Fartcoin In Your 401(k)
Welcome to the Schmoozeletter Blog. Your source for weekly water cooler wisecracks from the world of finance. If you have an opinion different than mine or a topic you want to hear about, let me know!
This week, when The Donald wasn’t busy clubbing baby seals to death or nuking the national forests for shits and gigs, he signed an executive order about Crypto in Retirement Funds.
More specifically:
“Alternative Assets for 401(k) Investors”
You probably think I’m going to say allowing young, impressionable, and in many instances financially illiterate investors to have their entire retirement savings in Fartcoin is a bad idea.
You possibly think I’m going to say this Executive Order was another word scramble of buzzword bullshit that in no way resembles lucid reasoning.
Here is quite a paragraph:
“A combination of regulatory overreach and encouragement of lawsuits filed by opportunistic trial lawyers has stifled investment innovation and largely relegated 401(k) and other defined-contribution retirement plan participants to asset classes whose returns lack the very same long-term net benefits allowed for and achieved by public pension plans and other institutional investors.”
You might think I’m going to point out the seemingly obvious and blatant hypocrisy that every 401(k) has an option for:
“either the S&P 500 stock market index or another index comprised of equity investments in primarily US companies”
And what are the new Trump Accounts for kids, just passed in the Big Beautiful Bill, only allowed to invest in:
“either the S&P 500 stock market index or another index comprised of equity investments in primarily US companies”
So a simple market index fund is the only option for the Trump Kids but a terrible option when it comes to 401(k)s?
But what is there to say? America wants entertainment over logic, and who am I to get in the way of the people?
