Portfolio rebalancing - selling some gold for real estate?

Robert Thompson

Back to forum

🏢 Gold Companies

Portfolio rebalancing - selling some gold for real estate?

robert_thompson💰Established (100-250k)

about 1 hour ago

Key Takeaways

•Been thinking a lot lately about my portfolio.
•I'm a retired teacher here in Phoenix, and like many of you, the 2008 crash really shook me up.
•That's when I started looking at gold, and I eventually rolled over a good chunk of my old 403(b) into a Gold IRA.

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

Been thinking a lot lately about my portfolio. I'm a retired teacher here in Phoenix, and like many of you, the 2008 crash really shook me up. That's when I started looking at gold, and I eventually rolled over a good chunk of my old 403(b) into a Gold IRA. I've got somewhere in the neighborhood of $180k in precious metals now, mostly American Gold Eagles and some Canadian Gold Maple Leafs.

My initial reasoning was pretty sound, I think – diversification, inflation hedge, all that good stuff. And for the most part, it's served me well. I've felt a lot more secure knowing a significant portion of my retirement isn't just sitting in bank accounts or vulnerable to market whims. But lately, with the housing market here in Phoenix being... well, Phoenix, I've been eyeing a small rental property. Nothing huge, just a little condo I could rent out for some additional monthly income.

The issue is, acquiring enough capital for a down payment would mean selling off a portion of my gold. I'm talking maybe 15-20% of my current holdings. It feels almost counter-intuitive to move out of gold and into real estate, especially when I've held onto this gold for so long. On the one hand, a rental property offers tangible income and another form of diversification, but on the other, gold has been my rock. Has anyone else gone through a similar rebalancing act, moving from gold into income-generating assets?

What are your thoughts on this? Am I overthinking it, or is it a valid concern to move away from a commodity I trust during uncertain economic times? I'd love to hear some perspectives, especially if you've done something similar or have experience with both Gold IRAs and rental properties. Is it a good move to cash in some of that shiny stuff for a brick-and-mortar investment in this current climate?

4 comments

The retirement loophole most advisors won't mention

You can move your 401(k) into physical gold — tax-free. Here's the step-by-step guide.

Under $100k? Compare options →

29 people viewed this today3 members requested a free kit this week5 investors bookmarked this

Best Answer▲ 8 upvotes

janet_cook📊Growing (50-100k)

Interesting thought process, especially about 2008. I'm curious, did you mostly go with physical gold or did you diversify within your Gold IRA with other precious metals?

Comments (4)

joshua_phillips🏆Advanced (250-500k)Real Investor✓ Verified•less than a minute ago

Totally get where you're coming from. After the 2008 crash, I did something similar, though not with a Gold IRA directly. I bought a small parcel of land that same year, figuring brick and mortar felt a lot more "real" than whatever was happening in the stock market. It's been interesting to watch both gold and real estate since then. Good luck with your decision!

janet_cook📊Growing (50-100k)•less than a minute ago

Interesting thought process, especially about 2008. I'm curious, did you mostly go with physical gold or did you diversify within your Gold IRA with other precious metals?

thomas_walker🏆Advanced (250-500k)Real Investor✓ Verified•less than a minute ago

While I totally get the appeal of diversifying into real estate, especially with the current market, I'd also caution against pulling too much out of your gold. Real estate isn't exactly "liquid," and if another 2008-like event hit, you might find yourself in a bind trying to sell property quickly. Gold, on the other hand, usually holds its value or even increases during market turmoil. Just something to consider before making a big move!

frank_rivera💎Premium (500k-1m)Real Investor•less than a minute ago

Hey there! Sounds like you've got a solid plan thinking about rebalancing. It's smart to adjust as your life and the market change.

One thing to consider when selling gold from an IRA is the potential for capital gains taxes if it's not a direct rollover into another qualified account. Make sure you chat with a tax professional experienced with IRAs and precious metals to understand all the implications before you make any moves. There might be strategies to minimize any tax hit, especially if you're looking to directly invest in another asset within an IRA structure. Good luck!

The biggest mistake retirees make with their 401(k)

Most people don't diversify until after a crash. Get the free guide and protect your nest egg.

Under $100k? Compare options →