SDIRA for crypto.
The Bankless HQ folks
, who are 2 Wheaton levels deeper in the DeFi hype train than I am but AFAICT generally a reputable source in the space, recommend Rocket Dollar
. I haven’t tried it out yet, mostly because of inertia and fees, so can’t attest either way if it’s good or not.
If you don’t care about owning the underlying coins directly, I’d recommend just buying GBTC or ETHE in a regular IRA. At least until one of the centralized exchanges like Coinbase launches retirement account custodianship, which is bound to happen sooner or later (though maybe not in this bull run).
How I approach retirement accounts
I keep all my retirement accounts with Vanguard (either through work 401K or my own IRA), so I’m obviously pretty limited to my selection there. I like keeping them with Vanguard because:
1. it prevents me doing anything too rash or stupid in terms of market timing, and
2. it limits my choices to passive ETFs, which honestly should be the bulk of my investing anyway.
I figure it makes sense for retirement accounts to be “slow and steady”, though I am somewhat regretting not having a separate “play” space in these tax-advantaged spaces to accommodate high-growth things like crypto. For example, I’m refraining from dabbling more, trying coin futures or trading altcoins, to avoid short-term capital gains tax.
Risky taxable allocation
I feel pretty good about most things in my taxable allocation except the ARK funds, to be honest. I think crypto is risky and volatile, but has asymmetric upside that can’t be ignored. China ETF is a hedge on American hegemony waning. I can’t liquidate pre-IPO shares so *shrugs*. I like silver as an alternative to gold as store of value that has actual demand and use in industrial applications. And VWO because I’m slightly overweight on developing with retirement target date funds. It all feels less like “taking risk” and more like “wide ranging diversification”, if that makes sense?
And in terms of ARK, I still believe we’re in a really good period for fintech to blossom (though I am far less sure the lag time until we start seeing the genomics space really take off or if we’ll see 3D printing really catch on in industrial manufacturing). I’m more concerned that the advisors there are high off their own hopium. Read some threads on “why bitcoin isn’t that environmentally unfriendly”
which I thought had motivated reasoning
to say the least. That coupled with some recent comments from Cathie Wood
about her religious inspiration in founding ARK and, uhm...
As soon as I said that to myself, I felt a wham and I really feel like that was the Holy Spirit just saying to me, “Okay, this is the plan.” And the idea was basically, “Look, you’ve been a student of disruptive innovation your entire career. Why don’t you disrupt your own industry? It’s broken. Why do you disrupt it with some of these new technologies? Why don’t you harness social media? Why don’t you invite people in—even your competitors—to brainstorm about these new ideas, to help spread the word?” And so I did that, and it’s been amazing. It’s so much better than anything that I could have possibly imagined.
I funded it for the first three years all by myself. And for the first three years, our assets didn’t grow that much. And I thought, “Oh my goodness, what have I done?” Every two weeks there was an exit of a significant amount of my wealth into the company. And I would kneel down and say, “Okay, God, You’re in control. Even if this company fails, I know I’ve done the right thing. This is a walk of faith for me. Your will be done.”
In the words of internet critic ResidentPurple0
: “I respect the woman but I won't lie when I say that's the most batshit American sentence I've ever read.”
FWIW, I’m feeling a lot better now than I did a month ago, with no clearly reason as to why. Honestly, these sorts of things just kind of ebb and flow.
In other news...
I learned that the company that makes Sleepytime tea
was founded by some guys that are really into a eugenecist cult. So, uh, I’m not sure what to believe in anymore.