All over the world, human life expectancy has increased by leaps and bounds. Compared to the 1950s, it has increased by 50% and compared to the 1980s, it has increased by 30%. Long gone are the days when company-sponsored pension plans alone were enough to get through the golden ages in a relaxed and worry-free manner.
Today, with other expenses such as housing, education, healthcare, etc. rising, many people find it increasingly difficult to save for retirement.
Unfortunately, the bitter truth is that people of all generations are not saving enough for retirement. Saving is one of the least epic crises in the entire world.
“Retirement is complicated. It’s never too early or too late to start preparing for your retirement.”
Thus, people are looking for alternative options that offer higher returns in a shorter period of time. Traditionally, real estate, private equity and venture capital were sought after. Now, a new and additional money-making and money-making investment has come into 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 cryptocurrency investments is that it decouples your portfolio from the reserve currency. Say, if you live in the UK, you will have shares in UK companies in your retirement portfolio if you have active equity. What will happen to your portfolio if the British pound falls? And given today’s changing political scenario around the world, nothing is certain.
Therefore, cryptocurrency investments make the most sense. With digital currency investments, you are creating a basket of digital coins that 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 crypto due to its volatility. But volatility can cut both ways: think back to 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 get lost. Include crypto in your assets to start building a truly diversified portfolio.
Cracking the Wall – Build your confidence in Cryptocurrencies
One of the biggest and biggest hurdles that most first-time crypto investors face is that they can’t trust digital currencies. Many people, especially people who are not tech savvy or are close to retirement, have no idea what a promotion is. Unfortunately, they do not realize and appreciate the many potentials of cryptocurrency.
The reality is this – Cryptocurrencies are one of the most reliable assets, backed by the latest technology. Thanks to the blockchain technology that powers digital currencies, it is possible to trade instantly and indelibly without third-party verification. It is a peer-to-peer system that is completely open and runs on advanced cryptographic principles.
Retirement Planning Funds Should Work to Demystify Cryptocurrencies
To build trust and gain people’s support, retirement planning funds must educate investors about the endless potential of cryptocurrencies. To do this, they need advanced analytics that help provide reliable risk analysis, risk/return metrics and reliable projections.
Additionally, investment firms can establish specialized cryptocurrency advisory services to help and guide new investors. In the coming years, we can expect to see the emergence of a large number of AI-based smart advisors; these will help calculate appropriate investments based on an individual’s time horizon, risk tolerance and other factors.
Human advisors can work alongside these smart advisors and provide personalized consultation and other suggestions to clients when needed.
The need for more Visibility and Comprehensive Control
Retirement 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 let you combine all your assets in one place. An integrated solution that allows you to manage and balance all your assets, including traditional stocks like bonds and stocks, with new asset classes like cryptocurrency portfolios.
Having such a comprehensive platform that supports all your assets gives you a complete portfolio analysis, helping you make better and more informed decisions. This way, saving for your goals gets you to the end goal faster.
Look for investment planning portals that also offer additional features such as periodic contributions to cryptocurrencies at scheduled or unscheduled intervals.
Advances in Cryptocurrency Investing Support Technologies
Cryptocurrency investing will become mainstream only when assistive technology allows investors to seamlessly trade the coins, even for new investors who lack the knowledge. It should be possible to exchange one digital coin for another, or even for fiat currency and other non-tokenized assets. When possible, this will remove the middleman from the equation, thereby reducing costs and additional fees.
With the maturity of technologies that support cryptocurrency investments and trading, the value of digital currencies will increase even more as the currency becomes mainstream with wider accessibility. This means that early adopters will benefit greatly. As more and more retirement investment platforms integrate cryptocurrency, the value of digital currencies will increase offering early adopters like you huge profits.
If you’re wondering if 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 the Alpha phase of its launch. It is the first retirement wallet platform that includes digital currencies. Auctus users can get investment advice from both human and AI-powered analytical tools.
For now, users can save for retirement using Bitcoins, Ethereum and many other digital currencies. Additionally, users can use the automated 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 sooner by making the right investment choices or decisions.
Final Thoughts – Cryptocurrencies should not be neglected in your retirement portfolio
Yes, it is true that cryptocurrencies are very volatile. In fact, there are speculations on the internet suggesting that “cryptocurrencies are just a get rick quick scheme” and the bubble is likely to burst at some point in the near future.
Uncertainty doesn’t mean cryptocurrencies shouldn’t be part of your retirement portfolio, even for short investment periods. On the other hand, the current decline in cryptocurrency prices in 2018 means that you have a rare opportunity to generate profits.
Greater trust, holistic and directly controllable investment management capabilities, and advances in supporting technologies ensure that digital currencies are an excellent investment option for your retirement portfolio.