The Bitcoin Policy Institute has suggested that incorporating Bitcoin into U.S. 529 college savings plans could significantly enhance long-term returns and risk-adjusted performance. This move could help families hedge against rising education costs. The study highlights that 529 plans, due to limited investment options and higher fees, underperform IRAs by approximately 4-5% annually. Simulations indicate that even a 1% allocation to Bitcoin could dramatically improve portfolio efficiency, with the Maryland model portfolio increasing from $36,710 to $145,674, marking a 297% rise.
Bitcoin Allocation in 529 Plans Could Boost Returns, Study Finds
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