Do you have an acronym glossary handy for this post?
I not even surprised to be honest. Sam Bankman Fried was on the cover of Forbes and they glorified him as being an industry “leader”. You never know what deals they have going on behind closed doors and it sucks because the only people that gets hurt is the Mom and Pop investor. I do know SBF has spent a lot of time in DC lobbying for regulations in his favor so it doesn’t surprise me if he were to do the same in other nations.
How’d you know, it’s a bunch of post-its attached with pushpins and red conspiracy yarn. Every time you hear a buzzword or acronym you right it down on a post-it.
Yeah, you never know what happens behind closed doors, where stuff really gets done. I’m absolutely waiting for Litquidity to make an Alameda Risk Management Dept. shirt, they’ve already done an FTX and 3AC (that defunct SG crypto ‘hedge’ quant, spoiler if you’re a hedge fund, you’re supposed to hedge).
No offense but if darpa was involved you wouldn’t be able to squash it. Doesn’t matter what btcers say. Unlimited budgets do as they please.
And yes it was political ponzi slushfund. That’s all coming out now…super connected family and funders. Sounds like you need to research more of this industry before a blanket support of it.
I’m not a fan of the petro dollar either, but btc isn’t organic or the answer. Just like a gold standard isn’t (but still better then crypto)
We can also go back to Silk Road (Ross ulbrecht) and Aaron schwartz. How many people need to die before it’s a conspiracy???
If DARPA was involved then they wouldn’t have any control over the Bitcoin Core network anymore. The only control is the hands of nodes and the nodes are individual users. Bitcoin, unlike others, did not have a premine and Satoshi invited the world to participate in mining the first bitcoins over 10 years ago. In Bitcoin, every user is on the same playing field, and no one has more power than the other.
I’ve done plenty of research on Bitcoin, and I feel I know enough. What happened with FTX happens all the time, unfortunately. I don’t really care about the conspiracies because Bitcoin doesn’t care. Bitcoin’s economic policy has been set for the next over 100 years. As for FTX, they do the same tactics as every other company does that applys old rules to new tech. The biggest difference is with this new tech, shit can hit the fan within a matter of hours rather in the traditional financial system, it would takes months.
- FTX printed FTT
- FTX lended FTT to its sister company, Alameda
- Alameda borrowed USD against FTT
- Alameda sent USD to FTX
These tactics are the same as the Federal Reserve.
And I want to add to this, if you think back to basic economics, anytime the supply gets pushed to far right, the price get surpressed. What’s happening there is real-life demand is satisfied by supply that was created out of thin air. What does that mean? That means your pockets are being picked because you think you own real on-chain asset. It’s all based off of belief. Perfect example is securities and the DTC. If no one accepted IOUs then we would be in total different world today. If true demand is expressed by the majority of people buying and taking self-custody, I think we would be surprised by asset prices.
Where ulbrechts btc? He would prob be worth 50 billion today… not hard to figure out who took it. Same people that have been selling drugs in this country for 100s of years. They don’t like competition. They fund all black ops with the drug trade. Just so happened that Silk Road almost overnight replaced them with a new currency. Can’t allow that…
Ross was said to have 70k btc at his arrest. That was 4.2 bill at its high. Imagine if it was never shut down and trading of other goods and services went to the Silk Road. Endgame for the worlds currencies. Control freaks will do anything to remain in control
The Ross Ulbricht case has always been a mystery to me. I remember there was a murder or attempted murder involved I can’t remember but he was never charged for either. But I do remember them throwing the book at him. As a first time non violent offender, he was sentenced to two life sentences plus 40 years without parole. But recently, they did find some more Bitcoin: https://www.justice.gov/usao-sdny/pr/us-attorney-announces-historic-336-billion-cryptocurrency-seizure-and-conviction
They found some huh…there’s plenty of documentaries about that. Start there and follow the bitcoins.
Aaron schwartz was even more interesting if a case with open source tech.
Can someone throw a wrench into my financial plans? I am kind of new to this and did not have anyone to talk to about this. I am sure a lot of you have already thought about this and I was wondering if this is feasible. I was planning on saving aggressively and using my retirement accounts as savings accounts. Any opinion or advice would be appreciated.
Save aggressively in the 401k, IRA, and HSA accounts.
- Emergency Fund is already full.
- No debts.
- HSA is being maxed out each year.
- Not changing or losing the current employment.
