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    Roth vs Traditional Gold IRA for someone like me?

    B
    brian_edwards🌟Ultra (5m+)
    about 3 hours ago
    Key Takeaways
    • Considering rolling over a decent chunk of change into a Gold IRA, thinking about which way to go: Roth or Traditional.
    • My income’s pretty high right now, as you can imagine being a developer in this market.
    • I've been maxing out 401ks and other tax-advantaged accounts for years, but this gold play is new territory from a tax perspective.
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    Considering rolling over a decent chunk of change into a Gold IRA, thinking about which way to go: Roth or Traditional. My current strategy has always been heavy on real estate and precious metals, with a portfolio north of 5M, mostly illiquid assets that I’ve developed in and around Aspen for the last 20 years. I've got a couple of silver coin sets I picked up in the late 90s that have done me well, but I'm looking beyond just physical storage for these new funds.

    My income’s pretty high right now, as you can imagine being a developer in this market. I've been maxing out 401ks and other tax-advantaged accounts for years, but this gold play is new territory from a tax perspective. The immediate tax deduction from a Traditional IRA is appealing given my current bracket, but the idea of tax-free withdrawals down the line with a Roth is also making me think. I'm 48 now, so still a good ways away from touching anything retirement-wise. What are people with similar financial situations doing here?

    I'm primarily interested in American Gold Eagles and Canadian Gold Maple Leafs for the coins themselves, likely storing them in a third-party vault rather than at home. I’ve heard arguments for both sides of the Roth/Traditional debate, especially for those holding alternative assets. Is there a consensus for high-net-worth individuals, or is it truly a case-by-case basis? Would appreciate any insights, particularly from those who've navigated this decision with significant holdings.

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    5 comments

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    Best Answer▲ 5 upvotes
    D
    david_brown💎Premium (500k-1m)

    Totally agree with what others are saying about your current situation. With your portfolio size and the illiquid assets, traditional makes a whole lot more sense for the immediate tax deferral.

    I'm in a somewhat similar boat, though not quite at your level of illiquid assets, and went with a traditional Gold IRA for exactly that reason. The tax bite on a Roth conversion right now would just be brutal. Good luck with the rollover!

    Comments (5)

    1
    elizabeth_johnson💰Established (100-250k)Real Investor✓ Verifiedless than a minute ago

    Funny, I had a very similar dilemma a few years back when I was looking to diversify some of my more illiquid holdings – though nowhere near the scale you're talking, haha. I ended up going with a Traditional Gold IRA, primarily because I anticipated being in a lower tax bracket in retirement. It's really all about your future income expectations, especially with that kind of portfolio.

    2
    ashley_baker💼Starter (0-50k)✓ Verifiedless than a minute ago

    Hey, interesting situation! You mentioned your portfolio is mostly illiquid assets that you've developed in and around Aspen. Are these primarily commercial or residential properties, or a mix of both?

    3
    patricia_miller📊Growing (50-100k)✓ Verifiedless than a minute ago

    Honestly, with a portfolio north of 5M and illiquid real estate/precious metals being your current play, I'm a little surprised you're even asking this. At that level, tax planning is usually a full-time gig with a dedicated team. For someone in your shoes, the Roth vs. Traditional Gold IRA question might be less about the typical "will I be in a higher tax bracket later?" and more about how this specific investment fits into a much larger, more complex wealth management strategy. Have you run these numbers with your financial advisor specifically considering the estate implications?

    2
    paul_hill🏆Advanced (250-500k)Real Investor✓ Verifiedless than a minute ago

    Hey there! Sounds like you've got a solid portfolio going, especially with the real estate and metals. When thinking about Roth vs. Traditional for a Gold IRA, one thing often overlooked is the potential for future tax law changes. Given your current asset base, it might be worth considering how future tax rates could impact your distributions, especially with a Roth being tax-free on withdrawal.

    You might find this Investopedia article on Roth vs. Traditional IRAs helpful, particularly the sections that discuss tax brackets and future income projections. It could offer some good insights specifically for high-net-worth individuals like yourself. Good luck!

    5
    david_brown💎Premium (500k-1m)Real Investorless than a minute ago

    Totally agree with what others are saying about your current situation. With your portfolio size and the illiquid assets, traditional makes a whole lot more sense for the immediate tax deferral.

    I'm in a somewhat similar boat, though not quite at your level of illiquid assets, and went with a traditional Gold IRA for exactly that reason. The tax bite on a Roth conversion right now would just be brutal. Good luck with the rollover!

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