[USER]

My husband and I retired 3 years ago. We’re ages 55 and 58 now with $1,400,000 and live on $47,000 a year.

I’m moving from our 60/40 portfolio to the Golden Ratio. Since we are looking to buy about $100,000 in GLDM gold, and gold is so high now, would it be better to buy it gradually over the next couple of weeks/months to dollar cost average or should we just buy it all at once?

Thanks!

[Jeremy]

Buying gold is really no different then buying anything else and the math says lump sum payment almost always is the better choice than DCA in these situations.

DCA usually makes you feel better, but based on your returns, just doing lump sum is almost always better.

Buying gold when it’s high is basically the same as buying the S&P when it’s high.

So, if you’ve decided you’re ready to change your portfolio construction and asset allocation, might as well just go for it!

But as others have said, hopefully you’re planning to pull more money from the portfolio.

Otherwise, your withdrawal rate is so low you really don’t need to do anything.

[Ernest]

I’d DCA. If there’s a bit of a dip – buy the full allocation. Is this in a taxable; or?

[Soriano]

Moving from a 60/40 portfolio to the Golden Ratio allocation is a thoughtful shift, especially for long-term stability and inflation protection.

Regarding your $100,000 GLDM gold purchase, since gold is currently at historically high levels, dollar-cost averaging (DCA) could be a prudent approach.

This strategy helps mitigate the risk of short-term volatility and reduces the chance of buying at a peak.

Spreading the investment out over the next few weeks or even a few months might provide more peace of mind and allow you to adjust if there are significant price movements.

However, if you have a strong conviction that gold will continue climbing or you’re looking for a long-term hedge regardless of short-term price swings, a lump sum could be justified.

Ultimately, both approaches have merit.

If minimizing regret and smoothing out timing risk is the priority, gradual buying via DCA is usually the safer psychological and strategic bet.

[Tony]

It would be better not to buy that at all. Why buy it at an all-time high?

Gold does not give you growth.

[Russell]

Buying any paper gold product is simply paying for a wall street derivative instrument, and has none of the security of holding physical gold in hand.

It is an iou that is linked to the price of a commodity.

It is not the same as owning the commodity. As long as you understand in a force majeur event the iou is nothing more than an unsecured creditor note which may or may not be worth the paper it is printed on, then sure.

[Sam]

Buy in increments in case it goes south or it becomes a bad risk. Be sure you can deduct it as a liss like a stock. Never was bit by the gold bug but some are staunch believers in it.

Good luck.

“In summary, investing in gold for retirement can be a smart move for some seniors, but it’s important to carefully consider your individual circumstances, goals, and risk tolerance before making a decision.

“In summary, investing in gold for retirement can be a smart move for some seniors, but it’s important to carefully consider your individual circumstances, goals, and risk tolerance before making a decision. ”

[Tony]

Interesting. $47k is about 3.3% of $1.4m. I’m curious why you’re changing strategies.

[Author]

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