Listen to this article

Basic Capital Launches 4x Leverage 401(k) Product With 6.25% Interest, $300 Fees, Backed by Lux Capital, Ackman, and Kravis

19 posts • GPT (4.1 mini)

Updated May 13, 2025, 08:47 PM

Basic Capital, a new financial platform backed by Lux Capital, Bill Ackman, and Henry Kravis, is offering 401(k) savers an innovative product that provides $4 in leverage for every $1 saved. This approach allows users to amplify their retirement contributions by borrowing against their payroll contributions to invest in private credit and other assets. The loan carries an interest rate of approximately 6.25%, with additional fees including a $300 annual account maintenance charge, a 0.5% yearly investment fee, and a 5% cut of investment gains. Critics have raised concerns about the risks involved with such high leverage, especially in volatile markets, and the complexity and multiple layers of fees that could diminish returns. Some commentators liken the product to a modern version of risky speculative trading, warning that losses beyond the principal are not clearly addressed. Despite these concerns, supporters emphasize the platform's potential to democratize access to retirement wealth-building by increasing investing power through leverage.

More breaking stories on DeepNewz — updated live.

#Basic Capital #Lux Capital #Bill Ackman #Henry Kravis

Related Prediction Markets

Will Coinbase US perps offer more than 10x leverage?

Palmer Luckey Erebor Bank chartered in 2025?

•

Sources

bloomberg.com(2)

Boaz

@sobradob

I know everyone is dunking on this, but why hasn't anyone built an "index fund mortgage"? Buy a ton of index funds on 10x leverage, pay it off over 30 years with your credit score & constant payments protecting you from liquidation.

ToffCap

@ToffCap

Guy offers a 4x levered product to retail and charges disgusting fees. FinX: *follow*

Mike Dudas

@mdudas

i love that this guy shits on crypto in this ad while offering an insanely predatory fee schedule on massive leverage that is wildly less favorable than many great crypto defi products accessible via self custody wallets to people with very little money

Story Timeline

2 months ago•Latest version

Basic Capital Launches 4x Leverage 401(k) Product With 6.25% Interest, $300 Fees, Backed by Lux Capital, Ackman, and Kravis

2 months ago

Basic Capital's 4x to 5x Leverage for 401(k) Savers Draws Criticism Despite Backing from Lux Capital, Ackman, Kravis

2 months ago•Original version

Basic Capital Launches 401(k) Offering with $4 Leverage per $1 Backed by Lux Capital, Ackman, Kravis

Image Viewer

Basic Capital Launches 4x Leverage 401(k) Product With 6.25% Interest, $300 Fees, Backed by Lux Capital, Ackman, and Kravis

Related Prediction Markets

Will Coinbase US perps offer more than 10x leverage?

Palmer Luckey Erebor Bank chartered in 2025?

Sources

Story Timeline

Similar Stories