SANE CRYPTO - Cryptocurrency investing for retirement (Bitcoin, Ethereum, and Cryptoasset Investing)

I was looking at the Q&A site Quora the other day. A common question around cryptocurrency is "What is your best cryptocurrency investing advice?" The answers were your standard fare… things like #HODL, don't invest more than you can afford to lose, doing lots of research, blah blah blah. Mine is control your lizard brain. If you can't do that, nothing else will matter. So I decided to go to the wayback machine and dust off an interview I did with Terry Burnham, author of Mean Markets and Lizard Brains, for my radio show, all the way back in 2005. Being an interview from 2005, Bitcoin wasn't even a glimmer in Satoshi Nakamoto's eye yet. But everything we say about the stock market is equally applicable to cryptoassets since, as I keep reminding you, just because crypto is a new asset class, all the same rules of investing still apply. Terry Burnham is a leader in the application of biology to economics and finance. He was an economics professor at Harvard for many years, be the beginning at the Kennedy school and most recently at the Harvard Business School is biological logical research, has taken him to Africa to observe wild chimpanzees and to the laboratory to study the role of testosterone in negotiation. He is coauthor of the international best seller, Mean Genes. Before joining the Harvard Faculty, he worked at Goldman Sachs and was the president and cfo of the successful startup biotech firm.

Our conversation covers:

✓ Terry's very diverse background

✓ Where he fits in the various schools of economic thought

✓ How those two schools are mirrored in our physical brains

✓ How our prehistoric lizard brain affects our investment decisions

✓ What is the answer? How do we fight back?

✓ His best investing advice

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FREE ONLINE TRAINING: Sign up for "How A Little, Little Bit of Bitcoin Can Make Your Retirement Savings Go A Lot, Lot Further", at https://sanecrypto.com/retirement

FULL SHOW NOTES ARE AVAILABLE AT: https://sanecrypto.com/podcast

QUESTIONS OR FEEDBACK: Email:[email protected] Twitter: @sanecrypto

SUBSCRIBE, RATE AND REVIEW: Hope you will subscribe so you don't miss any episodes and, of course, give us an honest Rating and Review. I read each one and it helps tremendously to improve the show.

DISCLAIMER: Nothing said on this show should be considered investment advice. Past performance is no guarantee of future results. All investments involve risk and may result in a loss. Investors should consider their investment objectives, risks, charges, and expenses of any and all financial instruments carefully before investing.

 

A listener sent in an Ask Kim question asking whether Bitcoin would be a good hedge against inflation and other financial crisis.

"Hi Kim- I'm enjoying your explanations and evaluations as usual. I have a question that I thought you might (or might not) want to address, in view of the current political climate in our land. If inflation is impending, what stability (or lack thereof) can obtaining cryptocurrency in advance of rampant inflation provide?"

In response to Nancy's question, we talk about:

✓ What is inflation? Hyperinflation? Crisis falls along a pretty broad spectrum.

✓ This is not the only reason to own Bitcoin but it is another reason and a very powerful one

✓ The two goals of asset allocation

✓ The experience in countries like Greece, Zimbabwe and Argentina

✓ Traditional hedges against inflation and financial crisis

✓ The pros and cons of using Bitcoin as a hedge compared to gold

✓ Always plan for the best but prepare for the worst

✓ Reacting is always, always, always an investment mistake

✓ investing is not risky. It is a lifeskill. Like swimming. The risk is in NOT investing.

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RECOMMENDED READING AND RESOURCES LIST: Get my full, hand-curated, Recommended Reading and Resources List at https://sanecrypto.com/reading

FREE ONLINE TRAINING: Sign up for "How A Little, Little Bit of Bitcoin Can Make Your Retirement Savings Go A Lot, Lot Further", at https://sanecrypto.com/retirement

FULL SHOW NOTES ARE AVAILABLE AT: https://sanecrypto.com/podcast

QUESTIONS OR FEEDBACK: Email:[email protected] Twitter: @sanecrypto

SUBSCRIBE, RATE AND REVIEW: Hope you will subscribe so you don't miss any episodes and, of course, give us an honest Rating and Review. I read each one and it helps tremendously to improve the show.

DISCLAIMER: Nothing said on this show should be considered investment advice. Past performance is no guarantee of future results. All investments involve risk and may result in a loss. Investors should consider their investment objectives, risks, charges, and expenses of any and all financial instruments carefully before investing.

 

A listener sent in an Ask Kim question asking how and where to buy cryptocurrency. He mentioned he is new to cryptoassets. What platform do I recommend and how is the purchase actually made?

"Kim, Great podcast. I have listened to about 80% so far and I am new to the space. My question is: What are the steps to actually placing the order and buying bitcoin, what platform would you recommend and any other details to cover. Thanks."

