In this episode of Adam Talks, IRA Financial’s Adam Bergman Esq. discusses the upcoming Bitcoin 2021 Conference in Miami, FL, which takes place on June 4-5, where he will be a speaker.
Last month, Adam Bergman had the honor to speak at the Bitcoin Conference, which was held in Miami, FL. In this episode of Adam Talks, Adam previews his speech, along with his thoughts leading into the conference. As you may know, Bitcoin has been on a roller coaster of a ride since its inception. 2021 has been an especially crazy year for the digital currency. Hear what Adam thinks about it and why you should use retirement funds to invest.
Bitcoin Conference 2021
The conference was expected to be the largest conference ever with over 12,000 people attending. With guests like Twitter CEO Jack Dorsey, the Winklevoss twins and skateboarder-turned-entrepreneur Tony Hawk among the featured speakers, the energy lit up Miami. Obviously, on the heels of Elon Musk’s comments about the popular crypto and China’s take on it, Bitcoin has seen some major drops this year. However, that won’t deter the biggest advocates of the digital currency.
A decentralized, digital currency, Bitcoin has been at the forefront of the crypto boom the last several years. There have been hundreds of followers, but none have had the success of Bitcoin. It peaked at around $64,000 earlier this year, but fell dramatically over the last few months. As of today, the price stands at around $34,000. While not enjoying the success it had earlier in 2021, it still remains a hot commodity. Bitcoin Conference 2021 will look to spread the word to the masses about why you should invest.
How to Not Pay Taxes on Your Bitcoin
This is the basis for Adam Bergman’s speech at the conference. If you follow the podcast regularly, you know Adam is big proponent of alternative assets, especially Bitcoin and other cryptos. He thinks you should have some exposure to this asset class. How big of one is up to you, the investor. Of course, IRA Financial is all about self-directing your retirement account. The tax advantages of investing with a Self-Directed IRA or, if you are self-employed, the Solo 401(k) are huge. So long as the asset remains in the plan, you are not taxed on an annual basis.
Traditional retirement plans are tax-deferred. This means you don’t pay taxes until you make a withdrawal. Plus, any contributions made to a traditional IRA or 401(k) plan lessen your tax bill (assuming you are under the income thresholds). Investing in Bitcoin with a traditional plan is a great way to diversify your retirement portfolio and expose yourself to a relative new type of asset.
Arguably a better retirement plan option is the Roth. There is no upfront tax break, and high earners cannot directly contribute to one, but all qualified withdrawals are tax free. Once a Roth is funded, you can invest in Bitcoin, and all the gains are not taxable so long as any Roth has been opened for at least five years and you are age 59 1/2 or older. For those who make too much money, you can use the backdoor to get your money in a Roth.
Obviously, this is being posted to our blog after the Bitcoin Conference. As usual, we hope you had a chance to listen to the preview before the conference was held. It’s all good if you haven’t – it’s still relative! In the ensuing episode, Adam Bergman will recap his experience at the conference.