Topic: Would you invest your 401k or IRA into Bitcoin? - page 2. (Read 2261 times)

You should not gamble with your retirement investments. What you could do, is to shift from savings in a bank, to investment in Bitcoin. The yearly returns from Bitcoin investments have been much better than any other commodity or savings for years now, so you would be stupid to use these traditional savings methods.

You never invest more than what you are willing to lose, the golden rule of Bitcoin investments. ^smile^

Even with stocks it is risky because of its decline in recent years. You may be better off with an IRA that follows an  index like the S&P 500. Even then, it sort of feels like a bet on the economy and corporations rather than on onesself with Gold or Bitcoin.

Just my opinion, but Gold and Bitcoin are easier to control and liquidate if needed, rather than having to pay attention to how Mr. Market wants to bounce around. It's a lot easier to follow the media movements for Bitcoin than it is for stocks and Fiat currency as a whole. Inflation and the time value of money does have a bottom line impact on retirement and 401k's.

This is also considering the lack of taxes coming from Bitcoin.

It's very simple. You contribute pre-tax, and withdraw post-tax (in retirement). That means you can trade assets like GBTC (which have massive potential beyond most stocks) without paying taxes on the gains of each trade. You'll just pay on the net gains once you're in retirement. It's one way to take advantage of BTC growth and volatility without paying so much taxes on the capital gains.

I wouldn't put anything other than stocks in an IRA.  Why bother?   You'd basically have
to hand over your private keys to keep crypto in one, and forget about putting metals in
there.  GORK what they'd do with them.  Best to keep your own bitcoin and buy a good safe
for gold & silver.

We're all mostly like minded people here. But if you ask your neighbors or family or friends if they consider Bitcoin a "safe investment" most will probably say "No!"

We have a long way to go to get to that point. There's really nothing safe about Bitcoin yet. It's initial purpose was to be a currency and there's not a lot of growth in accepting it (from Retailers) as a currency. The prices swing wildly. This fork isn't over...SegWit2x won't be clear until November. And there's hundreds of copycat alternative coins that muttle the perception of Bitcoin.

Would I invest in Bitcoin for retirement purposes? Yes. I do.

Would I expect the people in my circle that barely know what Bitcoin is to think the same way? Absolutely not.

We should start by trying to educate people on what Bitcoin is and why we believe it has value. People will say...oh, it doesn't have intrinsic value...well neither does fiat currency or gold. All three only have value because a group of people agree to assign value to it. Once you get people to understand this you can start to discuss how the lack of a central authority minimizes the opportunity for manipulation and that it's finite money supply will help combat (if not eliminate) deflation of value in the future, etc.

We need to start with the basics and always in comparative terms to fiat and gold...mediums of exchange that we want Bitcoin to be compared to.

In general, I always want more investment options in my 401k and would probably put a small percent into BTC.



Interesting way to do it. Risk is definitely there. I wonder if people will start rolling old 401k's into Self Directed IRA (IRA LLC's) and purchasing. I had a couple buddies roll old 401ks into IRA LLC's and purchase property a few years back. Those types of deals were all the rage. I think the IRS even classifies virtual currencies as property so it might not be beyond the already gray area of an IRA LLC.



**Not a tax professional - Terrible money advice in this thread...

It'll be a while for most of us, unfortunately. I actually considered quitting my job just to get my retirement and profit sharing accounts out of mutual funds, commodity funds and cash, and into GBTC. But in the end, the risks weren't quite worth it. I've been better off (I hope) slowly averaging into a long term bitcoin position, some of which I treat as a retirement account.

It would be great if our employers sent Bitcoins to us instead of cash for our 401ks.

I think a pension paid in Satoshi would be very fun to collect considering its volatility and the climbing price. Imagine a 401k paid with no taxes on top of it thanks to a Roth IRA paid in Bitcoins.

Maybe banks should consider a new form of payment for employees and corporations. That would be sweet! 

Already done. Took a large loan against my 401k to build my mining mini-farm several months ago. No matter what happens now I am good. Crypto is the future. My 401k managed by some firm who are paid no matter if they win or lose is not the way to retirement or financial freedom for me. I will be riding this train for the next 5-10 years which after that, hopefully the train will no longer even be needed! 

Good discussion point. Same thoughts here. Buy and hold for the upcoming 2 to 5 years and the market will find it's way.  We really need more insights in the market and previous investment results (even though they don't deliver any guarantee for the future). This is quite an interesting website I found:  https://www.coincheckup.com Every single coin can be analysed here based on: the team, the product, advisors, community, the business and the business model and much more.  Check: https://www.coincheckup.com/coins/Bitcoin#analysis To watch Bitcoin Indepth analysis.

