 Welcome to the last of that news, like a top stories in crypto and bringing on a bite-sized pieces today. Instead of talking about the news, I want to talk about something a little bit more important. And that is, as we are getting closer to the end of 2021, we're in November, we've got one more month to go. I think both of these months will be fireworks. And then we'll probably go into an extended bull market in 2022, January, February, March, April, who knows? But during this time, we're going to see a pretty rapid growth of our portfolios. And the next question is, well, what are we going to do with these portfolios when we have to, if we decide to cash out and pay the tax, man? So today, what I want to talk to you a little quick about is the things that I've learned along the way as far as tax minimization. And to make my point crystal clear, I want to direct us to a story about billionaire investor Peter Thiel, how he turned $2,000 into $5 billion. I got to tell you, when I wrote this title, it seemed very click-baity, but it's already happened. And it continues to happen. And I should just bring this to your attention so you know exactly what it is. So we're gonna talk about this. Then we're gonna go into some information I had put out previously and just update this information and then we'll go into all the things we need to know as far as tax minimization. So the first thing is Peter Thiel. What the heck did this guy do? Well, his account, as it says right here, jumped more than $3 billion in just three years, even though he didn't contribute money to his Roth after 1999, pretty amazing, right? He put a little bit in, didn't contribute anything, went to $3 billion. What the heck happened? Well, first of all, Thiel's Roth IRA was worth less than $2,000 in 1999. Imagine that, $2,000. And Roth IRAs, if you're not familiar with them, are funded with after-tax dollars, which means that with a draw, the money is tax-free. So if you're not familiar with these in the United States, that's what we have as far as like, we have 401ks and Roth IRAs. In the UK, you've got things like SIPs and ISAs, but generally, as a function in most territories or countries or different destinations, a lot of these countries have some type of savings account or something that you can actually put into and you can only withdraw at a certain time because that really helps out their citizens. Now, not all of this is available in every single country, so check with your local countries and laws, but this is what we have in the United States and the UK and so on and so forth. So this Roth IRA, again, funded with after-tax dollars, which means that withdrawal, the money is tax-free. So when you put in $2,000, which you paid taxes on before, and when he withdraws the $5 billion, he's gonna pay 0%. So what did he do? How did he do this? Well, how he did it was, Teal bought 1.7 million shares of PayPal. Remember, he was the co-founder of PayPal and when it went public, there's some type of regulation I'm sure, but like if you want your shares, you gotta pay X amount. In this case, it's 0.001, which is what he paid in 1999, per share or essentially $1,700. And now he added in another $300 later on, but a 10th of a penny is what he paid. So just think about how much you can buy for a 10th of a penny and then here is what the stock price is at today. So that's not too shabby, right? Actually at the very top, it was at 308 and right now it's taking a little bit of a dip into 188. So that is essentially how Peter Teal did it. And the crazy thing, if you really think about it, is what this can do for you and how you can use this to your advantage, especially if you believe, like I believe, that crypto and digital assets are going to appreciate massively over the next years and decades. So what I'm gonna do is I'm gonna, we're gonna update some information that we had talked about in a previous video. So let's just jump into that and I'll give all the information out that I can. So remember this, it's not how much you make, it's how much you keep. And taxes are the number one reason why you'll lose a ton, but there's a way around this. First of all, taxes suck. I think even the Bitcoin maximalists and the XRP army can all agree on one thing and that is that taxes are awful. So here's a question before we start. Question one is would you rather pay a 20% tax on $180,000 or a 15% tax on $2 million? And number two is do you think you live past 60 years old? Now me personally, I think I've made it this far, so why not? It's not outside the realm of possibility that I can make it that far. So let's start with the average viewer of this channel. Let's go with a person who is about 35 years old. That's pretty much somebody who is in the middle. Now it's just an average. You might be older or younger, but this is just an example. And according to the US Census Bureau and the Social Security Administration, people will live on average somewhere around 82 years old. That's males, females, white, black, Latino, whatever. Men will live a little bit shorter lives, women live a little