Buy Bitcoin Online: 21+ Trusted Sites (2020)

Recessions, financial savings and retirement

If you're on reddit you're probably a millennial or gen z and you're likely gen 1 or gen 2. Most hmong parents arnt the most financially savvy people out there so I thought I'd post this in hopes that it helps some of yall out.
The current situation should be reality check that highlights 1 thing for our generation:
Have enough cash and investments to support yourself
If you're a millennial this is probably the 2nd major recession in your working career, all within the span of less than 15 years. If you're just entering the job market then prepare for losses, wage cuts, uncertainty and wage stagnation for perhaps years to come. Recovery will happen, but unlike the stock market the economy usually lags.
  1. Save enough cash to support yourself - 3 months minimum
Savings: At a minimum you should have enough cash to cover 3 months of costs in case of job loss. However, this is really the minimum you should strive for before thinking about investments. I'm personally more comfortable with 5-6 months of expenses and even more if you own a house.
  1. 401k, HSA There are probably more plans out there but these are the two most common. You should be maximizing your contributions up to whatever the company match is. If you're young and healthy, you may want to think about actively managing both and changing the funds to support higher growth.
401k: Contribute up to the company match. 401k is funded by pretax money and the company match is all free money. If you dont think you can or have the time to beat the match, then leverage 401ks to the maximum. Don't have enough to contribute? Each raise you earn increase your 401k contribution to whatever your raise is. Should you contribute the yearly maximum? It depends on the match and if it's worthwhile. 401ks are a money jail so it's not worth-while to simply invest more if it does not earn you additional match money. There are better ways to invest your money.
Which fund should you choose? Again if you're on the younger side, you should probably be in 90% or more in stocks.
HSA: If you're young and/or healthy then you will want to maximize you're HSA contributions. This money is yours forever and often comes with a company match. After meeting the minimum account balance you can invest any additional contributions, just like your 401k.
You'll always have both accounts and the government has made it clear that they will waive penalties for withdrawals in cases of crisis like covid.
  1. Roth IRA and Brokage accounts
Fully vested in 401k and HSA? Roth IRA and brokage accounts may be what you're looking for. Both Roth IRA and brokage accounts allows you to invest in individual stocks. What's the difference? Roth IRA gains are tax free but you arnt allowed to withdraw gains without paying a penalty and taxes until you reach retirement age. You can still pull out what you contribute at any time. A brokage account allows you to pull your gains and contributions out at any time, but any gain on any sale is subject to tax, regardless if you withdraw from your account or not.
The general advice is if you're investing for retirement, go with a roth ira and contribute the maximum you can each year, then fund your brokage account with any extra. If you're investing to gamble or to try and earn extra cash, a brokage account gives you more flexibility on managing your earnings.
I use my Roth IRA as a second savings accounts and invest when I see good entry points. Roth gives me liquidity while also being able to invest, compared to a 401k.
The market will only grow, maybe not in the short term with the whole covid recession, but better believe it will in the long term.
  1. FIRE: Financial Independence, Retire Early.
You may have heard of FIRE, but the essence is to become Financially independent and retire early. I'm not a big fan of the following it exactly but I am a fan of being Financially independent enough to not worry about what I choose for work. But if you live FIRE, more power to you.
The single biggest costs for most people are their homes. If you can pay off your home early then a large financial burden has been taken care and while you may not be financial independent you will have an extremely large amount of flexibility. If you want to work at Costco, you can! That's what being financially flexible affords you.
  1. Real estate and Land
Yes, some people make bank flipping and renting. But profiting from a flip is estimated to be harder and harder with home prices where they are today. I dont have any expertise here beside just beginning to dive into the indusrty but from what I hear from my builder, realtor and flipping people is that we are expecting a down turn in home prices in the 2nd half of the year if covid continues to decimate the economy. Low interest rates however may offset some of this in the short term. Right now it's still a sellers market but high end houses are sitting.
  1. Credit cards
Points, points, points..seriously there's no other way to buy than with a credit card, not even mentioning security benefits. Cash, debit cards, PayPal, bitcoin, all worthless when compared to credit cards. Use credit cards to pay for everything you can.
If you're not disciplined enough, don't open cards to every department store either, you're get a credit hit if your credit is accessed too often and it becomes difficult to manage after too many cards.
Look at cards that provide the most points for your dollar. Cards that allow you to transfer points to partners often yield even more savings, especiallyon things like travel. Chase cards are great and Freedom is a great first card to have.
The key to credit cards is not to spend what you dont have and to pay off the STATEMENT BALANCE every month. To avoid interests, you need only pay off the STATEMENT BALANCE and not the full balance every month. Never take credit card loans or get into credit card debt, it's going to be a bad time.
  1. Pay off debt
There's always a fine line between investing and paying off debt. The debt we're talking about here is debt with relatively low interest rates like student loans, car loans and homes. Anything debt with high rates, like credit card debt, should be paid off immediately.
The general rule of thumb is if you can make more investing than the interest rates of the loans, invest, else pay off debt. But, investing involves risk while paying off debt is a sure thing. There's also the emotional factor. Some people don't care about debt because they want to be working their entire lives and are willing to pay it off over the long term, and that's perfectly fine. In that case, invest invest invest. Personally i think there is a balance, I rather be debt free and financially flexible than be straddled with debt.
To pay off debt, one of the most popular methods is the snow ball method. The essence of the theory is to pay off the highest interest debt off first. Once paid off, while keeping the payments the same, tackle the next highest interest debt and so on so forth. Eventually you are paying off more and more with the same payments, hence the snow ball effect. Google it for more precise definitions.
  1. Travel, hobbies and enjoying life
Seriously, enjoy your youth, health and life while it's good. Nobody wants to work and save until 65 before you start traveling and enjoying life. Traveling is one of the best things you can do. Having hobbies makes work worthwhile. Good health is worth more than all the cash in the world.
  1. Gambling and options
I dont recommend either, but if you're a gambling man, play options over penny stocks and always double down on 9 or 11...maybe. Just don't bet what you're not willing to lose, and for the love of all that is holy, dont gamble on margin. Disable that shit.
You already know all this stuff? Awesome! Help out and contribute.
Questions? Post.
Wrong Facts? Always looking to learn.
Tldr: Save, invest and pay off debt. Also enjoy life, health and youth while you have them.
submitted by Dick_sporting_good to Hmong [link] [comments]

03-11 02:54 - 'Legally sell your crypto tax free (IRA)' (self.Bitcoin) by /u/Kudozzz removed from /r/Bitcoin within 35-45min

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Hey all - Last time I posted I had just bought my first bitcoin with my IRA, making my future sales tax free and legal! I wanted to offer this service to some of my clients and wanted more experience so I partnered up with some of you to do just that! The experience has been so eye opening that I have since started a bespoke BTC IRA practice and am looking for 6 new clients to jump start my testimonials. Competitors charge anywhere from $1400-$6000 for a lower value service. I will be providing a 20% discount on my $888 package, for a total price of $710 in exchange for an honest testimonial. To avoid making this post too much of a sales pitch, I’ll keep it at that. You know if you’ve been interested in tax free bitcoin through an IRA already. If you are, DM me and I can walk you through the process, go through what is offered, and talk next steps. Also, if you’re interested in learning more, shoot me a DM and I can share with you my ebook when it gets published this month.
'''
Legally sell your crypto tax free (IRA)
Go1dfish undelete link
unreddit undelete link
Author: Kudozzz
submitted by removalbot to removalbot [link] [comments]

Craig Steven Wright is Satoshi Nakamoto

A couple of years ago in the early months of the 2017, I published a piece called Abundance Via Cryptocurrencies (https://www.reddit.com/C\_S\_T/comments/69d12a/abundance\_via\_cryptocurrencies/) in which I kind of foresaw the crypto boom that had bitcoin go from $1k to $21k and the alt-coin economy swell up to have more than 60% of the bitcoin market capitalisation. At the time, I spoke of coming out from “the Pit” of conspiracy research and that I was a bit suss on bitcoin’s inception story. At the time I really didn’t see the scaling solution being put forward as being satisfactory and the progress on bitcoin seemed stifled by the politics of the social consensus on an open source protocol so I was looking into alt coins that I thought could perhaps improve upon the shortcomings of bitcoin. In the thread I made someone recommended to have a look at 4chan’s business and finance board. I did end up taking a look at it just as the bull market started to really surge. I found myself in a sea of anonymous posters who threw out all kinds of info and memes about the hundreds, thousands, tens of thousands of different shitcoins and why they’re all going to have lambos on the moon. I got right in to it, I loved the idea of filtering through all the shitposts and finding the nuggest of truth amongst it all and was deeply immersed in it all as the price of bitcoin surged 20x and alt coins surged 5-10 times against bitcoin themselves. This meant there were many people who chucked in a few grand and bought a stash of alt coins that they thought were gonna be the next big thing and some people ended up with “portfolios” 100-1000x times their initial investment.
To explain what it’s like to be on an anonymous business and finance board populated with incel neets, nazis, capitalist shit posters, autistic geniuses and whoever the hell else was using the board for shilling their coins during a 100x run up is impossible. It’s hilarious, dark, absurd, exciting and ultimately addictive as fuck. You have this app called blockfolio that you check every couple of minutes to see the little green percentages and the neat graphs of your value in dollars or bitcoin over day, week, month or year. Despite my years in the pit researching conspiracy, and my being suss on bitcoin in general I wasn’t anywhere near as distrustful as I should have been of an anonymous business and finance board and although I do genuinely think there are good people out there who are sharing information with one another in good faith and feel very grateful to the anons that have taken their time to write up quality content to educate people they don’t know, I wasn’t really prepared for the level of organisation and sophistication of the efforts groups would go to to deceive in this space.
Over the course of my time in there I watched my portfolio grow to ridiculous numbers relative to what I put in but I could never really bring myself to sell at the top of a pump as I always felt I had done my research on a coin and wanted to hold it for a long time so why would I sell? After some time though I would read about something new or I would find out of dodgy relationships of a coin I had and would want to exit my position and then I would rebalance my portfolio in to a coin I thought was either technologically superior or didn’t have the nefarious connections to people I had come across doing conspiracy research. Because I had been right in to the conspiracy and the decentralisation tropes I guess I always carried a bit of an antiauthoritarian/anarchist bias and despite participating in a ridiculously capitalistic market, was kind of against capitalism and looking to a blockchain protocol to support something along the lines of an open source anarchosyndicalist cryptocommune. I told myself I was investing in the tech and believed in the collective endeavour of the open source project and ultimately had faith some mysterious “they” would develop a protocol that would emancipate us from this debt slavery complex.
As I became more and more aware of how to spot artificial discussion on the chans, I began to seek out further some of the radical projects like vtorrent and skycoin and I guess became a bit carried away from being amidst such ridiculous overt shilling as on the boards so that if you look in my post history you can even see me promoting some of these coins to communities I thought might be sympathetic to their use case. I didn’t see it at the time because I always thought I was holding the coins with the best tech and wanted to ride them up as an investor who believed in them, but this kind of promotion is ultimately just part of a mentality that’s pervasive to the cryptocurrency “community” that insists because it is a decentralised project you have to in a way volunteer to inform people about the coin since the more decentralised ones without premines or DAO structures don’t have marketing budgets, or don’t have marketing teams. In the guise of cultivating a community, groups form together on social media platforms like slack, discord, telegram, twitter and ‘vote’ for different proposals, donate funds to various boards/foundations that are set up to give a “roadmap” for the coins path to greatness and organise marketing efforts on places like reddit, the chans, twitter. That’s for the more grass roots ones at least, there are many that were started as a fork of another coin, or a ICO, airdrop or all these different ways of disseminating a new cryptocurrency or raising funding for promising to develop one. Imagine the operations that can be run by a team that raised millions, hundreds of millions or even billions of dollars on their ICOs, especially if they are working in conjunction with a new niche of cryptocurrency media that’s all nepotistic and incestuous.
About a year and a half ago I published another piece called “Bitcoin is about to be dethroned” (https://www.reddit.com/C\_S\_T/comments/7ewmuu/bitcoin\_is\_about\_to\_be\_dethroned/) where I felt I had come to realise the scaling debate had been corrupted by a company called Blockstream and they had been paying for social media operations in a fashion not to dissimilar to correct the record or such to control the narrative around the scaling debate and then through deceit and manipulation curated an apparent consensus around their narrative and hijacked the bitcoin name and ticker (BTC). I read the post again just before posting this and decided to refer to it to to add some kind of continuity to my story and hopefully save me writing so much out. Looking back on something you wrote is always a bit cringey especially because I can see that although I had made it a premise post, I was acting pretty confident that I was right and my tongue was acidic because of so much combating of shills on /biz/ but despite the fact I was wrong about the timing I stand by much of what I wrote then and want to expand upon it a bit more now.
The fork of the bitcoin protocol in to bitcoin core (BTC) and bitcoin cash (BCH) is the biggest value fork of the many that have occurred. There were a few others that forked off from the core chain that haven’t had any kind of attention put on them, positive or negative and I guess just keep chugging away as their own implementation. The bitcoin cash chain was supposed to be the camp that backed on chain scaling in the debate, but it turned out not everyone was entirely on board with that and some players/hashpower felt it was better to do a layer two type solution themselves although with bigger blocks servicing the second layer. Throughout what was now emerging as a debate within the BCH camp, Craig Wright and Calvin Ayre of Coin Geek said they were going to support massive on chain scaling, do a node implementation that would aim to restore bitcoin back to the 0.1.0 release which had all kinds of functionality included in it that had later been stripped by Core developers over the years and plan to bankrupt the people from Core who changed their mind on agreeing with on-chain scaling. This lead to a fork off the BCH chain in to bitcoin satoshis vision (BSV) and bitcoin cash ABC.

https://bitstagram.bitdb.network/m/raw/cbb50c322a2a89f3c627e1680a3f40d4ad3cee5a3fb153e5d6d001bdf85de404

The premise for this post is that Craig S Wright was Satoshi Nakamoto. It’s an interesting premise because depending upon your frame of reference the premise may either be a fact or to some too outrageous to even believe as a premise. Yesterday it was announced via CoinGeek that Craig Steven Wright has been granted the copyright claim for both the bitcoin white-paper under the pen name Satoshi Nakamoto and the original 0.1.0 bitcoin software (both of which were marked (c) copyright of satoshi nakamoto. The reactions to the news can kind of be classified in to four different reactions. Those who heard it and rejected it, those who heard it but remained undecided, those who heard it and accepted it, and those who already believed he was. Apparently to many the price was unexpected and such a revelation wasn’t exactly priced in to the market with the price immediately pumping nearly 100% upon the news breaking. However, to some others it was a vindication of something they already believed. This is an interesting phenomena to observe. For many years now I have always occupied a somewhat positively contrarian position to the default narrative put forward to things so it’s not entirely surprising that I find myself in a camp that holds the minority opinion. As you can see in the bitcoin dethroned piece I called Craig fake satoshi, but over the last year and bit I investigated the story around Craig and came to my conclusion that I believed him to be at least a major part of a team of people who worked on the protocol I have to admit that through reading his articles, I have kind of been brought full circle to where my contrarian opinion has me becoming somewhat of an advocate for “the system’.
https://coingeek.com/bitcoin-creator-craig-s-wright-satoshi-nakamoto-granted-us-copyright-registrations-for-bitcoin-white-paper-and-code/

When the news dropped, many took to social media to see what everyone was saying about it. On /biz/ a barrage of threads popped up discussing it with many celebrating and many rejecting the significance of such a copyright claim being granted. Immediately in nearly every thread there was a posting of an image of a person from twitter claiming that registering for copyright is an easy process that’s granted automatically unless challenged and so it doesn’t mean anything. This was enough for many to convince them of the insignificance of the revelation because of the comment from a person who claimed to have authority on twitter. Others chimed in to add that in fact there was a review of the copyright registration especially in high profile instances and these reviewers were satisfied with the evidence provided by Craig for the claim. At the moment Craig is being sued by Ira Kleiman for an amount of bitcoin that he believes he is entitled to because of Craig and Ira’s brother Dave working together on bitcoin. He is also engaged in suing a number of people from the cryptocurrency community for libel and defamation after they continued to use their social media/influencer positions to call him a fraud and a liar. He also has a number of patents lodged through his company nChain that are related to blockchain technologies. This has many people up in arms because in their mind Satoshi was part of a cypherpunk movement, wanted anonymity, endorsed what they believed to be an anti state and open source technologies and would use cryptography rather than court to prove his identity and would have no interest in patents.
https://bitstagram.bitdb.network/m/raw/1fce34a7004759f8db16b2ae9678e9c6db434ff2e399f59b5a537f72eff2c1a1
https://imgur.com/a/aANAsL3)

If you listen to Craig with an open mind, what cannot be denied is the man is bloody smart. Whether he is honest or not is up to you to decide, but personally I try to give everyone the benefit of the doubt and then cut them off if i find them to be dishonest. What I haven’t really been able to do with my investigation of craig is cut him off. There have been many moments where I disagree with what he has had to say but I don’t think people having an opinion about something that I believe to be incorrect is the same as being a dishonest person. It’s very important to distinguish the two and if you are unable to do so there is a very real risk of you projecting expectations or ideals upon someone based off your ideas of who they are. Many times if someone is telling the truth but you don’t understand it, instead of acknowledging you don’t understand it, you label them as being stupid or dishonest. I think that has happened to an extreme extent with Craig. Let’s take for example the moment when someone in the slack channel asked Craig if he had had his IQ tested and what it was. Craig replied with 179. The vast majority of people on the internet have heard someone quote their IQ before in an argument or the IQ of others and to hear someone say such a score that is actually 6 standard deviations away from the mean score (so probably something like 1/100 000) immediately makes them reject it on the grounds of probability. Craig admits that he’s not the best with people and having worked with/taught many high functioning people (sometimes on the spectrum perhaps) on complex anatomical and physiological systems I have seen some that also share the same difficulties in relating to people and reconciling their genius and understandings with more average intelligences. Before rejecting his claim outright because we don’t understand much of what he says, it would be prudent to first check is there any evidence that may lend support to his claim of a one in a million intelligence quotient.

Craig has mentioned on a number of occasions that he holds a number of different degrees and certifications in relation to law, cryptography, statistics, mathematics, economics, theology, computer science, information technology/security. I guess that does sound like something someone with an extremely high intelligence could achieve. Now I haven’t validated all of them but from a simple check on Charles Sturt’s alumni portal using his birthday of 23rd of October 1970 we can see that he does in fact have 3 Masters and a PhD from Charles Sturt. Other pictures I have seen from his office at nChain have degrees in frames on the wall and a developer published a video titled Craig Wright is a Genius with 17 degrees where he went and validated at least 8 of them I believe. He is recently publishing his Doctorate of Theology through an on-chain social media page that you have to pay a little bit for access to sections of his thesis. It’s titled the gnarled roots of creation. He has also mentioned on a number of occasions his vast industry experience as both a security contractor and business owner. An archive from his LinkedIn can be seen below as well.

