Rolled over 401k into bitcoin today. \ stacker news ~bitcoin

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1453 sats \ 31 comments \ @Aardvark 21 Mar bitcoin

The process started about 10 days ago, because my company has been bought out I was forced to roll over my 401k. I could have rolled it into a new one, but I was recommend unchained capital to get bitcoin (not an etf)

The process was extremely simple. I had to provide 2 hardware wallets for a 2/3 multisig which was extremely easy to set up on their site. After that it was just a matter of requesting disbursement from my original provider. They sent me a check (made out to fortis bank) and I sent the check to them.

It was deposited, and then like any exchange you just set your purchase. As bitcoin was at $83500, I just pulled the trigger and bought it. I'm sure i could have screwed around and DCA'd it in etc, but honestly I was prepared to get it at $100k so whatever. Now to the downsides.

It's KYC obviously, there's no real way to get around that without paying penalties on my 401k. There is a 250$ annual fee, starting on your 1 year anniversary. Considering how many places use a % based fee I was fine with it. And finally there's a 1.5% fee on trades.

When considering the fact that this is now my bitcoin, that I control with my keys, I'm happy with the deal. It may not be for everyone, but I'd much rather have this set up than a 401k.

Also, it wasn't a massive amount of money, I haven't been putting into a 401k for a terribly long time.

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105 sats \ 4 replies \ @denlillaapan 22 Mar

Forgot to ask (don't live in America, don't know how 401ks work), but how does this practically work? Your employer wires Unchained money every month, and they auto-buy bitcoin with it on your behalf...? (I guess you can't/shouldn't be able to move the bitcoin either, given that it's a retirement account)

26 sats \ 3 replies \ @Aardvark OP 22 Mar

So how the 401k works is I contribute every week, and my company matches a small % I was putting in 9% of my wages and the company matched 2%. My company got sold and the new company has a different 401k provider.

Everyone who has a 401k with the old company has to have their old one disbursed. I assume the majority will roll it over into their new 401k. I decided to roll the balance into unchained.

Going forward, I have the option of starting a new 401k, which I might , because I can get a 4% match if I do a 6% contribution. What i need to do is find out if the new company allows you to roll over your 401k (not all companies do) and if so, ill probably do it annually.

0 sats \ 2 replies \ @denlillaapan 22 Mar

Oh right, so you'd have to keep doing this switcheroo to unchained every year? (Unchained isn't a 401k provider, basically, but can hold it eventually)

17 sats \ 1 reply \ @Aardvark OP 22 Mar

It's an IRA, so there's other ways to contribute money to them. I wouldn't doubt if some companies allow you to directly contribute, but I'm not sure.

In order to get a 4% match though I have to use my companies 401k provider, and I'll do the switcheroo whenever they allow.

If they don't allow it, then I have to decide if giving up what is essentially a 4% raise is worth just buying bitcoin instead.

42 sats \ 0 replies \ @denlillaapan 22 Mar

Tricksy stuff

105 sats \ 5 replies \ @denlillaapan 21 Mar

Awesome, fren. Nice to see the price didn't run away from yah!

14 sats \ 4 replies \ @Aardvark OP 21 Mar

I've been stressing it probably too much. We can go back to ATH again, I give my permission. Likely we'll crab around here for a while first, but who knows. If you belive the correlation to world M2, the April should be interesting.