“Some Baby Boomers face retirement crisis: little savings, high health costs and unrealistic expectations. Crypto to the rescue” — Paul Ebeling
As retirement age approaches for Baby Boomers and Gen Xers, the reality of under-saving is setting in and some are looking toward cryptocurrency to make up for lost time, according to data from a platform that allows crypto investments for retirement accounts.
“There’s the growth and return rates that are appealing to older folks who are looking to catch up,” said the Co-founder and COO of Bitcoin IRA. “Or, grow out and scale their retirement planning.”
Half of Bitcoin IRA’s user base is 55 anni and up, according to the data, while over 75% of its 100,000 users are over 45 anni, thus upending the stereotype that digital currency is a young person’s investment.
Given crypto’s ability to capture headlines as prices boom and bust, these investors are looking for “sizzle and excitement” that old guard investment vehicles like 401(k)s, IRAs, and stocks do not offer.
They also want a more hands-on approach with their investments, instead of simply selecting mutual funds or index funds from an employer’s retirement plan menu.
Older investors are looking for something more individualistic, and looking to have more control and do different things.
Many also are looking for ways to fill in short gaps in their retirement savings. The median retirement savings for those 45 – 55 anni is $82,600, while it is $120,000 for those closest to retirement for those 55 – 64 anni, according to PwC’s Retirement in America report.
“What they have saved will afford them like $1,000 a month of actual cash while they’re in retirement,” said PwC’s US asset and wealth management leader, who noted that is not enough.
That is where crypto comes in, especially in a yr when Bitcoin’s value jumped 120% from the 1st of the yr to mid-April and other digital coins enjoyed similar meteoric rises.
Portfolio allocation should come down to a portfolio’s risk assessment before the introduction of crypto. Investors with portfolios with a lot of high-risk assets should keep a smaller investment in crypto. Those with a lower-risk portfolio could likely withstand a higher percentage of the asset.
Have a happy, healthy weekend, Keep the Faith!