While cryptocurrencies are making their way into mainstream financial markets, they are still missing from the 401k, the U.S. pension plan that provides pensions to employees across the U.S. and helps them invest in stocks, bonds, and funds. 401k provider ForUsAll publicly announced on Monday that they will allow employees to add cryptocurrencies to their portfolios for the first time. This includes Bitcoin and more than 50 tokens popular on DeFi such as Uniswap and Algorand. coinbase will guarantee and manage the employees’ crypto assets.
Jeff Schulte, CEO of ForUsAll, told Decrypt that his company offers a 401k plan for nearly 70,000 employees and hundreds of companies of all sizes. If this crypto investment program is well received, other 401k providers in the U.S., such as Fidelity, Schwab and fledgling companies will follow suit and join the market. cryptocurrency products pages to switch freely.
But employees can only invest up to 5 percent of their pension, Schulte told Decrypt, adding that this is not a regulatory requirement, but rather a response to ForUsAll’s investment advice to allocate most of the money to the stock market and only a small portion to other investments. When employees invest more than 5 percent due to market conditions, they are notified and advised to rebalance their investment percentages, but it is not mandatory. As for the price, employees who choose to purchase the crypto product pay a 0.5% fee at the time of purchase as well as an annual fee of less than 1%.
Overall, the launch of the 401k crypto product reflects recent investment trends, and investors of all stripes seeking high returns through alternative investments. These include cryptocurrencies, art private companies, which were once only available to very wealthy investors and are now becoming more accessible to the masses thanks to technology-driven financial platforms.
This move by ForUsAll and Coinbase hints that there is more room for the crypto market to grow. If other 401k providers with trillions of dollars in assets launch similar products, the crypto market could see a significant inflow of money and push prices higher.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/u-s-retirement-account-401k-opens-doors-to-bitcoin/
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