{"id":371,"date":"2022-05-04T02:12:09","date_gmt":"2022-05-04T02:12:09","guid":{"rendered":"https:\/\/cryptoteambuild.com\/blog\/fidelity-plans-to-offer-bitcoin-in-its-401k-retirement-funds-but-is-it-best-for-you\/"},"modified":"2022-05-04T02:12:09","modified_gmt":"2022-05-04T02:12:09","slug":"fidelity-plans-to-offer-bitcoin-in-its-401k-retirement-funds-but-is-it-best-for-you","status":"publish","type":"post","link":"https:\/\/cryptoteambuild.com\/blog\/fidelity-plans-to-offer-bitcoin-in-its-401k-retirement-funds-but-is-it-best-for-you\/","title":{"rendered":"Fidelity plans to offer Bitcoin in its 401(k) retirement funds. But is it best for you?"},"content":{"rendered":"<div id=\"content\">\n<div id=\"truncationWrap\">\n<div id=\"videoWrap\"><media-video placement=\"snow-video-story-priority\" poster=\"https:\/\/www.gannett-cdn.com\/presto\/2021\/04\/28\/USAT\/60eca27d-69d0-4963-be3e-6679ef153bc9-Crypto_RectThumb.png\" title=\"Bitcoin, Ethereum, Dogecoin: What to know before investing in crypto\" util-module-path=\"elements\/media\" video-id=\"4874964001\"><\/p>\n<div id=\"uwVideoPlaceholder\" slot=\"placeholder\">\n<p><img decoding=\"async\" title=\"\" src=\"https:\/\/www.gannett-cdn.com\/presto\/2021\/04\/28\/USAT\/60eca27d-69d0-4963-be3e-6679ef153bc9-Crypto_RectThumb.png\"><\/p>\n<p><img decoding=\"async\" title=\"\" alt=\" play\" src=\"https:\/\/www.gannett-cdn.com\/appservices\/universal-web\/universal\/icons\/icon-play-alt-white.svg\"><\/p>\n<\/div>\n<p><\/media-video><\/div>\n<p><story-highlights util-module-path=\"elements\/story\"><\/p>\n<ul>\n<li>Fidelity plans to add bitcoin to its 401(k) options.<\/li>\n<li>Fidelity says it&#8217;s responding to high interest in digital assets.<\/li>\n<li>But critics say investing retirement funds in bitcoin is too risky.<\/li>\n<\/ul>\n<p><\/story-highlights><partner-banner fluid=\"\" min-height=\"250\" outstream=\"\" util-module-path=\"elements\/partner\"><\/partner-banner>\n<p>Bitcoin is down more than 16% this year, but that hasn&rsquo;t dampened enthusiasm for the asset. That&rsquo;s why&nbsp;Fidelity Investments is launching a bitcoin option for its 401(k) plans, but investors may still want to think long and hard about&nbsp;whether it&#8217;s for them.&nbsp;<\/p>\n<partner-banner fluid=\"\" min-height=\"250\" outstream=\"\" util-module-path=\"elements\/partner\"><\/partner-banner>\n<p>The nation&rsquo;s largest plan administrator said later this year,&nbsp;the 23,000 companies it manages retirement plans for will be able to offer their employees bitcoin as an investment choice.&nbsp;Investors&nbsp;would be able to allocate up to 20% of their 401(k) accounts to bitcoin, though employers will be able to lower that cap.&nbsp;&nbsp;<\/p>\n<h2> Crypto curiosity remains strong&nbsp;<\/h2>\n<p>Despite bitcoin&rsquo;s sharp decline from its November all-time high, the share of adults who were considering purchasing bitcoin held steady at 21% at the end of January, a <a href=\"https:\/\/morningconsult.com\/2022\/02\/01\/crypto-bitcoin-price-crash-invest\/\" target=\"_blank\" rel=\"noopener\">Morning Consult survey<\/a> showed.&nbsp;<\/p>\n<p>&ldquo;To owners, bitcoin&rsquo;s current price represents just a dip, not a permanent loss of value,&rdquo; wrote Charlotte Principato, financial services analyst at Morning Consult. &ldquo;Bitcoin owners aren&rsquo;t in the game because they view cryptocurrency as the future of payments or for other idealistic reasons. Instead, 70% of bitcoin owners say making money is their &ldquo;major reason&rdquo; for investing.