bit longer, so around 82. But let's say you retire at 65, so you got about 20 years to go until you kick the bucket. I mean, well, it's actually 17, so let's just round up to keep things simple. Again, you might live longer or shorter than this. I'm not no Stradamus, let's just go with the average. So obviously the earlier you retire, the more money you might need so you don't run out. It really all depends on how long you wanna work. So that means that if you're around 35 years old, you've got 30 years to save up for retirement. Now it may sound far away, but let me tell you right now it is not. And I put this little hashtag okay boomer as a reminder because I was in your shoes. If you're 20 years old, at some point I was in your shoes and someone told me a long time ago about compound interest and retirement and I thought, yeah, yeah, yeah, sure. I'll get to that and I didn't. And here I am playing catch up, talking to you about these things. So again, it's not about what you make, it's about what you keep. And one of the biggest obstacles you and I are going to face is the tax man. And I know there's some libertarians right now saying, hey, taxation is theft. Well, that's what these people said and it didn't work out too hot for them. You got Willie, Wesley, Martha, and even Al Capone got pinched for tax evasion. So good luck doing better than these guys. And here's a little trivia, which one of these four did not serve jail time? Because three did, federal jail time. The only one that didn't was actually Willie. And the way he did it was he made a tape and paid the IRS back millions of dollars. So again, good luck dodging the IRS. Now, have you ever signed up with an exchange, done any kind of KYC, know your customer, AML, anti-money laundering, or submitted a photo ID or passport or social care number to any exchange or wallet? Because if you did any of those, chances are the government knows you have crypto and this question on your 1040 for taxes should have been answered, yes. Now look, I'm not here to calm down anyone, but I've been through an IRS audit and it is no fun. So trust me when I say the IRS knows, but stay with me because I'm gonna show you the smart way to do things and how to massively reduce your taxes so you can keep way more of what you make instead of giving it to the US government. So let's say you dollar cost average into Ethereum starting at the beginning of 2020. So assuming ETH goes to 10K, then we need to accumulate 200 ETH over the next 30 years. And that's just to break it down, ETH times 10K is 2 million, right? That's just my goal. And remember, that's just for you. So if you wanna leave a legacy for your kids and grandkids, then you might need more. Again, I don't know your personal situation, but these are all just rough estimates. And also, if you live longer, I'm probably with the advancement and like anti-aging stuff, you're either gonna need more cash flow or you have to tighten your budget. Now, I think this is a real possibility based on how technology is advancing. This is a great and frightening at the same time. Now, ETH might be the new 40. And if that's the case, you're gonna need way more income, which is even more of a reason to keep as much as you can and not give it away to good old Uncle Sam. And nobody wants to do that. And one more thing, remember $100,000 today will not be $100,000 in 30 years, especially with all this money printing going on. So just keep that in mind. So here's your options right now. And they're called capital gains tax. And you've got essentially two flavors. You got short-term capital gains, which is anything that you can make under a year. So an example is you buy Bitcoin in June 2020 and sell it April 2021. You bought it and sold it in less than a year. That is short-term capital gains tax. And you'll be taxed based on your filing status. So if you're a single and make above 39,000, you're going to be taxed at 22%, 84,000, 24, and so on and so forth. Head of household, same thing. If you make over about 52,000, 22%, 84,000, 24%. And then married filing jointly and separately. And this is progressive. So just be aware of that's how it is. And also here's long-term capital gains tax, which is like the prettier, yet still ugly sister of short-term capital gains we just saw. So this is what you can expect if you cash out after holding an asset longer than a year. So let's say that, again, you are head of household and you make $52,000, you're gonna be taxed at 15%. If you make over 461,000, first of all, good for you. Second of all, you got 20%. And then single, 39,000, 15%, 20%, and so on and so forth. So it really all depends where you fall. And one more thing, these are the current numbers. Keep in mind that these capital gains taxes have been as high as 35% in the 70s. So hopefully it doesn't go back to that in the future, but who knows? We gotta pay for all this money printing, right? And it really depends on the philosophy and direction of the government at the time and who is in charge, which is why I'm making plans right now. So I have to deal with