Love it or hate it, crypto has been a wild ride so far. A Bitcoin used to be pennies. At one point, it was over $65,000 per Bitcoin. At the time of writing, it is under $30,000. How about Etherium? From around $100 just a few years ago to thousands of dollars. We’ve seen stable coins be not so stable and watched huge runups in “meme coins” like “dog money,” Dogecoin.
Fortunes have been made and lost.
There is a place for speculation, investment, and cryptocurrency in many people’s financial plans. But in your retirement account?
Recently, the Department of Labor said probably not.
Here’s the thing. If you want to invest in crypto, you should certainly do so—outside of your retirement account. But, if your employer has a retirement plan for you, the employer has to make sure you only have “prudent” investment motions for retirement. As it stands, crypto’s extreme volatility makes it unsuitable for that purpose.
Can crypto fund your next yacht purchase? Sure. But is it ok for an employer’s retirement plan? Probably not so much.
If you’ve lost money on cryto in your company-sponsored retirement account, first, know that you are not alone. Second, give us a call. We will look at your situation for free and discuss legal options you might have to recover your losses.