Professionals predict a coming retirement crisis, and at this stage, it’s simply a question of when. Today, it’s more expensive than ever before to retire, and the basic fact of the matter is that most Americans simply don’t have enough money saved. That trend doesn’t seem to be getting any better either: whether because of coinbase ira or the rising costs of just living, a lot more people haven’t increased the amount they’ve saved compared to a year ago.
Fortunately, it is possible to beat the challenges facing those saving for retirement today, but first it’s better to understand the current landscape which makes doing that difficult. Retirement Accounts in Bad Shape – Or Nonexistent
What’s creating the retirement crisis? An alarming level of Americans are just unprepared for your financial realities of retiring. The executive director of Georgetown University’s Center for Retirement Initiatives, Angela Antonelli, told PBS Frontline that “The the truth is as we look at what folks have set aside for retirement today they haven’t put a whole lot away if you are age 65.” In accordance with a study from PBS Newshour, nearly one half of retirement aged Americans have less than $25,000 saved. Worse still, another twenty 5 percent have lower than $1,000 saved.
A Bankrate survey took a look at American financial security and located some answers. Reporting that Americans didn’t invest in retirement because incomes in comparison to last year either stayed the same or actually dropped, the survey also cited federal data that shows real wages have barely budged in decades – both major contributors to the retirement crisis.
Touting analysis from the Pew Research Center, the survey went on to say that based on the current average hourly wage, purchasing power is identical today it was in 1978 after adjusting for inflation. This, alongside increasing housing costs and rising prices for consumer goods signifies that more Americans are feeling the pinch.
Greg McBride, chief financial analyst with Bankrate.com, states that “Stagnant income and rising household expenses mean there is little financial wiggle room for many Americans.”
Benefits associated with Portfolio Diversification – How can people avoid the retirement crisis? A find this is just one smart strategy. Diversification, defined by Investopedia as “a technique that reduces risk by allocating investments among various financial instruments, industries, along with other categories,” the aim of diversification is always to maximize return by purchasing different areas that could each react differently to the same event.
Which is, using a diverse portfolio comprised of unrelated investments would offer protection against a volatile market. A dip in the stock market, for instance, would expose an investor who had diversified their savings into, say, property and cryptocurrency, to less risk than a trader who had only committed to mutual funds stocks, and bonds. In accordance with research conducted by Ark Invest and Coinbase, “Bitcoin will be the only asset that maintains consistently low correlations with almost every other asset,” which makes it a powerful candidate for portfolio diversification.
Cryptocurrency and Retirement – Despite market dips, many experts believe that the future outlook for crypto is positive. Although it’s now been pushed to early 2019, major players including Starbucks, Microsoft, kuxwkr several others are working together to make a major cryptocurrency platform called Bakkt, which experts say is a giant vote of confidence later on of digital currency. “This is large news,” CEO of BK Capital Management Brian Kelly told CNBC’s Fast Money. Kelly also manages blockchain-focused BKCM Digital Asset Fund.
“They’re talking about getting this in your 401(K). They’re speaking about inside your … Fidelity or TD Ameritrade account, you’re going to be able to purchase a bitcoin ETF, Bonuses. It expands the universe,” Kelly said.
Using a move which brings cryptocurrency as far to the mainstream as a Grande Frappuccino, digital coins gain a level of institutional trust they didn’t have before, as well as an air of legitimacy among everyday consumers, potentially ultimately causing much more widespread adoption. Will this result in a steady upward climb for crypto when the correct market corrections settle down, rendering it a safer bet for retirement? Some experts are bullish.
“Traditionally volatility scares most investors regardless of asset class,” Christopher Bates, a former member of the NYSE, told Forbes. “Bakkt will draw resources from reputable companies with knowledge in fields of risk management and technology to produce a federally regulated platform. Once investors feel comfortable trading in a regulated environment volatility should ease.”