ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

A Guide for Incorporating Bitcoin in Retirement Investments

Share On Facebook
share on Linkedin
Print

Thinking about incorporating Bitcoin in your retirement investment? If yes, here’s a practical guide to help you through the process.

©

The increasing Bitcoin popularity has prompted many people to consider incorporating Bitcoin in their retirement investments. This virtual currency emerged back in 2008 and has been growing in value and popularity since then. Other cryptocurrencies emerged after Bitcoin, but none of them has managed to beat so far.

Since its launch, this virtual currency has increased its value to more than 400%. And this has captured most investors’ attention, including retirement savers. For some people, incorporating Bitcoin in retirement investments is an excellent way to ensure that you’ll enjoy your golden years.

However, planning your retirement based on Bitcoin investment alone can be a risky bet. Nevertheless, most experts recommend including Bitcoin in a long-term investment portfolio. Here’s what financial experts say about incorporating Bitcoin in a retirement investment plan.

Bitcoin’s Lucrative Returns

People have purchased Bitcoin on platforms like Bitcoin Profit and enjoyed lucrative returns over the years. Such websites allow individuals to buy Bitcoin using fiat money after creating their accounts. Essentially, this virtual currency has maintained consistent growth, despite its value volatility. Consistent compound returns for Bitcoin investments make it a candidate that every investor should consider including in their portfolio.

What’s more, Bitcoin doesn’t seem like it will go away anytime soon. Over the past five years, this cryptocurrency has shown an average compound return of 121% annually. And because Bitcoin is part of the emerging technology, it’s likely to continue outpacing the entire market in terms of its growth rate.

Investing Through 401k Plans

The best way to incorporate Bitcoin in a retirement plan is via the employer-based 401k plan. That’s because the 401k plan treats this cryptocurrency like other assets held in it. Thus, the Bitcoins in your retirement plan would compare to bonds, stocks, and ETFs.

Invest Early

Now is the best time to incorporate Bitcoin into your retirement plan. Essentially, investing in Bitcoin now is particularly essential for anybody approaching retirement. But keep in mind that Bitcoin’s value could drop. However, you’ll be safe if the Bitcoin price gradually increases because you will make more profits from your future sales. Ideally, incorporating Bitcoin in your retirement investment now is a smart move if you are about to retire in 3 to 5 years. That’s because moving into this crypto could add your income.

Seek Expert’s Advice

If unsure about how this virtual currency works and its technology, seek professional advice before investing in it. And this shouldn’t dissuade you from incorporating Bitcoin in your retirement investment. A highly-vetted, true fiduciary and a commission-free advisor will help you make a more informed decision to invest in Bitcoin for retirement. Incorporating Bitcoin in a retirement investment is a relatively new phenomenon. Therefore, look for an expert that understands Bitcoin and blockchain. Also, research about Bitcoin and its history to predict the future and do the most reasonable thing based on your understanding.

Open Your Bitcoin IRA

Opening a Bitcoin IRA when nearing retirement may be a prudent option due to the volatility of this virtual currency. But if you have more time and have a higher risk tolerance, you can open Bitcoin IRA. That’s because investing a portion of your retirement savings in Bitcoin can provide a hedge against conventional holdings’ losses and potential upside.

However, bear in mind that Bitcoin IRA has several moving parts than ordinary retirement accounts. That means you must do your due diligence in researching the cryptocurrency’s potential and determining the most appropriate IRA provider. Also, understand the IRA provider’s fees because they may not be apparent on their website. And most importantly, include Bitcoin as a small portion of the overall retirement plan.

Final Thoughts

Planning a retirement based on Bitcoin alone compares to investing in a single stock. Therefore, incorporate other assets in your retirement investment even after purchasing Bitcoin.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com