Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Fidelity will start offering bitcoin as an investment option in 401(k) accounts

The following is an excerpt from ☞ a current NPR article:
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.

Comments

  • edited April 2022
    While I'm interested in whether they will actually be able to pull this off without government intervention, I have a better suggestion for FIDO customers interested in placing some of their retirement in Bitcoin.

    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.

  • edited April 2022
    Or pick up a miner -- most of them stockpile crypto anyway. I hold BITF.

    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.
  • So, will the simple inclusion of bitcoin in retirement accounts serve as the legitimizer of bitcoin itself? Will Fidelity finally be the one to explain the external factors that determine the bitcoin's price and volatility? Is bitcoin contrarian? Hey guys, I just flashed on a question. What do forex traders think of bitcoin?
  • @rforno Capital International Group has a 560M stake and Blackrock a 700M stake in MSTR. MSTR owns almost 1% of all available Bitcoin at a low cost basis. While I'm not a personal fan of leveraging Bitcoin to buy more Bitcoin (as they have recently in a big way), it's being done with full board approval and transparently. I don't like their debt to equity ratio.

    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.
  • edited April 2022
    No thanks!
    If I get the urge to gamble I'll just go to a casino.
    However, my Blackjack skills are a bit rusty...
  • Barron's has a recent article about Fidelity's desire to include Bitcoin in their 401(k) plans.
    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."
  • I agree, especially for 401(K). Fidelity is one of the largest pension plan administrator and they have fiduciary responsibility to the investors.
  • ...Just say "no."
Sign In or Register to comment.