As bitcoin hits new highs and curiosity about investing in notoriously volatile cryptocurrency grows, Wealthsimple allows Canadians to join through a group workplace retirement savings program.
Employers who use Wealthsimple Work for their group retirement plans can let their employees invest up to three percent of their money in bitcoin and ethereum ETFs. Wealthsimple recognizes that investing in cryptocurrency is risky, hence the cap. The allocation will be automatically adjusted and Wealthsimple will decide the bitcoin and ethereum weights.
“If crypto prices skyrocket, retirement portfolios will rebalance and automatically reallocate your earnings into more stable investments like stocks and bonds,” said Wealthsimple CIO Ben Reeves. Yahoo Finance Canada.
“On the other hand, if the price of crypto goes down, we won’t sell other assets to buy crypto. We would only allocate deposits in proportion to the target allocation.
Reeves says Wealthsimple Work will use an algorithm to decide the best ETFs based on factors like trading spreads and management fees.
Wealthsimple claims that hundreds of employers use Wealthsimple Work. It is up to employers to decide whether they wish to opt for a cryptocurrency investment.
“While there may be employers who believe that a cryptocurrency wallet won’t resonate with their workforce, we also know that millions of Canadians invest in cryptocurrency, and many others are thinking about it, ”said Tim Kalimov, director of Wealthsimple Work. Yahoo Finance Canada.
“We expect the majority of employers to be happy to offer a crypto option as part of their benefit package.”
“You will not go bankrupt”
Personal finance columnist Rubina Ahmed-Haq says this is an interesting marketing initiative. Wealthsimple encourages employees to involve their employers, a move Ahmed-Haq calls “sales-y,” but she likes the allowance limit.
“Holding cryptocurrency for 1-3% of your retirement is not a bad strategy. You won’t go bankrupt if cryptocurrency doesn’t take off, and if it does, you’ll make money. extra for your retirement years, “personal finance columnist Rubina Ahmed-Haq said Yahoo Finance Canada.
“I think the 1-3% target is good for anyone who wants to invest in something risky, it could be crypto, weed stocks, or any emerging market that we don’t know much about- If you find it interesting, don’t spend more than three percent to make sure you protect the majority of your portfolio with more conservative investments. “
Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on twitter @jessysbains.
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