LinkedIn - https://archive.is/Q66Gl
https://youtu.be/nXdkczX5mR0 - Craig Wright is a Genius with 17 Degrees
https://www.yours.org/content/gnarled-roots-of-a-creation-mythos-45e69558fae0 - Gnarled Roots of Creation.
In fact here is an on chain collection of articles and videos relating to Craig called the library of craig - https://www.bitpaste.app/tx/94b361b205196560d1bd09e4e3b3ec7ad6bea478af204cabfe243efd8fc944dd


So there is a guy with 17 degrees, a self professed one in a hundred thousand IQ, who’s worked for Australian Federal Police, ASIO, NSA, NASA, ASX. He’s been in Royal Australian Air Force, operated a number of businesses in Australia, published half a dozen academic papers on networks, cryptography, security, taught machine learning and digital forensics at a number of universities and then another few hundred short articles on medium about his work in these various domains, has filed allegedly 700 patents on blockchain related technology that he is going to release on bitcoin sv, copyrighted the name so that he may prevent other competing protocols from using the brand name, that is telling you he is the guy that invented the technology that he has a whole host of other circumstantial evidence to support that, but people won’t believe that because they saw something that a talking head on twitter posted or that a Core Developer said, or a random document that appears online with a C S Wright signature on it that lists access to an address that is actually related to Roger Ver, that’s enough to write him off as a scam. Even then when he publishes a photo of the paper copy which appears to supersede the scanned one, people still don’t readjust their positions on the matter and resort back to “all he has to do is move the coins or sign a tx”.

https://imgur.com/urJbe10

Yes Craig was on the Cypherpunk mailing list back in the day, but that doesn’t mean that he was or is an anarchist. Or that he shares the same ideas that Code Is Law that many from the crypto community like to espouse. I myself have definitely been someone to parrot the phrase myself before reading lots of Craig’s articles and trying to understand where he is coming from. What I have come to learn from listening and reading the man, is that although I might be fed up with the systems we have in place, they still exist to perform important functions within society and because of that the tools we develop to serve us have to exist within that preexisting legal and social framework in order for them to have any chance at achieving global success in replacing fiat money with the first mathematically provably scarce commodity. He says he designed bitcoin to be an immutable data ledger where everyone is forced to be honest, and economically disincentivised to perform attacks within the network because of the logs kept in a Write Once Read Many (WORM) ledger with hierarchical cryptographic keys. In doing so you eliminate 99% of cyber crime, create transparent DAO type organisations that can be audited and fully compliant with legislature that’s developed by policy that comes from direct democratic voting software. Everyone who wants anonymous coins wants to have them so they can do dishonest things, illegal things, buy drugs, launder money, avoid taxes.

Now this triggers me a fair bit as someone who has bought drugs online, who probably hasn’t paid enough tax, who has done illegal things contemplating what it means to have that kind of an evidence ledger, and contemplate a reality where there are anonymous cryptocurrencies, where massive corporations continue to be able to avoid taxes, or where methamphetamine can be sold by the tonne, or where people can be bought and sold. This is the reality of creating technologies that can enable and empower criminals. I know some criminals and regard them as very good friends, but I know there are some criminals that I do not wish to know at all. I know there are people that do horrific things in the world and I know that something that makes it easier for them is having access to funds or the ability to move money around without being detected. I know arms, drugs and people are some of the biggest markets in the world, I know there is more than $50 trillion dollars siphoned in to off shore tax havens from the value generated as the product of human creativity in the economy and how much human charity is squandered through the NGO apparatus. I could go on and on about the crappy things happening in the world but I can also imagine them getting a lot worse with an anonymous cryptocurrency. Not to say that I don’t think there shouldn’t be an anonymous cryptocurrency. If someone makes one that works, they make one that works. Maybe they get to exist for a little while as a honeypot or if they can operate outside the law successfully longer, but bitcoin itself shouldn’t be one. There should be something a level playing field for honest people to interact with sound money. And if they operate within the law, then they will have more than adequate privacy, just they will leave immutable evidence for every transaction that can be used as evidence to build a case against you committing a crime.

His claim is that all the people that are protesting the loudest about him being Satoshi are all the people that are engaged in dishonest business or that have a vested interest in there not being one singular global ledger but rather a whole myriad of alternative currencies that can be pumped and dumped against one another, have all kinds of financial instruments applied to them like futures and then have these exchanges and custodial services not doing any Know Your Customer (KYC) or Anti Money Laundering (AML) processes. Bitcoin SV was delisted by a number of exchanges recently after Craig launched legal action at some twitter crypto influencetalking heads who had continued to call him a fraud and then didn’t back down when the CEO of one of the biggest crypto exchanges told him to drop the case or he would delist his coin. The trolls of twitter all chimed in in support of those who have now been served with papers for defamation and libel and Craig even put out a bitcoin reward for a DOX on one of the people who had been particularly abusive to him on twitter. A big european exchange then conducted a twitter poll to determine whether or not BSV should be delisted as either (yes, it’s toxic or no) and when a few hundred votes were in favour of delisting it (which can be bought for a couple of bucks/100 votes). Shortly after Craig was delisted, news began to break of a US dollar stable coin called USDT potentially not being fully solvent for it’s apparent 1:1 backing of the token to dollars in the bank. Binance suffered an alleged exchange hack with 7000 BTC “stolen” and the site suspending withdrawals and deposits for a week. Binance holds 800m USDT for their US dollar markets and immediately once the deposits and withdrawals were suspended there was a massive pump for BTC in the USDT markets as people sought to exit their potentially not 1:1 backed token for bitcoin. The CEO of this exchange has the business registered out of Malta, no physical premises, the CEO stays hotel room to hotel room around the world, has all kind of trading competitions and the binance launchpad, uses an unregistered security to collect fees ($450m during the bear market) from the trading of the hundreds of coins that it lists on its exchange and has no regard for AML and KYC laws. Craig said he himself was able to create 100 gmail accounts in a day and create binance accounts with each of those gmail accounts and from the same wallet, deposit and withdraw 1 bitcoin into each of those in one day ($8000 x 100) without facing any restrictions or triggering any alerts or such.
This post could ramble on for ever and ever exposing the complexities of the rabbit hole but I wanted to offer some perspective on what’s been happening in the space. What is being built on the bitcoin SV blockchain is something that I can only partially comprehend but even from my limited understanding of what it is to become, I can see that the entirety of the crypto community is extremely threatened as it renders all the various alt coins and alt coin exchanges obsolete. It makes criminals play by the rules, it removes any power from the developer groups and turns the blockchain and the miners in to economies of scale where the blockchain acts as a serverless database, the miners provide computational resources/storage/RAM and you interact with a virtual machine through a monitor and keyboard plugged in to an ethernet port. It will be like something that takes us from a type 0 to a type 1 civilisation. There are many that like to keep us in the quagmire of corruption and criminality as it lines their pockets. Much much more can be read about the Cartel in crypto in the archive below. Is it possible this cartel has the resources to mount such a successful psychological operation on the cryptocurrency community that they manage to convince everyone that Craig is the bad guy, when he’s the only one calling for regulation, the application of the law, the storage of immutable records onchain to comply with banking secrecy laws, for Global Sound Money?

https://archive.fo/lk1lH#selection-3671.46-3671.55

Please note, where possible, images were uploaded onto the bitcoin sv blockchain through bitstagram paying about 10c a pop. If I wished I could then use an application etch and archive this post to the chain to be immutably stored. If this publishing forum was on chain too it would mean that when I do the archive the images that are in the bitstragram links (but stored in the bitcoin blockchain/database already) could be referenced in the archive by their txid so that they don’t have to be stored again and thus bringing the cost of the archive down to only the html and css.
submitted by whipnil to C_S_T [link] [comments]

Early partial retirement on $1.2M…lots of questions:

Not a humble-brag. We’ve been extraordinarily lucky, especially in the recession. Have many questions at the end. Would appreciate guidance. Cross-posting to /leanfire and /personalfinance
Bio
Age 36. My girlfriend of 15 years is few years older than me. We consider ourselves married socially, but haven’t formalized things with the government. Might do so soon, mostly to simplify/optimize estate management in case one of us dies.
Last year we sold our house and I quit my job. I hope never to work again except for something I’m passionate about. Might take occasional contract work to buy toys, fund trips, or pad our bottom line. Might someday start a business if I become infatuated with a business plan. GF still works, for now. Moved to Florida this year from a higher tax and higher CoL area.
Income
I started making ~$60k at age 19 and got steady raises until ultimately making $150k my last year of employment (software). Wife currently makes ~$75k/year working fully virtually in a low-stress job. She had previously been able to reliably bring in ~$120k+ in more stressful on-site work. That makes current income $75k/yr for the next few years, entirely in GF's name.
Savings Rate
We have been in hyper-savings mode for the last 12 years, saving as much as 75% of our take-home income. Incomes grew during those 12 years, so our assets aren’t quite as high as one might assume given our peak incomes. We always maxed out all retirement accounts available to us: 401k, IRA, and HSA’s. I even put after-tax money into my 401k to bring it up to $53k for several years, and still have that after-tax (non-Roth) money in my 401k that I’ve yet to mega-backdoor to a Roth. Money also went into brokerage accounts and a few modest stabs at moon-shot investments.
Expenses
We’ve never spent more than $60k in a year (not including money spent on income taxes). Most years we spend around $45k. On track for a $38k year.
Assets
~$1.2M in assets:
$500k in 401k's (Traditional) - All in S&P 500 index fund
$135k across two Roth IRA’s (Mostly dividend stocks)
$51k Traditional IRA, (Mostly dividend stocks, REIT)
$62k brokerage account, in a playground of 10 individual blue chip stocks
$33k across multiple HSA accounts (70% index funds, 30% cash)
$78k current value of Pension lump sum buy-out offer
$150k in cash (mostly house sale proceeds)
~$180k in Bitcoin (legally purchased ages ago)
RV we live in is worth about $80k, but don’t count it as an asset since I doubt we’ll sell it before it's worthless.
Liabilities / Obligations
No debt. Currently paying for daughter's college. (Starting year #2 this fall). We have a LOT of pre-tax money and unrealized gains, though, which almost feel like accrued liabilities.
Goals
1) Enjoy life. No more working 60-70 hour weeks in jobs we dislike.
2) Maintain safety net so we never have to worry about putting food on the table
3) Put our daughter through college (1 year done)
4) Allow GF to retire once the kiddo wraps up college
5) Maximize tax advantaged accounts and weigh potential legal marriage.
6) Use our cash-on-hand efficiently
7) Fit in an occasional overseas trip. Didn’t take destination vacations for a whole decade, and regret it.
Current Plan
We are trying to lean up our expenses to 35k/yr or less so that GF can stop working once our daughter is finished with college. Don’t want to push SWR above 3%. Would like to optimize our tax situation wrt retirement funds. Here’s the current to-do list, which I would like feedback on:
While I have no earned income but the GF is still working:
1) GF's income is paying for all our expenses and paying our daughter’s college
2) I will start a Roth ladder this year with my 401k’s (I have no trad. IRA, those are hers), using cash on hand to pay the taxes on those conversions, filling up the 25% tax bracket
3) I need to complete the mega-backdoor of the ~$50k of after-tax value in my 401k
4) Find a low-cost-of-living town that we enjoy, and build or buy a small ~$100k home. Probably will rent in an area for a year or so before buying.
5) Cash-out pensions and convert to Roth status, probably with a stop in a Traditional IRA for a year first, depending on tax bracket that year.
In 3-5 years:
6) Daughter will be done with college
7) I will start being able to draw contributions from Roth ladder
8) GF will stop working and start her Roth ladder
9) If GF stops working before my ladder is complete, we have previously converted parts of her Traditional IRA to Roth IRA’s on years she wasn’t working, so we can withdraw those penalty free.
At any time:
10) Sell 30% of our Bitcoin each time they become more than 30% of our net worth. I know I’m overweight on Bitcoin, but I’m in it for the long haul and have long since recuperated my initial investment (yes, that’s entirely psychological)
Questions
1a) Any suggestions for improvement?
1b) Talk me out of holding Bitcoin. I’m too bullish on it.
1c) Holding too much cash? Not enough? We will need it for housing
1d) What’s your opinion on paying for professional guidance at this point? Does it pay for itself?
On Roth Conversions and Rollovers:
2a) How concerned should I be about the new legal limit on one rollover per 12 mo period, with regard to the Roth ladder?
2b) If we arrange to never hold the rollover check ourselves, and do a 401k rollover plus Roth conversion completely bank-to-bank, does that count against the one-rollover per year?
2c) Will a pension lump-sum payout to an IRA count against the once-per-year roll-over limit?
2d) Will rolling over large amounts of money trigger AMT (Alternate Minimum Tax?)
2e) How do I get started filing quarterly taxes: Do I have to file quarterly if I do all my taxable events (Roth Conversion) in the last quarter of the year?
2f) I’ve seen conflicting advice on this before: When I do a Roth conversion, does the entire amount converted count as a contribution for tax-free withdraw in 5+ years, or do I have to track the original cost basis back to the original tax vehicle’s initial contribution (e.g.: the contribution to the 401k before it grew)? 2g) If the case on cost-basis is the latter, how would I track cost basis for a pension cash-out that I convert?
2f) How should I prioritize the various rollovers at my disposal. I don’t know which to do first:
On HSA’s:
3a) What’s the best way to avoid fees in HSA accounts? They’re atrocious. GF has switched employers and each has demanded to use their own HSA. She now have 3 accounts each charging annual or monthly fees.
3b) Can we combine her existing HSA's, and/or force her employer to switch accounts they deposit to one we setup?
On Marriage:
4a) Currently avoiding a legal marriage, in part because remaining single offers many financial advantages for as long as our income is fairly equal. e.g. I don’t have to account for her traditional IRA money when converting my 401k funds into a Roth IRA. Now that only one of us is working, does it make more sense (tax-wise) to get married? Our gross income will remain about equal due to the large Roth conversions I will be doing for the next few years, but I’m afraid I might get stung my something like AMT if we don’t file jointly.
4b) Any other financial reasons to get married or stay single that I might not be seeing? Health insurance costs are a wash.
On Cash Management:
5a) I have a lot of cash on hand. We have competing interests for it: mostly paying taxes on Roth conversions, buying a modest home in a couple years, and perhaps bridging a few years of retirement before year 6 of my Roth ladder. Any recommendations on better optimizing the plan for this cash?
submitted by mouse_with_many_nons to financialindependence [link] [comments]

