A lot of people still have a traditional IRA and find themselves locked into decisions that they don’t agree with. Self-interest and default settings imposed by the financial institution that is the custodian of the IRA are often not in the benefit of the individual account holder. It is therefore no surprise that so many people now seem to want to find the best Roth Bitcoin IRA, which is a self-directed IRA that allows you to truly diversify your portfolio.
Understanding the Best Roth Bitcoin IRA
A self-directed IRA is incredibly appealing. As the name suggests, it means that you have control over your investments. It also means that you no longer have to pay for obscure “maintenance fees”. The IRA (Individual Retirement Account) was first formed in 1974, at which point the self-directed option was immediately available. However, a lot of people opted for the traditional form, made up of bonds, stocks, and mutual funds, simply because they had little knowledge about investing.
The Investments to Be Made in Roth Bitcoin IRAs
You can invest in anything that you like in a self-directed IRA and this now officially includes Bitcoin and other forms of cryptocurrencies as well. Other elements that you can include are mortgages, real estate, structured settlements, tax liens, franchises, tenants in common (TIC), and so on. There are a number of prohibited transactions, including collectibles and life insurance, but almost everything else can be included. This means that you can create a highly diversified portfolio, which is a strong portfolio.
Of course, in order to hold a Roth Bitcoin IRA, you do need to find a custodian for the administration thereof. Because cryptocurrencies have only recently been officially accepted, it can still be a little bit difficult to find custodians willing to accept them and work with them. However, once you find one, you will have a passive manager behind you who you only have to pay a nominal fee, leaving you to work on your own with your preferred investments.
Why You Should Consider the Roth IRA
When you decide to roll over to a self-directed Roth Bitcoin IRA, you will be empowered to learn about investments and to become successful. As with all IRAs, you will be able to grow your money tax free. Because it is self-directed, you can focus on the things you are actually knowledgeable about such as bitcoin, real estate, or anything else.
Different Accounts to Self-Direct
The IRA is, so far, the only investment account in which you can officially include cryptocurrencies. However, this is likely to soon change and that it will include all the other self-directed investment accounts as well. This includes the SIMPLE, the SEP, the various 401(k) plans, the CESA, the HAS, and so on. This means that you have a true opportunity to create a diverse portfolio that will help support you in your retirement, building a nest egg that you have had full control over for years.
Bitcoin IRA’s are just one of many effective methods to invest your money. If you’re looking to diversify your income streams, you could invest in real estate or, if you have relatively small capital to invest — check out this post on the best ways to invest $10,000.