In September 2017 we became very frustrated that we were able to offer every financial product under the sun… except Bitcoin. Actually, we could offer our clients Bitcoin and Ethereum through Unit Investment Trusts or UIT’s, but once we looked a little further into them we didn’t feel comfortable recommending a product that usually trades double or even triple digit percentages above net asset value. In layman’s terms, if the price of Bitcoin is $10,000, it means you are actually paying close to $20,000 or in some cases over $20,000 to own Bitcoin. Oh and did I mention you don’t actually own your private keys and the fee is upwards of 2% per year!
The next method we looked into was having a custodian directly handle digital currencies for us. There were many problems with this method. For one, the pricing we were getting as a wholesaler was nearly 1% per year and the fees to buy and sell were also quite substantial. Mind you… this pricing was before our mark up was even considered. The last problem I had with this method is that it is entirely unproven from a legal standpoint and every time I tried getting assurances as to how it was legal for me to do this, I was brushed aside.
Similar to the method listed above, another option I had was sending my clients to a firm that would charge 10-15% upfront in order to facilitate getting Bitcoin inside of your IRA. This firm doesn’t advertise how much they charge and we had to make multiple calls to ascertain their pricing. We couldn’t ethically charge someone that much upfront and again we still had the legal challenges of how do we do this as licensed individuals. Oh did we mention most of these firms hire unlicensed individuals who are compensated 100% upfront with no incentive to support you down the road.
Fast forward to November 2017 and Wall St was set launch Bitcoin Futures. For us this was only a viable option for people who wanted to buy insurance for large holdings, but knowing Wall Street, I highly doubt any traders are buying this to hedge in the traditional sense. The other problem we had with this, is that this product settled in cash… which once again meant there were no private keys for the end user to hold.
We finally started looking into the world of self directed IRA’s and were able to find a Registered Investment Advisory who specialized in Self Directed IRA’s. Many of the people they “compete” against are unlicensed, unregulated and unaccountable to you after the sale. The Liberty Advisor(S) are actual wealth advisors who have spent years crafting our wealth management expertise in all facets of personal finance. Whether its planning for: Retirement income, Charitable giving strategies, insurance, taxes, employee benefits or estate planning we have experts to help achieve your goals.
Another key difference is we want to clearly lay out the risks that investing in Bitcoin and other crypto currencies pose… and we won’t invest your money unless we feel that you are well aware of these risks. Many of our competitors talk with absolute certainty that Bitcoin will be $1 Million in the very near future and use Fear of missing out as a sales tactic.
If you are 55 years old, don’t expect us to throw 50% of your money into crypto currencies. Ideally, we would want all of our clients to have a plan in place before they invest, even if the plan isn’t formal. If you know you need $75k to live off of, let’s try and figure out the “safest” way to obtain that amount and use excess funds to invest more aggressively to hedge against inflation or the dollar collapsing.
So aside from the fact we are actual philosophical libertarians and actual wealth advisors why choose Crypto Self direct over our competitors:
1. In most cases we will be dramatically cheaper than the competition. Honestly in the space we are in, there is no competition.
2. Our fee includes the funding as well
3. Fiduciaries- We have to act in your best interests… not ours
4. Trust and Transparency are two very important attributes of The Liberty Advisor.
5. Ability to take a holistic approach to your wealth and manage your other assets as well
6. By investing in an LLC, you are creating another legal barrier between you and the government. While the IRS has not specifically stated you can invest Bitcoin in your IRA… everyone knows you are allowed to have companies inside your IRA. Why not create your own LLC that is owned by your IRA and have that company invest in Blockchain assets? To be fair the IRS only comments on what can’t be inside your IRA and so far the only two things that cannot be inside your IRA are Life Insurance and Collectibles.
- a. Ability to pay a low flat fee to facilitate the transaction all the way to having full service wealth management options
- b. Multiple ways you can hold onto your keys*. *For our AUM clients we will only allow cold storage multi sig options
- c. You can choose which exchange to purchase from although bundled pricing is only for exchanges from which we have an institutional relationship with
8. Best Practices- We ensure you know the differences between a cold wallet and hot wallet and what the best ways to protect your Crypto is.
9. Service after the sale* * For clients who elect to maintain a relationship with us we will be there to support you and to plan for your future
10. Licensed – Accountable – Long track records
11. Own actual Bitcoin and not a derivative of Bitcoin.