&rdquo;&nbsp;<\/p>\n<partner-banner bottom=\"\" fluid=\"\" lazy=\"\" min-height=\"250\" outstream=\"\" util-module-path=\"elements\/partner\"><\/partner-banner><partner-inline fluid=\"\" outstream=\"\" placement=\"native-article_link\" util-module-path=\"elements\/partner\"><\/partner-inline>\n<p>Fidelity estimates about 80 million Americans currently own or have invested in digital assets, which prompted plan sponsors to address the <a href=\"https:\/\/www.usatoday.com\/story\/money\/personal-finance\/susan-tompor\/2022\/04\/07\/bitcoin-stock-market-triggers-explosion-2021-taxable-gains\/7125036001\/\" target=\"_blank\" rel=\"noopener\">growing demand<\/a>, especially among younger workers.&nbsp;<\/p>\n<p><span><strong>BITCOIN&#8217;S WAR ROLE: <\/strong><a href=\"https:\/\/www.usatoday.com\/story\/news\/world\/2022\/03\/25\/russia-bitcoin-payment-oil\/7165901001\/\" target=\"_blank\" rel=\"noopener\">Russia may be accepting bitcoin as payment for oil and gas<\/a><\/span><\/p>\n<p><span><strong>BITCOIN&#8217;S OFFICIAL: <\/strong><a href=\"https:\/\/www.usatoday.com\/story\/news\/world\/2022\/04\/28\/central-african-republic-adopts-bitcoin\/9569729002\/\" target=\"_blank\" rel=\"noopener\">Central African Republic becomes world&#8217;s second country to adopt bitcoin as official currency<\/a><\/span><\/p>\n<p><cta-atoms-container-inline util-module-path=\"elements\/cta\"><\/cta-atoms-container-inline><\/p>\n<p>MicroStrategy, whose Chairman and Chief Executive Officer&nbsp;<a href=\"https:\/\/www.hope.com\/\" target=\"_blank\" rel=\"noopener\">Michael Saylor has been one of bitcoin&rsquo;s biggest cheerleaders<\/a> and has added bitcoin to the company&rsquo;s holdings, will be the first company to offer bitcoin in its retirement plan via Fidelity.&nbsp;<\/p>\n<partner-inline fluid=\"\" outstream=\"\" placement=\"native-article_link\" util-module-path=\"elements\/partner\"><\/partner-inline>\n<h2> &#8216;Grave concerns&#8217;&nbsp;<\/h2>\n<p>&nbsp;Dan Casey, an investment adviser and founder of Bridgeriver Advisors,&nbsp;doubts employers are asking Fidelity to make bitcoin&nbsp;available through their 401(k)s.<strong>&nbsp;<\/strong><\/p>\n<partner-banner bottom=\"\" fluid=\"\" lazy=\"\" min-height=\"250\" outstream=\"\" util-module-path=\"elements\/partner\"><\/partner-banner>\n<p>&ldquo;I find that hard to believe,&rdquo; Casey&nbsp;said.&nbsp;&ldquo;A lot of employers I know don&rsquo;t want it because they are liable.&rdquo; &nbsp;<\/p>\n<p>Plan sponsors are legally responsible for vetting investment options offered to employees to ensure they are &ldquo;prudent,&rdquo; according to the Department of Labor, which regulates company-sponsored retirement plans. And currently, the department doesn&rsquo;t consider cryptocurrency and crypto-related assets prudent.&nbsp;<\/p>\n<p>&ldquo;I do have grave concerns&nbsp;over this course of action,&rdquo; Ali Khawar, acting assistant secretary of the Employee Benefits Security Administration, said. &ldquo;Right now, these are speculative assets.&rdquo;&nbsp;<\/p>\n<p><media-image caption=\"Person trading Bitcoin on a smartphone.\" credit=\"Getty Images\" image-alt=\"\" image-set=\"https:\/\/www.gannett-cdn.com\/media\/2022\/03\/01\/USATODAY\/usatsports\/person-trading-bitcoin-in-a-wallet.jpg bestCrop, https:\/\/www.gannett-cdn.com\/-mm-\/e2db90630f6b7361e22a5ed7a8a9994bfb8aaf60\/c=117-0-2002-1414\/local\/-\/media\/2022\/03\/01\/USATODAY\/usatsports\/person-trading-bitcoin-in-a-wallet.jpg 4:3, https:\/\/www.gannett-cdn.com\/-mm-\/b2d5352ccff3c07be6b0c209606e852b0a0646d9\/c=530-0-1590-1414\/local\/-\/media\/2022\/03\/01\/USATODAY\/usatsports\/person-trading-bitcoin-in-a-wallet.jpg 3:4, https:\/\/www.gannett-cdn.com\/-mm-\/70b4cd59be29df8697308165711948ed641c0add\/c=0-111-2119-1303\/local\/-\/media\/2022\/03\/01\/USATODAY\/usatsports\/person-trading-bitcoin-in-a-wallet.jpg 