that uncertainty in the future. Also, more bad news, depending on the state you live in, you also have to pay state capital gains tax on top of the colossal taxes you just paid on the federal capital gains taxes. So lucky for me, I'm in Texas, so I got 0%. But who knows where I'm gonna live later? I could move to Georgia, I don't know. But Florida, Nevada, all 0%. Washington, congratulations, New Hampshire. Then you got most of the Midwest and the Southeast, you're looking at four to six. And then if you live in California, you got 10%. So sorry, Cali. So let's recap. We're gonna need money for decades after we stop working and we don't wanna pay Uncle Sam a huge chunk of our crypto gains. So here's what I'm doing. I'm putting $6,000 worth of cryptocurrency and gold per year into a Roth IRA. Now, why $6,000 and why a Roth IRA? Because six grand is the max I can contribute every year and with the Roth IRA, I'll never pay taxes on the gains from my crypto ever. Let me say that again. With the Roth IRA, the one on the right. I'll never pay taxes on the gains from my crypto ever. So if you're thinking, well, I don't have $6,000 to contribute every year, I'm on a budget. So I want you to think of it this way. If you put in $500 into Bitcoin in 2013, when it was $100 per Bitcoin, you'd be sitting on five Bitcoins right now and it'd be worth $50,000 plus and probably $500,000 in the future if it hits 100K per Bitcoin, which a lot of people do predict. Or if you had invested $500 into Ethereum in 2016, which wasn't too long ago, when it was $10, you'd have 50 Ethereum worth $200,000 right now and $500,000 if Ethereum hits 10K per ETH. The point is it doesn't matter if you contribute a little bit or the max per year. Just contribute something and get prepared for the future. Be proactive instead of reactive. Trust me on this one. And those examples I just gave was only $500 total. So imagine if you would have invested or could invest 1,000, 2,000 or even 6,000, which is the max every year and what might happen in the next 20 to 30 years. Now I don't know what's gonna happen with crypto and digital assets in the future, but if history is any teacher, we could see some massive gains and unfortunately some massive taxes for those who are not careful. So the question is, do you believe that what you invest in will stay flat or massively go up in value and eventually moon? I think it's gonna weigh up. So here's why I'm using a cryptocurrency specific IRA that will massively minimize my taxes so I can keep more of what I earn. So let's break it down and talk about a traditional IRA, a SEP IRA and a Roth IRA and why I picked the Roth. Again, you can do whatever you want to do but this just made sense for me and my personal situation. So a traditional IRA, the contribution limits per year are $6,000 if you're under 49 and $7,000 if you're over 50. So that's just something to be aware of. Contribution taxes are pre-tax, meaning you put in money before the IRS taxes you on your income, which means the growth of the investment will be taxed, i.e. you save it in the beginning but then you get crushed in the end. So do you wanna pay taxes on the $6,000 that you put in per year or the millions it can potentially grow to? Now withdrawal taxes are tax deferred growth, meaning you pay taxes when you withdraw after age 59 and a half. So whatever your crypto investments grows to means that's what you'll pay taxes on on all of those gains. Early withdrawal fee is a 10% penalty plus a tax fee. So if you take money out before 59 and a half be prepared for a nice kick in the teeth. And who is this good for? Well, this is good for people who need the tax break for this year's taxes or people who think that their taxes will be lower in the future. An example would be someone who makes like a ton of money, $200,000 salary now but when he or she retires they won't have that job or that high salary which will put them in a much lower tax bracket. So that is what will be good for them. So additional info is this, you can do a rollover. So if you have a traditional IRA somewhere else or an old employer plan like a 401K, 403B, military TSB or 457 then you can move these types of accounts tax and penalty free to any type of traditional IRA. But if you wanna roll over any of those traditional plans into a Roth cryptocurrency IRA it's considered a taxable event as additional income. This might make sense in certain situations but just talk to the pros. So we talked about traditional IRA, let's talk about a SEP or a simplified employee pension. And for this one, the contribution limits per year are 20% of that earnings. That's pretty big, 20%. Contribution taxes are also pre-taxed which means you put in money before the IRS taxes your income. So again, the growth of the investment will be taxed. Again, you wanna be taxed on the 20% of your net earnings you put in or the millions it grows to. Withdrawal tax are also tax deferred meaning you pay taxes when you withdraw after age 59 and a half. So again, whatever your crypto grows to you'll pay tax on it. Early withdrawal fee is