Can I use part of my Aegon pension to invest in Bitcoin for my future pension?

Prism

Peter314 said:

A Bitcoin tracker can be held in a SIPP. Don't know if Aegon offers it but op could transfer to a platform that does...

https://www.hl.co.uk/shares/shares-search-results/x/xbt-provider-bitcoin-tracker-one

Its getting banned in the next few days so I doubt there would be enough time to transfer to a SIPP.

atush

westv said:

atush said:

Albermarle said:

Like many others I am now watching my pension pot being eaten away at,

The last ten years have been very good to pension investors. Even a medium risk, middle of the road portfolio , has produced around 4 or 5% % a year above inflation . More aggressive investors  ( but still in mainstream regulated investments) have been getting up to 10 % pa above inflation . Even in this year nearly all pension pots are bigger now than they were on Jan 1st .

So not sure why yours is being 'eaten away' ?

ours is

Hopefully not 10% a year!

our is up i meant.  Very much so

Lost_Property

Prism said:

Peter314 said:

A Bitcoin tracker can be held in a SIPP. Don't know if Aegon offers it but op could transfer to a platform that does...

https://www.hl.co.uk/shares/shares-search-results/x/xbt-provider-bitcoin-tracker-one

Its getting banned in the next few days so I doubt there would be enough time to transfer to a SIPP.

Are you sure it's getting "banned" rather than simply closed to new investors?
Positions in crypto derivative products are no longer allowed to be opened on spread-bet/CFD provider-sites as from January 6th but existing positions seem to be allowed to be retained. The spreads are pretty wide though and the funding costs are typically about 20% per year for long positions. 

The option to withdraw cash from the pension and investing directly in Bitcoin or something that holds/tracks Bitcoin seems the most straightforward, subject to fees, etc. Buying BTC directly requires a trusted intermediary and a secure wallet.

Another possibility would be to buy shares in a company such as Microstrategy that has value doing other things but itself also holds and intends to increase it's reserves of Bitcoin - this then offers some of the upside but limits the downside, though be careful not to overpay as the BTC reserves make up only a proportion of the total asset value of the company yet the shares can easily get bid up by as much as the actual recent % gain in BTC, which isn't how (what is in effect) a call option should behave.

If you understand options you might also consider writing puts on BTC rather than buying outright. That way you get to keep regular amounts of premium if the market stagnates or rises and if it falls then the price you agree to pay for your BTC is reduced by the premium already received. The gains count as capital gains too so as each contract expires the premium written on unexercised puts uses up your annual capital gains tax allowance in that year, reducing the hassle and expense of having to "bed n breakfast" a basket of shares annually. 

A further idea is to look into Bitcoin mining. Not likely to be worth doing solo, unless you're happy to view it as a "lottery"- type of exercise and don't have to pay the bills, but a number of mining rigs, combined with a source of cheap electricity and then joining a mining pool could well be a possibility.  You need to factor in things like the cost of the rig, the hashing rate and the cost of electricity vs the projected expected amount of BTC to be earned from your proportioned contribution to the pool, allowing for the likely increase in calculation-difficulty over time.

Good luck!

magpie1962

Fast forward a few months and Bitcoin now $48,000
This is exactly why I clearly stated that I wanted no advice on whether it was a good or bad idea to use part of my pension money for Bitcoin if it was possible. Around October I had just short of £134,000 built up over a number of years in Crypto and along with what I was able to take out tax free from my pension and add to my crypto portfolio  I have more than enough now to comfortably if I so wish. 
Some posters on here are so arrogant and as I thought before they even gave their Bitcoin cliche comments that I was going to ignore them anyway, and Thank God I did

dunstonh

give it time

supamat

Hey magpie1962 hows it going I'm thinking of doing the same. 

Cus

magpie1962 said:

Fast forward a few months and Bitcoin now $48,000
This is exactly why I clearly stated that I wanted no advice on whether it was a good or bad idea to use part of my pension money for Bitcoin if it was possible. Around October I had just short of £134,000 built up over a number of years in Crypto and along with what I was able to take out tax free from my pension and add to my crypto portfolio  I have more than enough now to comfortably if I so wish. 
Some posters on here are so arrogant and as I thought before they even gave their Bitcoin cliche comments that I was going to ignore them anyway, and Thank God I did

Looking at some of your posts, it seems you have really turned it around from 18 months ago. I hope that pot hasn't gone down too much since the peak in October.  Are you still fully invested in bitcoin?

Edit:oops I thought he was messaging recently.  Well if he had that much back in October 2020 then he's probably on his yacht now 😁

TadleyBaggie

supamat said:

Hey magpie1962 hows it going I'm thinking of doing the same. 

OP hasn't logged for around 10 months.

dunstonh

Whenever you see an old thread brought back to life, it's amazing how many banned people you see it (the logo above the name next to the post doesn't load and if you hover over it, it says banned).   Many of whom were very helpful and useful contributors.