Invest in Cryptocurrency Within Your 401(k)

  • RocketDollar is a unique company that allows one to invest in alternative assets, such as cryptocurrency, with monies from an IRA and/or 401(k).
  • Should you believe in the future potential of cryptocurrency, the opportunity to capitalise upon the long-term growth of assets like Bitcoin and Ethereum, with pre-tax funds, is unparalleled.
  • One needs to weigh the pros and cons of cryptocurrencies versus investments in traditional assets, as they inherently carry higher risk.
  • The choice to use RocketDollar is already made. The only thing that remains is deciding if the subscription will be the Core or Gold Plan.

Investment Idea

The assumption is that, as a reader, you share the bullish sentiment regarding cryptocurrency in the many years to come. With that said, the main question becomes, “How does one invest in an asset while shielding one’s self from unnecessary taxes?” The advantages of these solutions vary, depending on the tax laws, within your respective country, and the tax bracket that you reside in. In any case, this can be accomplished via two methods: reduction of your current net income by investing pre-tax monies within a 401(k), or by utilising after-tax monies within a ROTH IRA to withdraw your profits, tax-free, in the future.

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Potential

There are various companies offering this rare investment opportunity and choosing the best one depends on your priorities. Some competitors of RocketDollar include Equity Trust and Alto IRA. Equity Trust demands payment of annual fees that scale up with the size of the portfolio. Although the fees become a smaller percentage of the portfolio as you deposit an increasingly large amount of money, the fees are a detriment to maintaining a positive, net profit with allocations of smaller amounts of money. RocketDollar alleviates this concern by having a flat fee structure, regardless of the portfolio amount. There are two account tiers. The first is Core, with a one-time setup fee of $360 and a $15/month fee thereafter. The second account tier is Gold, with a one-time setup fee of $600 and a $30/month fee thereafter. Another competitor is Alto IRA. As the name implies, it provides only a self-directed IRA and lacks compatibility with a 401(k).

Risk

Having the ability to invest in what you please provides a lot of freedom, however, some can interpret this flexibility as a negative, because the investment options are limitless. The aforementioned individuals would rather be limited to those investment options that have been vetted by the large financial corporations that they place their trust in. At the end of the day, nothing is guaranteed and this is especially a concern with cryptocurrency, as a typical bear market is extremely volatile, with sharp decreases in capital by more than 50%. However, keep in mind that cryptocurrency is not the only avenue available for appropriation of funds and one can limit risk by diversifying into more traditional options too.

Conclusion
If you are bullish on cryptocurrency, then it is only natural to seek out the most efficient manner possible to make purchases. The RocketDollar platform is very intuitive and the customer service is bar none. This company deserves a chance to both impress you with the multitude of features it includes and the various investment opportunities that are offered.

Nothing in this article constitutes professional and/or financial advice. The content is provided exclusively for informational and/or educational purposes. Nothing is to be construed as an offer or a recommendation to buy or sell any type of asset. Seek independent professional advice in regards to financial, tax, legal and other matters.

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