Saving with Bitcoin is possible – Bitcoin has many uses today: speculation, store of value, currency exchange, … But it also seems to be a good way to save. At least, this is the bet of Digital Asset Investment Management, an American investment company.
401(k), a breathtaking investment
DAiM, an investment company, recently announced the launch of a 401(k) pension plan for its employees. This plan would have the particularity of focusing on the king of cryptos. Indeed, up to 10% of retirement accounts will be made up of Bitcoins.
A 401(k) plan is a widely used retirement system in the United States. It allows people to save for their retirement via a tax-efficient system. Employers can, for example, top up employees‘ accounts by deducting a portion from their pay each month. Similarly, employees must also choose the methods they wish to use to build up their savings (bonds, stocks, etc.).
Thanks to this account, the money invested is not subject to income tax. Nevertheless, there is a ceiling of $17,000 for employees under 50 years old, and $22,500 for older employees. Once retired, the saver can then withdraw the money. But at that time, he or she will have to pay taxes on the amount withdrawn.
The new DAiM bet
According to DAiM, there is a real craze around these new 401(k) Bitcoin Pro plans. The Californian company specifies that this demand comes from all socio-professional and demographic categories. Beyond a media stunt, the need seems real insofar as „investors are bored with 401(k) plans“.
Indeed, existing 401(k) plans have the reputation of being outdated and unattractive due to low returns. The objective is also to take risk into account. For this reason, these accounts will be made up of traditional assets, with a 10% share in bitcoins. The company ensures that these Bitcoins will be kept safe, thanks to its association with the Gemini platform.
„This is a bad deal for savers given the current environment. We believe Bitcoin has proven that it has a place in the modern retail portfolio. »
Adam Pokornicky, COO of DAiM
In the end, it is interesting to note that Bitcoin is now considered a savings asset in its own right. From now on, part of the money saved will be based on the performance of the cryptomoney.