So if I were to cash out, the short term capital gains tax is huge.

So if I'm looking at the charts correctly, if I take out more than $500,000 before 1 year, I get taxed 37%. This seems like a crazy amount to me.
But then, if I were to buy real estate in, say, New York City, with Bitcoin, I would pay property tax of between 1-2% on the property when I buy it. And that would be that, right? And the way that works is that if I sell, and New York City real estate is incredibly liquid, I only pay capital gains tax on the profit, not on the sale, and the first $250,000 is tax-deductible, according to what I've been reading. Is this a good strategy? Or does anyone know something I don't? Buying real estate with crypto seems like a really great way to pay less in taxes.
Edit: Alright never mind, looks like I am still liable for capital gains tax. When I contacted my accountant, he said something about paying less in taxes through creating an IRA, company, or fund that is tax-free up to a certain amount or something, and then a flat 10% penalty tax after that amount, so maybe there's still hope for those of us looking to avoid taxes.
submitted by jake15151 to CryptoCurrency [link] [comments]

Early partial retirement on $1.2M…lots of questions:

Not a humble-brag. We’ve been extraordinarily lucky, especially in the recession. Have many questions at the end. Would appreciate guidance. Cross-posting to /personalfinance and /financialindependence
Bio
Age 36. My girlfriend of 15 years is few years older than me. We consider ourselves married socially, but haven’t formalized things with the government. Might do so soon, mostly to simplify/optimize estate management in case one of us dies.
Last year we sold our house and I quit my job. I hope never to work again except for something I’m passionate about. Might take occasional contract work to buy toys, fund trips, or pad our bottom line. Might someday start a business if I become infatuated with a business plan. GF still works, for now. Moved to Florida this year from a higher tax and higher CoL area.
Income
I started making ~$60k at age 19 and got steady raises until ultimately making $150k my last year of employment (software). Wife currently makes ~$75k/year working fully virtually in a low-stress job. She had previously been able to reliably bring in ~$120k+ in more stressful on-site work. That makes current income $75k/yr for the next few years, entirely in GF's name.
Savings Rate
We have been in hyper-savings mode for the last 12 years, saving as much as 75% of our take-home income. Incomes grew during those 12 years, so our assets aren’t quite as high as one might assume given our peak incomes. We always maxed out all retirement accounts available to us: 401k, IRA, and HSA’s. I even put after-tax money into my 401k to bring it up to $53k for several years, and still have that after-tax (non-Roth) money in my 401k that I’ve yet to mega-backdoor to a Roth. Money also went into brokerage accounts and a few modest stabs at moon-shot investments.
Expenses
We’ve never spent more than $60k in a year (not including money spent on income taxes). Most years we spend around $45k. On track for a $38k year.
Assets
~$1.2M in assets:
$500k in 401k's (Traditional) - All in S&P 500 index fund
$135k across two Roth IRA’s (Mostly dividend stocks)
$51k Traditional IRA, (Mostly dividend stocks, REIT)
$62k brokerage account, in a playground of 10 individual blue chip stocks
$33k across multiple HSA accounts (70% index funds, 30% cash)
$78k current value of Pension lump sum buy-out offer
$150k in cash (mostly house sale proceeds)
~$180k in Bitcoin (legally purchased ages ago)
RV we live in is worth about $80k, but don’t count it as an asset since I doubt we’ll sell it before it's worthless.
Liabilities / Obligations
No debt. Currently paying for daughter's college. (Starting year #2 this fall). We have a LOT of pre-tax money and unrealized gains, though, which almost feel like accrued liabilities.
Goals
1) Enjoy life. No more working 60-70 hour weeks in jobs we dislike.
2) Maintain safety net so we never have to worry about putting food on the table
3) Put our daughter through college (1 year done)
4) Allow GF to retire once the kiddo wraps up college
5) Maximize tax advantaged accounts and weigh potential legal marriage.
6) Use our cash-on-hand efficiently
7) Fit in an occasional overseas trip. Didn’t take destination vacations for a whole decade, and regret it.
Current Plan
We are trying to lean up our expenses to 35k/yr or less so that GF can stop working once our daughter is finished with college. Don’t want to push SWR above 3%. Would like to optimize our tax situation wrt retirement funds. Here’s the current to-do list, which I would like feedback on:
While I have no earned income but the GF is still working:
1) GF's income is paying for all our expenses and paying our daughter’s college
2) I will start a Roth ladder this year with my 401k’s (I have no trad. IRA, those are hers), using cash on hand to pay the taxes on those conversions, filling up the 25% tax bracket
3) I need to complete the mega-backdoor of the ~$50k of after-tax value in my 401k
4) Find a low-cost-of-living town that we enjoy, and build or buy a small ~$100k home. Probably will rent in an area for a year or so before buying.
5) Cash-out pensions and convert to Roth status, probably with a stop in a Traditional IRA for a year first, depending on tax bracket that year.
In 3-5 years:
6) Daughter will be done with college
7) I will start being able to draw contributions from Roth ladder
8) GF will stop working and start her Roth ladder
9) If GF stops working before my ladder is complete, we have previously converted parts of her Traditional IRA to Roth IRA’s on years she wasn’t working, so we can withdraw those penalty free.
At any time:
10) Sell 30% of our Bitcoin each time they become more than 30% of our net worth. I know I’m overweight on Bitcoin, but I’m in it for the long haul and have long since recuperated my initial investment (yes, that’s entirely psychological)
Questions
1a) Any suggestions for improvement?
1b) Talk me out of holding Bitcoin. I’m too bullish on it.
1c) Holding too much cash? Not enough? We will need it for housing
1d) What’s your opinion on paying for professional guidance at this point? Does it pay for itself?
On Roth Conversions and Rollovers:
2a) How concerned should I be about the new legal limit on one rollover per 12 mo period, with regard to the Roth ladder?
2b) If we arrange to never hold the rollover check ourselves, and do a 401k rollover plus Roth conversion completely bank-to-bank, does that count against the one-rollover per year?
2c) Will a pension lump-sum payout to an IRA count against the once-per-year roll-over limit?
2d) Will rolling over large amounts of money trigger AMT (Alternate Minimum Tax?)
2e) How do I get started filing quarterly taxes: Do I have to file quarterly if I do all my taxable events (Roth Conversion) in the last quarter of the year?
2f) I’ve seen conflicting advice on this before: When I do a Roth conversion, does the entire amount converted count as a contribution for tax-free withdraw in 5+ years, or do I have to track the original cost basis back to the original tax vehicle’s initial contribution (e.g.: the contribution to the 401k before it grew)? 2g) If the case on cost-basis is the latter, how would I track cost basis for a pension cash-out that I convert?
2f) How should I prioritize the various rollovers at my disposal. I don’t know which to do first:
On HSA’s:
3a) What’s the best way to avoid fees in HSA accounts? They’re atrocious. GF has switched employers and each has demanded to use their own HSA. She now have 3 accounts each charging annual or monthly fees.
3b) Can we combine her existing HSA's, and/or force her employer to switch accounts they deposit to one we setup?
On Marriage:
4a) Currently avoiding a legal marriage, in part because remaining single offers many financial advantages for as long as our income is fairly equal. e.g. I don’t have to account for her traditional IRA money when converting my 401k funds into a Roth IRA. Now that only one of us is working, does it make more sense (tax-wise) to get married? Our gross income will remain about equal due to the large Roth conversions I will be doing for the next few years, but I’m afraid I might get stung my something like AMT if we don’t file jointly.
4b) Any other financial reasons to get married or stay single that I might not be seeing? Health insurance costs are a wash.
On Cash Management:
5a) I have a lot of cash on hand. We have competing interests for it: mostly paying taxes on Roth conversions, buying a modest home in a couple years, and perhaps bridging a few years of retirement before year 6 of my Roth ladder. Any recommendations on better optimizing the plan for this cash?
submitted by mouse_with_many_nons to leanfire [link] [comments]