16:9\" orientation=\"horizontal\" util-module-path=\"elements\/media\"><\/media-image><\/p>\n<p>Cryptocurrency and crypto-related investments are too volatile and&nbsp;too unregulated, critics say, especially for retirement funds, that people need to live out their golden years. But marketing hype like Super Bowl ads and A-list celebrities hawking cryptocurrencies may be&nbsp;giving people FOMO, or fear of missing out, and making them jump in <a href=\"https:\/\/www.usatoday.com\/story\/tech\/2021\/10\/04\/public-knowledge-and-trust-cryptocurrencies-shaky-study-shows\/5989560001\/\" target=\"_blank\" rel=\"noopener\">before fully understanding<\/a> the risks.&nbsp;<\/p>\n<partner-banner bottom=\"\" fluid=\"\" lazy=\"\" min-height=\"250\" outstream=\"\" util-module-path=\"elements\/partner\"><\/partner-banner>\n<p><span><strong>BITCOIN FOR ALL: <\/strong><a href=\"https:\/\/www.usatoday.com\/story\/opinion\/2022\/01\/28\/bitcoin-helps-low-income-americans\/9225120002\/\" target=\"_blank\" rel=\"noopener\">Bitcoin isn&#8217;t a right-wing plot. It&#8217;s inclusive by design despite what critics say.<\/a><\/span><\/p>\n<p><span><strong>CRYPTO&#8217;S SUPER BOWL DEBUT: <\/strong><a href=\"https:\/\/www.usatoday.com\/story\/sports\/Ad-Meter\/2022\/02\/10\/super-bowl-ads-2022-these-brands-foolish-spend-millions\/6699184001\/\" target=\"_blank\" rel=\"noopener\">Cryptocurrency and sports gambling brands are spending big on Super Bowl ads.<\/a><\/span><\/p>\n<p>&ldquo;It&rsquo;s <a href=\"https:\/\/www.usatoday.com\/story\/news\/2021\/09\/26\/gen-z-learns-buy-crypto-social-media-they-need-professional-advice-too\/5869047001\/\" target=\"_blank\" rel=\"noopener\">easy to get swept up<\/a> in the latest &ndash; and supposedly greatest &ndash; investment fad, but quick wins aren&rsquo;t sustainable for long-term investing,&rdquo; Vanguard says on its website about investing in cryptocurrencies. &nbsp;<\/p>\n<p>Digital assets also have a high&nbsp;potential for fraud, <a href=\"https:\/\/www.usatoday.com\/story\/tech\/2022\/02\/23\/woman-crypto-scam-online-dating-hinge\/6906664001\/\" target=\"_blank\" rel=\"noopener\">theft<\/a>, and losses, naysayers note. Cryptocurrencies can be lost forever from simply losing or forgetting a password&nbsp;or theft from digital wallets, the Department of Labor said in a <a href=\"https:\/\/www.dol.gov\/agencies\/ebsa\/employers-and-advisers\/plan-administration-and-compliance\/compliance-assistance-releases\/2022-01\" target=\"_blank\" rel=\"noopener\">memo<\/a> last month. Considering the risks, the department warned plan sponsors&nbsp;offering these investments to explain how they are&nbsp;adhering to their fiduciary responsibility to their consumers.&nbsp;<em>&nbsp;<\/em><\/p>\n<partner-banner bottom=\"\" fluid=\"\" lazy=\"\" min-height=\"250\" outstream=\"\" util-module-path=\"elements\/partner\"><\/partner-banner><partner-inline fluid=\"\" outstream=\"\" placement=\"native-article_link\" util-module-path=\"elements\/partner\"><\/partner-inline>\n<h2> Safety first&nbsp;<\/h2>\n<p>Fidelity acknowledges not everyone may be comfortable investing in digital assets but for those who are, the company will provide educational materials so they can make informed decisions.&nbsp;<\/p>\n<p>The company also said each customer will invest through a Digital Assets Account, which will be held&nbsp;on Fidelity&rsquo;s&nbsp;custody platform&nbsp;to ensure institutional-grade security for the assets. &nbsp;<\/p>\n<p>Fidelity says its new offering reflects &ldquo;steadily growing demand for digital assets across investor segments, and we believe that this technology and digital assets will represent a large part of the financial industry&rsquo;s future.