Rebalancing - how much is too much? Feeling a bit exposed right now.

Carol Carter

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Rebalancing - how much is too much? Feeling a bit exposed right now.

carol_carter💰Established (100-250k)

about 7 hours ago

Key Takeaways

•Okay, so I've been doing my yearly portfolio rebalance and it's got me scratching my head a bit this time around.
•I'm sitting on around a $220k portfolio right now – a good mix of my 401k, a traditional IRA, and then the Gold IRA I set up a few years back.
•Generally, I like to keep my gold around 10-15% of my overall holdings as a hedge, especially with how things have been bouncing around lately.

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Okay, so I've been doing my yearly portfolio rebalance and it's got me scratching my head a bit this time around. I'm sitting on around a $220k portfolio right now – a good mix of my 401k, a traditional IRA, and then the Gold IRA I set up a few years back. Generally, I like to keep my gold around 10-15% of my overall holdings as a hedge, especially with how things have been bouncing around lately. I'm an insurance agent here in Omaha, so I see firsthand how quickly things can change on the ground, and that always reinforces my diversified approach.

The thing is, with the recent run-up in gold prices, my Gold IRA has actually pushed past 20% of my total portfolio. I mean, I'm not complaining about the gains, believe me! But now I'm wondering if I should trim some of that back down to my target allocation. My gut says "stick to the plan," but the thought of selling off a chunk of something that's performing so well feels a little counter-intuitive, even if it's just to rebalance. I've always thought of my gold as a long-term hold, a safe haven, not something I'm actively trading.

Am I overthinking this? For those of you who also hold gold in your retirement accounts, how strict are you with your target percentages? Do you let things run a bit when they're hot, or do you always rebalance back to your predetermined allocation, no matter what? I'm debating just letting it ride for another year or two and re-evaluating then, but then I worry about being too heavily weighted in one asset class if there's a correction. Any thoughts folks?

3 comments

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Best Answer▲ 10 upvotes

charles_lewis💎Premium (500k-1m)

Hey, totally feel you on the rebalancing anxiety! It's a tricky line to walk. You mentioned you like to keep your gold around 10%... is that 10% of your total portfolio, or 10% of just your IRA contributions? Curious how you factor that in across different account types.

Comments (3)

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

Totally feel this! I went through something similar last year. My gold allocation had naturally crept up to like 15% because everything else was... well, *everything else*. I trimmed it back to my 10% target and kept the extra cash liquid for a bit. It felt like I was "losing out" at first, but honestly, the peace of mind knowing my portfolio was back in my comfort zone was totally worth it. Sometimes the best move is the one that lets you sleep at night.

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

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

I hear you on the rebalancing anxiety! But honestly, 10-15% in gold isn't really "exposed" in my book. More like wisely diversified, especially with all the economic uncertainty floating around lately. If anything, I'd say closer to 20% isn't out of line for some people, depending on their overall risk tolerance and how much they trust traditional markets right now.

It sounds like you've got a decent handle on things, but maybe what you're feeling is less about being overexposed to gold and more about the general market jitters. Just my two cents!

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