Sumary of AARP Senior Policy Expert Warns Bitcoin Is ‘Not Appropriate For Retirement’ As Coinbase Offers Crypto To 401(k)s:
- Photo by Matt Winkelmeyer/Getty Images for Vanity Fair Getty Images for Vanity Fair Leading cryptocurrency exchange Coinbase has partnered with small-time 401(k) plan provider ForUsAll to offer employees crypto exposure through their retirement plans..
- However, the announcement that cryptocurrencies will be included in some retirement plans has not been received warmly by many, including David John, a senior policy advisor at AARP Policy Institute and the deputy director of the retirement security project at Brookings..
- The goal of retirement accounts, for people of any age, he says, is to have earnings compound (tax deferred) over time and then to ramp down risk as one gets older — that essentially what target date funds, the default investment in a growing number of 401(k)s, do..
- While alternative investments such as commodities are sometimes a part of target date funds, they are typically counter-cyclical, meaning that they go up when the market goes down and vice versa..
- Founded in 2012, San Francisco-based ForUsAll administers $1.7 billion in retirement fund assets for 70,000 employees — a tiny portion of the $21.8 trillion in defined contribution (meaning 401-Ks and IRA) retirement assets in the U.S..
- ForUsAll chief investment officer David Ramirez, says that more than 60% of the provider 400 employer clients have, over the past three months, expressed interest in the plans….