In response to Dean's question, we talk about:

✓ The difference between an exchange and brokerage firm

✓ Where to open your account if you are brand new and only investing a small amount

✓ The criteria for choosing an exchange to trade on

✓ The pros and cons of the top four exchanges for active investors or bigger dollar amounts

✓ The steps to opening an account

✓ Why I think you should open accounts at multiple exchanges

✓ Common questions and concerns about the information you provide when opening an account

✓ How to place buy and sell orders

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RECOMMENDED READING AND RESOURCES LIST: Get my full, hand-curated, Recommended Reading and Resources List at https://sanecrypto.com/reading

FREE ONLINE TRAINING: Sign up for "How A Little, Little Bit of Bitcoin Can Make Your Retirement Savings Go A Lot, Lot Further", at https://sanecrypto.com/retirement

FULL SHOW NOTES ARE AVAILABLE AT: https://sanecrypto.com/podcast

QUESTIONS OR FEEDBACK: Email:[email protected] Twitter: @sanecrypto

SUBSCRIBE, RATE AND REVIEW: Hope you will subscribe so you don't miss any episodes and, of course, give us an honest Rating and Review. I read each one and it helps tremendously to improve the show.

DISCLAIMER: Nothing said on this show should be considered investment advice. Past performance is no guarantee of future results. All investments involve risk and may result in a loss. Investors should consider their investment objectives, risks, charges, and expenses of any and all financial instruments carefully before investing.

 

It's July… the time of year those of us in the Northern hemisphere like to go somewhere, anywhere, to get away from the heat… Which is also, usually, a great time to catch up on your reading. So, I thought this would be a good time to share three behavioral finance picks that will improve your portfolio results by giving you insight into why you make the investment decisions (and mistakes) that you (we all) do. The good news is markets are not predictable but that people are remarkably predictable in their irrational response to markets and therein lies the opportunity for profit.

"The finance industry talks too much about what to do, and not enough about what happens in your head when you try to do it." - Morgan Housel, Collaborative Fund

In this episode, I share: ✓ My deepest scar as an investment advisor ✓ My personal reading and resources list ✓ The number one factor affecting portfolio returns over the long run ✓ Three areas of behavioral finance for you to read up on ✓ How you can profit from the insights of behavioral finance

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RECOMMENDED READING AND RESOURCES LIST: SGet my full, hand-curated, Recommended Reading and Resources List at https://sanecrypto.com/reading

FREE ONLINE TRAINING: Sign up for "How A Little, Little Bit of Bitcoin Can Make Your Retirement Savings Go A Lot, Lot Further", at https://sanecrypto.com/retirement

FULL SHOW NOTES ARE AVAILABLE AT: https://sanecrypto.com/podcast

QUESTIONS OR FEEDBACK: Email:[email protected] Twitter: @sanecrypto

SUBSCRIBE, RATE AND REVIEW: Hope you will subscribe so you don't miss any episodes and, of course, give us an honest Rating and Review. I read each one and it helps tremendously to improve the show.

DISCLAIMER: Nothing said on this show should be considered investment advice. Past performance is no guarantee of future results. All investments involve risk and may result in a loss. Investors should consider their investment objectives, risks, charges, and expenses of any and all financial instruments carefully before investing.

 

If you've ever had cryptocurrency explained to you, you know it can get kind of dense, sitting, as it does, at the intersection of finance, economics and technology. But it shouldn't be. They say you don't really know a topic until you can explain it to your grandma. So, it is that beginner's mind I tried to bring to the table when I was interviewed several weeks ago by Katie Welsh and Denis O'Brien of the Chain of Wealth podcast. We had a really great conversation. So much so, we just kept gabbing, even after the interview was over. I was really interested to hear how they understood and thought about investing, being part of the millennial generation. Turns out, they kept the tape rolling and included that part of the unscripted conversation as bonus material!

In this episode we discuss: ✓ Something most people don't know about me (good icebreaker question!) ✓ How would I explain cryptocurrency to someone who is still unclear on it? ✓ Is there a difference between cryptocurrency and a cryptoasset? ✓ How big is the cryptoasset market? ✓ What other applications does blockchain have beyond cryptocurrency? ✓ If someone wants to invest in cryptocurrency, what should they look out for? ✓ My book and podcast recommendations ✓ Unscripted bonus conversation: Millennials differing views on investing compared to earlier generations

They've been kind enough to allow me to share that interview with my listeners, as well. So, without further adieu, here is me being interviewed for the Chain of Wealth podcast ...

