The client or prospect acknowledges that there are many inherent risks to owning cryptocurrency. At this stage, cryptocurrencies – also referred to as blockchain, cryptos, and crypto-assets – are incredibly volatile, and are at best an early stage speculative vehicle. We do not recommend putting more than 30% of your assets into alternative asset classes and no more than 10% in cryptocurrencies. We also realize that certain individuals will have philosophical beliefs that do not make them “traditional” investors. These individuals must acknowledge the many risks in having concentrated positions in cryptos and the dangers of not being diversified.

The average retail investor must also realize the risks inherent in cryptos and bitcoin. There’s the political risk that cryptos could be banned by the government. There’s the potential that cryptos could be added to the list of prohibited IRA assets. Since there’s no precedent for such a decision, we don’t know how the government would treat such assets in the case of such an event. We’d hope that investors would have a chance to sell those assets and to reinvest the proceeds into allowed vehicles, but there’s no telling what “remedies” the government mighthave in mind.

Other risks include, but are not limited to, extreme volatility, short track records, new alt coinsdisplacing current cryptos, an ever-evolving marketplace, new laws and legislation, hacking, quantum computing, the safety of exchanges, the loss of private key(s), the lack of a central authority for re-dos, currency risk, geo-political risk, etc.

Investors must also realize that we will not provide ongoing advice on when to move from one crypto to another or what crypto to initially buy. We will provide you with the information you need to make an informed decision, but it’s information that you should vet yourself. All models are hypothetical examples only and are not endorsements. Past performance is not an indication of future returns.

Retirement investors must use good judgement when it comes to asset allocation. Investors must also realize that even though retirement accounts provide great tax-deferral and avoidance strategies, it may be a moot point if assets go to zero or fall dramatically. In the event of a “home run”, such strategies may prove to be extremely beneficial, but there are no guarantees.

Investors in self-directed IRAs must acknowledge the grave risks associated with “check book” privileges and must take extreme caution against engaging in prohibited transactions. You must consult with your own attorney or tax advisor to safeguard against such actions. We have a selection of lawyers that we refer our clients to from time to time. There is no obligation to use one of these lawyers and we receive no compensation for such referrals.

Investors considering charitable trusts and foundations must weigh all of the pros and cons. The most serious consideration is that such action is irrevocable and cannot be undone. Tax laws and estate laws are subject to change at any time which may adversely affect your projected benefits.

We are not lawyers or accountants and any information about taxes or estate law is just that – information. Please consult with a lawyer or tax professional before making a decision.

In some instances, we may have relationships with non-profits, solicitors or affiliates. Any such relationship and/or compensation shall be revealed prior to entering into an agreement.

Please also realize that we believe the above information to be accurate but with an ever-shifting tax landscape, all scenarios were strictly hypothetical. Past performance is no indication of future returns.

Lastly, please know that we are fiduciaries and that your future is our focus.