All over the world, human life expectancy has skyrocketed. Compared to the 1950s, it has grown by 50%, and compared to the 1980s, it has increased by 30%. Long gone are the days when company-sponsored retirement plans alone were enough to see you through your golden years in a relaxed and carefree manner.
Today, with other expenses such as housing, education, health care, and more rising, some people are finding it increasingly challenging to save for retirement.
Unfortunately, the harsh truth is that people of all generations from baby boomers to millennials are not saving enough for retirement. Saving 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.”
Thus, people try to find alternative options that provide them with higher returns in a shorter period. Traditionally, real estate, private equity and venture capital were sought. Now a new and more complementary profitable and lucrative investment has joined the picture – enter cryptocurrencies.
Cryptocurrency Investments – For those who don’t want to put all their eggs in one basket
One of the biggest advantages of investing in cryptocurrency is that it separates your portfolio from reserve currencies. Let’s say if you live in the UK then you are required to have shares of UK based companies in your retirement portfolio if you are interested in shares. What will happen to your wallet if the British pound crashes? And given today’s volatile political scenario around the world, nothing is certain.
Therefore, cryptocurrency investments make the most sense. With digital currency investments, you are effectively creating a basket of digital coins that acts as an effective hedge or safe bet against the weakness of the reserve currency.
The average investor should allocate only a small portion of their retirement assets to cryptocurrency due to its volatility. But volatility can cut both ways—think health care stocks in the 1950s and tech stocks in the 1990s. It was the smart early investors who made it big.
Don’t get left behind or lose. Include crypto in your holdings to start building a truly diversified portfolio.
Breaking the Wall – Build your confidence in cryptocurrencies
One of the biggest and main hurdles most first-time crypto investors face is that they can’t trust digital currencies. Many people, especially people who are not tech savvy or close to retirement, don’t understand what promotion is all about. Unfortunately, they fail to realize and appreciate the myriad possibilities of cryptocurrency.
The reality is this – cryptocurrencies are one of the most reliable assets backed by the latest technology. The blockchain technology that powers digital currencies makes it possible to trade instantly and indelibly without requiring third-party verification. It is a peer-based system that is completely open and works on advanced cryptographic principles.
Retirement planning funds should work on demystifying cryptocurrencies
To build trust and gain people’s support, pension 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 forecasts.
Additionally, investment firms can create specialized cryptocurrency advisory services to help and guide new investors. In the coming years, several smart AI-based advisors can be expected to appear – 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 smart advisors and provide clients with personalized advice and other suggestions as and when needed.
Need more visibility and comprehensive control
Retired investors looking to add cryptocurrencies to their asset portfolio need more control and visibility as they experiment with this new asset. 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 that supports all your assets gives you a holistic portfolio analysis that helps you make better and more informed decisions. This way, you achieve the ultimate goal of saving for your goals faster.
Look for investment planning portals that also provide additional features such as recurring cryptocurrency contributions at scheduled or unscheduled intervals.
Advances in Supporting Technologies for Cryptocurrency Investing
Investing in cryptocurrency will only become mainstream when the supporting technology allows investors to trade coins seamlessly, even for new investors who are not familiar with the know-how. The exchange of one digital coin for another or even for fiat currencies and other non-tokenized assets should become possible. When possible, it will eliminate middlemen from the equation, thereby reducing costs and surcharges.
As the technology that supports cryptocurrency investment and trading matures, the value of digital currencies will further increase as the currency becomes mainstream with wider accessibility. This means early adopters stand to gain hugely. As more and more retirement investment platforms integrate cryptocurrency, the value of digital currencies is bound 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’re wrong. Auctus is one such portal that is currently in its alpha launch phase. It is the first retirement portfolio platform of its kind to include digital currencies. Auctus users can receive investment advice from both human and AI-based analytical tools.
For now, users can save for retirement using Bitcoin, Ethereum, and several other digital currencies. Additionally, users can take advantage of the auto-rebalancing feature that allows them to automatically adjust their portfolio using a set of pre-set rules.
This holistic approach ensures that consumers can reach 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 highly volatile. In fact, there is speculation on the internet suggesting that “cryptocurrencies are nothing more than a quick-get-out scheme” and the bubble is likely to burst sometime in the near future.
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 accumulate profits.
Greater trust, holistic and directly controlled investment management capabilities, and advances in supporting technologies ensure that digital currencies are an excellent investment choice to include in your retirement portfolio.