Episode 88: Cryptocurrency Basics with Joe Saul-Sehy

 

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Have you noticed the new feature at the Big Picture Retirement webpage? There’s a new button that lets you send a voicemail message, and your message may be played on the air. And today, we get to hear the first response to the new system!

Devin and John got a message from Joe. He did a backdoor Roth IRA, and he now realizes that he forgot an old Simple IRA! So, he’s broken a little rule in the backdoor Roth IRA transfer, and wonders what to do about this.

Devin and John discuss the issues that Joe needs to address.  It’s tricky! He’s got some tax issues to address, and then maybe he needs to make sure that investment still makes sense for him.

Next, Devin and John welcome a different Joe, Joe Saul-Sehy, from the Stacking Benjamins podcast. Joe has come around to talk about cryptocurrencies. Cryptocurrencies are big in the news right now, and all the podcasts are talking about them. What’s the big deal? And are you too late to get in now?

What is cryptocurrency? Joe says, “It is a way to get governments out of transactions, and also a way to make transactions happen faster.” It’s sort of like moving money into the currency of a different country, except that it isn’t (so far) regulated by the government, and transfers can happen super-fast.

Is this a currency, or is this an investment? It depends on who you ask. The Securities and Exchange Commission says it is not an investment, and the IRS says it is not legal tender. So what is it? Well, that is a question that will surely be figured out in the future.

What do you think the eventual outcome will be? Joe thinks that cryptocurrencies will stay around, but that the market can’t support all the cryptocurrencies that are currently out there.

You can find more from Joe Saul-Sehy a lot of places, including:

Money in the Morning

Stacking Benjamins podcast

The Money Tree podcast

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Once a month, Devin and John answer listener questions.  Send your questions to questions@bigpictureretirement.net.  They can’t answer every email or question, but they sure do try!