Managing Business Expectations

Posted on: 5 June 2019

Retirement is the ultimate goal for many full-time workers. Unfortunately, saving for retirement can be a real challenge. Increases in the cost of basic living expenses have made it difficult for workers to contribute to a dedicated account. This means that it is more important than ever before to make your existing retirement portfolio work to your advantage.

The addition of a cryptocurrency IRA to your portfolio could offer the diversity and returns you need to keep your retirement savings on track.

1. Diversification

The key to growing your retirement wealth through investing is diversification. In the past, diversification often meant investing in both stocks and bonds. The evolution of the financial market to include cryptocurrency creates another asset class that you can utilize to help protect your retirement investments.

The more diversified your portfolio becomes, the more stable your earnings will be. Diversification eliminates the possibility that a sudden decline in the value of one asset class will wipe out your retirement savings completely.

2. No Government Control

One of the primary reasons cryptocurrency has risen in popularity and value in recent years is the fact that no single government controls this asset. Changes in government policy or fluctuations in national GDP will have no direct effect on the value of your cryptocurrency investments.

This fact helps to shield your retirement portfolio from many of the highs and lows associated with investing in government-controlled assets (like stocks and bonds).

3. Resilience

Resiliency is an important quality to look for in any investment. Since retirement planning is a long-term activity, the short-term volatility of cryptocurrency is not an issue. Cryptocurrency is a relatively new type of asset class, but it has already proven that it is resilient enough to overcome both minor and major setbacks.

The most significant setback occurred in 2013, when the value of cryptocurrency dropped by 71%. The market recovered, and cryptocurrency is more valuable now than it was before the 2013 crash.

Several other less severe crashes have affected the value of cryptocurrency in recent years, with the market recovering nicely after each event. This track record allows you to feel confident in the long-term resiliency of cryptocurrency as part of your retirement portfolio.

Your unique retirement needs will dictate how you invest, but almost all workers can benefit from the diversification and stability the addition of a cryptocurrency IRA brings to a retirement portfolio. Call a business like Bridge Advisors, LLC, for more information about bitcoin retirement planning.