What to Know Before Purchasing Cryptocurrencies with Retirement Funds
By Peter Rizzo
We at CheckBook IRA want to wish all of you a very Happy Thanksgiving and hoping that you surround yourself with family or loved ones. This is the time of year when we take stock in our investment performance and pat ourselves on the back or give ourselves a kick in the pants.
Retirement accounts are becoming a major source of security for our financial future and because of this more people want to take as much control as possible over these accounts. That is where we come in. You have as much control as you want, but you can enlist the help of a professional advisor whenever you so desire.
I asked one of our very successful affiliates what they tell their clients to help them secure financial security:
- Stay true to your goals.If you’re invested for the long term, don’t sell off at the first sign of a downturn—maybe that’s the time to invest more.
- Realize what is fake news and what is real news.Too often, people read articles on the Internet written by fear mongers who have sold an investment short and are trying to drive price down. In other words, vet your source or sources of information.
- Invest in what you know.If you’re going to invest in Bitcoin, become a student of cryptocurrency. Don’t be afraid to look at your past career to see how you can invest in your expertise.
- Don’t be afraid to use a financial advisor.Good advisers relish the thought of their clients using checkbook-controlled retirement accounts, for it leads to all kinds of alternative investments and helps them show their value to the client. They can also help shuffle through the fake news and suspect investments.
- Invest with a worst-case scenario – WHAT IS THE WORST THAT CAN HAPPEN.That is one of the reasons I like real estate, for if everything goes into a kerfuffle, I always will have some place to live in or a income producing rental. I have enough stock certificates that are only good for starting a campfire.
We don’t invest to lose money, but to build our financial future and the best way to do that is to have a complete plan. Remember that the greater reward the greater risk.
All in all, the above are a few nuggets that I hope you can use.
Finally, we would like to wish you and your family a very joyous and profitable holiday season.
One doesn’t necessarily need a LLC to invest in cryptocurrencies in an IRA. With a custodian such as Our Qualified Custodian or BitcoinIRA (in the process of breaking apart from each other), I invest in my own personal name within those IRA custodial accounts.
I also find it hard to find any custodian who will allow an entity to invest in cryptocurrencies – though this may have changed since the last time I looked was a couple of years ago.
If I’m not mistaken, you can contribute and invest much higher amounts under the LLC umbrella, especially checkbook 401K’s. Maybe Peter can respond to this point.
Hi David, you’re right that the contribution limits are higher for a Solo 401(k) than for an IRA, and certainly a Solo 401(k) can own 100% of an LLC. I know that a lot of our Solo 401(k) clients that hold crypto do it through an LLC.
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