if you had a small 401 k that earned you a small percentage each year and it IS your retierment plan would you cash out and buy bit coins ..... even at these prices?
low 30s gunna only invest half and save the other half. might be incredibly smart might be the dumbest thing ive ever done. if i would have when it was at 2, 5, 10 i would be quite well off.... ok pert much rich.
so what do you think? risky yes, possible i could make a lot of money? even more than the markets would give me. also make up for the ten persent fee for taking it out early.
there are a lot of smart people on here, I would relay appreciate your feedback on this as this could make or break me. thank you.
In July of 2011 I took $10,000 out of my Roth IRA. I bought about 700 BTC at $14/BTC. I was hoping my money would follow the pattern and triple by the time I needed to make a balloon payment that next spring for $30,000.
Instead, by that spring the price of Bitcoin was down to $2-$4/BTC.
So I had to take $30k out of my 401k to pay for the balloon payment.
Taking $30k out means a 10% penalty of $3000 plus you have to pay income taxes on that as well (at around 30% that's another $9,000).
So that is $12,000 I owe the IRS this year. I also took a lot more out of my 401k for other things. So I owe the IRS a lot.
Back in the fall, seeing a large IRS bill coming up and no extra funds sitting around I had to go with the only way I can make that kind of money...I shipped off to Afghanistan.
And here I sit, making a bunch of money that will go to the IRS instead of into Bitcoin.
Just make sure you can cover the taxes and penalties for next year's tax bill even if Bitcoin crashes.