Figured it couldn't hurt to have some tangible assets in the mix.

jason_morgan💰Established (100-250k)Real Investor✓ Verified•about 2 months ago

Hey, sorry to hear about your brother. That's a tough situation to navigate with the added financial decisions.

You mentioned it's "enough that I'm taking the choi"... did you mean you're taking the choice seriously, or were you about to say you're looking at specific choices regarding gold? Interested to hear what options you're weighing!

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

Hey, I hear you on the inherited IRA, that's a tough situation to navigate. And diversifying can definitely be a smart move. But honestly, while gold *can* be a good hedge, putting a significant chunk of that (especially if it's already a smaller sum) into physical gold within an IRA can introduce some complexities and fees that might eat into your returns. Have you looked into gold ETFs or mining stocks as alternatives? You still get exposure to the gold market without some of the storage/insurance hassles and costs associated with a physical Gold IRA.

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

Hey, sorry to hear about your brother. That's a tough situation to navigate with the added layer of financial decisions.

Since you're looking into gold, a common pitfall people run into is understanding the "IRS-approved" part for a Gold IRA. Not all gold is created equal in their eyes! The US Mint has a pretty clear list of what qualifies, including specific fineness requirements. You can usually find this information on their website or by searching for "IRS approved gold for IRA." It's a key thing to double-check before making any moves!

sandra_green📊Growing (50-100k)✓ Verified•about 2 months ago

Totally get this! My aunt passed a few years back and left me her Roth IRA. Pretty similar situation – not life-changing money, but a decent chunk to manage. I also looked into the gold IRA option for a portion of it. Ended up putting about 20% of it into physical gold through an IRA custodian. So far, no regrets. It's been a nice hedge against all the market craziness.