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%. Gone are the days when company-sponsored retirement plans alone were enough to spend your golden age in a peaceful and carefree way.
Today, with the increase in other expenses such as housing, education, health care and others, several people find it increasingly challenging to save for retirement.
Unfortunately, the bitter truth is that people of all generations, from the baby boom to the millennials, are not saving enough for retirement. Saving is one of the most underestimated epic crises in the world.
“Retirement is complicated. It’s never too early or too late to start preparing for retirement.”
In this way, people try to find alternative options that provide them with higher returns in a shorter period. Traditionally, real estate, private capital and venture capital were sought. Now a new and additional profit and profitable investment has joined the picture – enter cryptocurrencies.
Cryptocurrency Investment – For those who don’t want to put all their eggs in one basket
One of the biggest benefits of investing in cryptocurrency is that it separates your portfolio from reserve currencies. For example, if you live in the United Kingdom, then you are required to have shares of UK-based companies in your retirement portfolio if you are in equity. What will happen to your portfolio if the British pound falls? And given today’s volatile political scenario around the world, nothing is certain.
Therefore, investing in cryptocurrency makes the most sense. By investing in digital currency, you effectively create a basket of digital coins that acts as an effective hedge or as a sure bet against the weakness of the reserve currency.
The average investor has to allocate only a small part of his retirement assets in cryptocurrency due to its volatility. But instability can be reduced in both directions – consider healthcare stocks from the 1950s and technology stocks from the 1990s. The smart early investors were the ones who made it big.
Do not lag behind and do not lose. Include cryptocurrency in your assets to start building a truly diversified portfolio.
Cracking the wall – Build your trust in cryptocurrencies
One of the biggest and most important obstacles most crypto investors face for the first time is that they cannot trust digital currencies. Many, especially people who are unfamiliar with technology or close to retirement, do not understand what the increase is about. Unfortunately, they fail to realize and appreciate the myriad potentials of cryptocurrency.
The reality is that cryptocurrencies are one of the most reliable assets, backed by the latest technology. Blockchain technology, which powers digital currencies, allows trading instantly and indelibly without the need for third-party verification. It is an equivalent system that is completely open and works on advanced cryptographic principles.
Pension planning funds must work to demystify cryptocurrencies
In order to build trust and gain people’s support, retirement planning funds need to educate investors about the infinite potential of cryptocurrencies. For this, they need advanced analyzes that help provide reliable risk analysis, risk / return indicators and forecasts.
In addition, investment firms can set up specialized cryptocurrency advisory services to help and guide new investors. In the coming years, several intelligent AI-based advisors can be expected to appear on the scene – they will help calculate the right investment based on the individual’s time horizon, risk tolerance and other factors.
Human Advisors can work with these smart advisors and provide clients with personalized advice and other suggestions when and when needed.
Need more visibility and comprehensive control
Retirement investors who want 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 such as bonds and stocks, with new asset classes such as cryptocurrency portfolios.
Having such a broad platform that supports all your assets gives you a holistic analysis of your portfolio, helping you make better and more informed decisions. In this way you reach the ultimate goal of saving for your goals faster.
Look for investment planning portals that also provide additional features such as periodic installments for cryptocurrencies at planned or unplanned intervals.
Advances in supporting cryptocurrency investing technologies
Investing in cryptocurrency will become massive only when the supporting technology allows investors to trade coins without problems, even for new investors who are not familiar with know-how. It must be possible to exchange one digital coin for another or even for fiat currencies and other non-tokenised assets. When possible, this will remove intermediaries from the equation, thus reducing costs and additional fees.
With the maturation of technologies that support investment and cryptocurrency trading, the value of digital currencies will increase further as the currency becomes mainstream with greater accessibility. This means that early adopters are at a huge profit. As more and more retirement platforms integrate cryptocurrencies, the value of digital currencies will inevitably increase, offering significant profits to early adopters like you.
If you are wondering if it will take several years for such retirement platforms to see the light of day, then you are wrong. Auctus is one such portal that is currently in its alpha startup phase. It is the first pension portfolio of its kind to include digital currencies. Auctus users can get investment advice from both human and AI-powered analytics tools.
For now, consumers can save for retirement by using bitcoins, Ethereum and several other digital currencies. In addition, users can use the automatic rebalancing feature, which allows them to automatically adjust their portfolio using a set of predefined rules.
This holistic approach ensures that consumers can achieve their retirement goals earlier by making smart and right investment choices or decisions.
Last thoughts – Cryptocurrencies are not to be overlooked in your retirement portfolio
Yes, it is true that cryptocurrencies are highly volatile. In fact, there is speculation on the Internet that “cryptocurrencies are nothing but a quick-release scheme” and the bubble is likely to burst sometime in the near future.
Uncertainty does not mean that cryptocurrencies should not be part of your retirement portfolio, even if you have short investment horizons. On the other hand, the current decline in cryptocurrency prices in 2018 means that you have a rare opportunity to build profits.
Greater trust, holistic and directly controlled investment management capabilities and advances in supportive technologies ensure that digital currencies are an excellent investment choice to include in your retirement portfolio.