I've been wishing I could get my 401k into Bitcoin for years now. At this point, it almost would have been worth it to have quit my job a few years back if it meant moving my retirement accounts into BTC. Oh well. My day job is pretty good, so I won't complain. I can accumulate BTC in other ways. But when I leave this job and roll my 401k somewhere else, it's definitely going to be somewhere where I can hold BTC or a BTC-derivative. Maybe GBTC. Preferably something I can swing trade tax-free, too.

I consider my Roth IRA to be my safe form of investment. If you were to invest in Bitcoin I would recommend only doing a small amount. If you are going to be doing a lot of trading while in a low tax bracket it could make sense. You could trade bitcoin on your roth while holding your long term investments in a separate brokerage account. Long term capital gains is 0% if you are on the low end. Meanwhile trading on your roth would be short gains, but those aren't taxed anyway since that is the purpose of a roth. So that would be 0% as well. Basically you get to move money around and pay 0% in taxes.

After a couple of years when you enter a higher tax bracket or/and when bitcoin stabilizes you can switch it around and hold more bitcoin in your brokerage and then have some other investment type in your roth. Some ETFs could be good.

Ultimately the idea of whether Bitcoin is a "safe" investment depends entirely on the people of the world, not necessarily a government or financial institution. Its word of mouth vs the monopolization of the printing press and media outlets.

This sort of makes Bitcoin a pioneer in the sense of redefining money for a digital era. Which is exciting. Only those who are brave (and lucky) will have the foresight to invest something so precious as retirement savings into Bitcoin.

agree and not agree,
agree,to not invest all of your capital into Bitcoin because if you did this and you don't have any financial back up something terrible will happen soon.
it's just like a gamble if you do this,rich or die ? it's very unwise for trader doing such a thing ( even thought it's unwise[i will do the same,well just 95% from it may be ],i am sure Bitcoin will always hit a new ATH every year.).
and not agree,for your comment regarding Bitcoin and Fiat.even thought Fiat backed by goverment it doesn't make it more 'Valuable' than Bitcoin.
(i heard a goverment trying to minimalize it'Fiat'[i forgot which country do this] in every transaction to control inflation/devlation and taxes).
even though based on you comment you're highly value Bitcoin,but from that point i can see some of it

It's definitely unwise to invest all of your capital into Bitcoin. Although Fiat currency isn't as safe as most people may believe, it is still backed by governments all over the world.

The reality is that cryptocurrency is still a fairly new form of money. Only time will tell if Bitcoin, as we know it, holds onto its value and grows. What you said about volatility is important because BTC is not really backed by anything other than trust.

Who knows how secure Bitcoin will be for the next one thousand years? What I can say is that Bitcoin is only just beginning in popularity and scope. There is good reason to believe that if major institutions, investors, and companies are taking advantage of the blockchain technology, then Bitcoin as a currency will most likely be the conduit that drives all of that innovation. Sure it is tough to say, especially with one's retirement savings, but I think if you understand the currency well and have investments in other areas of life (so as not to be heavily investing in BTC) then it makes sense to invest retirement income into Bitcoin.

i think if you are old enough to get your 401k or IRA, you should reconsider investing all your money into bitcoin due to its volatility, you might win or lose, if you win some,you might have a hard time of cashing it in, since most people don't want to miss the chance of an opportunity to earn more, even if they are old, what they will lack is skill on investing,they might be blinded by the fact that their money grew,without them working for it, greed might come into play. but if you are still young and thinking of investing your retirement plan on bitcoin, i would suggest to study first, read everything you can read in this forum for your references, what I think would be the best idea fort this is, if you are still young invest now in bitcoins and fund your retirement, so when time comes and you want to retire, you will still be in a win-win situation since you invested in bitcoin and the price goes up, you might be financially secured and you can use your retirement money for leisure without living below your means. i hope this suggestion would help.

Gold has traditionally been known as a solid alternative to Fiat currency as a store of value for retirement income. After all, gold can't really be hurt by deflation. There are Roth IRAs and there are also IRAs based on the market indices.

The question is, since Bitcoin has matured to the point where it is generally seen as a safe investment, would you be willing to invest your 401k into BTC? (if you don't have one, let's assume you did)

There are a number of companies coming up that are providing not just Bitcoin IRA but also all forms of Cryptocurrencies within an Individual Retirement Account. Seeing as how cryptocurrency is technologically superior to paper money it makes sense as to why one would invest in it for the future. These companies aren't being created for no reason. It may be slightly risky to invest ones entire retirement savings, but it can also bring in beautiful returns while diversifying at the same time.

Thoughts?

https://www.smartbitcoininvestments.com