Is crypto a good retirement plan?

Written By: Ehsan Jahandarpour

Financial advisors suggest that crypto investment can be part of a well-balanced investment portfolio. Cryptocurrencies have a strong place in retirement savings IRA, and many have added digital assets to their investments outside employer-sponsored retirement savings.

Crypto Vs. Precious metals

Crypto Vs Gold

Many compare Crypto IRA with gold and other precious metals as it has become a very attractive personal retirement opportunity. Bitcoin, for example, has even outgrown gold in recent years.

Crypto is also being touted by enthusiasts as an emerging asset class that maximizes ROI, and based on your risk profile, it can be a good or bad investment. And if you invest in a qualifying retirement account, any gains will be tax or tax-free depending on your account size. Cryptocurrency market upheaval makes the US Department of Labor push to stop retirement plans from adding digital assets to their 401 (k) plan lineups. LAST YEAR, an FTSE Russell simulation found that portfolios containing cryptocurrencies consistently outperformed non-crypto currency portfolios without significantly increasing risk.

Investor profile

They make up the largest share of crypto investors, closely followed by 37% of 35 to 44-year-olds. This makes the cryptocurrency more compatible with generally accepted retirement provision platforms and frameworks. So if you think about it, you’ll probably need to invest in crypto outside your traditional pension fund. Make sure you fully understand all risks associated with crypto investments before deciding to include them in your retirement savings.

Whether you’re a few years away from retirement or have decades of work ahead of you, there are plenty of financial instruments you can invest in to get a more reliable return than cryptocurrency. In other words, the current state of cryptocurrencies is more suitable for trading than investments.