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Can digital assets become part of Americans’ retirement plans? -Breaking

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The United States Department of Labor was established on March 11. Employers that offer 401(k), retirement plans should be averted to “exercise extreme care” when dealing with cryptocurrencies and other digital assets, even threatening to pay extra legal attention to retirement plans with significant crypto investments.

Its rationale is familiar to any crypto investor: The risk of fraud aside, digital assets are prone to volatility and, thus, may pose risks to the retirement savings of America’s workers. However, there are established players on the retirement market making moves towards crypto. ForUsAll, a retirement platform for investors in the future, decided to go crypto last year. Cryptocurrency as an investment choiceCoinbase (NASDAQ) is a partner for 401k fixed retirement accounts. Are we witnessing a new trend or is this just the beginning?

Why bother?

According to the law, 401(k), ERISA and IRAs are all allowed

  1. “You can (if available from your employer) use a self-directed 401(k) to invest in alternative investments like cryptocurrencies. One simple Google search (NASDAQ:) turns up more than one option to ForUsAll. It is BitWage. ETFs are also being considered by many companies (including Vanguard and SkyBridge Capital), but the Securities and Exchange Commission still has not approved any. There are futures investment options approved by the Commodity Futures Trading Commission.”
  2. “You can invest in a long list of publicly traded companies that own crypto, like MicroStrategy, Tesla (NASDAQ:), Coinbase, Block, PayPal (NASDAQ:), Marathon Digital Holdings and Nvidia (NASDAQ:). This is what I did. Of course, these companies have other business objectives, so you have to be ‘on board’ with whatever those objectives are.”
  3. “You can invest through your 401(k) plan in trusts, like Grayscale Investments’ Bitcoin trust and Ether trust (both of which I have invested in). This is easy, and they are like unit trusts or money market funds — you buy a ‘unit’ of a trust, which is completely liquid, rather than a fractional interest in a particular cryptocurrency.”

Between 2% and 5%

What’s next?

Continue Reading on Coin Telegraph

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