Bitcoin Financial & Estate Planning | Morgen Rochard

Key Takeaways:

Morgen Rochard's Background and Entry into Bitcoin:

Morgen started her career in finance during the global financial crisis, experiencing the tumultuous environment of equity options trading before moving into wealth management at Merrill Lynch and UBS.
Her dissatisfaction with large financial institutions led her to start her own independent firm at 28, Origin Wealth Advisors, which has been operating for a decade.
Met her husband, Pierre, through their mutual interest in Austrian economics and Murray Rothbard, which also influenced her journey into Bitcoin.

Bitcoin in Investment Portfolios:

Morgen's approach to Bitcoin has evolved over time, and she now advocates for a significant Bitcoin allocation in client portfolios as a long-term savings vehicle, distinguishing it from traditional investments.
She emphasizes the importance of understanding the distinction between savings (for minimizing future uncertainty) and investments (which inherently carry risk).
Morgen observes that many of her clients, comfortable with Bitcoin and its technology, have allocations between 40-50% in Bitcoin, reflecting a shift away from traditional markets and a response to the current macroeconomic environment.

Estate Planning and Self-Custody:

Stresses the importance of estate planning in the context of Bitcoin, especially considering the public nature of probate in most states, which could expose Bitcoin holdings to unwanted public scrutiny and creditor claims.
Recommends setting up trusts, particularly revocable living trusts, to avoid probate and maintain privacy.
Advocates for collaborative custody solutions, education, and practice in managing Bitcoin private keys, as well as considering the role of institutions or family members in a multi-signature setup.

Best Quotes:

"In the fiat financial world, things move slowly... but the fiat world that we currently live in forces people to take the money that they earned and basically use the S&P 500 as a savings account, rather than it actually being what it's meant to be, which is taking risky investments and hoping for potential expected return as a result of that." – On the slow nature of fiat systems and the misalignment of savings and investments.
"Having savings minimizes that uncertainty of the future. Having investment doesn't do that." – Highlighting the difference between savings and investments.
"If you have a client who comes in and they've got an appropriate emergency reserve, and they want to do planning, and they've got the rest of their assets 100% in Bitcoin... there might be other reasons why you invest in other projects." – Discussing the rationale for diversification even when Bitcoin is considered a long-term savings tool.
"If we are so focused on what our fiat money is doing and how much we're saving and what the government is doing with our money, then we can't do our actual purpose and mission here." – Reflecting on how financial concerns can distract from one's true purpose in life.
"The more we are wrapped up in the financialization of our world, the more we're focused on the material rather than just putting ourself in this material world, rather than removing ourself, which is what we're supposed to do." – On the overemphasis on material wealth due to financialization.

Conclusion:

This episode of the Natalie Brunell Show with Morgen Rochard, a financial planner with a keen interest in Bitcoin, offers a nuanced perspective on integrating Bitcoin into financial planning and estates. It highlights the critical distinction between savings and investments, the importance of adjusting risk tolerance to individual circumstances, and the need for proper estate planning for Bitcoin holders. The episode also touches on the challenges faced by financial advisors in the Bitcoin space due to regulatory scrutiny and the inherent conflicts of interest within the traditional financial advisory industry. Overall, the conversation sheds light on the evolving landscape of personal finance in the age of Bitcoin, suggesting a more significant role for cryptocurrency in future financial strategies.