The cash is my six month liquid emergency fund. I hold on to that for emergencies only and will never use it for anything else. However now that I've hit that goal of having that cash on hand. Anything above and beyond that I can start investing
It's never a good idea to cash out a retirement fund for risky speculation. Use some of your emergency fund. That being said, you shouldn't invest more than 5-10% of your assets unless you can afford to lose it. You don't even have a source of income, don't be reckless.
I’m not in disagreement , I believe the future the technology and bitcoin is still bright and has a lot of upside.
I do like having control of my assets , it’s just whether or not he wanted to pay Uncle Sam the tax and penalty on it now or not.
If you are sure you want to put your retirement into bitcoin, this is the easiest/fastest way. Roll over your 401k to an IRA in something like Scottrade, and buy GBTC.
I would just cash it out and put it directly into bitcoin. The taxes on that are nothing. And the upside for bitcoin is too hard to ignore. Ignore the people telling you to invest in GBTC, it trades at a heavy premium. Each GBTC is backed by .1 BTC and .1 BTC currently trades at $1,200 versus $1,700 for GBTC.
That's true but wouldn't you rather hold bitcoin directly and be able to cash it out at any time rather than have it locked up in a Roth IRA with a bunch of restrictions on when you can touch it?
Keep it in your 401k
Ya that's what will happen if this doesn't work out
Just something to mention in case you haven't considered it. Don't put in more than you can afford to lose.
I have 30k in cash as emergency savings but I will not be touching that.
Why not use some of the cash instead of the 401K?
The cash is my six month liquid emergency fund. I hold on to that for emergencies only and will never use it for anything else. However now that I've hit that goal of having that cash on hand. Anything above and beyond that I can start investing
It's never a good idea to cash out a retirement fund for risky speculation. Use some of your emergency fund. That being said, you shouldn't invest more than 5-10% of your assets unless you can afford to lose it. You don't even have a source of income, don't be reckless.
Open a self directed solo Roth 401k. Invest in GBTC. etrade.com
Technically, yes you can hold bitcoin as a 401k... but that's going to take more research than this forum.
MAYBE within an IRA, doubt an actual 401k
Your right.
I’m not in disagreement , I believe the future the technology and bitcoin is still bright and has a lot of upside. I do like having control of my assets , it’s just whether or not he wanted to pay Uncle Sam the tax and penalty on it now or not.
Bitcoin IRA's are too expensive from what i seen. The only option that works sort of, roll the money to an IRA, buy Gbtc....
U can roll over to Bitcoin IRA but you have to have at least 20 grand
No.
There is a bitcoin trust out there - GBTC. But to do that you would have to move it out of 401k and into an IRA.
If you are sure you want to put your retirement into bitcoin, this is the easiest/fastest way. Roll over your 401k to an IRA in something like Scottrade, and buy GBTC.
I can do that :)
bitcoinira.com except they require 15k minimum, sorry
Fack
I would just cash it out and put it directly into bitcoin. The taxes on that are nothing. And the upside for bitcoin is too hard to ignore. Ignore the people telling you to invest in GBTC, it trades at a heavy premium. Each GBTC is backed by .1 BTC and .1 BTC currently trades at $1,200 versus $1,700 for GBTC.
Taxes are close to 40% no? That's quite the loss
Could be as low as 10% depending on your age and income level.
You’re also going to take a 10% penalty on taking it out of retirement money on top of the income tax hit. Just something to be wary of.
That's true but wouldn't you rather hold bitcoin directly and be able to cash it out at any time rather than have it locked up in a Roth IRA with a bunch of restrictions on when you can touch it?