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

by Mike Robinson

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The United States Department of Labor was established on March 11. Notification to employers who sponsor 401k retirement plans 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. We are also seeing more established crypto players entering the market. ForUsAll was one such retirement investment platform. Cryptocurrency as an investment choiceFor 401(k), fixed retirement accounts, in partnership with Coinbase Are we witnessing a new trend or is this just the start?

Why bother?

The law: 401 (k)s, ERISA, IRAs

  1. “You can (if available from your employer) use a self-directed 401(k) to invest in alternative investments like cryptocurrencies. Simple Google (NASDAQ) searches turn up at least one alternative for ForUsAll, BitWage. ETFs are being developed by many firms, including Vanguard and SkyBridge Capital. However, the Securities and Exchange Commission has yet to approve 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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