Charles Schwab’s latest crypto survey tells us what we already know: people want crypto added to their 401(k) plans. More specifically, it’s so-called Millennials and Gen Z driving this move. The survey, which was conducted online with 1,100 participants all with tenure in a company with 25+ employees, shows investment in crypto is indeed shaping up to be a long-term thing.
What’s driving the demand?
47% of Millennials and 43% of the Gen Z respondents were already crypto investors, with 46% and 45% wishing they could add digital assets to their retirement plans. Older generations aren’t as crypto-keen, but are far from unrepresented. It’s no coincidence that gold has also been growing in popularity as an alternative asset for IRAs. Whether crypto or precious metals, when discussing why you should diversify your retirement accounts, the same reasons typically surface.
401(k)s tend to be limited in diversity and scope, normally featuring only stocks and bonds and only those that plan-drafters select. With how both markets are shaping up as of late, diversification is becoming the norm as people are seeing the consequences of holding most of their savings in stocks and bonds.
U.S. legislators have introduced a bill that would allow 401(k) plans to contain crypto, with Senator Toomey specifically mentioning a stock market downturn, along with a recession. Inflation was another prominent theme. On the other hand, there’s also talk about an aggressive SEC, but that could be a benefit for the crypto markets as stricter enforcement could increase trust. This article goes into depth of trying to tackle the difficult chore of forecasting crypto over the next few years. Regulation seems to be a big concern:
“One thing is worth paying attention to, that is, the news of various countries’ policies for the circle, after all, the blockchain is not a utopia, nor is it a place outside the law…”
But then reminds us:
“But as we all know, the law is dead, people are alive, in many cases, the right to interpret the law is the most critical…”
The truth is that even predictions of regulation are still just that: predictions. As the author goes over some trendy predictions over the past few years that didn’t come true, we understand that the only crypto trend we can accurately predict is a growth in popularity.
How to get started with a crypto retirement account
If your 401(k) offers crypto investing options, you’re all set. On the other hand, if it doesn’t, you aren’t out of luck — this is what BitIRA does every day. Whether you’re dealing with a 401(k) from an old job or one you’re actively contributing to, we can get it done. And then the world of crypto investing is open to you!
Our team also carefully vets digital assets available through our service, providing you with a top-of-the-class digital IRA.
So how do you get started with a crypto retirement account? Our best advice is to start early. We opened up shop around 2017, and 2018 was our expansion year during a bear market that put many off. The bear markets can make cryptocurrency daunting for beginners.
Holding onto your crypto assets over the long-term can be challenging, but much easier if they’re tucked in safely into an IRA. Those of our customers who bought in in either 2017 or 2018 made guesses that might have seemed speculative but are now probably looking like a lock. Even with recent downturns, many assets are still up long-term and ready for the increasing popularity of crypto as easier options, like BitIRA, become available to the mainstream.
Five years from now, would you prefer to have remained a spectator on the sidelines waiting for a crypto-friendly employer plan, or a digital asset investor with early-adopter status?