- Have some backup RSUs and stocks for emergencies.
- Traditional IRA: $0. (Rollover all the value from this account into the pre-tax 401k. Doing this because of the pro-rata rule. This would not affect the 401k limits for the year.)
- Roth IRA: $6k. (Through backdoor IRA. Rollover IRA to Roth IRA each year.)
- Pretax: $27k: $20.5k self ($22.5k from 2023) + $6.5k employer contribution.
- Roth 401k: $34k in 2022 higher in 2023. (Rollover from After-tax using mega backdoor in-plan conversion)
- After-tax: $0. (Contribute $34k in this account and use automatic rollover to Roth 401k using mega backdoor in-plan conversion)
In case I need the money (e.g. for a downpayment on a house) I would be following this withdrawal/loan priority.
Before 5 years:
- Non-rollover Roth IRA contributions.
- Loan from the 401k account. (Employer allows prime rate + 1% interest rate up to 50% of the 401k amount for a maximum of $50k. Up to three active loans at a time. As long as I am employed, the balance of 401k is not affected by the loan so the loan amount stays invested in 401k. Any interest goes back into the account.)
After 5 years:
- Non-rollover Roth IRA contributions (if any).
- Rollover Roth IRA contributions that have been in the account for more than 5 years.
- Loan from the 401k account.
- Once 401k amount is above $100k, rollover any excess Roth 401k (above $100k) into Roth IRA account. Since I can’t take out loans over $50k.
- Interest on the 401k loan does not affect the 401k balance. The interest rate on the loan is at the prime rate + 1%. The interest goes back into my account as a contribution. It seems beneficial to take this loan just to increase 401k contributions?
- If I decide to change the job, rollover only the Roth 401k into a Roth IRA account.
A lot of good thoughts here, but some practical considerations ran into myself along the way:
- 401k or similar accounts for which you can take loans are usually confined to the employer. If you change jobs and have an open loan, usually it’s called-in. Even when I administered my own 401k (through a 3PA and my existing FP) I couldn’t offer myself a loan through my own plan. By then I had a much better emergency fund. Don’t let extreme savings control your career.
- For Roth IRA conversions, your state/federal income tax rate can be a deal breaker. Good option in years you want to increase your tax liability, but in 3 of 5 states I’ve lived in the state income tax did/would make it a bad move.
As far as getting it reviewed by a pro, talk to a couple FPs. My only regret was contemplating one as long as I did. I had a mentor whose former FP traded his retirement accounts to 0 during the .com boom which scared me off probably 5+ years - just make sure if you hire a FP they get paid on balance and not on transactions.
Never ever withdraw for retirement accounts for down payments or etc , otherwise looks good.
Yeah. I guess I would need contingencies for this scenario.
So I should have mentioned. I was only planning on rolling over the Roth 401k amount and not touching the pretax 401k. I am assuming there would not be any tax implications on rolling over Roth 401k to Roth IRA given the amount is already taxed.
Thanks. I would look into this.
That sounds good and all but in my scenario, all my savings would be in my retirement account. so my retirement account would be a retirement+savings account.
That’s a solid plan.
Let me play devils advocate. As at some point you will need capital to get out of the rat race.
If it’s employment and collecting a paycheck till retirement then it’s solid.
But I’m not sure how old you are and still wanting to take a chance in RE or Stocks or some business pursuit.
I am about to hit 32. I did not think of it that way. I’ll reevaluate a bit. Stocks, I am allowed to buy through my 401k as well as the IRAs. Diversifying in RE or some business pursuit could be on the cards. I am assuming in two to three years this plan could provide enough liquidity for those purposes.
Early retirement would result in leaving the pre-tax 401k for retirement. Converting Roth 401k to Roth IRA and using Roth IRA contributions withdrawal to survive until 60.
edit to say this is not advice, just throught out other thoughts and ideas.
Thats was my point, money after 59.5 is important, but “savings” at that point wont matter if you hit a home run in your 40s? Obvious there is a huge gray area in between and im not advocating skipping retirement funds. But at some point, if you make enough “pay check to pay check” you may want to try for a long shot in the 30s and 40s.
A lot of it is luck, being an adult with capital in the correct economical climate. Which we are likely heading into. If you stuff all your right now money in retirement accounts then you may not be able to capitalize in the current trends.
These crypto deaths are beyond coincidence now…
That’s now 6 billionaires involved in crypto dying