3 U.S. Senators recently sent a letter to Fidelity Investments
In what is one of the more embarrassing stunts I have seen in a while, even for politicians.
How can anyone believe or take any of these “leaders” serious?
On any topic…
How can the entire congress continually rack up single digit approval ratings and then majority of them all continue to be re-elected?
I digress…
These 3 stooges
Gleefully “backed the little guy” by finger wagging Fidelity relaying “how the little guy isn’t smart enough to know what to invest in: Don’t you know that the little guy ONLY has “average 401(k) balance is $129,157, and median balance for 401(k) accounts is just $33,472.”
Politicians, who mind you most have never held a real job or owned a real business, are going to tell you why YOU should not be able to invest in the best asymmetric trade of our lifetimes and why THEY are looking out for you!
Dollar performance compared to bitcoin (or the average 401k over bitcoin existence)
Isn’t the definition of insanity; doing the same thing over and over and looking for a different result?
Since the early 1970’s the 401k (ERISA) has been around to “provide a retirement vehicle” for the middle class and poor. All it has accomplished is siphoning fees to Wall Street and lining those senator’s (and the rest of them) pockets.
Not only does the average American have literally a couple years of cash to retire on but the entire social security, Medicare, and Medicaid programs are all scheduled to be insolvent in next decade.
By all means, Senators, tell us how brilliant you are….
The state of social security moving forward
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Let’s break this down piece by piece.
Let’s end this nonsense and the destruction of people and their wealth once and for all.
You can also see the link to original letter HERE.
Abigail Johnson CEO Fidelity Investments 200 Seaport Blvd. Boston, MA 02210
Dear Ms. Johnson:
July 26, 2022
We write today to ask why Fidelity, a trusted name in the retirement industry, would allow plan sponsors the ability to offer plan participants exposure to Bitcoin. While plan sponsors ultimately are responsible for choosing the investments available to participants, it seems ill-advised for one of the leading names in the world of finance to endorse the use of such a volatile, illiquid, and speculative asset in 401(k) plans—which are supposed to be retirement savings vehicles defined by consistent contributions and steady returns over time.
Really? Doesn’t seem like you are letting people choose?
Will be less volatile than the declricting dollar in a handful of years the more the world jumps in to it. The price you pay for massive gains. Don’t sell and lock in losses.
You mean like dollar cost averaging bitcoin and consistently saving in the hardest monetary asset man has ever known? Or like saving in dollars that have lost 95%+ purchasing power in the past 100 years?
As one of the largest 401(k) providers, Fidelity must be are aware of the precarious position of Americans’ retirement savings. While the average 401(k) balance is $129,157, the median balance for 401(k) accounts is just $33,472. With Americans living longer today than ever before, it is apparent that too many retirees are likely to outlast their balances during their golden years.
Insane to think thats all the 401k has done for people in nearly 50 years….Why would we keep doing the same thing?
Those fortunate enough to have access to a retirement plan may be unable to find space within their household budget to contribute to an employer-sponsored plan—and feel that their wages would be better directed to household essentials such as housing costs, child care, food, or transportation. Some workers, especially younger workers just entering the workforce, might not see the value of participating in an employer-sponsored plan, or may consider retirement a problem worth addressing later in their working life. The above issues are legitimate, complex problems within our retirement system. This begs the question: when saving for retirement is already a challenge for so many Americans, why would Fidelity allow those who can save to be exposed to an untested, highly volatile asset like Bitcoin?
Yet, because you guys keep spending it keeps driving those costs further out of control so the average person feels like they cannot afford to invest in their retirement.
Oh and sports gambling, casinos, and lottery are totally fine and ok with the government for people to spend their cash on… :/
While the underlying technology of blockchain shows promise and has the potential to be used for innovative and exciting applications, consumers must be wary of the risks associated with Bitcoin and other digital assets. What appears to be certain is many are unaware of the potential risks and financial dangers posed by digital assets like Bitcoin.
Did you even take the 30 minutes to read the multiple white papers that Fidelity has done to espouse their view on bitcoin and the belief they have in why bitcoin is the apex predator asset?
For a while, many consumers had reason to believe they were on sound footing in choosing to pour their hard-earned dollars into Bitcoin. An entire ecosystem ranging from self-described cryptocurrency investment experts on social media, to highly paid actors and celebrities, and even some Washington lawmakers have led many to believe that investing in Bitcoin or other digital assets is a sound investment strategy that would pay off handsomely down the line. Some even went so far as to call Bitcoin an “inflation hedge” that would prove a useful investment tool during times of high inflation. When Bitcoin topped out at $68,000 in November 2021, many of those proponents sounded prescient. Today, Bitcoin stands at $20,849 —more than two-thirds off its peak.
And no, there are no paid celebrities for bitcoin. No CEO. No marketing team. No gimmicks. No C-suite. No board. No corporate execs. No share buy backs. No bail outs. No paid influencers. JUST people that all coalesce around freedom and private property. Something you know little about.
You must not have seen this video I made about bitcoin destroying inflation and EVERY other asset known to man the past 12 years…
While we appreciate Fidelity’s efforts to help working Americans realize a more secure retirement, this decision is immensely troubling. Perhaps most troubling is that in pointing to the risks of investing in Bitcoin on its website and planning to cap plan participants’ Bitcoin exposure to 20 percent, Fidelity is acknowledging it is well aware of the dangers associated with investing in Bitcoin and digital assets, yet is deciding to move ahead anyway.
There is literally a danger to getting in your car each day. There’s a danger in holding dollars and just sitting there as inflation destroys your purchasing power by 20% each year….even not making a choice, is a choice.
There are many ways that Americans can invest in Bitcoin and the cryptocurrency casino, but it seems as though this latest effort, through what is supposed to be a retirement nest egg, is a bridge too far. Retirement accounts must be held to a higher standard, one that Bitcoin and other unregulated digital assets fail to meet. This asset class is unwieldy, immensely complex, unregulated, and highly volatile. Working families’ retirement accounts are no place to experiment with unregulated asset classes that have yet to demonstrate their value over time.
But yet totally cool to invest in ETFs, penny stocks, casino exchanges like Coinbase and people sucking fees from you dwindling your portfolio for decades.
Thank you for your consideration of this important issue. We look forward to your response.
Remember, as Jim Rohn says, “If you rely on yourself for your retirement you can multiply by 5 at the end of your life. If you rely on the government, you can divide by 5.”
This will go down in history as one the top 10 dumbest letters of all time.
I actually printed this out and put in my journal to remind me of political leaders incompetence every day.
Think different, the other side of the coin, try to check your assumptions.
We know if we do nothing. Then nothing will change.
Stay strong,
Brandon
Ps. This week will use this example to walk through how we can possibly fix or at least greatly help our entitlement programs and the problems above.
