Should You Make Cryptocurrency Part of Your Retirement Planning?

Bitcoin, Ethereum, Dogecoin – you have probably heard these terms used and wondered what the fuss was about. These are just a few of the many types of cryptocurrencies across the world today. Cryptocurrencies are digital currencies that the government does not regulate. They have been around since Bitcoin was created in 2009, and they have everyone excited to make a massive return on their investment. It is currently a trillion-dollar industry, which is enticing to investors as a fast way to create wealth. With all the hype and growing popularity, should you include cryptocurrency as part of your retirement planning efforts in Jackson, MS?

Pros and Cons of Cryptocurrencies in Retirement Planning

The jury is still deliberating whether it is wise to add digital currency to retirement accounts. Sure, you might make a bit, or even a lot of money, but is the risk worth it? Here are some of the pros and cons to consider before you leap into this new Wild West of investing:

  1. The Speculative Trend Encourages Savings: If you or your employees have held off saving for retirement, the lure of cryptocurrencies may change your mind.  The industry has been showing signs of robust growth, but also displays an incredible about of volatility.  Some investors who enjoy speculation may be tempted to jump on the rollercoaster now before the ride ends.
  2. They Are Not Highly Regulated: One benefit of digital assets like Bitcoin or Dogecoin is that they are not highly regulated – yet. The Internal Revenue Service (IRS) does require reporting, but Uncle Sam hasn’t put many laws into play.
  3. They Are Not Insured: When you put your money in a bank, it is FDIC insured. Cryptocurrencies are not. You take all the gains and losses.
  4. They Are Volatile in Nature: You will enjoy digital coins if you like riding rollercoasters. Their value can fluctuate 5% daily. You can win big one day and lose astonishingly the next.
  5. They Are Not Long-Term Investments: These investments are better geared toward short-term investing because of their volatility. Retirement plans are better set for long-term planning with mutual funds and lower-risk investments.
  6. If You Lose Access, You Lose Your Money: You know the frustration of losing a password to your bank account. Now imagine if you lose the key to your Bitcoin account, or worse, it is stolen. You lose the key; you lose access to your money. You no longer own it.

Smarter Retirement Planning Decisions for Your Jackson, MS Retirement Planning Needs

Executive Planning Group is focused on helping clients make smarter retirement planning decisions.  We are charged with acting in your best interests and as independent financial professionals, we can search a wide array of solutions that can be customized to your specific needs.  Leave the hype for your short-term investment needs.  Look to us when planning for your longer-term financial future. Contact us request a quote online.

Call us at 601-982-3000 to discuss the best options for your retirement planning needs.

*Purchasing cryptocurrency and cryptocurrency derivatives is highly speculative.  The information provided is exclusively educational in nature. Executive Planning Group and Valmark Securities do not make recommends regarding cryptocurrency and cryptocurrency derivatives.

Disclaimer: Securities offered through Valmark Securities, Inc., Member FINRASIPC. Investment advisory services offered through Valmark Advisers, Inc., an SEC-registered investment advisor. Executive Planning Group is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.

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