My experience buying bitcoin in an IRA

Back in late February, I decided I would like to put some of my IRA balance into bitcoin. I had followed GBTC for some time and noticed the premium was down to 10%. I figured that if the ETF was approved the premium would go down but that would more than be made up by a likely big price rise. If the ETF was denied, I figured the premium would go back up to the 30-50% range again and I would be insulated from a pullback.
In late April, early May when bitcoin was starting to rise over $1300 and the premium started going up, I looked into getting a self-directed IRA. I wanted to exploit the (at the time) 30% NAV premium of GBTC and swap them for real bitcoin and profit from the premium difference. I found 2 options. BitcoinIRA and Broad Financial.
BitcoinIRA does a fair amount of advertising but they do not tell you the fees unless you contact them. Doing a Google search makes it look like the only option. I contacted them for more information on security and fees and this is what I received.
The process and security protocols we go through are as follows:
  1. Once the IRA is established with your new custodian, Kingdom Trust Co, our IRA department will work with your existing custodian to transfer funds. This is a tax-deferred rollover.
  2. We then purchase the Bitcoin through our liquidity partner, Genesis Trading. This is an off-the-exchange purchase to increase security.
  3. The Bitcoin are then placed inside your IRA wallet with BitGo.
  4. Three keys are generated and kept in cold storage. One at Kingdom Trust’s certified and insured depository. The second with BitGo’s certified and insured depository, and the third at Keytern.al Recovery Services.
  5. To perform any transaction, two of those keys have to be taken out of cold storage and verified at the same time.
  6. The IRA owner has viewing privileges of their BitGo wallet, and has access to the public wallet address to verify its bitcoin content at any time with blockchain.info or any other company.
  7. In addition, BitcoinIRA carries a $1 million Consumer Protection insurance policy with Lloyds of London that protects you the consumer on the transactional side from any internal cases of fraud or theft.
Still no information on cost. After asking again, here are the fees.
20K to 100K 15% 100K to 200K 13% 200K + 11% Annual custodial fee $100.
I was shocked by such huge fees. I was not willing to part with over 11-15% to set this up, might as well keep GBTC since I purchased it with only a 10% premium. I then contacted Broad Financial. And here is what I received.
Benefits of our Self-Directed IRA • A self-directed plan is a hedge against uncertainty through true diversification • Invest your retirement funds into all investment classes (real estate, private loans, gold & silver, etc.) • Open a checking account for your Ultimate IRA® at any bank of your choosing • Place all investments by simply writing a check • Transfe roll-over your existing retirement funds into your Ultimate IRA®’s checking account • No transaction or asset-based fees Fees • $1,395 - Our one-time fee includes helping you set-up a new self-directed IRA, forming the LLC and the initial State filing fee, creating the customized operating agreement, obtaining a Federal ID Number, preparing all documents, and providing continued support. This can be paid upfront (and is tax deductible) or you can pay $495 upfront and pay the balance from your IRA once it is set-up. • Custodial Fees- Madison Trust Company o $100 - one-time fee which includes setting up the new IRA and funding your LLC o $196 - annually (paid quarterly), covers the annual IRS 5498 report (fixed fee - regardless of your account size, or the number of transactions you place within your IRA LLC).
On further questioning, they confirmed to me that I can decide how the bitcoin is stored. If I want to put the keys on a Trezor, I can. If I do not trust myself and want to use a coinbase multisig vault I can. This was a huge issue for me. I wanted to decide how the bitcoin was stored and Broad Financial allowed for all the options. Interestingly, BitcoinIRA messaged me multiple times about how risky it is to control your own keys. Maybe true for many people but IMO it is not risky if you take the right precautions and have family members you trust. Not to mention paying many thousands for that service. Personally, I have duplicated Trezors, one with me and one with my daughter stored in her safe. I make her plug it in and check that she remembers the PIN and knows how to use it every 6 months.
So, I decided to go with Broad Financial. There were some additional fees of about $200 because of how I wanted to setup the LLC. Some people can avoid that depending on their employment situation. My total cost, including expedite fees and wire fees, was under $2000.
It took about 1 week to get everything set up. During this time, Bitcoin was going crazy. I needed to open a trading account for my new LLC. I submitted applications to GDAX, Gemini, and Kraken. It has been about 3 weeks now, and none of those accounts is open yet. I then submitted to Bitstamp 2 weeks ago and that is still in review. I had my bank account for the new LLC open and an incoming wire but still no way to buy bitcoin. I was getting really worried since I had my cash in limbo. What if the price keeps going up? I discovered itBit. They were able to open my account within 3 days. Just in time. I was nervous because I sold all my GBTC and the funds were going through the legacy banking maze to get to me. It takes about 2 weeks, IRA to IRA to LLC to exchange. Fortunately, I was very lucky when I sold it. It was on the day of the first push to $2800. I sold GBTC at $1 below the highest it has been even up to at the time of this post at $564. This represented a 120% premium over NAV. Crazy.
I did get nervous I was going to get frozen out from completing this transfer. It took 3 days for my bank to send the wire from my LLC to the itBit exchange. It was supposed to go through in 1 day. I had to call in multiple times and was put on hold for quite a while. Finally, they then told me it would go through and it did, although bitcoin was back at $2750. (Would have been nice to get it at $2500 if there was no delay, but I was still happy to end up with over twice as much bitcoin as the NAV of the GBTC I sold.) No explanation for the delay, but I suspect they thought about denying it and it had to be approved by their compliance office. itBit did tell me that they have had some customer bank accounts closed because of transactions with them. They said it seems random and they cannot identify a pattern as to why some are closed.
Anyway, I suspect there a quite a few of you out there who would like to do something similar to this and now you know the process.
submitted by dancanthe to Bitcoin [link] [comments]

Thoughts on investing my Bitcoin profit (in traditional instruments).

I was an early adopter of bitcoin (be nice, total invested, on a lark, was only $250 in 2011). Long story short, I cashed out 80% recently and it's $100k+ after taxes.
Neither my wife nor I have contributed anything to our IRA's in 2017, so I was first planning on opening Roth IRA's for each of us and sending $5,500 to both for 2017 and 2018, which takes care of $22,000. Thought here was keeping it simple with VTIVX - Vanguard Target Retirement 2045. Expense ratio is low, 0.16 (I could do better with a 3-fund but $11,000 is barely enough to fund 3 separate funds, and I think I'd like to avoid the re-balance hassle).
My real dilemma is what to do with the remainder in taxable.
For some background, I just checked my current aggregate retirement allocation and it's 92% equity, 8% bond (almost a year since last rebalance so equity has grown as a % of total in the interim. 90/10 was the target.) Total is $130k.
Additionally, I have an existing taxable account totaling $33k, that is 100% in VWINX - Vanguard Wellesley, which is 60% bonds, 40% stocks (I know, not tax efficient). This has historically been my "tier 2" emergency fund. I have 3+ months net in a low-interest savings account, and this is in a lower risk fund as an additional security blanket (to sleep well at night and all that).
I don't anticipate needing the remainder of this money in the 10-year time horizon, so I am tempted to put it into a retirement allocation. But given that it's taxable, I'm in uncharted waters when it comes to rebalancing and realizing gains each year. I am leaning towards a 3-fund with muni's as the 3rd leg of the proverbial stool, but I'm open to suggestions. I should add, I'm not in quite a high enough tax bracket where the yield on muni's makes sense over corporate bonds, but a part of me doesn't want to deal with the tax implications of more taxable bonds each year (already deal with this because of the Wellesley).
No debt, except 100k on the mortgage @ ~3.5%.
Oh, and this money will be at Vanguard.
Thank you!
submitted by throwaway2017543 to portfolios [link] [comments]

Early partial retirement on $1.2M…lots of questions:

Not a humble-brag. We’ve been extraordinarily lucky, especially in the recession. Have many questions at the end. Would appreciate guidance. Cross-posting to /leanfire and /financialindependence
Bio
Age 36. My girlfriend of 15 years is few years older than me. We consider ourselves married socially, but haven’t formalized things with the government. Might do so soon, mostly to simplify/optimize estate management in case one of us dies.
Last year we sold our house and I quit my job. I hope never to work again except for something I’m passionate about. Might take occasional contract work to buy toys, fund trips, or pad our bottom line. Might someday start a business if I become infatuated with a business plan. GF still works, for now. Moved to Florida this year from a higher tax and higher CoL area.
Income
I started making ~$60k at age 19 and got steady raises until ultimately making $150k my last year of employment (software). Wife currently makes ~$75k/year working fully virtually in a low-stress job. She had previously been able to reliably bring in ~$120k+ in more stressful on-site work. That makes current income $75k/yr for the next few years, entirely in GF's name.
Savings Rate
We have been in hyper-savings mode for the last 12 years, saving as much as 75% of our take-home income. Incomes grew during those 12 years, so our assets aren’t quite as high as one might assume given our peak incomes. We always maxed out all retirement accounts available to us: 401k, IRA, and HSA’s. I even put after-tax money into my 401k to bring it up to $53k for several years, and still have that after-tax (non-Roth) money in my 401k that I’ve yet to mega-backdoor to a Roth. Money also went into brokerage accounts and a few modest stabs at moon-shot investments.
Expenses
We’ve never spent more than $60k in a year (not including money spent on income taxes). Most years we spend around $45k. On track for a $38k year.
Assets
~$1.2M in assets:
$500k in 401k's (Traditional) - All in S&P 500 index fund
$135k across two Roth IRA’s (Mostly dividend stocks)
$51k Traditional IRA, (Mostly dividend stocks, REIT)
$62k brokerage account, in a playground of 10 individual blue chip stocks
$33k across multiple HSA accounts (70% index funds, 30% cash)
$78k current value of Pension lump sum buy-out offer
$150k in cash (mostly house sale proceeds)
~$180k in Bitcoin (legally purchased ages ago)
RV we live in is worth about $80k, but don’t count it as an asset since I doubt we’ll sell it before it's worthless.
Liabilities / Obligations
No debt. Currently paying for daughter's college. (Starting year #2 this fall). We have a LOT of pre-tax money and unrealized gains, though, which almost feel like accrued liabilities.
Goals
1) Enjoy life. No more working 60-70 hour weeks in jobs we dislike.
2) Maintain safety net so we never have to worry about putting food on the table
3) Put our daughter through college (1 year done)
4) Allow GF to retire once the kiddo wraps up college
5) Maximize tax advantaged accounts and weigh potential legal marriage.
6) Use our cash-on-hand efficiently
7) Fit in an occasional overseas trip. Didn’t take destination vacations for a whole decade, and regret it.
Current Plan
We are trying to lean up our expenses to 35k/yr or less so that GF can stop working once our daughter is finished with college. Don’t want to push SWR above 3%. Would like to optimize our tax situation wrt retirement funds. Here’s the current to-do list, which I would like feedback on:
While I have no earned income but the GF is still working:
1) GF's income is paying for all our expenses and paying our daughter’s college
2) I will start a Roth ladder this year with my 401k’s (I have no trad. IRA, those are hers), using cash on hand to pay the taxes on those conversions, filling up the 25% tax bracket
3) I need to complete the mega-backdoor of the ~$50k of after-tax value in my 401k
4) Find a low-cost-of-living town that we enjoy, and build or buy a small ~$100k home. Probably will rent in an area for a year or so before buying.
5) Cash-out pensions and convert to Roth status, probably with a stop in a Traditional IRA for a year first, depending on tax bracket that year.
In 3-5 years:
6) Daughter will be done with college
7) I will start being able to draw contributions from Roth ladder
8) GF will stop working and start her Roth ladder
9) If GF stops working before my ladder is complete, we have previously converted parts of her Traditional IRA to Roth IRA’s on years she wasn’t working, so we can withdraw those penalty free.
At any time:
10) Sell 30% of our Bitcoin each time they become more than 30% of our net worth. I know I’m overweight on Bitcoin, but I’m in it for the long haul and have long since recuperated my initial investment (yes, that’s entirely psychological)
Questions
1a) Any suggestions for improvement?
1b) Talk me out of holding Bitcoin. I’m too bullish on it.
1c) Holding too much cash? Not enough? We will need it for housing
1d) What’s your opinion on paying for professional guidance at this point? Does it pay for itself?
On Roth Conversions and Rollovers:
2a) How concerned should I be about the new legal limit on one rollover per 12 mo period, with regard to the Roth ladder?
2b) If we arrange to never hold the rollover check ourselves, and do a 401k rollover plus Roth conversion completely bank-to-bank, does that count against the one-rollover per year?
2c) Will a pension lump-sum payout to an IRA count against the once-per-year roll-over limit?
2d) Will rolling over large amounts of money trigger AMT (Alternate Minimum Tax?)
2e) How do I get started filing quarterly taxes: Do I have to file quarterly if I do all my taxable events (Roth Conversion) in the last quarter of the year?
2f) I’ve seen conflicting advice on this before: When I do a Roth conversion, does the entire amount converted count as a contribution for tax-free withdraw in 5+ years, or do I have to track the original cost basis back to the original tax vehicle’s initial contribution (e.g.: the contribution to the 401k before it grew)? 2g) If the case on cost-basis is the latter, how would I track cost basis for a pension cash-out that I convert?
2f) How should I prioritize the various rollovers at my disposal. I don’t know which to do first:
On HSA’s:
3a) What’s the best way to avoid fees in HSA accounts? They’re atrocious. GF has switched employers and each has demanded to use their own HSA. She now have 3 accounts each charging annual or monthly fees.
3b) Can we combine her existing HSA's, and/or force her employer to switch accounts they deposit to one we setup?
On Marriage:
4a) Currently avoiding a legal marriage, in part because remaining single offers many financial advantages for as long as our income is fairly equal. e.g. I don’t have to account for her traditional IRA money when converting my 401k funds into a Roth IRA. Now that only one of us is working, does it make more sense (tax-wise) to get married? Our gross income will remain about equal due to the large Roth conversions I will be doing for the next few years, but I’m afraid I might get stung my something like AMT if we don’t file jointly.
4b) Any other financial reasons to get married or stay single that I might not be seeing? Health insurance costs are a wash.
On Cash Management:
5a) I have a lot of cash on hand. We have competing interests for it: mostly paying taxes on Roth conversions, buying a modest home in a couple years, and perhaps bridging a few years of retirement before year 6 of my Roth ladder. Any recommendations on better optimizing the plan for this cash?
submitted by mouse_with_many_nons to personalfinance [link] [comments]

California Roth IRA - transfer to Bitcoin. Then transfer back. 13% fee.... is it worth it? Avoiding Cap gains state and Fed 33%

Hey guys!
I live in California. I'm 40 and plan to retire here in CA. I wanted to put a substantial amount into a "crypto IRA" that charges 13% fee on the entire amount. I currently have $100,000 in stocks in an Roth IRA that I want to Roll into a crypto Roth IRA (bitcoinira.com)
California has a 13% long term capital gains tax US Fed has a 15-20% long term calital gains tax (I believe I'll be in the 20% bracket) So that's a *33% TAXES I'm trying to avoid. (legally through a ROTH IRA)
Example: Roll $100,000 into a Roth IRA holding Bitcoin (and other crypto). Pay $13,000 in fees (the 13% bitcoin IRA fee)
in 2018 it turns into $200,000. and I take the initial $100,000 and put it back into more conservative stocks (ie S&P and QQQ stocks etc)
Result: Have $100k in stocks and $100k in bitcoin in 2019 and continue
Does it make sense to roll my roth into this IRA for the time being.
Has anyone tried something like this?
EDIT: I guess I have to add a disclaimer or explanation: this is about 2% of my net worth. I have a lot of stocks, cash, gold and investmetns in real estate held outside of my Roth IRA. EDIT: If you don't know what a Roth IRA there's no reason to comment about this being tax evasion... A Roth IRA is legal and very common in investing... EDIT: Disclaimer- I am probably a fool and also understand I'm gambling 2% of my net worth. I don't advise to anyone to do what I'm doing. I'm just bad with math and want to make sure I'm OK paying 13% fees to some IRA Trust. I wouldn't mind losing it. I'd be more mad paying 33% on my capital gains then I would on losing the original amount in full thanks I predict Bitcoin will double or triple this year. Again I am a fool ;)
:-) But seriously I do enjoy the discussion thanks guys...
EDIT: Here's the site I was interested in rolling... I'm still not certain if it's the best choice or if I should go with a self-directed IRA instead.
https://www.bitcoinira.com
EDIT UPDATE: I'm not as satisfied with BitcoinIRA as I wished. They put more into selling and marketing then charge you the big 13-15% fees and hike up other fees. They should make the product more user friendly and have better customer service instead of just putting everything into their marketing
I hope at the least this can help out some people who are into cryptocurrency and blockchain technology investing.
submitted by crayola110 to personalfinance [link] [comments]

Transferring bitcoin into Roth IRA

Hey everyone,
Been looking at bitcoin for a while now and have been skeptical, but I believe it’s gotten enough publicity that it might be viable. I’m starting my Roth IRA this month and am looking to add bitcoin to my portfolio, my strategy is to make risky long term investments at the start and make safer investments as I age. I’m theorizing that bitcoin will have a significant drop in price in the coming years and will attempt to sell it at its Peak price, but I’d like it to be sold in my Roth IRA in order to avoid taxes on Capitol gains. So my question is:
Can bitcoin be transferred to a Roth IRA with a brokerage such as Charles schwab?
Also what is a good initial investment into bitcoin?
If I’m unable to transfer it, I still plan on buying some, but I prefer to avoid those taxes.
Thanks
submitted by Im_A_Director to Bitcoin [link] [comments]

01-13 05:13 - 'Transferring bitcoin into Roth IRA' (self.Bitcoin) by /u/Dash_BE removed from /r/Bitcoin within 50-60min

'''
There is an old archived post titled
Transferring bitcoin into Roth IRA
📷 Posted by[u/Im_A_Director]1 [1 year ago]2
Here it is:
Hey everyone,
Been looking at bitcoin for a while now and have been skeptical, but I believe it’s gotten enough publicity that it might be viable. I’m starting my Roth IRA this month and am looking to add bitcoin to my portfolio, my strategy is to make risky long term investments at the start and make safer investments as I age. I’m theorizing that bitcoin will have a significant drop in price in the coming years and will attempt to sell it at its Peak price, but I’d like it to be sold in my Roth IRA in order to avoid taxes on Capitol gains. So my question is:
Can bitcoin be transferred to a Roth IRA with a brokerage such as Charles schwab?
Also what is a good initial investment into bitcoin?
If I’m unable to transfer it, I still plan on buying some, but I prefer to avoid those taxes.
Thanks
The comments/replies are closed so here is a new start to get a thread going.

You cannot transfer crypto holdings into a retirement account. The account is treated independently from the owner and the IRA account must purchase the crypto. (Don't we all wish it was possible though!)

