US Firm Launches Company-Sponsored Bitcoin Retirement Plans

[goldade]

I had thought that we wouldn't see development such as this just yet with bitcoin. Using bitcoin as retirement plans isn't something I thought could happen in two or three years to come just because of its volatility. I have my reservations because the concept of crypto-backed retirement plans can only be made possible by stable coins such as USDT and we all know bitcoin is far from being stable.
This, happening now, shows how fast bitcoin is moving towards mass adoption. I wouldn't be surprised if, at this rate, bitcoin becomes a worldwide currency in just two to three years.

[1714689946]

1714689946

[1714689946]

1714689946

[1714689946]

1714689946

[1714689946]

1714689946

[Twentyonepaylots]

I'm not so sure if this is a great idea at all. A bitcoin insurance is a much better idea than knowing that your retirement money is based off a currency that is too volatile to even be used as a money, and intangible that we can pretty much say they are made out of thin air. Imagine the pressure and mental damsge that could do to a weak-hearted future you. It's just going to be too much.

[error08]

I'm not so sure if this is a great idea at all. A bitcoin insurance is a much better idea than knowing that your retirement money is based off a currency that is too volatile to even be used as a money, and intangible that we can pretty much say they are made out of thin air. Imagine the pressure and mental damsge that could do to a weak-hearted future you. It's just going to be too much.

People can choose how much they want to put their money into bitcoin up to 10%, for those who doubt about bitcoin can set just 1-5% for their retirement but even 10% is not too much and will be a great deal in the long term as Bitcoin value keep increasing as time goes on. I prefer to hold bitcoin on my own because it's safer and be able to manage it as I want but diversification is a good thing, especially for the long term. In any case if I make a bad decision that leads to losing my bitcoin, the retirement account will be the backup plan.

[Buttermellow]

I do not know how it will work but it semms that they are pretty sure that bitcoin will not going to collapse and that it can sustain even in the long period of time. I think it is a little bit complicated but of course we can finds ways. Anyway, bitcoin is good as a reserve money or an asset so as a part of retirement plans then it is better compared to the traditiona retirement plans. We know bitcoins keep growing over a period of time and that benefits can get double or even trippled over a period of time.

[AjithBtc]

A pension plan with bitcoin is really impressive for various reasons. From a post noticed the volume of pension fund for the year to be around $19 trillion. If the same or the fund partially gets through bitcoin, it contributes big in terms of market circulation. This is how the real-time usage is enriched. Today there is also news on positive comment on cryptocurrency regulation from Banking regulator of US. These will add value to the cryptocurrency market and encourage more usage.

[Vishnu.Reang]

I'm not so sure if this is a great idea at all. A bitcoin insurance is a much better idea than knowing that your retirement money is based off a currency that is too volatile to even be used as a money, and intangible that we can pretty much say they are made out of thin air. Imagine the pressure and mental damsge that could do to a weak-hearted future you. It's just going to be too much.

ROFL. Most of the retirees would devote anywhere from 50% to 75% of their portfolio to non-volatile assets such as US treasury savings bonds. But the problem is that their returns are very low and the future outlook also says that the returns will decline even more in the next few years. So obviously they need to devote the remainder of their portfolio to those assets which can give better returns. Stocks and bullion are good options, but small amounts of cryptocurrency would act like icing on the cake.

[Kakmakr]

This is actually a big step for Pension funds, because most Pension funds only invest their members funds in very stable and safe investments and we know the Bitcoin price is very volatile and also a high risk investment.

That said, most Financial advisors will tell you that you should have a very balanced portfolio... with a mixture of low and medium and high risk investments. A typical Pension fund has the majority of their portfolio invested in low risk investments. I am glad to see that more trustees and fund administrators are opening their investment portfolio to get a taste for a bit more high risk investments like Crypto currencies. (High risk can yield some very high profits too) 

Thank you, OP.... it is a good sign for the future. 

[Mauser]

This is actually a big step for Pension funds, because most Pension funds only invest their members funds in very stable and safe investments and we know the Bitcoin price is very volatile and also a high risk investment.

That said, most Financial advisors will tell you that you should have a very balanced portfolio... with a mixture of low and medium and high risk investments. A typical Pension fund has the majority of their portfolio invested in low risk investments. I am glad to see that more trustees and fund administrators are opening their investment portfolio to get a taste for a bit more high risk investments like Crypto currencies. (High risk can yield some very high profits too) 

Thank you, OP.... it is a good sign for the future. 

I agree with you, Pension funds are usually the slowest investors compared to general investment funds and  hedge funds. Due to the long time span of retirement funds it's usually much more risk averse than other investors. So to these kind of companies going into bitcoins now is a great achievement for the community. Also there is lot of money behind pension funds which would mean higher prices in the future.

[RealMalatesta]

401K is already something people can't really get enough from, it is already something they will try to cash in as quickly as they possibly could, legally speaking of course. To add something as volatile as bitcoin, on a case where bitcoin drops that period, they will want to get out and react very badly and when you are aiming for retirement and get out very quickly due to few bad moves, you are going to be very upset about your future.

Think about it, 2008 and 2009 were one of the highest years when 401k cash out was real, why? You think just because people needed money? No. It was also because mainly people lost hope and got out to protect further loss. Further loss fear always trumps over the excitement of future profit potential and that is not really ideal in bitcoin world that always moves crazily.

[vaultman]

Great news, but I think so far few people want to take advantage of this opportunity, especially the older generation. In the future, such innovations will certainly make themselves felt in the form of an increase in the value of bitcoin, since the new generation is growing up and for them bitcoin will no longer be something unknown and incomprehensible. Sooner or later, bitcoin will be introduced into many aspects of our daily life.

[redsun114]

Pension funds are not something that people want to see volatility, they want to know that they will make a small but sure amount of profit over course of many decades in order to leave something for their old times and basically not be poor while dying at old age, and if they can die very cheaply, they could leave something to their kids.

This is why they do invest into things like index funds and all, vanguards, many other things like that to make like 3-5% guaranteed money without any possibility of losing except few rare crashes that causes bankruptcy, otherwise they are usually much better.

Putting crypto in that logic would be silly, I mean it is as volatile as it gets, and I can't think of anything worse for a pension fund to invest since it would be totally against the idea.