Thinking about rebalancing after my military rollover - gold %

Frank Rivera

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Thinking about rebalancing after my military rollover - gold %

frank_rivera💎Premium (500k-1m)

about 2 months ago

Key Takeaways

•Alright, so I finally pulled the trigger and rolled over my TSP into a Gold IRA earlier this year.
•The rest is mostly in broad market ETFs and some dividend stocks.
•My question is about rebalancing.

The 3-step rollover process explained

Alright, so I finally pulled the trigger and rolled over my TSP into a Gold IRA earlier this year. It was a big move after 20+ years in the service, but with everything going on globally, especially with China's moves in the Pacific, it just felt right to get some serious hard assets. I put about 400k into physical gold, mostly Eagles and Liberties, which is sitting around 20% of my total 2M portfolio (including real estate, etc., but just talking about liquid assets here for a minute). The rest is mostly in broad market ETFs and some dividend stocks.

My question is about rebalancing. Gold has obviously done really well this year, and my initial goal was to keep it at that 20% mark. But with the recent surge, it’s probably closer to 23-24% now. Part of me thinks, "Don't fix what ain't broken," especially with how much uncertainty there still is in the world. I mean, look at what’s happening with Taiwan and the South China Sea – it's not exactly calming down. My gut, after living out here in Hawaii for so long and watching the geopolitical chess game, tells me gold still has legs.

On the other hand, traditional advice screams "rebalance!" and take some profits to get back to the original allocation. I’m torn. If I sell some gold now, I'd probably just dump it back into broad market indices, which haven't been as exciting. Is anyone else in a similar boat with their Gold IRA? Did you stick to your original target percentages religiously, or did you let your gold position run a bit when it was performing well?

Is there a point where you feel it's too much gold, even in this environment? I'm comfortable with the current setup, but I wonder if I'm getting too emotionally attached to the recent gains. What's your strategy for managing your gold allocation when it outperforms the rest of your portfolio, especially with a chunky rollover like mine was?

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5 comments

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Best Answer▲ 9 upvotes

ashley_baker💼Starter (0-50k)

Congrats on getting that TSP rolled over! It's definitely a smart move for peace of mind these days.

Just curious, you mentioned putting "about 40". Did you mean 40% of your total portfolio, or 40% of the rollover amount into gold? Just trying to get a clearer picture.

Comments (5)

steven_mitchell🏆Advanced (250-500k)Real Investor✓ Verified•about 2 months ago

Congrats on the rollover! It's a big step. I actually did something similar a few years back after leaving the service, though mine was more about general economic uncertainty at the time. I kept my gold percentage a bit lower, around 25%, just to maintain some diversification in other areas I felt good about. But totally get wanting that higher allocation with everything happening now. Good luck with your rebalancing!

ashley_baker💼Starter (0-50k)✓ Verified•about 2 months ago

Congrats on getting that TSP rolled over! It's definitely a smart move for peace of mind these days.

Just curious, you mentioned putting "about 40". Did you mean 40% of your total portfolio, or 40% of the rollover amount into gold? Just trying to get a clearer picture.

elizabeth_johnson💰Established (100-250k)Real Investor✓ Verified•about 2 months ago

Congrats on making the move with your TSP, that's a big decision and good on you for taking control! I totally get the desire for hard assets with the current global climate, it's definitely unnerving. I'm just curious though, 40% in gold feels pretty high for a rebalance. Are you thinking about other precious metals or diversification within that "hard asset" bucket, or is gold really the main play for you long term?

maria_campbell📊Growing (50-100k)✓ Verified•about 2 months ago

Hey, congrats on making the move! It's definitely a smart play to diversify, especially with the current geopolitical climate. Regarding rebalancing, a lot of folks find it helpful to set a target percentage and stick to it, say 10-15% for gold, and then adjust when it drifts too far. You might find this article on asset allocation strategies in a Gold IRA useful: https://www.investopedia.com/articles/investing/030916/how-use-gold-your-ira-portfolio.asp Good luck!

diane_bailey💰Established (100-250k)Real Investor•about 2 months ago

Totally agree with you here. I did something similar with my 401k a couple years back, around 35% in physical gold and silver, and it's been rock solid through some pretty shaky times. The peace of mind alone is worth it.

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