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NEW YORK — More workers may soon be able to stake some of their 401(k) retirement savings to bitcoin, as cryptocurrencies crack even deeper into the mainstream.
Retirement giant Fidelity said Tuesday that it's launched a way for workers to put some of their 401(k) savings and contributions directly in bitcoin, potentially up to 20%, all from the account's main menu of investment options. Fidelity said it's the first in the industry to allow such investments without having to go through a separate brokerage window, and it's already signed up one employer that will add the offering to its plan later this year.
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Instead of paying a .70 - 1% fee to Fidelity for Bitcoin purchases, there's a much less expensive path already available in Fidelity. Coincidentally, @Old_Joe mentions the way without naming the company above. " Fidelity's first customer "already signed up one employer" ...is the better path.
Just purchase some MSTR stock (at the right time) and you'll have the Bitcoin exposure you want with much lower fees. MSTR is the "Bitcoin Spot ETF" that is already available to all.
You are not able to auto-contribute up to 20% to MSTR unless it's in your 401k plan. This is what is so curious about Fidelity's first 401K Bitcoin customer Microstrategy. Interesting.
Microstrategy just seems skeezy borderline irresponsible. CEO turning the company into a huge crypto investor with practically every last cent on thier books, which I don't think is necessarily a good idea. Create a separate entity for that if you want.
It'd be like Microsoft being a huuuuge investor in hog futures. It's not their thing.
It's a software company that generates huge cash flow that instead of placing that cash in a bank and earning negative interest, they buy Bitcoin. So far, that gamble has paid off handsomely. Free cash flow has grown dramatically in the last couple of years. The point I was trying to make is the direct correlation of MSTR to Bitcoin with lower costs.
To MSTR, Bitcoin is just a better store of value. I do own a tiny bit.
@Anna imho my answers are: No, No, Depends if you meant speculative vs. contrarian.
https://www.coindesk.com/policy/2022/04/29/us-labor-department-has-grave-concerns-about-fidelitys-plan-for-bitcoin-in-401k-retirement-plans-wall-street-journal-reports/
If I get the urge to gamble I'll just go to a casino.
However, my Blackjack skills are a bit rusty...
Many challenges lie ahead...
"Bitcoin’s suitability as a 401(k) investment has prompted warnings from the Labor Department, which enforces federal rules for the plans. In March, the DOL cautioned employers against crypto, warning that they 'should expect to be questioned about how they can square their actions with their duties of prudence and loyalty.'”
"Investor-protection groups are lining up against the idea, too.
More than a dozen supported the DOL’s warning in a letter to the agency this past week.
The discussions around cryptos 'overshadow the facts that make them extremely questionable for retirement accounts,' said Dennis Kelleher, CEO of Better Markets, an investor-advocacy group that signed the letter."