&rdquo;&nbsp;<\/p>\n<p><span><strong>BITCOIN FUTURE: <\/strong><a href=\"https:\/\/www.usatoday.com\/story\/money\/2022\/04\/27\/texas-first-us-city-bitcoin-mining\/9551357002\/\" target=\"_blank\" rel=\"noopener\">Fort Worth, Texas becomes first in the US to mine bitcoin: &#8216;Where the future begins&#8217;<\/a><\/span><\/p>\n<partner-banner bottom=\"\" fluid=\"\" lazy=\"\" min-height=\"250\" outstream=\"\" util-module-path=\"elements\/partner\"><\/partner-banner>\n<p><span><strong>CRYPTO DEMYSTIFIED: <\/strong><a href=\"https:\/\/www.usatoday.com\/story\/money\/2022\/03\/09\/crypto-regulation-biden-executive-order-definitions\/9247018002\/\" target=\"_blank\" rel=\"noopener\">What is Bitcoin? Cryptocurrency? A glossary to help you make sense of Biden&#8217;s executive order<\/a><\/span><\/p>\n<p>Fidelity is probably right&nbsp;that&nbsp;digital assets will&nbsp;become&nbsp;a norm in the financial industry, but&nbsp;&ldquo;what that looks like is not clear,&rdquo; making it too early to&nbsp;invest&nbsp;retirement funds in them, Khawar said.&nbsp;<\/p>\n<p>Vanguard echoed that sentiment, saying &ldquo;while we don&rsquo;t currently offer cryptocurrencies as an investment option, we acknowledge the impact they&rsquo;re making in the investing world. As cryptocurrencies and blockchain become increasingly mainstream, we&rsquo;ll continue to monitor their development and discern the best path forward for our investors.&rdquo;&nbsp;<\/p>\n<p><span><em>Medora Lee is a money, markets, and personal finance reporter at USA Today TODAY. You can reach her at mjlee@usatoday.com&nbsp;and subscribe to our free&nbsp;Daily Money newsletter&nbsp;for personal finance tips and business news every Monday through Friday morning.<\/em><\/span><\/p>\n<partner-banner bottom=\"\" fluid=\"\" lazy=\"\" min-height=\"250\" outstream=\"\" util-module-path=\"elements\/partner\"><\/partner-banner><lit-timestamp publishdate=\"2022-05-03 09:01:46 +0000 UTC\" slot=\"timestamp\" updatedate=\"2022-05-03 17:04:47 +0000 UTC\"><\/lit-timestamp><\/div>\n<\/div>\n<p><a href=\"https:\/\/www.usatoday.com\/story\/money\/2022\/05\/03\/fidelity-bitcoin-401-k-retirement-options\/9588625002\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fidelity plans to add bitcoin to its 401(k) options. Fidelity says it&#8217;s responding to high interest in digital assets. But critics say investing retirement funds in bitcoin is too risky. Bitcoin is down more than 16% this year, but that hasn&rsquo;t dampened enthusiasm for the asset. That&rsquo;s why&nbsp;Fidelity Investments is launching a bitcoin option for its 401(k) plans, but investors may still want to think long and hard about&nbsp;whether it&#8217;s for them.&nbsp; The nation&rsquo;s largest plan administrator said later this year,&nbsp;the 23,000 companies it manages retirement plans for will be able to offer their employees bitcoin as an investment choice.&nbsp;Investors&nbsp;would [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":372,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6],"tags":[116,145],"_links":{"self":[{"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/posts\/371"}],"collection":[{"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/comments?post=371"}],"version-history":[{"count":0,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/posts\/371\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/media\/372"}],"wp:attachment":[{"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/media?parent=371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/categories?post=371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/tags?post=371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}