Big News for Your Retirement Account
Amanda Heckman|July 17, 2021
When it comes to the widespread adoption of cryptocurrencies, the free market has gone and done it again.
It’s found the solution many investors have been asking for (including many Manward readers!)…
A way to invest in cryptos in their retirement accounts.
It’s the latest feather in crypto’s cap. And more proof that crypto is here to stay.
Do Better
If you’ve been reading us for even just a short while, you know we’re no fans of traditional investment models… especially the 60/40 model or the target-date funds that are pushed in most retirement accounts.
(They are, after all, one of the big reasons we launched our proprietary Modern Asset Portfolio.)
It’s simple. If you do what everyone else is doing… you’ll get what everyone else gets. And year after year, we see study after study… and poll after poll… that show folks simply do not have enough saved for retirement.
According to PricewaterhouseCooper’s “Retirement in America” report, the median retirement savings for those between 45 and 55 is $82,600, while it’s $120,000 for the group closest to retirement, those between 55 and 64.
That’s not going to get you very far.
Many folks are starting to see the writing on the wall… and turning to crypto.
Taking Control
Just this week, we got the latest report from Bitcoin IRA. It’s a self-directed IRA custodian that allows its customers to buy, sell and hold cryptos in an IRA.
And its latest numbers are telling…
Of the company’s 100,000-plus users, half are 55 or older. Three-quarters are over the age of 45.
This tells us two things…
That cryptos are not just a young person’s game…
And that folks are choosing to have more control over their retirement funds… and their futures.
As Bitcoin IRA tells it, “[Investors] want a more hands-on approach with their investments, instead of simply selecting mutual funds or index funds from an employer’s retirement plan menu.”
Now, while more folks are turning to self-directed IRAs to invest in Bitcoin and other cryptos, here’s the even bigger news…
Even 401(k)s are getting in on the action.
A Victory for the Free Market
In a first, ForUsAll Inc., a small 401(k) provider with 70,000 accounts and $1.7 billion in assets under management, is allowing its savers to invest in crypto starting this month.
In a hat tip to the free market… it’s partnered with Coinbase to secure and manage the funds… getting around certain IRS rules about what kinds of assets can go into these types of accounts. Those rules keep 401(k) advisors from adding crypto to their offerings directly.
As David Ramirez, co-founder and chief investment officer of ForUsAll, proudly states…
There has been an absolute sea change in the investment world in the last few years, with institutional professional investors making increasing use of alternatives and, more recently, digital assets. Most individual investors don’t have access to the same opportunities, nor the means to make good use of them. We’re changing that.
Ramirez added that the demand “both from plan sponsors of 401(k) plans and the employees themselves” proves that the American appetite for crypto is strong.
And with the 401(k) door broken down, we can be sure other providers will follow suit.
It’s more proof of crypto’s staying power… especially with the free market on its side.
We’ll be talking more about how crypto and the free market are transforming industries and our economy next week… So stay tuned.
