Life expectancy has increased by leaps and bounds around the world. It has increased by 50% compared to the 1950s and by 30% compared to the 1980s. Long gone are the days when company pension schemes alone were enough to spend the golden age relaxed and carefree.
Today, as other expenses such as housing, education, health care, and more increase, many people are finding it increasingly difficult to save for their retirement.
Unfortunately, the bitter truth is that people of all generations, from baby boomers to millennials, aren’t saving enough for their 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 retirement.”
Hence, people are looking for alternative opportunities that offer them higher returns in less time. Traditionally, real estate, private equity and venture capital were sought. Now a new and additional money-making and lucrative investment has joined the picture – cryptocurrencies.
Cryptocurrency Investing – For those who don’t want to put all their eggs in one basket
One of the biggest benefits of cryptocurrency investing is that it decouples your portfolio from reserve currencies. Let’s say if you live in the UK then you’re bound to have shares in UK-based companies in your retirement portfolio if you’re into shares. What happens to your portfolio if the British pound falls? And with today’s volatile political scenario across the world, nothing is certain.
Therefore, cryptocurrency investments make the most sense. By investing in digital currencies, you are effectively creating a basket of digital coins that serves as an effective hedge or safe bet against reserve currency weakness.
The average investor should only invest a small portion of their retirement savings in crypto due to its volatility. But instability can go either way — think back to healthcare stocks in the 1950s and tech stocks in the 1990s. The smart early investors were the ones who made it big.
Don’t lag behind or lose. Include crypto in your wealth to start building a truly diversified portfolio.
Cracking the Wall – Build your confidence in cryptocurrencies
One of the biggest and most important hurdles for most first-time crypto investors is that they cannot trust digital currencies. Many, especially people who are not tech savvy or nearing retirement, don’t realize what the promotion is about. Unfortunately, they fail to recognize and appreciate the myriad potentials of cryptocurrency.
The reality is that – cryptocurrencies are one of the most reliable assets backed by the latest technology. The blockchain technology that powers digital currencies enables instant and persistent trading without the need for third-party verification. It is a peer-based system that is completely open and runs on advanced cryptographic principles.
Retirement funds should work on demystifying cryptocurrencies
In order to build trust and win the support of individuals, retirement funds need to educate investors about the endless potential of cryptocurrencies. To do this, they need advanced analytics that help in providing reliable risk analysis, risk-return metrics, and forecasting.
Additionally, investment firms may set up specialized cryptocurrency advisory services to help and guide new investors. In the coming years, expect to see the emergence of several intelligent AI-based advisors – these will help calculate the right investments based on individual time horizons, risk tolerance and other factors.
Human advisors can work alongside these intelligent advisors, providing clients with customized advice and other suggestions as needed.
Need for more transparency and comprehensive control
Retirees looking to add cryptocurrency to their wealth portfolio need more control and transparency when experimenting 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.
With such a broad platform supporting all your assets, you get holistic portfolio analysis to help you make better, more informed decisions. This will help you to save for your goals faster.
Look for investment planning portals that also offer additional features such as regular cryptocurrency reviews at scheduled or unscheduled intervals.
Advances in supporting technologies for cryptocurrency investments
Cryptocurrency investing will only go mainstream when the supporting technology allows investors to trade coins seamlessly, even for new investors who are unaware of the know-how. It must be possible to exchange one digital coin for another, or even for fiat currencies and other non-tokenized assets. When this becomes possible, middlemen are eliminated from the equation, reducing costs and additional fees.
As technologies supporting cryptocurrency investing and trading mature, the value of digital currencies will continue to rise as the currency becomes mainstream with wider accessibility. This means that early adopters make a huge profit. As more retirement savings platforms integrate cryptocurrencies, the value of digital currencies is bound to increase, offering significant gains to early adopters like you.
If you’re wondering whether it will be a few years before such retirement investment platforms see the light of day, then you’re wrong. Auctus is one such portal that is currently in the alpha phase of launch. It is the first retirement portfolio platform of its kind to include digital currencies. Auctus users can get investment advice from both human and AI-powered analysis tools.
Right now, Bitcoins, Ethereum, and several other digital currencies allow users to save for retirement. Additionally, users can take advantage of the automatic rebalancing feature, which allows them to automatically adjust their portfolio based on a set of preset rules.
This holistic approach ensures users can reach their retirement goals sooner by making smart and right investment decisions or choices.
Final Thoughts – Cryptocurrencies cannot be ignored in your retirement portfolio
Yes, it is true that cryptocurrencies are very volatile. In fact, there is speculation on the internet that suggests that “cryptocurrencies are nothing but a quick get rick scheme” and the bubble is likely to burst at some point in the near future.
The uncertainty doesn’t mean that cryptocurrencies shouldn’t be a part of your retirement portfolio, even if you have a short investment horizon. On the other hand, the current cryptocurrency price drop in 2018 means you have a rare opportunity to make a profit.
Greater confidence, holistic and directly controllable investment management capabilities, and advances in enabling technologies ensure that digital currencies are an excellent investment choice for your retirement portfolio.