The life expectancy of people all over the world has increased by leaps and bounds. It has increased by 50% compared to the 1950s, and by 30% compared to the 1980s. Long gone are the days when only company-sponsored pension plans were enough to see one’s golden years comfortably and worry-free.
Today, with other expenses such as housing, education, healthcare and more rising, many people find it increasingly difficult to save for retirement.
Unfortunately, the hard truth is that people of all generations, from baby boomers to millennials, are not saving enough for retirement. Austerity is one of the most underrated epic crises worldwide.
“Retirement is complicated. It’s never too early or too late to start preparing for retirement.”
So, people try to look for alternative opportunities that bring them higher returns in a shorter period of time. Traditionally, real estate, private equity and venture capital were required. Now a new and even more profitable way of making money and investing 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 cryptocurrency investments is that it separates your portfolio from reserve currencies. Let’s say if you live in the UK, if you’re into equity, you’ll have shares in UK-based companies in your retirement portfolio. What will happen to your portfolio if the British pound crashes? And given today’s volatile political scenario around the world, nothing is certain.
That’s why cryptocurrency investments make the most sense. With digital currency investments, you effectively create a basket of digital coins that act 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 health care stocks in the 1950s and tech stocks in the 1990s. Smart early investors were the ones who made it big.
Don’t get left behind or get lost. Include cryptocurrency in your assets to start building a truly diversified portfolio.
Breaking the Wall – Increase your confidence in Cryptocurrencies
One of the biggest and main obstacles that first-time cryptocurrency investors face is their inability to trust digital currencies. Many people, especially people who are not tech savvy or are close to retirement, don’t realize what a promotion is. Unfortunately, they fail to realize and appreciate the countless potential of cryptocurrency.
The reality is – Cryptocurrencies are one of the most secure assets backed by the latest technology. The blockchain technology that powers digital currencies enables instant and indelible trades without the need for third-party verification. It is a peer-to-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 the support of individuals, retirement planning funds must educate investors about the endless potential of cryptocurrencies. To do this, they need advanced analytics that help them make reliable risk analysis, risk/return metrics and forecasts.
In addition, investment firms can set up dedicated cryptocurrency advisory services to help and guide new investors. In the coming years, we can expect several AI-based smart advisors to 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 smart advisors and provide personalized advice and other suggestions to clients as needed.
The need for more visibility and comprehensive control
Retirement investors looking to add cryptocurrency to their asset portfolio require greater control and visibility when experimenting with this new asset. Look for platforms that allow you to consolidate all your assets in one place. An integrated solution that allows you to manage and balance all your assets, including traditional assets like bonds and stocks with new asset classes like cryptocurrency wallets.
Having such a comprehensive platform supporting all your assets gives you a unified portfolio analysis that helps you make better and more informed decisions. So you reach the ultimate goal of saving for your goals faster.
Look for investment planning portals that provide additional features such as periodic contributions to cryptocurrencies at scheduled or unscheduled intervals.
Advances in Cryptocurrency Investment Support Technologies
Cryptocurrency investing will only become mainstream when the supporting technology makes it possible for investors, even new investors with no know-how, to trade coins seamlessly. It should be possible to exchange one digital coin for another, or even for fiat currencies and other non-tokenized assets. When possible, this will remove middlemen from the equation, thereby reducing costs and surcharges.
As the technologies that support cryptocurrency investing and trading mature, the value of digital currencies will increase as the currency becomes mainstream with greater accessibility. This means that early adopters will reap big profits. 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 whether such retirement investment platforms will take a few years to see the light of day, you’d be wrong. Auctus is one such portal which is currently in Alpha stage. It is a first-of-its-kind retirement portfolio platform that integrates digital currencies. Auctus users can receive investment advice from both human and AI powered analytics tools.
Currently, users can save for retirement using Bitcoins, Ethereum and several other digital currencies. In addition, users can take advantage of the Automated rebalancing feature, which allows them to automatically adjust their portfolios using a set of predefined rules.
This holistic approach enables users to achieve their retirement goals faster 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 is speculation on the internet that “cryptocurrencies are nothing more than a get-quick scheme” and the bubble is likely to burst at some point in the near future.
The uncertainty doesn’t mean cryptocurrencies shouldn’t be part of your retirement portfolio, even if your investment horizon is short. On the other hand, the current decline in cryptocurrency prices in 2018 means that you have a rare opportunity to make a profit.
Greater confidence, unified and directly manageable investment management capabilities, and advances in supporting technologies ensure that digital currencies are an excellent investment choice to include in your retirement portfolio.