You’ve probably heard of the “60/40” rule when it comes to retirement accounts. Conservative brokers have long recommended that you invest 60% of your assets in equities and 40% in bonds.
Take a look at how that advice is being implemented in today’s economic context. If you’re still using the 60/40 rule, reconsider.
Bond yields have fallen precipitously, while equities are near all-time highs, despite dips triggered by the coronavirus hysteria. Volatility has been rising and shows no signs of abating as the world prepares for an impending recession. Is this the time to invest all of your money in stocks and bonds?
It’s time to reveal a small secret. Let’s pretend we’re going back in time. It’s 2013. There is an asset available for you to add to your portfolio. It’s known as cryptocurrency. You want to be particularly cautious and limit it to 1% of your overall investments.
What do you think? Your portfolio with a 1% crypto holding outperformed the typical 60/40 portfolio by 20% by 2020. What’s the most thrilling part? This is only the start.
According to CNBC, the United States government’s Social Security program will be insolvent by 2035. If you’re in your 50s or younger, don’t expect much, if any, assistance from Uncle Sam in your golden years. Similarly, the age of company-sponsored pensions is long gone, and 401(k) matches are deteriorating or disappearing entirely.
According to Morgan Steckler, bitcoin retirement fund expert at iTrust Capital, “According to some reports, many people under 40 fear they will never retire.” However, for those who are wise enough to invest in cryptocurrency now, “it might still lead to life-changing gains and give those people the choice to retire if they so want,” Steckler added.
Ramsay Solutions conducted a survey in 2018 that revealed what may be termed a problem in this country, indicating that almost half of Americans do not save for retirement. Another Bankrate analysis indicates that half of all working households will have a lower standard of living during retirement. Is that what you’ve been working and planning for your entire life?
These facts are not going to be overlooked. Fairfax County, Virginia, has taken the ground-breaking step of investing millions of dollars in cryptocurrency. Even the IRS has gotten on board, approving crypto IRAs for the general public.
It is never too late to begin planning for retirement, and it is never too early to begin investing in Bitcoin. If you haven’t considered adding cryptocurrency to your portfolio yet, now is the moment. But don’t just take our word for it. Let’s look at the top reasons why you should use cryptocurrency in your retirement plans.
As the phrase goes, “Never put all your eggs in one basket,” as the phrase goes, and it’s as old as the concept of investing itself. Diversification allows you to reduce the risk associated with a single asset while still enjoying the growth of each.
The same holds true for your retirement account. The traditional technique of putting mainly equities and bonds in tax-deferred retirement accounts is becoming outmoded. The IRS fully supports the inclusion of precious metals, real estate, and cryptocurrency in retirement IRAs.
Any good financial advisor will advise you to diversify 5–10% of your portfolio into precious metals, and many are now recommending the same with cryptocurrencies. Why shouldn’t they? It would be foolish not to invest in this fascinating new asset class, which has enjoyed constant and exponential growth for the past decade.
2. Protection from the Government
Choose a cryptocurrency. Bitcoin, Ethereum, Ripple, and other cryptocurrencies No matter which one you choose, no government can regulate it. Uncle Sam cannot physically seize your Bitcoins from your wallet if you do not consent. To gain access to your funds, they would want your private key. If you didn’t give it to them, it would take BILLIONS of years for the most powerful computer on the planet to crack it.
Similarly to paper bills, the government cannot print more digital currency. Bitcoin, for example, has a fixed number of coins. Everything that will ever exist was generated with the currency itself. It cannot be manipulated by outside powers, unlike the dollar, euro, and yuan.
You are also safeguarded from other unscrupulous third parties when you use crypto. Because cryptocurrencies do not employ middlemen, transactions are made directly between two parties. This implies it’s simpler, faster, and safer in general.
3. Long-Term Growth Potential
Despite the fact that there has already been tremendous growth in the crypto industry, we are still in its infancy. Other major asset classes, such as precious metals, real estate, stocks, and bonds, all have hundreds, if not thousands, of years of head start.
Bitcoin has now been around for about ten years, putting it in a unique position. We’re currently in a good spot where it has a long enough track record to be considered an established and stable commodity, but it’s still in its infancy in comparison to other investment options.
The subsequent benefit? There is still a lot of room for expansion. Many people estimate that a single Bitcoin will be worth six or seven figures in a few years. Does that sound crazy? Most of the same folks expected the climb from a few hundred dollars to the $10,000 level that we’re currently hovering around (and PS, most of them are now filthy rich).
4. Crypto is Resilient
In an article back in 2013, the Los Angeles Times publicly pronounced the death of Bitcoin. How did that go for them? To say the least, the article has aged horribly.
Bitcoin has taken a battering in the media as well as in the markets. Detractors and skeptics have existed since the beginning, and they have been repeatedly proven wrong. If you continue to dismiss crypto, you will be regarded as out of touch.
The volatility of the market is one of the arguments used against Bitcoin. Earlier this decade, Bitcoin literally lost 70% of its value almost overnight. The skeptics won’t tell you how swiftly it recovered and surpassed its former highs. It’s the same thing every time. When compared to the stock, bond, or real estate markets, it can take years just to recover to former levels.
5. Crypto Is Already Mainstream
As we have shown, there are still a sizable number of crypto-skeptics out there. Another of their reasons is that Bitcoin and other altcoins have yet to gain mainstream acceptance. Looking at the evidence and trends, however, it is clear that this claim is no longer valid in 2020.
Do you want to buy something from Overstock.com? Getting a bite to eat at a restaurant? Buying sports tickets or a computer? Or how about a transatlantic flight? You’ve come to the right place. Microsoft, Dell, Tesla, the NBA, and Virgin Galactic are among the world’s largest firms and organizations that accept Bitcoin as payment. People are even using cryptocurrency to purchase real estate these days.
It’s no longer even a question. Bitcoin has already made inroads into the mainstream. Add to that the fact that, on a worldwide basis, more individuals have access to the internet than to banks or other financial systems. This is especially true in emerging regions like Africa, where hundreds of millions of people will get access to the internet for the first time in the coming decades. Given that the supply of Bitcoin is finite, we should expect a significant increase in demand as third-world countries develop.
Luno CEO Marcus Swanepoel describes how “cryptocurrency is uniquely positioned at the apex of technology and banking.” It has been hailed as a potential societal game changer. ” Prices are expected to keep climbing.
It’s Not Too Late
Bitcoin’s price has skyrocketed, but it’s not too late to get in while it’s still relatively low. By investing in cryptocurrencies, you are not only shielding your portfolio from market volatility but also positioning it for significant future growth. You can also save a lot of money on taxes by contributing to your retirement IRA with cryptocurrencies. It combines the best of both worlds.
Regal Assets believes in offering you reliable and tested cryptocurrency investing choices. We take pride in our work and have enjoyed assisting our clients in growing their portfolios for over a decade. Our skilled team members will work with you every step of the way to ensure that your wealth is secure and ready to grow.
With our FREE Investor’s Kit, you can see for yourself what we have to offer. It describes how Regal’s IRS-approved investing alternatives work. We’ll assist you in determining the best plan to achieve your objectives.