Eli5 TL;DR: A new executive order has been signed to make it much easier for people to add cryptocurrencies (like Bitcoin), real estate, and other alternative assets to their 401(k) retirement accounts. Before this, government guidance told advisors to be extremely cautious about putting crypto in 401(k)s, so almost no one did it. This order basically removes those restrictions and encourages wider access. 💡wanna read more? Details: ⦁ Previously, the Department of Labor (DOL) had warned financial advisors and companies managing 401(k) plans to be extremely careful with crypto, making it “very rare” for these investments to be included in retirement accounts. ⦁ The new executive order reverses that stance, allowing 401(k) plans to offer crypto, private equity, and real estate alongside traditional assets like stocks and bonds. ⦁ The aim is to give Americans more choices and potentially higher returns for their retirement savings, but it also means more risk, since assets like crypto can be very volatile. ⦁ This is a big change for retirement investing in the US, and it opens up the $12 trillion 401(k) market to crypto and other alternatives. H/T @elfa_ai
Jason Choi
Jason Choi9 tuntia sitten
“Wasn’t this already a thing?” Yes technically, but penetration was low as DOL had the whole guidance around “extreme caution” for advisors putting crypto in 401Ks. This basically reverses that guidance.
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