You will need some help investing in crypto in a retirement account (Roth IRA , 401(k)).
A specializing lawyer, a self-directed bitcoin ira company, or an investment advisor can help you. There are not a lot of these companies out there. Here is a short video with 3 questions you should ask when selecting a provider - [`[link]4

'''
Transferring bitcoin into Roth IRA
Go1dfish undelete link
unreddit undelete link
Author: Dash_BE
1: w**.red*it.com/us*I*_***irector 2: *ww.re*dit.com/*itcoin/*omm*nts/*hro7e/t***sfer*i*g_bi*c*in_***o**ot*_ira/ 3: www.*ou*ub*.c*m*wa*ch*v=**A5H5Xn0ic 4: ww**youtu*e.com/wat*h?v=***5H5**0i*]3`
Unknown links are censored to prevent spreading illicit content.
submitted by removalbot to removalbot [link] [comments]

When the title is "The Federal Reserve is such a scam," and the link goes to YouTube, you know it's going to be good

The whole thread is a pile of rage-vomit inducing nonsense, but that's to be expected when it hits the badecon trifecta:
  1. Involves Bitcoin - Check!
  2. Talks about the Fed - Check!
  3. Links to YouTube - Check!
  4. Bonus: OP made the YouTube video in question
That said, I'm going to focus on just one post by the OP:
The problem is that printing more money steals from the savers and favors the lenders. It's immoral and it's straight up fraud, and makes it damn hard to save for retirement. The fresh money is not fairly distributed and tend to inflate the housing market. My understanding is that when interests go back up, the housing market(bubble) contracts, and the money is "released" and inflation runs wild.
Let's go through this line by line:
The problem is that printing more money steals from the savers and favors the lenders.
Inflation, which can be caused by printing money does reduce the real value of cash-under-the-mattress savings. In that sense, it does act as a penalty for those who would remove their savings from the economy. That is not the same as "stealing from savers." There are simple, no risk, inflation-beating ways to save such as investing in intermediate term treasuries or (in a tax-free account, e.g. a Roth IRA) TIPS. There are many ETFs that do this for a very small (e.g. <10bps) management fee to save you the trouble of re-investing the coupons. Furthermore, moderate inflation acts as a buffer against deflation with all the problems that carries. One could make a quite reasonable argument that, even viewed as a tax, controlled inflation is basically an insurance premium (i.e. pay 2% to avoid potential catastrophic issues down the line) that will be refunded (I am a big Fisher fan) if you just keep your money in the economy instead of hoarding it in a dragon pile under your mattress.
Now, let's address the part about favoring lenders. This is just plain silly. First, the expected rate of inflation is (or at least should be) built into the interest rate on a loan. Continuously compounded, the market rate on a loan should be approximately (expected rate of inflation) + (risk premium) + (minimum acceptable real return). Known steady inflation doesn't benefit anybody in the borrower-lender relationship; it's just a factor in determining the fair interest rate. Accelerating inflation on the other hand helps the borrower in fixed rate (and even adjustable rate) loans as it reduces the real burden of his debt.
Now, on to the next!
It's immoral and it's straight up fraud, and makes it damn hard to save for retirement.
If he was right about it's being theft, I'd agree that theft is immoral. However, that is not the case. I don't even know where fraud would come in here. Nobody guaranteed you that a dollar will always have constant purchasing power; you were not defrauded. Furthermore, there's nothing stopping you from being paid in an asset of your choice if should so desire. That is a matter between you and your employer. If you want inflation protection, ask to be paid in TIPS or barrels of oil or BTC or .
Please don't ask me to explain his assertion that steady inflation "makes it damn hard to save for retirement." Just invest your savings in a diversified portfolio of income (e.g. dividend or interest) generating assets and you'll do fine because, and I'm going to repeat myself because I can't emphasize this enough, expected inflation is factored in to the market price of assets. Other investors are semi-rational too. They worry about inflation too. And they too are going to consider their inflation expectations when they buy assets. This is why TIPS have a lower nominal yield than vanilla treasuries.
The only partial truth in his statements would be that inflation shocks hurt savers because that devaluation is not included in asset prices (tautologically). However, spiking (or plummeting) inflation mean the Fed is failing in its mandate. Should that happen, it wouldn't be a scam, it would be a failure, but fortunately we've had pretty steady inflation for a while now.
The fresh money is not fairly distributed and tend to inflate the housing market.
Sources? Inflation was not particularly high during the most recent housing bubble, nor was money being "printed" at a particularly rapid rate. In fact, money supply growth was, broadly speaking, decelerating from 2000-2005. But why let evidence get in the way of a good rant?
My understanding is that when interests go back up, the housing market(bubble) contracts, and the money is "released" and inflation runs wild.
There is so much going wrong here, I don't even know where to begin, so let's just go in order.
when interests go back up
Does he mean, "when the Fed allows interest rates to rise?" Because, if not, he's more or less positing a complete failure of the Federal Reserve's main tool. And if that is what he meant, then it's probably safe to say that the Federal Reserve would do this step-by-step to allow the market to adjust without causing a huge shock.
when interests go back up, the housing market(bubble) contracts
This is probably true. By increasing the total cost of a mortgage, higher interest rates should depress real estate prices. But wait!
and the money is "released" and inflation runs wild.
How does depressing values release money? It's like he thinks of asset bubbles like pimples: when you pop them stuff comes out (money in this case). That is not what happens; the value is just gone, you don't get your money back, and there is no flood of cash in the economy driving up prices. I mean think about this for a second (before we get to the actual data). He's asserting that a precipitous fall in prices should cause inflation. If that's not a contradiction, I don't know what is. Just to be thorough though, let's look at the CPI during that most recent housing bubble collapse. See the big drop? That's deflation (albeit rapidly corrected deflation), not inflation. What I really love here though is the suggestion that increasing interest rates causes inflation. Because, you know that's totally how Volcker pushed down inflation in the 80s: by dropping interest rates to zero, right? It amazes me how silly this is: higher interest rates provide a higher incentive for investment, thus reducing current consumption, which should in turn reduce prices (because there is less demand).
I feel like I should close with a good, stinging insult here, but after going though that thread again, I'm actually a little ashamed that I am, genetically speaking, 99.9% identical to these people, and I just don't want to think about it anymore; it's just too depressing.
submitted by ajmarks to badeconomics [link] [comments]

Advice for new bitcoin millionaires (warning, she be long)

Hi,
This is a thread that is in response to the post about a warning to new bitcoin millionaires.
First things first, I would like to credential myself, I am a CPA, I work primarily in audit at one of the big 4 accounting firms so while taxes are not my forte, I am knowledgeable to an extent. There seems to be a lot of BTC Millionaires or thousandaires coming forward and I just don't see practical accounting advice being tossed around here so I am going to try and condense it.
If you just struck it rich with the latest (and greatest) money making scheme (BTC is not a scheme but bear with me here) then you need to watch yourself very carefully.
The US is NOT against BTC, they just do not know what to do with it. It's new, it's not well understood (by politicians) and therefore they are approaching it with great caution. What this means for you guys is you need to be careful and not reckless with your new found pile of money.
advice #1) if you are not a CPA, finance major, or anything related to the field of managing money holy fuck please seek advice.
AT MINIMUM, speak to a CPA about managing money, and tax planning. For a peanuts fee, they will be able to make sure you do not fall into anything illegal and help make sure your new found wealth goes as far as you possibly can.
Advice #2) Understand the concept and idea behind tax planning, and tax evasion.
one is illegal, and one is not. Tax evasion is illegal, tax evasion with tarnish BTC, tax evasion is a shitty way to lose your fortune.
Tax planning is the critical thinking before you cash out to ensure that you pay the minimum legally speaking in taxes.
there are lots of options here in tax planning and this is where talking to a CPA or financial planner can seriously help you out. The easiest way to have some sort of tax planning is to pay long-term capital gains taxes.
This means holding your BTC investment for a period > 1 year and exercising your rights to a lower tax rate (i believe 15% but do NOT quote me)
This is by and far the absolute easiest way to ensure you are not walloped with a serious tax bill. furthermore, when you do cash out, immediately take your taxable amount and stick it into a separate savings account. This will help act as a fail-safe in the situation where you get new-money-fever and spend every dime you got in a week. (it can happen)
more complex options would be to look into setting up trusts, real-estate trusts, IRAs, and other types of retirement planning options, this WILL require the use of an investment manager, so please, if this is not enough said yet, meet with an expert to talk about you money.
Disclaimer: the above two mentioned items are safe, like living in a house wit padded walls while wearing iron armor safe. The below mentioned ways of tax planning involve more shady tactics, things that blur the line bewteen tax planning and tax evasion so please....just use the above two items PLEASE.
your third option would be start an LLC (a company), and transfer in your BTC investment before you cash out. you will HAVE to have a valid business reason for this, you cannot do this just to avoid taxes.
start a horse farm, start a rental company, start something, but it has to be real, it has to be practical, and you have to pretty much devout all your time to this. (don't do this)
your fourth and final option would be to say fuck its, and cash out and not pay uncle sam a dime.
to that, I say, good fucking luck. for this to even have the smallest, tiniest, most microscopic bubble-fart chance in hell of working would be if you exchanged your coins for cash, stuffed them into a matress, and sit on it.
why? because banks that see a transaction greater than $5k (maybe changed to $10k) will create a 'large, unusual transaction' which get filed with the IRS. To those saying, 'well that's easy, I will just make small deposits over a period of time' again, good fucking luck, not only does this take a serious amount of time, but banks can recognize patterns, and they will figure it out.
Janitor with a salary of $50k per year all of a sudden making 30 deposits that total up to $50k? that seems weird, let's look into this.
and oh yea, when you get caught for tax evasion, the government gets everything. they seize everything you got, charge you interest and the last swift kick to the nuts while your screaming on the ground? your credit is finished.
Once you get out prison, you have $0, you have no credit, you have no house, no car, no assets, nothing. No decent job wants to hire a criminal.
all to save 15% of your non-existent* millions? please, it's not worth it, just pay your damn taxes like every other schlub on the block.
*I say non-existent because that's exactly what your new found fortune is, collectively, the entire BTC early adopters basically hit the powerball and a year prior to this, your life was/is radically different. So step back, be thankful that you are now catapulted into the wealthy and pay your dues so you don't have a headache later on.
LASTLY - I would not be worth my salt if I did not weigh in on my opinion on BTC. This is new, this is ground breaking, I personally love it, however, there is not an investor in the world that is not going to tell you to cash out and I am no different.
why?
because any time you make 50x your initial investment you need to cash out no matter how sweet or great the future outlook is. I am not saying I thikn BTC will implode, i'm just saying when you make that kind of return, you just walk away and go find a yacht, some coke, and a titty to blow it on.
kidding about the blow part.....serious about the titty.
submitted by whenyouknowyouknow to Bitcoin [link] [comments]

Roth IRA holding Bitcoin and Crypto.

