Around the world, people’s life expectancy has risen by leaps and bounds. Compared to the 1950s, it increased by 50%, and compared to the 1980s, it increased by 30%. Gone are the days when only company-sponsored retirement plans were enough to spend the golden age in a relaxed and carefree way.
Today, with the rise of other expenses such as housing, education, health care and more, few people find it increasingly difficult to save for retirement.
Unfortunately, the bitter truth is that people of all generations, from baby boomers to millennials, do not save enough for retirement. Savings 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.”
Therefore, people are trying to find alternative options that give them higher returns in a shorter period of time. Traditionally, real estate, private capital and venture capital have been sought. Now a new and more additional income and lucrative investment has joined the picture – enter cryptocurrencies.
Cryptocurrency investments – For those who do not want to put all their eggs in one basket
One of the biggest benefits of investing in cryptocurrencies is that it separates your portfolio from reserve currencies. For example, if you live in the UK, then you are required to have shares in 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 changing political scenario around the world, nothing is certain.
Therefore, investing in cryptocurrencies makes the most sense. By investing in digital currency, you effectively create a basket of digital coins, which acts as an effective protection or as a safe bet against the weakness of the reserve currency.
The average investor should set aside only a small portion of their assets for retirement in cryptocurrencies, due to their volatility. But instability can diminish in both directions – remember the healthcare stocks of the 1950s and the tech stocks of the 1990s. The smart early investors were the ones who made it big.
Don’t be left behind or lose. Include cryptocurrencies in your assets to start building a truly, diverse portfolio.
Break down the wall – build your trust in cryptocurrencies
One of the biggest and most important obstacles most crypto investors face is not being able to trust digital currencies. Many, especially people who are not involved in technology or are close to retirement, do not understand what promotion is all about. Unfortunately, they fail to understand and appreciate the myriad potentials of cryptocurrency.
The reality is this – cryptocurrencies are one of the most reliable tools, supported by the latest technology. Blockchain technology that drives digital currencies allows you to trade instantly and indelibly without the need for third-party verification. It is a peer-based system that is completely open and works on advanced cryptographic principles.
Pension planning funds should work to demystify cryptocurrencies
In order to build trust and gain the support of individuals, retirement planning funds must educate investors about the endless potentials of cryptocurrencies. To do this, they need advanced analytics to help provide reliable risk analysis, risk / return metrics and projections.
In addition, investment firms can set up specialized cryptocurrency advisory services to help and guide new investors. In the coming years, several smart artificial intelligence-based advisors can be expected to appear on the scene – they will help calculate the right investment based on an individual’s time horizon, risk tolerance and other factors.
Human Advisors can work together with these intelligent advisors and provide clients with personalized consultations and other suggestions as needed.
The need for greater visibility and comprehensive control
Pension investors who want to add cryptocurrencies to their asset portfolio require more control and visibility while experimenting with this new asset. Look for platforms that allow you to combine all your resources 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 wallets.
Having such a broad platform that supports all of your assets gives you a holistic portfolio analysis, helping you make better and more informed decisions. In this way, you achieve the ultimate saving goal for your goals faster.
Look for investment planning portals that also provide additional features such as periodic contributions to cryptocurrencies at planned or unplanned intervals.
Advances in cryptocurrency investment support technologies
Investing in cryptocurrencies will become mainstream only when the accompanying technology allows investors to trade coins without hindrance, even for new investors who are not aware of the knowledge. The exchange of one digital coin for another, or even for fiat currencies and other non-tokenized assets must be enabled. When this becomes possible, it will eliminate intermediaries from the equation, thus reducing costs and additional fees.
With the maturation of technologies that support cryptocurrency investment and trading, the value of digital currencies will increase further as the currency becomes mainstream with wider availability. This means that early users will benefit enormously. As more and more retirement investment platforms integrate cryptocurrencies, the value of digital currencies will surely increase by offering significant gains to those who have adopted early like you.
If you are wondering whether such retirement investment platforms will take several years to see the light of day, then you are wrong. Auctus is one such portal that is currently in the Alpha launch phase. It is the first portfolio retirement platform to include digital currencies. Auctus users can get investment advice from analytics tools powered by people and AI.
For now, users can save for retirement using Bitcoin, 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 preset rules.
This holistic approach ensures that beneficiaries can achieve their retirement goals earlier by making smart and correct investment choices or decisions.
Closing Thoughts – Cryptocurrencies should not be neglected in your retirement portfolio
Yes, it is true that cryptocurrencies are very unstable. In fact, there is speculation on the Internet that suggests that “cryptocurrencies are nothing but quick-draw schemes” and that the bubble is likely to burst in the near future.
Uncertainty does not mean that cryptocurrencies should not be part of your retirement portfolio, even if you have a short investment time horizon. On the other hand, the current decline in cryptocurrency prices in 2018 means that you have a rare opportunity to make profits.
Greater trust, holistic and directly controlled investment management capabilities, and advances in support technologies ensure that digital currencies are a great investment choice to include in your retirement portfolio.