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Looking for options to buy a house outright while liquidating the least amount of bitcoin possible.

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Hello r/bitcoin, I posted this first on r/personalfinance to get an unbiased view but it got removed. Guess we're still early.

My wife and I live in California with 2 children. Our household income is around $400k/yr in a VHCOL area. We have no debt, pay off the balance on our credit cards every month. We have been renting for the past 7 years and had to moved twice because of inflation and uncapped rental increases on single family homes.

In 2017, I made a calculated but risky gamble. We sold our house and I put a significant portion of the proceeds ($300k) into bitcoin and ended up with almost 90 BTC. Due to my occupation, I was fortunate to understand software, cryptography, as well as economics and investing in Bitcoin made sense to me.

It was a difficult 7 years and in 2018, our initial investment dropped by -50% which caused a lot of stress for us. I stuck to my principles and HODL by trusting in mathematics, the laws of thermodynamics, the laws of supply/demand, and we were able to weather the storm. When the bull market of 2021 came, I got too greedy and didn't sell when our portfolio hit $5M. I feel guilty but I more or less had visions of grandeur and having generational wealth.

Our crypto portfolio currently is now back at $5M. I also have an IRA with GBTC at $500k, 401k with $200k, and RSUs with $500k.

Houses in our ideal location go for around $2-3M and the plan is to make a full cash offer. Hopefully within the next year, by mid-2025, the next BTC bull cycle will complete and I would like to sell, at most, 30 BTC. I would like to mitigate the amount of BTC sold by also liquidating my IRA and 401k. I understand there will be a severe penalty (10% penalty + taxed as ordinary income and hitting the highest income tax bracket 37%). However I feel that penalty is offset by the retained BTC. I see this as an opportunity cost that is worth it.

The breakdown (estimated):

pretax tax posttax
25 BTC @ 100k 2,500,000 890,670 LTCG fed+state (36%) 1,609,330
IRA (GBTC) 1,000,000 450,000 (45%) 550,000
401k 250,000 112500 (45%) 137,500
total cash for buying house $2,296,830

$2.3M should be able to buy a decent house in this area we are currently in. We will still have around 60 BTC to sit on for the rest of our lives and have no need for legacy financial instruments. The extra 5 BTC that is saved could be tremendous in the long run.

I urge those of you reading not to think this was easy as buying BTC at low price and selling high. It was a very long and difficult road with much sacrifice on our parts which also took its toll on our relationships and marriage.

Thank you for reading and I appreciate and humbly ask for any insights you all may have.

I am not a troll and here's a screenshot directly from my ledger if you still doubt me: https://imgur.com/a/y54Z0H3 (yes I know about ledger, but I have an older version which is not capable of the recover feature).

submitted by /u/Flat_Cabinet_8546
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