Rebalancing RMDs with physical gold - anyone else doing this?

Ronald Morris

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Rebalancing RMDs with physical gold - anyone else doing this?

ronald_morris👑Elite (1m-5m)

about 7 hours ago

Key Takeaways

•Curious if anyone else here is actively rebalancing their portfolio, specifically using physical gold to manage RMDs from a self-directed IRA?
•I’m in Virginia Beach, and finding a local depository that handles this seamlessly has been a bit of a challenge.
•Are any of you working with a specific custodian or a local dealer who provides excellent support for this?

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Curious if anyone else here is actively rebalancing their portfolio, specifically using physical gold to manage RMDs from a self-directed IRA? I'm sitting on a portfolio just shy of $3 million, mostly in traditional investments, and I've been eyeing my RMDs that are going to start kicking in a few years (I'm 69 this fall). Over the past decade, I've steadily built up a solid position in gold coins within my SDIRA, around 10% of my total portfolio, primarily American Eagles and some Canadian Maples for diversification. I'm finding myself wondering if there are any creative strategies out there for using the physical gold itself to help satisfy RMDs without necessarily having to liquidate other assets, especially if the market isn't where I want it to be. The idea of potentially taking some of my gold in-kind really appeals to me for a variety of reasons, not least of which is the long-term hedge it offers.

My financial advisor, bless her heart, is a bit more traditional and not entirely familiar with the intricacies of self-directed physical gold IRAs when it comes to RMDs. I've been doing my own research, and it seems like it's certainly possible to take distributions in-kind, but the valuation process seems to be where things get a little murky. I’m in Virginia Beach, and finding a local depository that handles this seamlessly has been a bit of a challenge. Are any of you working with a specific custodian or a local dealer who provides excellent support for this?

I've been using that RMD Calculator pretty regularly to project out my distributions, and based on those numbers, I'm thinking about how best to sequence my withdrawals. It’s got me really thinking about the strategic role gold can play beyond just a hedge. I honestly believe having physical assets that aren’t directly tied to the whims of the stock market is just good, disciplined planning, especially for someone who’s seen enough market cycles to know how quickly things can turn. I commanded a carrier group, and you learn quickly that having a solid contingency plan is paramount. So, for those of you who have made that transition into RMDs with significant gold holdings, particularly physical gold, what have your experiences been like? Any unexpected hurdles or, conversely, strategies that worked exceptionally well?

4 comments

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Best Answer▲ 10 upvotes

margaret_chen🏆Advanced (250-500k)

Hey, that's a smart move to be thinking about RMDs now! A lot of people wait until the last minute. For rebalancing with physical gold, have you looked into strategies specifically for "in-kind" distributions? Some custodians might handle that differently, and understanding the tax implications beforehand is key.

You might find some good discussions on the Bogleheads forum about RMD strategies, though they lean more towards traditional assets, the principles of managing distributions and tax efficiency still apply. Might give you some ideas to adapt for your gold strategy!

Comments (4)

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

Oh man, this is super timely. I'm not quite at the $3 million mark, but I'm definitely in the "a few years away from RMDs" club and have been looking at physical gold for a similar reason. My thought process was exactly that – using gold to help offset some of the mandated distributions without completely cashing out other assets. Glad to see someone else is thinking along these lines!

linda_taylor📊Growing (50-100k)✓ Verified•less than a minute ago

Hey, interesting approach! When you say "rebalancing with physical gold," are you talking about taking your RMDs *in* physical gold, or are you selling some gold from your IRA to generate the cash for the RMD, and then buying more gold in a taxable account to maintain your desired allocation? Just curious about the mechanics there.

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

Hmm, interesting strategy. While I get the appeal of using physical gold for *some* diversification, tying it directly to RMDs feels a bit... illiquid? RMDs are distributions, and unless you're planning to sell off chunks of that gold every year, managing the actual payout could get clunky. Have you thought about how easy it'll be to convert that gold into spendable cash consistently without potentially taking a hit on premiums or finding a buyer at the exact right time? Just a thought!