All over the world, human life expectancy has increased by leaps and bounds. Compared to the 1950s, it increased by 50%, and compared to the 1980s by 30%. Long gone are the days when company-sponsored retirement plans alone were enough to see you through your golden years with ease and carefree.
Today, with other expenses such as housing, education, health care and more rising, several people are finding it increasingly challenging to save for their retirement.
Unfortunately, the bitter truth is that people of all generations, from baby boomers to millennials, are not saving enough for their retirement. Austerity is one of the world’s most underrated epic crises.
“Retirement is complicated. It’s never too early or too late to start preparing for your retirement.”
Therefore, people are looking for alternative options that provide them with higher returns in a shorter period. Traditionally, real estate, private equity and venture capital were in demand. Now a new and more lucrative investment has joined this picture that brings in additional money – enter cryptocurrencies.
Investing in cryptocurrencies – For those who don’t want to put all their eggs in one basket
One of the biggest benefits of investing in cryptocurrencies is separating your portfolio from reserve currencies. For example, if you live in the UK, then you are required to have shares of UK based companies in your retirement portfolio if you are in equity. What will happen to your portfolio if the British pound falls? And given today’s volatile political scenario around the world, nothing is certain.
Therefore, investing in cryptocurrencies makes the most sense. With digital currency investments, you are effectively creating a basket of digital coins, which acts as an effective hedge or safe bet against reserve currency weakness.
The average investor should allocate only a small portion of their retirement assets to cryptocurrency due to its volatility. But volatility can go both ways — think of healthcare stocks in the 1950s and tech stocks in the 1990s. Smart early investors were the ones who made it big.
Don’t fall behind or lose. Include cryptocurrencies in your holdings to start building a truly diversified portfolio.
Breaking the Wall – Build Your Confidence in Cryptocurrencies
One of the biggest and most important obstacles that most newbie crypto investors face is that they can’t trust digital currencies. Many, especially people who are not tech savvy or nearing retirement, do not understand what promotion is all about. Unfortunately, they fail to realize and appreciate the myriad potential of cryptocurrency.
The reality is this – cryptocurrencies are one of the most reliable assets, supported by the latest technology. The blockchain technology that powers digital currencies enables instant and indelible trading without the need for third-party verification. It is a peer-to-peer system that is completely open and works on advanced cryptographic principles.
Retirement planning funds should work to demystify cryptocurrencies
To build trust and gain the support of individuals, retirement planning funds must educate investors about the endless potential of cryptocurrencies. For this, they need advanced analytics that help provide reliable risk analysis, risk/return metrics and projections.
In addition, investment firms may establish specialized cryptocurrency advisory services to assist and guide new investors. In the coming years, we can expect to see several smart AI-based advisors appear on the scene – they will help calculate the right investments based on an individual’s time horizon, risk tolerance and other factors.
Human advisors can work alongside these intelligent advisors and provide clients with personalized consultations and other suggestions as needed.
The need for greater visibility and comprehensive control
Retirees looking to add cryptocurrencies to their asset portfolio need more control and visibility as they experiment with these new assets. Look for platforms that allow you to combine all your assets in one place. An integrated solution that allows you to manage and balance all your assets, including traditional ones like bonds and stocks with new asset classes like cryptocurrency wallets.
Having such a broad platform to support all your assets gives you a holistic analysis of your portfolio, helping you make better and more informed decisions. This way you reach the ultimate goal of saving for your goals faster.
Look for investment planning portals that also provide additional features such as periodic cryptocurrency contributions at scheduled or unscheduled intervals.
Advances in Supporting Technologies for Investing in Cryptocurrencies
Investing in cryptocurrencies will become mainstream only when the supporting technology allows investors to trade coins seamlessly, even new investors who are not aware of the knowledge and experience. The exchange of one digital coin for another or even for fiat currencies and other non-tokenized assets must be enabled. When this becomes possible, it will eliminate intermediaries from the equation, thus reducing costs and additional fees.
As the technologies that support cryptocurrency investing and trading mature, the value of digital currencies will further increase as the currency becomes mainstream with wider availability. This means that those who adopt it early can expect big profits. As more and more retirement investment platforms integrate cryptocurrencies, the value of digital currencies is sure to increase, offering significant gains to early adopters like you.
If you’re wondering if such retirement investment platforms will take a few years to see the light of day, then you’d be wrong. Auctus is one such portal that is currently in the Alpha phase of its launch. It is the first of its kind retirement portfolio platform to include digital currencies. Auctus users can receive investment advice from human and AI-powered analytical tools.
For now, users can save for retirement using Bitcoins, Ethereum and several other digital currencies. In addition, users can use the automatic rebalancing feature that allows them to automatically adjust their portfolio using a set of preset rules.
This holistic approach ensures that users can achieve their retirement goals earlier by making smart and sound investment choices or decisions.
Final Thoughts – Cryptocurrencies should not be overlooked in your retirement portfolio
Yes, it is true that cryptocurrencies are very volatile. In fact, there are speculations online suggesting that “cryptocurrencies are nothing more than a get-quick scheme” and that the bubble is likely to burst in the near future.
The uncertainty doesn’t mean cryptocurrencies shouldn’t be part of your retirement portfolio, even if you have short investment time horizons. On the other hand, the current decline in cryptocurrency prices in 2018 means that you have a rare opportunity to increase your profits.
Greater trust, holistic and directly controlled investment management capabilities and advances in supporting technologies ensure that digital currencies make an excellent investment choice to include in your retirement portfolio.