again, 10% penalty plus a tax fee. So again, another kick in the teeth. And this is good for small business owners and people who need the tax break for this year's taxes or people who think that their taxes will be lower in the future. Like the example we just talked about with the traditional IRA. Again, for the additional info, you can do a rollover. Talk to the pros in that one and they'll set you up. But for me, I'm a heavy crypto investor. And for me, it only makes sense to open up a Roth IRA and here's why. So for a Roth, the contributions limits a year are again, 6,149 or 7,000 for 50 year olds and plus. Contribution taxes are post-tax meaning that you put in money after you get taxed on your income. This means your investments grow tax-free. So again, you wanna pay tax on the 6,000 you initially put in or the millions it will grow to. Withdrawal taxes are tax-free growth meaning after 59 and a half you can withdraw any amount tax-free. Early withdrawal is none for contribution. So you can also withdraw your contributions at any time for any reason and get no type of penalty. But for the earnings it makes you could pay taxes plus a fine or both. So if you need money for any reason just take out the contributions that you've put in and you'll be fine, although I wouldn't recommend that. So this is good for people who believe that their crypto investments are gonna shoot up massively over the next 20 or 30 years like myself. Also it's for people who think their taxes will be higher in the future either from government interference or they'll continue to work the rest of their lives like small business owners or asset owners or people who have like rental property. So just so you know, this is my choice and what I believe will work best in my situation. Again, use this information to decide what works best for you and your personal situation and that's what I have to say there. So here's a little trivia. Do you know the return on investment for a IRA that invests in the usual regular market, stocks, bonds, CDs, et cetera? On average, it's a whopping six to 10%. Let me say that again. Per year, it's six to 10% in the traditional space. That's a huge year. That's enormous. But in crypto we call that a Tuesday. So here's a warning. How you file your taxes will make a big difference. So for the traditional and SEP IRAs there's no contribution limits based on income meaning pretty much everyone can contribute up to 6,000 per year but for a Roth IRA there are contribution limits based on income and tax filing status. So you know there was a catch because everything if it's too good to be true usually is but there's a catch but it's not too bad. I'm gonna show you why. So here's the Roth IRA modified adjusted income chart for 2019 and 20. They're pretty much the same but if you filed as a single or head of household and make less than 122,000 nothing to worry about. Above that it gets reduced at 137,000 you can't contribute anything to the Roth IRA but there's a way around this. Now, if you filed as married filing jointly and make less than 193,000 nothing to worry about. Above that it gets reduced and then at 203,000 you can't contribute to a Roth IRA at all but there's a way around this. If you filed as married filing separately like I do and make less than $10,000 then you can only contribute a reduced amount or none at all but there's a way around this. Now the way around this is called a backdoor Roth IRA and it gives me all the advantage of a regular IRA regardless of my income and I'm able to contribute the max of 6,000 per year and this little gem was passed into law by the federal government in 2010 but not too many people know about it and that's why it got me. So here's who I use for my personal Roth IRA and who I recommend to all my friends and family and it is I Trust Capital and the reason for this I went with them for three main reasons. First of all was the team, second was because the fees and third is I can have an IRA of crypto and gold so let me just break it down. So the team itself is the actual website I'm gonna go to about us, click down on team and this is what I always harp about. If you wanna see a company that'll be successful look at the team because it'll just tell you exactly what you wanna know. So this team that they've assembled I believe is kind of bringing together the old world with the new. So Todd and Blake here and Anthony, where do you go? Anthony down here are the kind of like leading in the cryptocurrency investments and Rich, Tim and Murphy or Rich is the CTO, Tim is the economist and Murphy is the VP of operations. These guys were all part of PIMCO which has a 1.9 trillion assets that are management. So these guys manage bond trading platforms that would do one million trades a day. So the point is they know how to build and operate a trading platform at a pretty high level. So that makes sense to me. And I've also got Terry down here who's got three decades in the retirement trust industry and the rest of the supporting staff which all looks pretty good. Again, I'm a big believer in teams and