For many of us, retirement age is still a long way off. Knowing that we live in a time when there is bitcoin, the economy of the future, and the hardest money ever, it is characteristic that this cryptocurrency rarely appears in pension plans. Fidelity thinks she has found a solution.
Why retire in bitcoin?
You could argue that this is a solution to a problem that doesn’t exist, but then you’re wrong. Saving your entire pension in paper money is a risk and a choice before inflation.
Paper money, such as the euro or dollar, becomes less valuable, certainly in the long run. Bitcoin’s decades-long history and programmed future show the opposite pattern. Inflation is determined every four years Halfhence BTC is called sound money (hard money, like gold), and Bitcoin is worth more year after year and it is called the bottom line a path higher than ever.
Fidelity Investments, a major investment firm, wants to help Americans include bitcoin in their retirement plan New York times†
Bitcoin at 401 thousand
It’s good to know that the US pension system looks different from the Netherlands. There they talk about a 401k plan. He. She 401k retirement plan It helps employees in the United States save for their retirement. You can save x amount of your total income in what is called a 401k. They do not pay income tax on this amount which makes it very popular.
What also helps is that many companies contribute to a 401k plan. This is allowed up to a maximum of 5% of the annual salary. The money is then invested by the asset manager in stocks, bonds, and index funds.
Good Retirement Plan for Bitcoin
You can probably guess one of the largest providers of these types of pension plans in the United States. Fidelity manages 401k retirement savings for more than 20 million people. The fact that they want to include bitcoin in their clients’ pension plans actually means that 20 million people can buy bitcoin at once via the DCA method.
Dave Gray of Fidelity says the demand for bitcoin in retirement plans is increasing. Therefore, Fidelity plans to introduce this new bitcoin product later this year. It will charge a fee of 0.9 percent. Employees can save up to 20 percent of their retirement pension in bitcoin.
Regulators Against Bitcoin Retirement
It’s important to note that these types of savings plans are highly regulated, which means that Fidelity’s new initiative is likely to receive a lot of regulatory oversight.
Last month warned The US Department of Labor and Labor is still looking for cryptocurrency in retirement plans.
“At this early stage in the history of cryptocurrency, the Department is deeply concerned about the wisdom of the agent’s decision to expose participants in a 401(k) plan to direct investments in cryptocurrencies or other products whose value is linked to cryptocurrencies.”
The ministry said cryptocurrencies pose “significant risks and challenges to participants’ retirement accounts, including significant risks of fraud, theft and loss.”
What do employers and employees want?
In addition, the success of the bitcoin 401K product also depends on the employers. They ultimately choose whether or not to show it to their employees. Of course, Michael Saylor’s MicroStrategy has joined the Fidelity plan.
Thanks to Fidelity, employees can invest directly in bitcoin without opening an account on a cryptocurrency exchange. Bitcoin is ready for mass adoption and is maturing right before our eyes. Now the Netherlands.
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