Why Crypto Is Poison For Your 401(k)

Why Crypto Is Poison For Your 401(k)

You’ve probably seen how most major cryptocurrencies took a nosedive in recent weeks. Were you counting on crypto to fund your retirement?

According to Bloomberg, crypto is toxic for long-term investors:

“Cryptocurrencies are the exact opposite of a prudent investment: They’re volatile, have little practical use beyond speculation and crime, often get lost or stolen, and lack the real-world cash flows that underpin the values of stocks and bonds.”

Despite this recent downturn, companies that manage retirement plans are heading in the wrong direction.

“Increasingly, financial institutions are seeking to get crypto into the employer-sponsored 401(k) plans where workers set aside pre-tax earnings for retirement — and which, as of December, contained about $11 trillion in assets.”


“Advocates offer various justifications for this misguided idea. They say Americans deserve more choice, citing surveys showing that millennials in particular tend to see crypto as a desirable investment. They say digital assets can diversify a given portfolio because their price fluctuations aren’t synced with other markets. Proper financial education, they insist, can help people understand the risks.”

“Please, no. People have a hard enough time navigating the US retirement savings system — and merely saving enough for old age — without adding an option that even professional investors struggle to grasp.”

The Bloomberg warning concludes: “It should thus go without saying that they have no place in a retirement savings plan. Unfortunately, it appears to require saying.”


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