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FREE ONLINE TRAINING: Sign up for "How A Little, Little Bit of Bitcoin Can Make Your Retirement Savings Go A Lot, Lot Further", at https://sanecrypto.com/retirement

FULL SHOW NOTES ARE AVAILABLE AT: https://sanecrypto.com/podcast

QUESTIONS OR FEEDBACK: Email:[email protected] Twitter: @sanecrypto

SUBSCRIBE, RATE AND REVIEW: Hope you will subscribe so you don't miss any episodes and, of course, give us an honest Rating and Review. I read each one and it helps tremendously to improve the show.

DISCLAIMER: Nothing said on this show should be considered investment advice. Past performance is no guarantee of future results. All investments involve risk and may result in a loss. Investors should consider their investment objectives, risks, charges, and expenses of any and all financial instruments carefully before investing.

 

Our topic today is the best way to buy bitcoin in retirement accounts. Or cryptocurrency in general. I have already done podcasts on two of the three ways:

In episode number 17, we talked about how the Bitcoin Investment Trust, also known by its ticker symbol GBTC, was the best way to buy bitcoin directly in your IRA through a traditional stock brokerage account at Fidelity, or TD Ameritrade or wherever you have that. In fact, it's the only way.

There are many advantages to GBTC but among the disadvantages is a very big one, the premium. On average, you will pay 42% more for bitcoin when you buy shares of GBTC, over the price of the underlying bitcoin itself. And sometimes that premium can be as high as 100%!

In Episode 21, we talked about using a specific structure, known as an IRA-LLC or checkbook IRA, to buy and sell cryptocurrency and other alternative assets in a self directed IRA.

In my mind, this is generally going to be the best way to buy bitcoin in retirement accounts in most cases. But the setup can be expensive.

You have to create an LLC. And there are a lot of hoops to jump through. So, it may or may not make sense depending on the amount you intend to invest.

Today, we are going to be talking about a third option. I am going to be talking with Jordan Sheppherd of CheckbookIRA.com about using a solo 401(k) structure to invest in cryptocurrency. And, in some cases, this can be an even better way to buy bitcoin in retirement accounts than even a checkbook IRA, as Jordan will explain.

Jordan Sheppherd is the CEO of CheckbookIRA LLC which he founded along with his Dad Steve. Over the years, Jordan's investments have taken him into real estate, international finance, precious metals and the movie industry. During his time with Checkbook IRA LLC, he has set up over 6,000 people with the CheckBook IRA LLC structure

In this episode we discuss: ✓ How Jordan and his Dad decided to start Checkbook IRA LLC ✓ The different assets you can legally hold in a retirement account ✓ What is a checkbook IRA and what is a solo 401(k). How do they differ? ✓ Who is eligible to participate in a solo 401(k)? ✓ When and why is the solo 401(k) the better option over a checkbook IRA structure? ✓ How to reach Jordan if you would like him to work with you on setting up a checkbook IRA or solo 401(k)

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FREE ONLINE TRAINING: Sign up for "How A Little, Little Bit of Bitcoin Can Make Your Retirement Savings Go A Lot, Lot Further", at https://sanecrypto.com/retirement

FULL SHOW NOTES ARE AVAILABLE AT: https://sanecrypto.com/podcast

QUESTIONS OR FEEDBACK: Email:[email protected] Twitter: @sanecrypto

SUBSCRIBE, RATE AND REVIEW: Hope you will subscribe so you don't miss any episodes and, of course, give us an honest Rating and Review. I read each one and it helps tremendously to improve the show.

DISCLAIMER: Nothing said on this show should be considered investment advice. Past performance is no guarantee of future results. All investments involve risk and may result in a loss. Investors should consider their investment objectives, risks, charges, and expenses of any and all financial instruments carefully before investing.

 

It used to be that when someone passed away without a detailed estate plan, their loved ones simply had to watch the mailbox for 90 days or so to collect the different bank or brokerage statements that trickled in over time.

But cryptoassets are a totally different kettle of fish... Which is why I invited Pamela Morgan on the show to talk about her book, Cryptoasset Inheritance Planning: A Simple Guide for Owners.

Pamela is an educator, entrepreneur, author, and attorney who has been working exclusively with bitcoin & open blockchains since early 2014. Morgan is a widely respected authority on multi-signature governance and legal innovation in digital currencies. She spends much of her time traveling the world training lawyers about these technologies through her company, Empowered Law. Her book, Cryptoasset Inheritance Planning: A Simple Guide for Owners, provides a clear blueprint to inheritance planning for those holding cryptocurrency, tokens, crypto-collectibles, and other cryptoassets.

