Questions people ask
Plain answers from Charlie Andrys, founder of 21st Financial, a fiduciary RIA in North Dakota. Educational information, not personal investment advice.
What does a fiduciary RIA in North Dakota do?
A registered investment advisor (RIA) gives investment advice for a fee. It owes clients a fiduciary duty: it must act in the client’s best interest and disclose its conflicts of interest.
21st Financial LLC is a state-registered investment advisor in North Dakota (firm CRD 338230). It offers financial planning and investment management. It serves clients only where it is registered or exempt, and it takes no commissions.
Form ADV lists the firm’s fees, services and conflicts. You can read it free at adviserinfo.sec.gov. 21st Financial receives compensation from The Bitcoin Adviser for clients referred to them. This creates a conflict of interest.
Can Bitcoin be held in an IRA?
Yes. Two common ways are an IRA at a brokerage custodian that holds a spot Bitcoin exchange-traded product, and a self-directed IRA arrangement that owns Bitcoin directly, sometimes with multisignature custody where you hold some of the keys. Costs, custody risks and paperwork differ between them.
The usual IRA rules still apply: contribution limits, required minimum distributions for traditional IRAs, and taxes or penalties on early withdrawals.
Bitcoin’s price can fall sharply. How much, if any, belongs in a retirement account depends on your whole plan, your timeline and how much volatility you can live with. This is general information, not a recommendation.
What is Bitcoin credit?
Bitcoin credit, also called digital credit, describes income-paying securities, such as preferred stock and notes, issued by companies whose main asset is Bitcoin.
These securities are not backed by Bitcoin. Holders have a claim on the issuing company, and payments depend on that company. A stated dividend rate is not a return. Prices can fall, payments can be cut or suspended, and value depends on the issuer and on Bitcoin’s price.
21st Financial uses Bitcoin credit in some client portfolios where it fits the plan. Accounts I manage hold positions in securities of this type.
What does a Bitcoin financial planner do?
A Bitcoin financial planner builds a full financial plan, from retirement and taxes to your estate, that treats Bitcoin as one part of the picture instead of a separate bet.
That usually means deciding how much Bitcoin, if any, fits your goals and timeline, where it is held and who controls the keys, how it is taxed when you sell or spend it, and how your heirs would reach it.
A planner who is also a registered investment advisor owes you a fiduciary duty. Ask how they are paid, and read their Form ADV for fees and conflicts.
How do you plan for retirement when you own Bitcoin?
Start with what retirement has to pay for: monthly spending, health care and taxes. Then decide how much of that should come from steadier sources, such as Social Security, pensions, cash and bonds, so you are not forced to sell Bitcoin after a sharp drop.
The plan should cover which accounts hold Bitcoin (taxable, traditional IRA or Roth IRA), how withdrawals are taxed, and what happens to the plan if Bitcoin falls by half or more.
Bitcoin’s price can fall sharply, and past prices do not predict future ones.
How do I choose a Bitcoin financial advisor?
Check registration first. Look the adviser up on adviserinfo.sec.gov and read their Form ADV for fees and conflicts. The same page shows any disciplinary history.
Ask whether they act as a fiduciary at all times, how they are paid, and whether they receive compensation from any company they recommend.
Then ask how they handle custody, who holds the keys, and how they would help your family reach your Bitcoin if something happened to you. A good advisor explains the risks as clearly as the reasons.
How do you pass Bitcoin to your heirs?
Heirs need two things: legal authority and access. Legal authority comes from your will or trust, beneficiary designations where an account allows them, and clear instructions for your executor.
Bitcoin in a brokerage account or an exchange-traded fund passes like other account assets. Bitcoin you hold yourself needs a plan for the keys. A multisignature setup can spread keys across you, a family member and a key agent, so one lost key does not end access.
Never put a seed phrase in a will, which can become public in probate. An estate attorney should draft the legal documents.
How does the 1.21% fee work?
Financial planning is included in the annual advisory fee of 1.21% of assets under management. There is no separate financial planning fee. For example, 1.21% of $100,000 managed is $1,210 a year.
Setting up a multisig Bitcoin wallet with The Bitcoin Adviser has a one-time fee for the firm’s part: included for clients with $100,000 or more with the firm, $500 below that, and $1,500 for non-clients. The Bitcoin Adviser’s fees and hardware wallets are separate. Other investment expenses may apply.
Form ADV has the current fees and services.