A few weeks back, I asked you to share your thoughts with me on the topic of making digital currencies like bitcoin available through an employer’s 401(k) plan (“Should You Be Able to Invest in Cryptocurrencies in Your 401(k)?”). And, I promised to share a few of my own views as well.

This was the question I posed:

“Do you believe cryptocurrencies should be offered as an investment option in your 401(k)?”

Here are some views shared by readers:

W.P.: “There is such a thing as acceptable risk, but cryptocurrency is like juggling nitroglycerin while skiing blindfolded through a minefield.” (Quite a vivid picture!)

B.M.: “401(k)s should offer only conservative investments. One has the freedom to convert to [an] IRA, if they feel the need for more risky investments.”

J.: “While investing in any form has a risk factor, adding an unregulated and highly volatile component will introduce an outsized risk for a retirement vehicle -- particularly for a ‘set and forget’ strategy so many 401(k) holders use.”

R.M.: “I think [cryptocurrencies are] something like fantasy baseball and shouldn’t be impinging on the real world.”

Some readers pointed out that they were not necessarily going to invest in cryptocurrency themselves, but thought the option should be available for those who were interested in doing so.

P.Z. said, “I think investing in cryptocurrency is super risky, but that is no reason to put restrictions on being able to include it in your 401(k),” adding that “as long as the cryptocurrency market is a legal enterprise, investing in it should be left to the consumer. Keep the government out of the cryptocurrency business.” The last comment was in response to the fact that regulators are still sorting out if and how cryptocurrencies should be regulated.

C.W. said: “If common sense does not prevail and [cryptocurrency in 401(k) plans] is allowed, I would suggest a cap of 1% of total assets enforced. ... If anyone wants to do more, they’ll have to do it on their own and outside the 401(k).”

If you are a regular reader of this column, you will guess my position: It’s a matter of priorities.

Priority No. 1: Save for your retirement.

Priority No. 2: Invest for growth over the long term.

... Priority No. 100: Speculate only after meeting priorities 1-99. Bitcoin falls into the speculation category, as do other cryptocurrencies.

By the way, since I wrote the earlier column, digital currencies have continued to make news. A cryptocurrency platform was hacked for more than $600 million worth of digital coins (tinyurl.com/knb2aaur); a blog on the website Blockdata reported that of the top 100 banks ranked by assets under management, 55 had invested either directly or through subsidiaries in cryptocurrency or blockchain-related companies (tinyurl.com/a8u62hs); U.S. Securities and Exchange Commission Chairman Gary Gensler said in a speech at the Aspen Security Forum that “Right now, large parts of the field of crypto are sitting astride of -- not operating within -- regulatory frameworks that protect investors and consumers, guard against illicit activity, ensure for financial stability, and yes, protect national security” (tinyurl.com/yj8d6wax); and a section in the infrastructure bill recently passed by the Senate and now before the House of Representatives calls for new reporting requirements for brokers who engage in transactions involving digital assets (tinyurl.com/ykukperx).

Cryptocurrencies will likely be a topic of conversation for a long time to come. We’ll see if that conversation includes bitcoin retirement plans.

In another note, if you are a regular reader of this column, let me know if you would like to be asked your views on different topics through short surveys. I’m considering starting a “regular reader” email list for that purpose. Write to me at readers@juliejason.com with your thoughts.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

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In last week’s column, “‘Sudden’ Situation Can Put Retirement Finances At Risk,” I promised to offer advice to couples where one spouse was not able to take charge of retirement investing if need be, due to spousal incapacity or death.

This is how a reader I’ll call “Anna” put it: “I definitely fall into this category [of needing advice]. I am 67 years of age and my husband has been managing all of the investments up to this point. I really don’t have the knowledge, skills and ability -- math has always been my biggest weakness!”

Anna and her husband, whom I’ll call “Bob,” would benefit from viewing retirement as a “joint venture” between spouses.

Here is the path to go forward.

First, a reframe: One has to accept that a change is necessary. The best way to do that is to state the obvious.

Anna acknowledges that she defers to Bob on things financial. She goes further by stating an interest in learning what it takes to increase her knowledge. And, she asks: What would Bob suggest?

Without Anna coming forward with an inquiry statement, someone in Bob’s position could assume a lack of interest on Anna’s part. It’s Anna’s job to initiate. It’s Bob’s job to be open to discussion.

Bob could begin with one very simple, very important retirement planning baseline: the retirement income gap.

