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