ForUsAll, a San Francisco-based fintech firm specializing in retirement plans for small businesses and alternative investment options, has extended its product offering with Alt 401(k), which allows employers to provide cryptocurrencies and other alternatives within 401(k) plans.
The platform is the first of its kind, according to a release. It will initially offer access to cryptocurrencies through Coinbase Institutional.
ForUsAll was founded in 2012 by the same team that helped build Financial Engines, the largest registered investment advisor in the country. ForUsAll currently has over $1.7 billion in assets under management and serves over 70,000 employees, the release said.
“By introducing the Alt 401(k), we are democratizing access to what drives wealth for the wealthy – alternative investment options, combined with our original core offering of low-cost index funds, and personalized help,” said Jeff Schulte, ForUsAll’s CEO, in a release.
“Alternative investments, including small allocations to cryptocurrency can help improve portfolio diversification and expected returns. However, the volatility and the complexity of these asset classes make prudent education and advice for employees essential,” said David Ramirez, co-founder and Chief Investment Officer of ForUsAll.
Alt 401(k)’s features include:
- A full turn-key automated 401(k) for employers, with both traditional and alternative investment options
- Employees can transfer up to 5% of their balances into a secure account that has exposure to certain cryptocurrencies
- Employees will be able to buy, hold, and sell over 50 different cryptocurrencies
- Employees will get ongoing portfolio monitoring and education
Employers who adopt Alt 401(k) will be able to offer access to cryptocurrency via a self-directed alt window inside the 401(k) alongside their investment lineup. From there, participants can transfer up to 5% of their portfolio into a cryptocurrency window where they can invest in over 50 cryptocurrencies. ForUsAll alerts employees when their allocation exceeds 5%, so that they can rebalance into traditional mutual funds.
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