Retirement planning is the process of planning and managing short-term and long-term finances to achieve financial goals during your working years and retired life. Most individuals assess their financial objectives, current financial status and expected cash flow to develop a comprehensive roadmap for retirement. Traditionally, individuals include their real estate investments, pension funds and corpus invested in stocks and shares in their retirement plan. The newest trend has been cryptocurrency investments and profits earned through lending, day-trading and HODLing.
The goal of early retirement is becoming popular among younger people who don’t like what they see in the world around them. Millennials aren’t keen on the idea of working for their entire life and early retirement has picked up steam in the past 5 years. While cryptocurrency could seem a risky investment for many, due to high volatility in the market, a growing number of millennials is using it to save for retirement. According to a survey from Auctus, a smart contract-powered retirement planning platform, 6% out of 501 American millennials surveyed would consider using cryptocurrencies as an investment option for their retirement plan.
It is a first-of-its-kind retirement investment platform that incorporates traditional investment instruments and cryptocurrencies to help tech-savvy millennials plan for their retirement. Fiat currencies decrease in value every year, while cryptocurrencies like Bitcoin have an ROI of over 150-200% in a financial year. Cryptocurrencies have the advantage of being technologically advanced, decentralized, free from inflation and a maturing regulatory climate. Most crypto entrepreneurs have claimed to realize higher profits from their cryptocurrency investments than from real-estate or other traditional investment avenues.
In the next two decades, cryptocurrencies could become the hottest choice for retirement planners. Planning a financial future by investing in Bitcoin, Ethereum, Tron and Binance coin could be the best bet for a huge corpus and returns that multiply every year. There are three main reasons to incorporate cryptocurrency in your portfolio: diversification, hedging against government-backed fiat currencies, and long-term growth potential. Crypto retirement funds offer the choice to diversify investment across various tokens and altcoins and automatically balance the portfolio every year.
A truly diversified portfolio would feature investments in commodities, stocks, shares, real estate, options, and cryptocurrencies. As cryptocurrencies are not governed or regulated by centralized institutions, the government’s changing approach to trade and monetary policy; Bitcoin is unaffected. Investing 50% of your retirement corpus in cryptocurrencies is a safe bet for your savings. Planning for the future is all about the long-term and while the cryptocurrencies may seem highly volatile at the moment, this could prove to be a good option from the long-term perspective.
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