Millions of Americans possess Bitcoin but very few actually have BTC as a component of their retirement account.
This cryptocurrency revelation about Bitcoin being part of the retirement plan was revealed by Kingdom Trust CEO Ryan Radloff in a recent interview with Anthony Pompliano, the co-founder of Morgan Creek Digital.
No Bitcoin for retirement
Retirement accounts are an important facet of creating a robust financial portfolio for one’s retirement. Such accounts allow individuals to put money into a long-term investment fund. The caveat is that such money cannot be taken out of the account until a certain time passes.
The benefits of a retirement account are that it comes with tax breaks. However, a person usually has to wait years, if not decades, in order to remove the money without paying a financial penalty.
Radloff told Pompliano that many Americans are not using Bitcoin as part of a retirement strategy in regard to such accounts. He says, “There’s 7.1 million Americans that have already made the leap to buy Bitcoin or take the dive into our industry so to speak, and have a retirement account, but don’t have Bitcoin in their retirement account.”
He went on to say that people have the money to buy Bitcoin, but they are not doing so. He states, “If you also look at people’s investible, discretionary money, they usually have three to four times more investible discretionary money in their retirement accounts than they do in their non-retirement accounts.”
Radloff says people are missing an opportunity when it comes to Bitcoin for retirement purposes. He says, “When I say this is the biggest opportunity for Bitcoin, especially in this kind of stock-to-flow model that we look at, I’m looking at 7.1 million Bitcoiners that have three times more investible money in their retirement accounts that aren’t using their retirement accounts to HODL.”
Retirement issues
While Radloff bemoans the fact that owners of cryptocurrency are not using it in their retirement plans, the reality is that many Americans are not saving for their golden years.
A study by Northwestern Mutual found that one in three Americans have less than US$5,000 [AUS7,000] saved up for retirement. A full 21% of Americans have no funds saved up for retirement at all.
In addition, many Americans who have a matching 401K offer from their employer fail to take advantage of it. A whopping total of US$24 billion [AUS$33.59 billion] is left on the table every single year, with an average employee missing out on US$1,336 [AUS$1,869] in free money that could have gone to their retirement fund.
Featured image courtesy of WorldSpectrum/Pixabay