this one's pretty stacked. So just show me who the team is behind the company and I can tell you pretty much whether they're gonna be successful or not. It's the same thing with businesses, same thing with cryptocurrency and digital assets and the teams behind it. Next is the fees. So let's take a look at the fees as you go to pricing and here it is, three bucks a month, it's a count fee and then in crypto you get a 1% trading fee, 1% not too bad. Gold is $50 over spot. Okay, so here's those updates I was talking about. Talking about pricing, this is crazy but it's true. Now instead of 2,999 per month as far as I trust capital, this is the pricing right now, zero. You have a $0 monthly account fee. Let me say that again, there's no more monthly fees, it's just zero dollars. Now there's still a fee if you trade within your account, you get as far as like 1% trade fee, gold is $50 over spot per ounce and silver is 250. So that is essentially what you get right there and then just remember that within your account as you trade there is no capital gains tax, whatever you trade within your Roth IRA account. So if at some point, you know, Bitcoin goes up or down and you say, I don't want to sell it and just kind of hold on to things and reinvest later within the Roth IRA, you can totally do that, pay zero in capital gains tax. Now on top of, which is crazy, no monthly account fees. And then of course also, when you sign up with my link in the description below, you get $100 worth of Bitcoin just for signing up, which is crazy. But your account still includes a setup of your new IRA, facilitation of transfer, rollover contributions to fund your IRA, and we talked about that for a 1K, for a 3B, a Thrift Savings Plan, all those different things that you can actually roll over, all necessary IRS tax reporting, unlimited storage with institutional custody partners and I trust capital, platform support and maintenance. Now on top of that, the next question that I had was, hey, you know what, what are the different types of crypto assets that I can actually get into? Well, here they all are. And when I first got into, I mean, this is my second year and there wasn't that many. It was like Bitcoin Ethereum, I think Chainlink was there, Litecoin was there and Bitcoin Cash, but now you got a plethora of different ones to choose from. I mean, Doge or Bitcoin Cash, Stellarios, Compound, Uren, Sushi, Maddox, Alana, Bat, Engine. Ooh, Engine's good. Cosmos, Maker, Shiba Inu, and then coming soon, Avalanche. So you've got just a ton of choices for which ones you want to get into as far as with crypto. And again, if you want to trade within your account, it's there is no tax issues. You don't have to pay capital gains tax. And then also on top of that, the next question I had was, well, if I'm gonna invest in a crypto with iTrust, how I know it's safe? And this is one of the big things that I thought was probably the most important, which is it's not how much you make like I talked about, it's how much you keep. And if things get hacked, then that makes that does nothing for us. So they've got two different custody champs. They've got Coinbase, Custody, and Curve. I'm gonna talk about Coinbase first. Now Coinbase, I thought this was pretty interesting, they did a blog post on this one, and they just talked about custody. But just so you know, as far as like the storage, these Coinbase, I mean, I know some people don't like Coinbase, but I mean, as far as like institutional investors and really securing things are top notch. And that's really what the truth is. As far as insurance and industry-leading, annually reviewed, renewed commercial crime insurance, the amount of 320 million, and they have all these different securities and controls. But the big thing of why they actually did this, and I actually reached out to Anthony over there at iTrust, he goes, why did you guys go from Curve to Coinbase? He goes, you know what? It's there's two reasons, staking and governance. So staking is the potential to offer staking while still maintaining the same safe and offline storage of assets that clients trust. So what we were talking about is like what the different currencies are. How many of these can you stake? Well, Cardano, Chainlink, Dot, Stellar, Eos, I don't know about Stellar. Eos, Solana, I mean, name it, a lot of these can be staked, especially Ann Avalanche. So when we start to talk about this, as far as like, what is a good one? I mean, staking services is huge. And I talked to Ann and I go, when is that gonna happen? And he goes, well, it's all about regulation. He goes, but by no later than Q2 of 2022, we should have staking and maybe sooner. So I'm like, that's pretty good. On top of that governance, when clients invest in governance tokens like Uniswap, Compound, MakerDow, Sushi, Polka, and all those ones that we just talked about, they carry the right to participate in governance activities. And we eventually liked the clients to have the ability to vote their opinions. Again, this is all regulation issues, but this is things of what they are working