Bitcoin enthusiasts are buzzing about a potential new bull run on the horizon. Tuur Demeester of Adamant Research predicts in his recent publication that we could be entering a multi-year bull market that might drive bitcoin prices well beyond the six-figure mark.
Securing Your Bitcoin Allocation Before the Bull Run
Picture this: Imagine seizing a significant chunk of bitcoin before this anticipated bull run kicks off. And what’s even more exciting is that you can do this through an old retirement account that you may have overlooked entirely!
Step 1: Acquire Hardware Wallets for Security
The initial step involves getting the necessary tools to safeguard your bitcoin investments. A hardware wallet enables you to store your bitcoin keys offline, granting you complete control over your funds.
Begin by purchasing a couple of hardware wallets from trusted brands like Trezor or Ledger. Unchained supports various devices, including the Ledger Nano X, Trezor Model T, and Coldcard Mk4, ensuring a secure storage solution for your bitcoin.
For optimal security, it’s advisable to buy directly from the manufacturer. However, obtaining hardware wallets from reputable retailers like Best Buy is also a viable option, especially in the context of multisig setups that eliminate single points of failure.
Step 2: Register an Account on Unchained.com
Next, navigate to Unchained’s website and create an account. The process is straightforward—simply provide your essential details such as name, email, phone number, and set up a robust password. Unchained prioritizes your privacy.
Once your account is established, select the account type you require, focusing on setting up an IRA account for tax-advantaged bitcoin savings. Alternatively, opt for Unchained’s Concierge Onboarding for personalized assistance from a bitcoin custody expert.
Step 3: Establish Your Unchained IRA Account
Now, it’s time to configure your IRA account with Unchained. By opting for an Unchained IRA, you can store bitcoin in a tax-efficient manner while retaining full control over your keys, eliminating third-party risks that could compromise your holdings.
Setting up the account is hassle-free, with no setup charges and deferred account fees starting from the second year onwards. Unchained’s IRA accommodates both Traditional and Roth options, allowing flexibility in aligning with your retirement objectives.
Step 4: Set Up a Secure Multisig Vault
After creating your account, proceed to establish a multisig vault—a highly secure method for safeguarding your bitcoin assets. Multisig entails requiring multiple keys to authorize transactions, significantly reducing the exposure to custodian or exchange-related vulnerabilities.
You can swiftly configure this robust multisig setup using Unchained’s Self-Service Onboarding within an hour. Follow the step-by-step guide at diy.unchained.com, selecting the Lead custody model if you’re utilizing two hardware wallets to construct your vault.
Step 5: Transfer Your Existing 401k/IRA Funds
Subsequently, you’ll need to finance your new IRA, with options including an IRA-to-IRA transfer, a 401(k)-to-IRA rollover, or an annual contribution. The common route involves rolling over funds from your current 401(k) or IRA into the freshly minted Unchained IRA.
While the process may seem cumbersome, especially if your 401(k) administrator necessitates issuing a physical check, it is a straightforward procedure. Once the funds are in your possession, Unchained will convert them to bitcoin through their trading desk and deposit them into your IRA vault.
Step 6: Reap the Benefits of Tax-Advantaged Bitcoin Holdings
Congratulations on securing your retirement savings in bitcoin! Unchained offers a flat $250 annual fee starting from the second year. By holding bitcoin in a tax-advantaged account, you combine bitcoin’s inflation-resistant properties with the perks of an IRA, all while retaining control over your assets.
If the anticipated bull run materializes, as many predict, having an Unchained IRA could position you to witness your retirement nest egg flourish.
This article serves as an educational resource and should not be construed as tax or investment advice. Unchained does not provide tax or investment advice, and all queries related to tax implications or investment suitability should be directed to a qualified professional. While we strive to source reliable market information, we do not guarantee the accuracy or timeliness of such data.
Frequently Asked Questions
How much gold should you have in your portfolio?
The amount that you want to invest will dictate how much money it takes. Start small with $5k-10k. As you grow, you can move into an office and rent out desks. You don't need to worry about paying rent every month. Rent is only paid per month.
Consider what type of business your company will be running. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. Therefore, you might only get paid one time every six months.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I recommend starting with $1k-$2k in gold and working my way up.
Can the government take your gold?
Your gold is yours, so the government cannot confiscate it. It is yours because you worked hard for it. It belongs to you. But, this rule is not universal. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. Also, if you owe taxes to the IRS, you can lose your precious metals. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
Can I buy gold with my self-directed IRA?
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contract are financial instruments that depend on the gold price. These contracts allow you to speculate on future gold prices without actually owning it. You can only hold physical bullion, which is real silver and gold bars.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