In this episode we discuss: ✓ The goals of a cryptoasset inheritance plan ✓ The steps in creating a plan ✓ Her "Letter To Loved Ones" template you can use to make that really easy ✓ Where you put the letter so the right people find it in the event of your death ✓ The Do's and Don'ts of securing your private keys and backups

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⇒ Sign up for my FREE online training, How A Little, Little Bit of Bitcoin Can Make Your Retirement Savings Go A Lot, Lot Further, at https://sanecrypto.com/retirement

FULL SHOW NOTES ARE AVAILABLE AT: https://sanecrypto.com/podcast

QUESTIONS OR FEEDBACK: Email:[email protected] Twitter: @sanecrypto

SUBSCRIBE, RATE AND REVIEW: Hope you will subscribe so you don't miss any episodes and, of course, give us an honest Rating and Review. I read each one and it helps tremendously to improve the show.

DISCLAIMER: Nothing said on this show should be considered investment advice. Past performance is no guarantee of future results. All investments involve risk and may result in a loss. Investors should consider their investment objectives, risks, charges, and expenses of any and all financial instruments carefully before investing.

 

"If after ten minutes at the poker table you do not know who the patsy is—you are the patsy." - Poker Proverb

In this episode I cover: ✓ What is risk? What is volatility? How are they different? ✓ Why you need a source of higher returns in your portfolio if you hope to retire comfortably ✓ How I learned to love volatility ✓ The key to managing volatility ✓ How when you know how to play volatility, you can go after slightly higher returns which can give you a big edge when compounded over a lifetime of saving and investing for retirement. ✓ If you don't, then you're just funding my retirement!

⇒ Sign up for my FREE online training, How A Little, Little Bit of Bitcoin Can Make Your Retirement Savings Go A Lot, Lot Further, at https://sanecrypto.com/retirement

FULL SHOW NOTES ARE AVAILABLE AT: https://sanecrypto.com/podcast

QUESTIONS OR FEEDBACK: Email:[email protected] Twitter: @sanecrypto

SUBSCRIBE, RATE AND REVIEW: Hope you will subscribe so you don't miss any episodes and, of course, give us an honest Rating and Review. I read each one and it helps tremendously to improve the show.

DISCLAIMER: Nothing said on this show should be considered investment advice. Past performance is no guarantee of future results. All investments involve risk and may result in a loss. Investors should consider their investment objectives, risks, charges, and expenses of any and all financial instruments carefully before investing.

 

I was really excited to have the opportunity to sit down with Jeff Vandrew, Jr. to talk about what are known as "Checkbook IRAs", for Buying Cryptocurrency Directly in Your IRA.

In this conversation, Jeff And I cover: ✓ How Jeff got into the cryptocurrency niche ✓ What is a Self Directed IRA? ✓ Why is checkbook control (a/k/a an IRA-LLC or Checkbook IRA) preferable to an "old fashioned" SDIRA? ✓ Some of the rules and challenges of investing in cryptocurrency in your IRA

⇒ Sign up for my FREE online training, How A Little, Little Bit of Bitcoin Can Make Your Retirement Savings Go A Lot, Lot Further, at https://sanecrypto.com/retirement

FULL SHOW NOTES ARE AVAILABLE AT: https://sanecrypto.com/podcast

QUESTIONS OR FEEDBACK: Email:[email protected] Twitter: @sanecrypto

SUBSCRIBE, RATE AND REVIEW: Hope you will subscribe so you don't miss any episodes and, of course, give us an honest Rating and Review. I read each one and it helps tremendously to improve the show.

DISCLAIMER: Nothing said on this show should be considered investment advice. Past performance is no guarantee of future results. All investments involve risk and may result in a loss. Investors should consider their investment objectives, risks, charges, and expenses of any and all financial instruments carefully before investing.

"So, the question remaining is how do you structure an investment portfolio to approximate Pascal's Wager? What would Pascal's Portfolio look like? Such that, in his words, if you lose, you lose nothing. But if you win. You gain all." ˜Kim Hughes

⇒ Sign up for my FREE online training, How A Little, Little Bit of Bitcoin Can Make Your Retirement Savings Go A Lot, Lot Further, at https://sanecrypto.com/retirement

FULL SHOW NOTES ARE AVAILABLE AT: https://sanecrypto.com/podcast

QUESTIONS OR FEEDBACK: Email:[email protected] Twitter: @sanecrypto

SUBSCRIBE, RATE AND REVIEW: Hope you will subscribe so you don't miss any episodes and, of course, give us an honest Rating and Review. I read each one and it helps tremendously to improve the show.

DISCLAIMER: Nothing said on this show should be considered investment advice. Past performance is no guarantee of future results. All investments involve risk and may result in a loss. Investors should consider their investment objectives, risks, charges, and expenses of any and all financial instruments carefully before investing.