wp-plugin-hostgator
domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init
action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114ol-scrapes
domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init
action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2022\/04\/27\/having-some-crypto-in-your-401k-is-neither-irrational-nor-exuberant\/<\/a><\/br> The biggest retirement<\/span> plan provider in the United States, Fidelity, just announced plans<\/a> to offer individuals the opportunity to invest in bitcoin through their 401(k) retirement accounts later this year. With 20 million plan participants accounting for $2.7 trillion in assets, Fidelity just brought a somewhat controversial strategy into the mainstream.<\/p>\n It\u2019s not surprising that Fidelity was the first tradfi asset management firm to stake out its territory in this space \u2014 the company has been ahead of its peers in launching digital asset products under the tenure of CEO Abigail Johnson. It launched its first crypto-related offering in 2018 when it began to hold digital assets in custody for institutional investors.<\/p>\n The news marks a pivotal moment in the growing movement to expand access to alternative investments \u2014 a goal that can be seen as either laudable or risky, depending on whom you\u2019re asking.<\/p>\n First, let\u2019s start with the criticism, because skepticism over crypto\u2019s expansion is understandable given the asset class\u2019 reputation for scams and volatility. What\u2019s more, it might not even be a good investment; bitcoin hasn\u2019t proven itself to be an effective hedge against inflation and has lost over 40% of its value since peaking last November.<\/p>\n With that in mind, it\u2019s easy to see why regulators don\u2019t love the idea of allowing access to crypto in retirement accounts. The U.S. Department of Labor said in a directive last month that fiduciaries should \u201cexercise extreme care\u201d before doing so, citing crypto\u2019s historical volatility, potentially inflated valuation and fears about custodial issues given the near impossibility of recovering crypto from a wallet if one were to forget their password.<\/p>\n And it\u2019s not just regulators raising an eyebrow, though they seemingly have good reason to do so. Companies like Fidelity obviously have a profit incentive to launch crypto products because they can earn more fees, which begs the question of whether they\u2019d expand into digital assets to make a buck while convincing average retail investors to shoulder all the risk. If crypto crashes, after all, retail investors could be left holding the bag after gambling away their retirement savings. That can\u2019t be good, right?<\/p>\n \t<\/p>\n \n\t\t\tIf you want to allocate a reasonably small percentage of your savings to crypto, and you\u2019re aware of the risks, it could make sense to put money into this growing asset class that could very well continue appreciating over the long term.\t\t\t\t\t<\/p><\/blockquote><\/div>\n \t<\/span><\/p>\n Wrong. Now, let me tell you why Fidelity offering crypto in retirement plans is a huge win for pretty much everyone who isn\u2019t ultra-wealthy.<\/p>\n Crypto has promised to \u201cdemocratize\u201d a lot of things and largely hasn\u2019t delivered. Individual wealthy \u201cwhales\u201d have benefited from crypto\u2019s rise to an extent that most average individuals haven\u2019t. The wealthiest 82 individual crypto wallet holders account for almost 15% of the total supply of bitcoin, according to River Financial<\/a>.<\/p>\n One key factor behind why wealth is so concentrated in crypto, much like with other alternative assets, is that average investors don\u2019t enjoy the same access to top-tier investment opportunities that the wealthiest folks have.<\/p>\n
\nHaving some crypto in your 401(k) is neither irrational nor exuberant<\/br>
\n2023-01-20 22:52:07<\/br><\/p>\n