Contribute to dollar based college fund in 2.5 years or use it as bitcoin allocation? Borrow against bitcoin based retirement fund or sell retirement assets for education?
I’m almost at the stage of needing a bitcoin cfp.
Discussion
I’ve stopped contributing to 529s and am instead putting it into bitcoin. It should turn out to be a better investment from the fiat mindset even after accounting for taxes
I weakly looked for self directed 529’s where I could allocate to bitcoin or an etf without success. I bought bitcoin instead and college is now paid for for all my kids…if I want to part with the coin.
Yeah, my 529s at Vanguard so no chance of even the BTC ETFs there, unlike my self-directed 401k
Unchained self custody IRA almost makes sense. They take 3% of your entire account, 1.5% on the way in and 1.5% on the way out. Plus a $250 fee per annum.
At 1/10th the price it makes sense.
Fees will have to go down at some point. I do have an unchained IRA. I think you can get out of the 1.5% on the way out by transferring out (upon retirement) as bitcoin. The fee only comes in play with conversion back to USD.
They won’t let you deposit bitcoin and they insist on the 1.5% on the way in. Not sure they’ll let you transfer out without paying.
Nothing stopping you from doing it yourself since with Unchained you hold 2 out of the 3 keys. If you transfer out, they alert the IRS, but if done in retirement then there would be no penalty.
Ah, good point! So they’re just taking an extra 0.5% over a typical 1% exchange fee.
You can deposit bitcoin if it’s in an IRA already.
Which is true of almost nobody.
They won’t take regular non ira self custody bitcoin directly for some reason…I guess they really want the exchange fee. But if I could deposit bitcoin without making a taxable event then it would be worth it.
Yes but I think it’s not about getting that fee, it’s compliance. Once I realized I could hodl in an IRA, I switched to buying new sats in the IRA vs. non-retirement accounts. Perhaps it’s the only way.
Ahhh, I bet you’re right.
I should just start an IRA with them, not roll over my pseudo-BTC in the ETFs in my fidelity account.
When do you need to use it?
And for what degree?
On general principles, diverting funds from the apex predator into the one of the most bloated bovines out there probably doesn’t make much sense.
For my children, just giving them the btc to start a business or kick start their life would be invaluable compared to whatever bs they get exposed to at most colleges.
college is really becoming a niche use case for specific technical degrees imo
