Go beyond a basic 401(k)

Go beyond a basic 401(k)

Give your employees more than just a 401(k), join the movement.

Blog
5 min read

Giving employees the power of choice with cryptocurrencies

David Ramirez
September 20, 2021
Giving employees the power of choice with cryptocurrencies
Table of contents

Nearly a quarter of your employees’ lives will be spent in retirement. Given the high stakes, a 401(k) plan should give every employee the chance to succeed. Cryptocurrencies may help make the difference. Independent research from Yale University and FTSE/Russell shows that individuals may increase their expected returns (while keeping their expected risk around the same level) by investing up to 5% of their total portfolio in cryptocurrencies. With the Alt401(k), the first fully-featured 401(k) to include cryptocurrencies as an investment option, ForUsAll helps employees understand how and why a small allocation can balance growth and safety for better long-term results.

A little bit of crypto can go a long way:

  • Add diversification: Historically, cryptocurrencies haven’t gone up and down at the same time as stocks and bonds.
  • Increase savings rates: Roughly half of people we surveyed are interested in owning cryptocurrency.
  • Provide tax-free gains: Using after-tax contributions for  cryptocurrency investments in a 401(k) can make future gains tax-free — forever (1).

How can you help employees unlock the power of choice with cryptocurrencies, while making sure they have the tools to invest sensibly? The Alt401(k) plan from ForUsAll, and powered by Coinbase Institutional, gives employees guidance and guardrails, so they can make appropriate investment decisions for their retirement plan. Guardrails help to ensure they stay on track. First, ForUsAll limits the amount that employees can transfer into cryptocurrencies to 5% of their portfolio. Second, they proactively monitor participants’ cryptocurrency investments. If a participant’s total amount invested reaches 5%, they receive email alerts about reallocating their investments until the total goes down to 5%.

ForUsAll makes it easy to empower employees to save for their own future, and to invest in what they believe in — with the guidance and guardrails needed to stay on track.

Guidance that goes above and beyond

Working with Coinbase — the leading US publicly traded, institutional-quality cryptocurrency vendor — ForUsAll evaluates, selects, and continuously monitors cryptocurrency options. The Alt401(k) gives employees access to up to 40 cryptocurrencies, but only those that maintain ForUsAll’s rigorous investability standards. Employers and employees have the peace of mind that their choices have been pre-vetted by investment professionals.

Guardrails that add safety, not hurdles

Cryptocurrencies are powerful investments with historically high risk-adjusted returns. They have also been volatile. Large institutional investors — including Brown, Harvard, and Yale Universities — include cryptocurrencies in appropriate amounts, for their growth and diversification potentials.

Opportunity balanced with security

Adding cryptocurrencies with the Alt401(k) can help to improve the retirement investing experience, and can also help to attract the people you want to hire and retain. ForUsAll makes it easy to empower employees to save for their own future, and to invest in what they believe in — with the guidance and guardrails needed to stay on track.

Schedule a demo today, and see how the power of choice could improve your retirement plan.

(1) ForUsAll does not provide tax advice and the tax laws could change in the future. To be fully tax exempt and subject to withdrawal without penalty, you must meet the 5 year rule for the initial Roth deferral and you must be at least 59 1/2 years old. Consult your retirement plan provider or your accountant for details.

Go beyond a basic 401(k)
Give your employees more than just a 401(k), join the movement.
David Ramirez
About Author -
David Ramirez

David Ramirez, CFA, is a recognized 401(k) expert with over 20 years of experience in 401(k), ERISA, cash balance plans, and ESOPs. A UC Berkeley graduate, he played a pivotal role at Financial Engines, a 401(k) advisory firm founded by Nobel Laureate William Sharpe, Ph.D., where he was a portfolio manager who helped manage over $50B in 401(k) assets.  His clients included some of the largest Fortune 500 companies and state governments.

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This material has been prepared for informational and educational purposes only and should not be construed as a recommendation by ForUsAll, Inc., its affiliates or employees (collectively, “ForUsAll”)  to activate a cryptocurrency window or invest in crypto.  Investing in crypto can be risky and investors must be able to afford to lose their entire investment.  You should consult with your own advisers before activating a cryptocurrency window or investing in crypto.  ForUsAll does not provide legal, tax, or accounting advice. Please refer to your Plan's fee disclosure for more details.© 2023 ForUsAll, Inc. All rights reserved.
1 Schwab 2022 401(k) Participant Study - Gen Z/Millenial Focus, October 2022.
2 As of 12/31/2022. Employees include both current employees and terminated participants with a balance.
3 "Morgan Stanley At Work: The Value of a Financial Advisor" Morgan Stanley, March 2022.
4 Sarah Britton was a client when she provided this testimonial through an independent third party review website. She received no compensation for her remarks. There are no known conflicts of interest in the provision of her comments related to the services provided.