Fidelity Investments: you can now invest in Bitcoin retirement accounts

May 15, 2022

Many today are concerned about how to ensure a comfortable old age for yourself after you retire. Recently, more and more crypto enthusiasts are thinking about making savings in Bitcoins, and Fidelity Investments is ready to provide such a service.

A few words about Fidelity Investments

It is among the top 4 most prominent financial institutions in the world. It provides a considerable number of services and operates in 100 countries globally. Fidelity Investments has a long history, founded way back in 1946.

Over the years, more than 40 million individual investors have used the company’s services. It has a tremendous amount of respect and trust from its customers.

According to The Wall Street Journal, this summer, the financial institution plans to introduce a new service: it allows accumulating Bitcoins in 401(k) retirement savings accounts with their employers’ consent. It is expected that more than 23 thousand companies worldwide will take advantage of this offer.

Why is it a good idea to save in Bitcoin for retirement accounts?

Many experts say Bitcoin is better for savings in a retirement account than gold, bonds, stocks, and other securities. First of all, the value and profit from the above assets (except gold) are highly dependent on which company or organization they are tied to.

There are countless examples where a company has flourished for 20 years, said nothing about the impending collapse, and suddenly it declares itself bankrupt and can no longer make payments. Moreover, as the modern example of Russia shows us, even the purchase of government bonds cannot be a guarantee of complete security.

As for gold reserves, it is currently the most stable asset globally. On the one hand, this is good, since it guarantees you payments in any case. However, because it does not increase in price (or rather, it grows, but very slowly), you will not be able to receive additional dividends.

It can be compared to growing potatoes in permafrost: how much you plant, so much you dig up (and sometimes less). But, if you plant it in black soil in temperate latitudes, you can collect many times more. In our case, cryptocurrencies are an excellent black soil for investment.

At the moment, Bitcoin is the most established cryptocurrency. Of course, the value of this asset is constantly changing. Still, it has a large capitalization, so the likelihood of disappearing in the coming years is close to zero. In addition, it is stored in the blockchain system – the most secure software environment of our time.

So, if we summarize all of the above, we can highlight the following main advantages of investing in retirement accounts in Bitcoins:

  • Reliability;
  • Security;
  • Opportunity to receive additional income;
  • Contribution to the future of children and grandchildren.

If you make contributions to the pension fund of your country, then the amount accumulated during this time can be pretty significant. You may not have time to spend all the assets, and in this case, the state will take the rest, but by investing in Bitcoins, your children and grandchildren will be able to receive the rest of this money.

What other financial institutions offer similar services?

Fidelity Investments is not the first to offer to invest in Bitcoin retirement accounts.

A few years ago, one of New Zealand’s NZ Funds Management pension funds invested 5% of its assets in Bitcoin. In 2020, in the US, pension plans with investments in the first cryptocurrency were offered by DAiM and Bitwage with Gemini. Each of these organizations offers special accrual conditions.

The US government, in turn, expressed its concern and drew the attention of the population to the fact that such investments have a large number of risks.

Most likely, if you fall into the hands of scammers or the organization falls apart. You will not be able to protect your rights in court since the legislation regulating the crypto industry has not yet been fully developed.


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