Bitcoin ETFs and the 401(k) Dilemma - page 2.

goldkingcoiner

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Quote from: Davidvictorson on October 31, 2023, 08:00:08 AM

As a staunch supporter of Bitcoin (BTC), I engage in Dollar-Cost Averaging (DCA) on a monthly basis. With the looming introduction of BTC ETFs, what should regular 9-5 workers with employer-matched 401(k) plans do with their mandatory fiat-based savings? In a scenario where my company allows self-directed investments, should we take a high-risk, "You Only Live Once" (YOLO) approach and dive into the upcoming BTC ETF? While many anticipate a positive impact on BTC's value, the question remains: should we channel our obligatory retirement savings into this? Or should we consider a drastic move, withdrawing from our retirement funds to purchase BTC, witnessing the world's chaos unfold over the next two decades? Your insights are greatly appreciated.

The YOLO approach sounds like buying on FOMO. Thats emotional trading and I advise you to be careful.Sure, it looks like the ETF is a sure thing now, but anything could happen. Thats why we DCA, is it not? To divide up our risks? We do not put all our eggs into one basket, and I think it is only necessarily prudent to say that Bitcoin might be perhaps the one exception to that rule. Or at least it has been, based on its history. I expect great things of Bitcoin and I think the ETF pump will be a small blip in Bitcoins timeline.

ChiBitCTy

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I run the State of Illinois Deferred Comp plan/ 457b (I'm a financial advisor). First of all I don't think any 401k's force you to contribute (some may when you first start your job, but you can typically cancel in pretty quickly). Secondly, I highly doubt even in your self directed account inside your IRA will even allow for such a risky investment as a bitcoin ETF. Maybe I'm wrong but I doubt it.

Zlantann

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Quote from: Davidvictorson on October 31, 2023, 08:00:08 AM

As a staunch supporter of Bitcoin (BTC), I engage in Dollar-Cost Averaging (DCA) on a monthly basis. With the looming introduction of BTC ETFs, what should regular 9-5 workers with employer-matched 401(k) plans do with their mandatory fiat-based savings? In a scenario where my company allows self-directed investments, should we take a high-risk, "You Only Live Once" (YOLO) approach and dive into the upcoming BTC ETF? While many anticipate a positive impact on BTC's value, the question remains: should we channel our obligatory retirement savings into this? Or should we consider a drastic move, withdrawing from our retirement funds to purchase BTC, witnessing the world's chaos unfold over the next two decades? Your insights are greatly appreciated.

In my country, you cannot access your retirement funds unless you retire or leave the organization. However, the answer to this question will depend on some factors. The currency of your country is an important factor to consider. If you live in a country that experiences high inflation and steady depreciation of the value of the currency, it might be okay to take the risk. I know some retirees who ended up in poverty because the value of their retirement benefits has depreciated over time.

You also need to consider what you have as a backup. Do you have a house or other sources of income? Do you have young dependents? Don't forget that it is your retirement benefit. You don't have to put all your eggs in one basket because anything could happen. Yes investing heavily in Bitcoin is not a bad idea but there is a need to still be cautious. It will be better to diversify your retirement funds into different sectors but you can give Bitcoin a high percentage.

Lucius

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Quote from: Davidvictorson on October 31, 2023, 08:00:08 AM

~snip~

No matter how positive someone is when it comes to Bitcoin, I think that some things should not be gambled with, and that is certainly the diversion of retirement funds into any risky investments. Isn't it a much better option to try to invest your money in different things and in that way reduce the risk of losing everything in the event that Bitcoin fails to do what you want - or in case you happen to be hacked in the future?

The world is always in chaos, it's just that now we are exposed to this information far more than before and it seems that it is much worse than it actually is. If something really bad happens, then money and Bitcoin will lose all value, and everything will come down to what you have to trade in order to get food and water and everything you can't survive without.

tbct_mt2

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I disagree with people who are fans of YOLO but I agree that life is too short.

I would like to make saving that I will use to invest in Bitcoin but I don't hope to be billionaire with Bitcoin. If Bitcoin can help me to be richer, get a better wealth, it is enough for me. I will use some of profit from Bitcoin to enjoy my life that is what I agree with YOLO philosophy. It does not make any sense if we live a life without enjoying it when we have money.

But I disagree with YOLO that living without plan for future, saving for future is so risky.

DaveF

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There is no 1 answer. If you ask 100 people you could have 100 different possibilities all being different based on their age and income and goals.
Are you older and have a good nest egg and want to try for more then you may want investments with more risk but higher returns since you are already 'set' but want more.
Do you need more security? Then it's a different story.
Young and starting out? Just had kids and bought a house?

Etc.

There is no one answer, and even if I tell you what I would do *today* next week / month / year things could change and I could give you a different answer.

-Dave

Davidvictorson

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As a staunch supporter of Bitcoin (BTC), I engage in Dollar-Cost Averaging (DCA) on a monthly basis. With the looming introduction of BTC ETFs, what should regular 9-5 workers with employer-matched 401(k) plans do with their mandatory fiat-based savings? In a scenario where my company allows self-directed investments, should we take a high-risk, "You Only Live Once" (YOLO) approach and dive into the upcoming BTC ETF? While many anticipate a positive impact on BTC's value, the question remains: should we channel our obligatory retirement savings into this? Or should we consider a drastic move, withdrawing from our retirement funds to purchase BTC, witnessing the world's chaos unfold over the next two decades? Your insights are greatly appreciated.

Topic: Bitcoin ETFs and the 401(k) Dilemma - page 2. (Read 307 times)