Aight #asknostr, would like your thoughts... I'm convicted, and I'm 70% sure I'm going to loan against my 401k for a large bitcoin purchase with in the next month
Yes or no, and why?
Discussion
Do it. I did it. Took max loan for BTC and over the past two years assets appreciated enough so I could take another smaller loan for more (ML allows max 2). I just paid off 1st and waiting for 10 days cooldown time and doing it again.
Downside? Don’t get fired.
I did this and don't regret it; wish I had done more but it's nerve wreaking at the time.
I think the max you can do is 50% of the value or up to a certain dollar amount. Payments come out of your paycheck. If you have good job security I'd say go for it. If you did ever lose your job you would have to sell the corn pay taxes and pay back the outstanding loan. My 401k allocation is $0/0% and my contributions now basically just go towards paying off the loan. Your employer if they have a 401k match should also be matching your loan payments as they occur.
It's also hard to get a hunk of corn and having that much money on an exchange is another worry. Hopefully the money transfers and all settles fine. Do it in small few thousand dollar amounts.
Usually involves some paperwork between you, HR and your 401k provider. Need some signatures and pencil pushing.
If you have visibility into a stable job and steady income to service the debt, then borrowing against the 401k should be accretive over time especially if you lack ability to get #bitcoin exposure in the 401k plan
Why not just move the 401k into Bitcoin? There are services that allow you to do so.
No, because all debt is evil. I'm cringing at this advice, but if you really believe that the price of Bitcoin is going to increase exponentially like interest rates do, then just wait slightly longer for your slightly smaller amount of Bitcoin to be worth that much.
Don't do that because as it artifically increases the price at your financial risk, & it promotes the fiat system.
As someone else said in here the safer option would be to gain Bitcoin exposure through intermediaries, or roll it over to a platform that allows you to invest into Bitcoin directly.