on. And that's why they chose Coinbase custody. Now, on top of that, they also chose Curve. So I'm gonna jump into that real quick. Curve is for storing digital assets. Let me take a look at their website. So Curve, you don't know, they are making a big dent into the institutional grade custody. And they are being buoyed by these big players like eToro, Haimeer, Crypto, Genesis Corbett, Swissborg, Bitbond, Coinouse, and Franklin Templeton investments. And Franklin Templeton investments, I think they have like almost a trillion assets in their management. Of course, those are all traditional. But I mean, if you have something like this, old school like this coming in, they're going, hey, we wanna get in the game and we wanna use Curve. So the same, these same huge corporations and big entities that are using this for storage and custody, you're also seeing this for what you are storing it. So that sounds pretty good to me. Now that was the old Curve website. When you type in Curve these days, Curve.io or whatever else it was, this is what you're gonna find. First of all, you're gonna see that PayPal is to acquire Curve. This is March 8th, 2021. And when you type in that website for Curve, it doesn't exist anymore. This is what it takes you to, PayPal.com. So Curve was such a great platform, such a great for custody. PayPal snatched it up. So you can't even, Curve doesn't, it's just been absorbed into the multi-billion dollar institution that is PayPal. And that is essentially what's going on. And then lastly, just real quick, because we know about Curve and whatever else, the big thing then is, what about gold? What about gold and silver? Because I personally believe that the new savings account should be Bitcoin, cold silver. I mean, if you really wanna be the safest one, you can choose what you want to as far as crypto, but gold and silver, sure, why not? I have no problems with gold bugs. I own a little bit myself. So just so you know, you can also get into gold and silver. iTrust uses Vault Chain. Investment, grain, gold and silver help physically at the Royal Canadian Mint. So they don't just get into shares of gold, but it's physically held at the Royal Canadian Mint. And I mean, if you're looking for some place to do these things, I mean, as far as like safety, and you wanna make sure that everything's on the up and up, this sounds like a pretty good place to do that. So again, this is everything that you can do as far as like with iTrust, and it looks pretty good as far as things going on. And then lastly, just remember that this account is open to you 24-7, 365. So a lot of all the different things that we talk about, how it can actually help you with tax and minimization, especially as time comes on, it's open 24-7, 365. You can do all the trading. You don't have to call anybody like a brokerage. And yes, that actually does still go on in different Roth IRAs, but not here. So I think it is, it's a pretty good platform. I've used it personally for two years, and I've had nothing but good things to say about it for all this time. So lastly, the fees are gone, like we just talked about. Also, it's $100 in free Bitcoin when you set everything up. So you can go right to iTrust. You don't have to use my affiliate link if you don't want to, but you won't get the $100 signup bonus and all that stuff. So there'll be a link in the description. It looks just like this. And when you click on that link, you can set everything up. It's just super easy, easy, peasy. Now, when you set things up and you have issues or whatever else, you see in the upper right-hand corner, it says schedule a call right up there. You can schedule a call and sit down with these guys and just they'll answer all your questions. That's what I did. And it was pretty much seamless, but I had a ton of questions because I didn't really know anything about Roth and traditional and set by IRAs and difference. That's why I made this video for you guys. So that is what it is. And then lastly, I will just say, just to put a face behind the company, I'm gonna bring in Blake and he's gonna just take a quick snippet. All right, everybody, welcome to the office. And then very lastly, I want to introduce you to Blake Scadron. And he is the CEO of Itrust Capital. And it's one to actually put a face to a name. So this is the guy that we're talking about. Blake, thanks for coming on. Yeah, Dan, thanks so much for having me. Real excited to be a part of your channel and help all the crypto investors take advantage of the benefits of IRAs. Yeah, I really appreciate it. Now, if you guys don't know, Blake was the one that I actually reached out to them and he was the one that answered all my questions. And I had so many questions. I think I was bombarding with him with so many. And I'm just glad that he actually kept me in the wheelhouse. So if you've got questions, this gentleman got answers. Him and his whole team are, they have a crack squad and I'm happy that we can work together. So Blake, thanks for taking the time. That's it. Yeah, thank you for having me a part of your channel.