Inflation is my biggest reason for converting fiat to Bitcoin.
I have rationalized leaving money in my 401K because it represents actual companies that create wealth.
I decided this was fundamentally different from the fiat money in my checking account, thus OK to hold.
Upon retirement I will incrementally convert the 401K to a Bitcoin / Fiat mix as needed.
I am interested in hearing any comments you have.
Thanks!
30 sats \ 1 reply \ @Undisciplined 24 Apr 2023
I'm not close to retirement, but I view my various retirement accounts in a similar way. There's nothing fiat about investing in real companies and while shares are denominated in dollars, that's just a convention. Shares could just as easily be priced in Bitcoin.
I did recently go through my portfolio and divest from as much "fiat" as I could: no more Big Tech or US Treasuries.
reply
21 sats \ 0 replies \ @chaoticalHeavy OP 24 Apr 2023
Thanks for your comment. I have switched from Big Tech (that depends on cheap credit to expand) to stocks that issue dividends.
reply
20 sats \ 1 reply \ @BlokchainB 24 Apr 2023
My pushback on the 401k is:
- It uses pre tax dollars.
- They are a pain to liquidate.
- Wall Street pushes this product due to the rent seeking fees they get for just moving money around
Taxes are at an all time low. It’s only a matter of time before they go up.
Plus most 401k investors passively invest thus increasing the rent seeking that plagues society today. and prop up companies that don’t share your world view or values
I would say if you can use post tax dollars on everything possible. Roth IRA and/or Roth 401k if you qualify.
Next be ready for anything. If you woke up tomorrow and somehow your 401k balance got deleted how would you feel?
Lastly, I believe in humanity and companies thus I will always support the purchase of stocks but don’t be fooled by this 401k shell game you can do the same with a basic Robinhood account and search what ever index stocks you want to own then chill.
reply
100 sats \ 0 replies \ @chaoticalHeavy OP 24 Apr 2023
->"They are a pain to liquidate"
->"prop up companies that don’t share your world view or values"
->"somehow your 401k balance got deleted"
You have brought up some of the reasons I want to have the discussion. Thank you.
reply
20 sats \ 1 reply \ @grayruby 24 Apr 2023
Nothing wrong with having some stocks in your retirement account. I do the same. I also hold stocks in a non retirement account but I am slowly selling them off to buy more bitcoin. That being said I am not against adding to positions either when I see value I bought more SQ when that hindenburg hit piece came out.
Bitcoin, provided it gains adoption as we all expect, should also provide for a good retirement. Make sure you set aside some for the kids (if you have kids). Depending how far in the future you are retiring you may only need 0.1BTC a year or less to fund your full retirement and certainly less if you have other sources of income.
reply
60 sats \ 0 replies \ @chaoticalHeavy OP 24 Apr 2023
->may only need 0.1BTC a year or less to fund your full retirement "
I'm shooting for a steady state; perpetual growth equal to my expenses.
reply