jakiro
Dear families, you will never think of what you can buy for pension in the future!The big news just broke out – the Trump administration signed an executive order allowing those steady pensions to invest in private equity, real estate, and even cryptocurrencies in the 401(k) pension accounts paid every month!
The pension fund market of US$12.5 trillion!Once cryptocurrency investment is opened, professionals estimate that capital inflows may reach as much as $800 billion!Oh my God, the price of Bitcoin is just the beginning?Do you support or oppose this magical operation?
The investment pattern of retirement accounts is about to be completely reshuffled
Let’s first dig into the policy details.This executive order has two heavy blows:
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Remove the legal “firewall”: Trump will personally order the U.S. Department of Labor to reevaluate the 50-year-old Employee Retirement Income Security Act (ERISA), which clearly allows “non-mainstream assets” such as cryptocurrencies, private equity and real estate to enter legal channels for retirement accounts.
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Regulatory giants mobilize: The order also requires the Treasury Department, the US Securities and Exchange Commission and other big men to work overtime together and quickly study how to change the rules.In particular, the SEC must give the green light so that the 401(k) accounts managed by the people can easily buy virtual assets.
Digital Game: How many days does “huge amount of funds” have?
Bitwise, the top crypto-in-chief in Wall Street, speaks with numbers: the total size of the US 401(k) assets has reached an astonishing $8 trillion!Even if only 1% are allowed to configure cryptocurrencies such as Bitcoin, that’s the same80 billionThe fresh US dollar money enters the market; if it is more aggressive, it will be 10%,800 billionThe liquidity flood of the US dollar instantly poured into the cryptocurrency market!
1% to 10%?The game between the two parties in the United States is a “fight between gods”
Don’t think that opening an elderly care account to invest in cryptocurrencies is a sudden idea!This is a major strategy that Washington has been brewing for months:
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Understand the King’s “Only Conspiracy”
In fact, as early as Trump’s first term, he hinted that retirement accounts could play private equity.As a result, Biden immediately canceled it for him on the grounds that the risk was too high!Now that Trump has made a comeback, he is targeting the market gap left by Biden’s “protective policies”.
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The Hunger Games of the Institution
Another key promoter was named in the article – private equity tycoons.Why?In the past two years, their “granary is in a hurry”!Traditional big funders (such as pension funds) are almost at the upper limit, and they urgently need to find new water sources.The 12.5 trillion retirement market is like a pie falling from the sky!
High return?careful!The money of ordinary people is on the verge of danger
When the Trump administration opened, there was a thunder behind it:
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Shockingly high management fee
Private equity funds generally charge 2% annual management fee and 20% income share. Ordinary people may not even be able to drink soup when they give their pensions!
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Want to withdraw?There is no door!
Private equity is always locked for 7-10 years. When you need money urgently, your money is still stuck in it, so you can only stare at it.
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The roller coaster in the currency circle is really not a joke
Pensions are used as a living money for the bottom of the box to buy Bitcoin?The number in the account plummeted by 30% every day, can you still sleep?
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Wall Street bosses have long been “chicken” layout
The article revealed that major traditional asset management companies and crypto institutions have long set their sights on the fat meat of 401(k).Let’s not be the target of the institution’s “cutting leeks”!
Finally, I’m heart-wrenching: Investing in a field that I don’t understand = giving money
If you can’t even understand the K-line chart, and the legal terms in the private equity agreement are like the heavenly book, then I advise you-Don’t listen to the wind and rain!Opening permissions does not mean encouraging purchases. High-risk investments are never suitable for gambling with pension and life-saving money!What ordinary people can do is to keep a close eye on the implementation of policies, what is the account allocation ratio, and whether there is a “pit” in the fee structure, and be more careful!
