Roth Gold IRA vs. Traditional - What are you all doing for rollovers now?
- •I've been kicking this around a lot lately, especially with the market bouncing around.
- •I’ve had about 20% of my portfolio in physical gold or gold ETFs for over two decades, which has been a lifesaver more times than I can count.
- •My thinking is, with Social Security and a decent pension, my tax bracket probably isn't going to drop *that* much in retirement.
I've been kicking this around a lot lately, especially with the market bouncing around. I’m sitting on a pretty good chunk of change in a traditional IRA from my auto industry days – about $700k now – and I’m 65, retired comfortably here in Detroit. I’ve had about 20% of my portfolio in physical gold or gold ETFs for over two decades, which has been a lifesaver more times than I can count. Now I'm looking at rolling over a portion of that traditional IRA into a Gold IRA, and I'm really torn between the Roth Gold IRA or sticking with Traditional.
My thinking is, with Social Security and a decent pension, my tax bracket probably isn't going to drop that much in retirement. So, paying the taxes on a Roth conversion now, even on a partial rollover, feels like a tough pill to swallow. But then again, the idea of having those gold gains grow tax-free for the rest of my life? That's mighty appealing, especially if gold decides to really take off like it did in the early 2000s when I first started getting serious about it. I was buying physical at like $300 an ounce back then, so I’ve seen what it can do.
Has anyone here done a big Roth conversion for their Gold IRA recently? What was your reasoning? Are you just eating the tax hit now to avoid future RMDs and taxes on growth, or are you betting on lower tax brackets later in life? I’m also thinking about just converting a smaller amount, say $50k or $100k, to start and see how my tax situation plays out. It’s a big decision, and I’m trying to weigh all the angles. I’ve been looking at tools like the Gold vs Stocks Comparison to see how gold has performed over the long haul, and that just solidifies my belief in having it as a core part of my portfolio, regardless of the IRA type.
What are your thoughts, especially for those of you who are already retired or close to it? Is the upfront tax hit of a Roth conversion worth it in the long run for gold, or is the continued tax deferral of a Traditional Gold IRA still the safer bet?