Want your retirement planning to hit jackpot savings levels? Of course you do. And you’re wondering if the way to reach those heights is via alternative investments like cryptocurrency and Bitcoin price swings. What about additional alternatives like collectible comic books and real estate?
You may even be wondering, if PayPal (PYPL) co-founder Peter Thiel can do it, why can’t I?
Thiel has been in the news due to a colossal Roth IRA balance of $5 billion. Thiel achieved his staggering nest egg balance after initially investing less than $2,000 into then-startup PayPal in 1999, according to news site ProPublica.
So are alternatives your best bet for fattening your retirement account the way PayPal stock reportedly pumped up Thiel’s?
Bitcoin Price: Betting On Cryptocurrency And Other Alternatives
What are alternatives, anyway? Broadly, they are investments other than publicly traded stocks and bonds.
And certain alternatives do have high-octane price inflation. They can give your retirement planning results some serious giddyap.
Look at comics. A copy of Action Comics #1, which introduced Superman and retailed for 10 cents in 1938, recently auctioned for $3.25 million, ComicConnect.com said early this year.
And a year ago, Bitcoin was trading for less than $10,000. It peaked in mid-April at just over $63,000. Now it’s trading around $34,000.
Or how about rental real estate? It always goes up in price over time, right?
401(k) Plans That Offer Ways To Bet On Bitcoin Price Moves
Sure, with adroit financial planning and discipline, funds can get you to seven-figure retirement savings balances.
But increasingly, people are looking to more exotic assets to turbocharge their retirement planning and boost their balances to lottery-prize levels.
One of the latest entries in this field is a 401(k) plan run by ForUsAll. Just this month, its 401(k)s began to offer access to more than 30 cryptocurrencies. That can allow plan members to bet on Bitcoin price swings in their 401(k).
ForUsAll puts some brakes on the process. An account owner can put no more than 5% of the portfolio into the cryptocurrency window. When a balance exceeds 5%, ForUsAll alerts the account owner, “making it easy to rebalance into more traditional mutual funds,” the platform says.
But the account owner is not required to rebalance to reduce cryptocurrency exposure.
ForUsAll’s investment menu also includes mutual funds. And ForUsAll plans to start offering real estate investments, but CEO Jeff Schulte says he can’t disclose details yet.
Using Self-Direct Brokerage Windows To Play Bitcoin Price Moves
Among IRA custodians, BitcoinIRA.com offers IRAs that let account owners invest in cryptocurrency. So this is a way to own an IRA that lets you play Bitcoin price moves.
Among IRA custodians, BitcoinIRA.com lets investors set up a self-directed IRA and invest in cryptocurrency. In an account like that, you can track Bitcoin price moves.
What Schwab, Fidelity Allow
You cannot invest directly in cryptocurrency to gain from Bitcoin price moves through IRAs in the custody of many IBD best online brokers and mutual fund complexes like Charles Schwab (SCHW) and Fidelity or in 401(k) plans they service for employers.
But you can invest indirectly in cryptocurrencies. In an IRA held with Schwab, you can invest in several Grayscale trusts, including Bitcoin Investment Trust (GBTC), Bitcoin Cash Trust (BCHG), Ethereum Trust (ETHE), Ethereum Classic Trust (ETCG), and Litecoin Trust (LTCN).
Those trusts look like ETFs, but they are private placements. Your brokerage may require you to meet certain wealth standards.
No Schwab-run 401(k) plans offer cryptocurrencies. But 60% offer a brokerage window. So do 20% of Fidelity plans. Through them, plan members can invest in cryptocurrency trusts.
Limits On Alternatives
There are more limits on alternative investments in retirement accounts.
A key limit is most collectibles and life insurance are not available in…