In three easy steps, he would review:

1) Retirement spending

2) Retirement income from Social Security and pensions

3) The difference between those two figures, and whether there is a gap that needs to be filled from investments.

Knowledge of the gap is the foundational piece of information that leads to achieving retirement security.

This straightforward review would give Anna a start in understanding one important goal of a retirement portfolio -- how to fill the gap.

Every investment decision flows from this base of knowledge -- and it doesn’t take serious study. Even if you, like Anna, don’t care for math, you can do this work.

If you do this review, you will (hopefully) be better able to move on to discuss the investment strategy, how to stay informed of progress, and what to expect of financial professionals who may be an important part of the team.

While this is not the case for all families, couples should keep in mind that it’s usually -- but not always -- the wife who finds herself in the “suddenly” situation. As I mentioned a few weeks ago, the National Center for Health Statistics found that through the first half of 2020, the average life expectancy at birth for males was 75.1 years, which was 5.4 years less than for females (tinyurl.com/p43cchrc).

As the Department of Labor pointed out for married women in its report “Taking the Mystery Out of Retirement Planning” (tinyurl.com/y9xay2bf), “When preparing for retirement, you face the very real possibility of spending part of your retirement without your spouse’s financial support -- most likely through widowhood.”

Well before you join the ranks of the suddenly single, consider this shift in thinking (and doing) on the part of both spouses/partners. Once you realize that both spouses would benefit from jointly being involved in retirement finances, it’s easy to start a review of the retirement income gap.

I’ll be writing more about this topic in future columns.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

What happens when you suddenly find yourself in charge of your retirement finances without the benefit of having much experience on the subject matter?

The “sudden” nature of this situation is usually couple-oriented. One spouse or partner becomes incapacitated or predeceases the other.

I’ve seen this many times, and it is avoidable, with some planning. In my practice, I encourage couples to treat retirement as a joint venture. That’s a new experience for couples who, like most I know, haven’t thought about the “Gosh, I’m suddenly in charge of the family finances” risk.

What I find interesting is that this state of unpreparedness is not limited to people with no financial experience or training. I see this “head in the sand” approach even when both partners have advanced degrees and work in law, finance or accounting.

Here is the reality: Sooner or later, a partner is unexpectedly left on his or her own to figure out a financial situation that is complicated and possibly overwhelming -- retirement finances being the biggie (irrespective of age).

For anyone in this situation -- meaning, having done no preparation -- the temptation is to look for help, perhaps from a lawyer, accountant or a financial adviser, or a relative or friend. That can work, if you are lucky enough to have skilled and ethical advisers to choose from. I’ve seen people go down this path and never find their bearings; the danger lies in creating a dependency. To be effective, the help has to be short-term and focused on specific outcomes that lead to strength -- sound, independent decision-making strength.

What else can you do? Start studying your “new” situation.

One of my favorite sources for unbiased information is FINRA (the Financial Industry Regulatory Authority), which regulates the brokerage industry. FINRA has a section on personal finance (tinyurl.com/2ct47sx5), as well as one titled “Learn to Invest” (tinyurl.com/yp77dcvh), which could help someone new to investing get a better understanding of some of the concepts related to it.

Another favorite resource is Investor.gov, which is part of the U.S. Securities and Exchange Commission. The section on “Introduction to Investing” (tinyurl.com/4hympfnp) contains helpful information, including breakdowns of investment products and a section titled “How the Markets Work.”

FINRA provides help on choosing an investment professional (tinyurl.com/mb8dxvae), be it a stockbroker, a financial planner or an investment adviser. There also is a section offering tips for working with an investment professional (tinyurl.com/zj65vesf).

FINRA’s BrokerCheck (tinyurl.com/t5ynhxcs) will allow you to check a particular firm and its representatives. You can find information there on both broker-dealers and investment advisers. Form CRS (investor.gov/CRS) is the key document that will help you compare and contrast firms.

It’s not easy to jump into a situation involving money when you are not familiar with the language or the nuances of investing and financial management. You’ll have to put in some time and do some homework, but it is worth it.

Now, here is my message to you if you are part of a couple: I’d like to see you avoid this “suddenly” predicament. My advice is simple and straightforward: Think of your retirement as a joint venture with your partner or spouse -- and do something about it.

What can you do? That’s the subject of my next column. If you have something to share on this topic, I’d like to hear from you. Send me questions and comments at readers@juliejason.com.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION