Human life expectancy has increased dramatically over the world. It has increased by 50% in comparison to the 1950s, and by 30% in comparison to the 1980s. The days of relying solely on company-sponsored pension plans to enjoy one’s elderly years in a peaceful and worry-free manner are long gone.
With rising costs of living, education, healthcare, and other necessities, many people are finding it increasingly difficult to save for retirement.
Unfortunately, people of all generations, from baby boomers to millennials, are failing to save adequately for retirement. Saving is one of the world’s most underappreciated big crises.
“It’s difficult to retire. It is never too early or too late to begin planning for retirement.”
As a result, consumers are looking for other options that will give them with larger profits in a shorter period of time. Real estate, private equity, and venture capital have traditionally been sought after. Now, a new and more profitable source of income and investment has entered the picture: cryptocurrency.
Cryptocurrency Investments – For those who do not want to put all of their eggs in one basket.
The ability to detach your portfolio from reserve currencies is one of the most significant benefits of cryptocurrency investments. If you live in the UK, for example, you’ll almost certainly include shares of UK-based companies in your retirement portfolio. What will happen to your investments if the British pound plummets? Nothing is definite in today’s unpredictable political environment around the world.
As a result, investing in cryptocurrencies makes the most sense. You’re effectively establishing a basket of digital coins using digital currency investments, which functions as an effective hedge or safe bet against reserve currency instability.
Due to its volatility, the average investor should only invest a tiny amount of his or her retirement savings in cryptocurrency. But, as the healthcare stocks of the 1950s and the tech stocks of the 1990s demonstrate, instability may cut both ways. The early investors who were wise were the ones that made it large.
Don’t fall behind or you’ll miss out. To begin developing a truly diverse portfolio, include crypto in your assets.
Building Trust in Cryptocurrencies: Breaking the Barrier
Most first-time crypto investors confront a number of challenges, one of which is their inability to trust digital currencies. Many people, particularly those who are not tech-savvy or are nearing retirement, are unaware of what the promotion entails. Regrettably, they are unaware of and unappreciative of cryptocurrency’s vast potential.
The truth is that cryptocurrencies are one of the most secure assets available, backed by cutting-edge technology. The blockchain technology that underpins digital currencies allows for instant and irreversible trading without the need for third-party verification. It’s a peer-to-peer system that uses modern encryption techniques and is completely open.
Cryptocurrencies should be de-mystified by retirement funds.
Individuals must be educated about the unlimited potentials of cryptocurrencies in order for retirement planning funds to gain trust and support. They’ll need advanced analytics to help them with this, as well as risk analysis, risk/return measures, and projections.
Investment businesses might also establish dedicated cryptocurrency consulting services to assist and guide new investors. Several smart AI-based advisors are expected to emerge in the future years, assisting in the calculation of the best investments depending on an individual’s time horizon, risk tolerance, and other variables.
Human advisers can collaborate with these intelligent advisors to deliver individualized consultation and other recommendations to customers as needed.
More visibility and comprehensive control are required.
As they experiment with this new asset, retirement retirees who want to incorporate cryptocurrency to their asset portfolio need additional control and visibility. Look for solutions that allow you to consolidate all of your assets into one location. An comprehensive system for managing and balancing all of your assets, including classic assets such as bonds and equities, as well as emerging asset classes such as cryptocurrency wallets.
Having such a comprehensive platform that supports all of your assets allows you to do a comprehensive portfolio analysis, allowing you to make better and more educated decisions. As a result, you’ll get closer to your ultimate goal of saving for your aspirations.
Look for investment planning platforms that include extra capabilities such as making periodic payments to cryptocurrencies at predetermined or ad hoc periods.
Supporting Technologies for Cryptocurrency Investing Advances
Cryptocurrency trading will only become mainstream when the enabling technology allows investors to transfer coins easily, even if they are unfamiliar with the process. It must be easy to exchange one digital coin for another, as well as fiat currencies and other non-tokenized assets. When this is achievable, middlemen will be removed from the equation, decreasing expenses and additional fees.
As technologies that facilitate cryptocurrency investments and trading mature, the value of digital currencies will rise as the currency becomes more widespread and accessible. Early adopters will benefit greatly as a result of this. As more retirement investment systems incorporate cryptocurrencies, the value of digital currencies will rise, providing big returns to early adopters like you.
If you think that such retirement investment platforms will take a few years to get off the ground, you’re mistaken. Auctus is a portal that is currently in the Alpha stage of development. It’s a first-of-its-kind digital currency-based retirement portfolio platform. Both human and AI-powered analytical tools are available to Auctus users for financial advice.
Users can currently save for retirement using Bitcoin, Ethereum, and a variety of other digital currencies. Users can also use the Automated rebalancing tool, which allows them to automatically modify their portfolio based on a set of predefined rules.
This comprehensive strategy ensures that consumers can meet their retirement goals sooner by making wise and appropriate financial selections.
Final Thoughts – Don’t Forget About Cryptocurrencies in Your Retirement Portfolio
Cryptocurrencies are, without a doubt, quite volatile. Indeed, there are internet rumors that “cryptocurrencies are nothing more than a get rich quick gimmick” and that the bubble would collapse in the near future.
Even if you have a limited investment time horizon, cryptocurrency should be a component of your retirement portfolio due to the uncertainties. On the other side, the present collapse in cryptocurrency values in 2018 means you have a once-in-a-lifetime opportunity to profit.
Digital currencies are a fantastic investment alternative to include in your retirement portfolio due to increased trust, holistic and directly controllable investment management skills, and developments in supporting technologies.