RE taxes: I'm going to bet the majority of my roth IRA (avoid any capital gains tax but can't take out until 59 yrs in USA) on bitcoin. I'm actually going to be putting it into BitcoinIRA.com which unfortunately charges 10% fees on initial deposit.
They unfortunately have high 10-15% fees when you roll into and 1% fees when you roll out your funds.
I was goiing to hold bitcoin for a year or less in their Roth IRA trust and then roll it back 50% of the profits into e*trade after about 6-12 months. Hopefully taking a 100%-300% gain during that time.
submitted by crayola110 to CryptoTax [link] [comments]

No tax

As property, investors must pay capital gains tax on any increase in the value of their bitcoin. With a Roth IRA, investors can buy bitcoins with post-tax dollars and avoid paying any taxes on their gains when they cash out. As with any IRA, however, investors can only withdraw disbursements without suffering penalties after age 59 ½.
submitted by Bvb00007 to Bitcoin [link] [comments]

Cashing Out... Now what about taxes? (USA)

Good evening all,
As of the time I'm posting this I'm getting ready to cash out my bitcoins (well, most anyway). Call me foolish or call me silly but it's my choice. I started purchasing bitcoins several years ago after reading about it on ycombinator. I have (at last look) around $200,000 worth of BTC. Does anyone know how this works with taxes? I know that it is capital gains but is it possible to roll this into an IRA or retirement fund to avoid (or lessen) taxes? Has anyone had to transfer large sums before? I'm in college at the moment and don't want to have a large sum of money sitting in the bank. I'd rather just put it back for retirement so I don't feel tempted to blow it all on stupid stuff.
Thanks
EDIT: Screw it, I'm leaving school for the day and going to talk to a financial advisor. Thanks guys (and gals).
submitted by DearGodItHappened to Bitcoin [link] [comments]

[uncensored-r/Bitcoin] No tax

The following post by Bvb00007 is being replicated because some comments within the post(but not the post itself) have been silently removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ Bitcoin/comments/72g88s
The original post's content was as follows:
As property, investors must pay capital gains tax on any increase in the value of their bitcoin. With a Roth IRA, investors can buy bitcoins with post-tax dollars and avoid paying any taxes on their gains when they cash out. As with any IRA, however, investors can only withdraw disbursements without suffering penalties after age 59 ½.
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

Help getting my investments in order

First off, I just want to say thank you to everyone in this subreddit. I spent the past two days reading through wikis, learning about backdoor Roth contributions, etc. and am exponentially more informed than I was last week.
That said, I'm hoping for some advice getting my investments in order. Here is a rough breakdown of my accounts:
1. What should I do with my converted 401k?
My new employer does not do 401k matching, so yesterday I took my previous employer's 401k with John Hancock and submitted a request to convert it to a rollover IRA with Schwab (to avoid JH's maintenance fees). Now, should I keep this as a traditional IRA, or try to convert it to a Roth and pay the tax burden? The answer may hinge on question two, which is:
2. What's my best shot at contributing to my Roth this year?
I got a new job last year and I will now be just over the income limit for Roth contribution, even if I remove my annual $3k HSA contribution. If I convert my rollover IRA to a Roth I will need to pay income tax on that 401k, and if I make a $5500 IRA contribution I think I will have to pay taxes when I try to backdoor that to a Roth (due to my rollover IRA). Do I understand this correctly, and if so which direction would you recommend?
3. How should I move forward with my tanking / risky positions?
I want to remain long on 55% of my brokerage positions, but I'm not sure what to do with the remainder, as well as with my bitcoin (where I'm down $11k): ~30% of my brokerage positions have done very well over the past few years but are volatile / high-risk and another 15% of my holdings are down 25% in the year I've held them (though I still believe in the company's model, long-term).
submitted by deltaqueue to personalfinance [link] [comments]

Newbie trying to figure things out. Saving, Retirement, Interest Only Mortgage. Advice Please!

First ever Reddit Post (long time lurker), go easy on me!
Alright so Ive always lived my life moment to moment. Thats sounds nice, but what it means is Im lazy as shit and dont worry about the future. Im trying to change that. Im: -in my early 30s -single -Gross roughly $60k/year, though more is achievable through OT (but lazy) -home owner, latest 30 year commitment came 12 months ago ($1400+ total mortgage payment) -no other major debts (just paid off car loan)
So where to begin. New year, new me. I started late last year, losing weight and feeling better about myself(ill save that for /loseit). But this new sense of self has me realizing Im terrible with finances and dont have a solid plan for retirement, and saving in general. I want to change that. After seeing the retirement post that reached the front page the other day, Ive increased my employee 401k contribution to 6% to get full advantage of their wonderful 10% on 6% match /s, but free money is free money. Im in the process of setting up a roth ira with a target retirement fund which I plan to max out yearly. Im getting it rolling with a $1000 investment to 2016 and making direct deposit weekly contributions. Good? I hope so.
Ok, so Im trying to to have something for the future, but what about the now? I currently have $2k in cash, with another $2500 cash coming shortly. Tax returns coming up, but I usually only get back around $2k. So lets say I'll have around $6k to play with. I feel I have 3 options: 1) Put most of the money in the ira, I can still put another $4500 into the roth under 2016 2) Keep/Invest that money into an emergency fund and try to build said emergency fund (cause I dont have one an official one, more on that later) 3) Put money towards principle of my interest only mortgage loan...sooo....
...what is an interest only mortgage loan? Youd think Id know since I have one, but no. I just wanted this house and they said this would be the best way to keep the monthly payment down (and avoid PMI) so my total mortgage cost would be closer to my previous mortgage cost. A year ago I said fuck it, lived in the moment and have been making my (basically) minimum payments (maybe up to $10 per month to principle). Stats on the loan: -"Interest only home equity" -$21k -20 year -4.99%
So my basic understanding is Im only required to pay the interest on the loan (roughly just under $100), and what Ive managed to figure out tonight is that I will technically do this for 20 years and than I will owe the $21k lump sum. Is that correct? Obviously that doesnt sound appealing anymore, so should I start aggressively trying to pay it down? Or is it possible to use money that would go towards the principle and invest it in a way that works out better for me in the long run? And should I worry more about the interest only loan or an emergency fund, in general? I did forget to mention my current "emergency fund" are 6+ bitcoins, a motorcycle, and multiple firearms and ammunition I could liquidate if I needed cash. Though I have awesome, financially responsible, parents if I really ran into trouble. So im leaning towards worrying about an emergency fund last.
Ok thats all I got for now. All advise is welcome. I cant change the past, but I can change the future.
TL;DR: How should I tackle a 20 year $21k interest only loan, while still planning for the future
submitted by EvrythingElseIsTaken to personalfinance [link] [comments]

Roth or Traditional IRA for internship money?

Background:
I'm 21 years old and currently interning as a field engineer in the petroleum industry. Pay is $22/hr and I'm typically getting 50 hours a week, if not a bit more. It's definitely one hell of an opportunity and I'm making more money than I ever have before.
I have zero debts and minimal living expenses. My employer covers my rent and lunches for the summer. Parents are covering education expenses, phone bill, gas, insurance, etc. They also provide a property where I live rent-free (in exchange for acting as the landlord) and a car for me to drive. I basically pay for groceries, some clothes, entertainment, and other minor things using money from a monthly allowance and my work as a musician.
I have a credit card with Bank of America that I use on a regular basis and pay off in full each month. I have about 10k divided between three different mutual funds through Wells Fargo. (After doing research it seems like index funds might have been the better option, but I followed the advice of my grandma's financial adviser.) I have a small emergency fund that I could subside on for several months. I own one bitcoin.
My current plan with this new source of income is to pad the aforementioned emergency fund, max out my annual IRA contribution, and save for eventual housing/automotive expenses. Maybe reward myself with a reasonable purchase of some sort.
Obviously any critique of the above is welcome, but I just wanted to give some background. I'm in a very fortunate situation and I think I'm making the most of it. I plan on working as an engineer within the petroleum industry upon graduation, so it's safe to say there's a high earning potential there. I ultimately want to provide these same opportunities to my future kids while enjoying a fairly high quality of life.
Main Question:
My Mom agrees that I should put a chunk of my earnings into an IRA, but she thinks a Traditional is a better option. Her thought process is that deducting the $5,500 will allow me to avoid most, if not all taxes by dropping my reported income to a lower level.
I think the taxes I'd pay on my income with a Roth would pale in comparison to the taxes on a Traditional that would result after this $5,500 grew for fifty years. I very well could be wrong though.
So, /personalfinance, which is the better choice? Is there any sort of calculator I could use to work through this?
Following advice I've seen on here, it looks like I should open my IRA with Vanguard and use a fairly aggressive portfolio due to my age. Some of those target date funds sound appealing.
submitted by bird_lives_ to personalfinance [link] [comments]

Skeptic Inquirer

Dear bitcoin skeptics,
I believe bitcoin has some sort of chance to become the dominant wealth storage mechanism as well as transactional currency in the world. Let's say it's like believing in God, which I introduce here only as analogy. I do, and you don't, and I respect that. But just like any religious believer, I'm curious and a bit puzzled about your frame of reference, about the consistency in your view. I'd like to ask you some questions if you are willing to entertain a civil discussion.
The motivation for the previous question is I'm wondering if it's a qualitative difference or quantitative. Do you believe in God just a little bit, but don't believe that he's all powerful in your life. Or is there just no way he exists.
submitted by sandball to Bitcoin [link] [comments]

How to Avoid Paying Taxes on Cryptocurrency and Bitcoin ... How to File Taxes on your Bitcoin Cash and Avoid IRS Troubles How Can I Avoid Paying Taxes On Bitcoin And Crypto [100% ... How do I Legally Avoid Taxes on Bitcoin and Crypto?? HODL and Charitable Donations Adam Talks - The Best Way to Buy Bitcon is in an IRA and it's not even a debate

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