Rebalancing - when's the right time for gold?

Robert Thompson

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Rebalancing - when's the right time for gold?

robert_thompson💰Established (100-250k)

about 10 hours ago

Key Takeaways

•I’m a retired teacher here in Phoenix, and after the '08 crash, I started really looking into gold as a safe haven.
•Ended up putting about 15-20% of my ~200k portfolio into a Gold IRA over the years, and it's been a pretty solid hedge.
•Gold has done really well lately, which is great, but it’s pushed its percentage a bit higher than my original target.

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I'm wrestling with my portfolio rebalancing right now and wanted to get some opinions from this group, especially from those of you who've been at this for a while. I’m a retired teacher here in Phoenix, and after the '08 crash, I started really looking into gold as a safe haven. Ended up putting about 15-20% of my ~200k portfolio into a Gold IRA over the years, and it's been a pretty solid hedge.

With RMDs coming up for a lot of us soon (speaking of which, if you haven’t checked it out, the RMD Calculator on Gold IRA Blueprint is super handy for figuring out those required minimum distributions), I’m looking at the overall balance. Gold has done really well lately, which is great, but it’s pushed its percentage a bit higher than my original target. My stocks have been a mixed bag, certainly not keeping pace with gold's recent run.

My question is, how do you all decide when it’s time to trim some gold to bring the portfolio back into balance, or do you just let it ride if it’s performing well? My gut feeling is to lock in some of those gains, but part of me also thinks that if things get shakier financially, gold could keep climbing. I worked hard for this money and watched it nearly disappear once, so I'm always a bit antsy.

I know it's a personal decision, but I'm curious about the strategies others are using. Are you sticking strictly to your percentages, or are you more dynamic based on market conditions? Any input or experiences would be appreciated!

5 comments

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Best Answer▲ 9 upvotes

michelle_collins🏆Advanced (250-500k)

Interesting perspective. I think it's a bit of a nuanced discussion though, because "right time" for gold in rebalancing really depends on what your overall asset allocation looks like and your specific goals. While 2008 certainly highlighted gold's safe-haven properties, blindly piling in during every downturn might not be the most effective strategy for everyone. Sometimes, the "right time" to add gold is when things are relatively calm, allowing you to establish a position without chasing a rising price, or to maintain a consistent percentage of your portfolio. Just a thought!

Comments (5)

richard_garcia👑Elite (1m-5m)Real Investor•less than a minute ago

Totally get this! I had a similar experience after '08. I was a few years out from retirement and watched my 401k just *plummet*. It was pretty terrifying. That's when I really started researching gold and ended up adding some to my portfolio not long after. Honestly, looking back, it really helped me sleep better at night during those really volatile times.

matthew_murphy👑Elite (1m-5m)Real Investor•less than a minute ago

Hey, fellow Phoenix resident! I'm curious, when you say you "ended up putting ab" – what percentage of your portfolio did you initially allocate to gold?

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

Interesting perspective. I think it's a bit of a nuanced discussion though, because "right time" for gold in rebalancing really depends on what your *overall* asset allocation looks like and your specific goals. While 2008 certainly highlighted gold's safe-haven properties, blindly piling in during every downturn might not be the most effective strategy for everyone. Sometimes, the "right time" to add gold is when things are relatively calm, allowing you to establish a position without chasing a rising price, or to maintain a consistent percentage of your portfolio. Just a thought!

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

This is a great question, and something I've grappled with myself. A general rule of thumb I've heard for gold rebalancing is to consider it when your allocation deviates by more than 5% from your target. So if you're aiming for 10% gold, and it hits 15% or drops to 5%, that might be a good time to look at it.

Also, a lot of folks find it helpful to set up an automatic rebalancing schedule (quarterly, semi-annually) so you're not constantly stressing about market movements. There are some good podcasts out there that discuss this in more detail; I found the Gold & Silver Standard podcast particularly insightful on asset allocation strategies. Good luck!

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

Totally agree with the sentiment here. The '08 crash was a huge wake-up call for so many of us, myself included. I remember my uncle, who had always been pretty conservative with his investments, finally pulled the trigger on some gold and silver after that. Even though he's mostly a set-it-and-forget-it kind of guy, he definitely felt a lot more secure knowing he had that protection.

I've been slowly increasing my precious metals allocation over the last few years too, especially with all the economic uncertainty lately. It just feels like a smart move to have that counter-cyclical asset in the mix. For me, it's less about trying to time the market perfectly and more about having that peace of mind.

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