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FEATURE Crypto Weekly
There are now cryptos in 401(k)s. Should you invest in them? S
ome workers will soon be able to invest in cryptocurrency through their 401(k) plans. ForUsAll Inc. has partnered with a cryptocurrency exchange so that employees can invest up to 5% of their 401(k) contributions in Bitcoin, Ether, Litecoin, and other cryptocurrencies. 401(k) plans and IRAs do not offer crypto investments at this time. According to the 2021 Trends in Investing Survey published by the Journal of Financial Planning and the Financial Planning Association, financial advisers may be ready to embrace cryptocurrency. Initially, only 1.4% of advisers indicated
February 2022 | Volume 15
they were using or recommending cryptocurrencies to their clients in the 2018 survey. The percentage fell to below 1% in 2019 and 2020, but has risen to 14% of advisers who use or recommend cryptocurrencies in 2021. Almost a quarter (26%) of advisers anticipate increasing their use or recommendation of cryptocurrencies. Four out of every five said clients had inquired about investing in cryptocurrencies in the last six months, up from 17% in 2020. According to Tyrone Ross, CEO of Onramp Invest, a crypto asset platform, "we've reached an inflection point in the wealth management space. Now, advisers
are faced with clients who demand knowledge, access, and advice from them about crypto assets." According to USA TODAY, celebrities, billionaires, and athletes can't get enough of the crypto craze. Should you join in? That depends on your tolerance for extreme volatility. The following is what financial experts have to say:
How do cryptos work? Cryptocurrencies are digital money that can be created and exchanged through a decentralized computer network. The transactions are secured and verified through coding.
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