Ripple: Institutional adds to their portfolio!

The Ripple was added to the portfolios of Bitcoin IRA and Kingdom Trust. These two companies are institutional investment funds that use their clients' savings to buy financial products in order to pay them an annuity during their retirement.

• IRA vs Plan 401 (k)

No, it's not a match between two teams of call of duty. These are the two major tax categories that allow an American to get a pension during his retirement by investing in private equity funds.

IRA:
In English, IRA stands for Individual Retirement Account type savings account is entirely managed by the individual. It benefits from favorable tax conditions since, in principle, annuities are tax exempt.

The plane 401 (k):
Plan 401 (k) is untranslatable, since it is the name of the section of the US tax code. This is just like the IRA of a funded retirement savings system. The major difference between the two plans is that the investment under a 401 (k) plan is not managed by the investor himself but by a third-party administrator.

This regimen as well as the IRA is capped according to the time and age of the person.

.up to $ 17,000 can be invested by an investor under 50
.up to $ 22,500 can be invested by an investor over 50 years of age
Taxation makes it possible to limit withdrawals as long as the savers have not reached 59 years and half (remember the "and half", that is important: p). Any withdrawal at a lower age is subject to a deterrent tax of 10%. This therefore has a great implication from the point of view of the functioning of the market since these new funds are not a priori funds that will speculate in the short term since at least at BitcoinIRA they will be stored in cold storage.

The administrator has a portfolio of financial products that he presents to his client which will include the Ripple. The client (the investor) chooses a more or less risky investment strategy by determining for example what he wants to buy with the administrator.

One thing to note is that anyone who can not manage an investor's funds under the 401 (k) plan since it requires an US state empowerment. This implies that, previously, these operators could not intervene in the cryptomy market in general, and more particularly buy Ripple. With this addition in their portfolios, this is a brand new institutional operator that enters the market and a priori, this is great news for Ripple.

• The disadvantages of this type of placement
  These investments do not guarantee the investor a pre-established amount and his retirement will vary according to the performance of the asset

Tonton Wiki explains:
"These plans are vulnerable to the ups and downs of the stock markets, and even safe investment strategies have been disastrous since the 2008 crisis. It is not uncommon for them to suffer losses, thus saving their retirement , even annihilated as was the case for many employees of Enron who went bankrupt in 2001. (...) Moreover, although the money saved benefits from a significant tax exemption on its return, the anticipated withdrawals are heavily penalized . This strong penalization proved "a real problem for the households who found themselves short of money to face the repayment of their property debt during the recent crisis"

• Comments of BitcoinIRA & Kingdom Trust

Chris Kline, COO of Bitcoin IRA, said:
"Since XRP was added to our portfolios, demand from our customers has exploded. We are proud to be the first and only company in the world to offer XRP for a retirement savings plan. Those who hold XRP with BitcoinIRA.com will see it in BitGo's "cold storage" digital portfolios, which is considered the most trusted and secure digital wallet with multi-signature encryption "

Charles Ives, President of Kingdom Trust, said:

"As a leader in digital asset management, we are confident that our customers will have access to secure, innovative digital assets. We are delighted as an institution to allow our customers to purchase XRP, in addition to other digital assets we already have "

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