If you haven’t been paying much attention to cryptocurrencies, that might change by the time you are thinking about your retirement plans.
Or at least, certain financial groups certainly seem to think so, as they are now unveiling new services specifically catering to utilizing cryptocurrency for your retirement funds, such as “CryptoIRA” and “BitcoinIRA.”
Anne Tergesen of the Wall Street Journal shares more details, such as how more people are inserting bitcoin into their asset accounts because it enables them to reinvest the profits free of taxes.
That kind of flexibility has a growing appeal.
Kingdom Trust is an IRA custodian, and their CEO, Ryan Radloff, elaborated on what his company has been seeing. “Our users are trading Tesla, GameStop, bitcoin, and ether,” he said. “We believe our clients see an opportunity to be aggressive with their retirement accounts and also trade them, not just sit there and put the money into cookie-cutter funds like our parents did.”
However, analysts warn of the potential pitfalls of embracing cryptocurrencies. While something like Bitcoin saw it soar to a record high value back in April, now just a few short months later its value has already been cut in half. This makes some financial institutions trepidatious about encouraging their clients to utilize it. Many still think cryptocurrency is far too new to reliably put stock in.
Others see cryptocurrency as part of the future and are embracing offering options to clients who want to invest it into their IRA. Naturally, BitcoinIRA is one such service, which only charges an annual fee of $240 to use.
Using cryptocurrency in this way is uncharted waters, so it will be very interesting to see what becomes of the first wave of adopters to incorporate it into their retirement plans.
“One thing that the bitcoin and cryptocurrency excitement has brought is attention to non-traditional wealth vehicles, said Fred Hubler, president and founder of Creative Capital Wealth Management Group of Phoenixville. “If you look at the annual reports of Harvard or Yale you will see that the bulk of their investments are not in traditional stocks and bonds. Cryptocurrency is an example of that. It has risks as does every investment but I always advise my clients that we need to look beyond stocks and bonds if we want to improve our returns and lower overall risk.”
To learn more about how bitcoin could factor into your retirement plans, read the Wall Street Journal article here.
Want to know if you’re on the right path financially? Fred Hubler’s Second Opinion Service (SOS) is a no-obligation review with Creative Capital Wealth Management Group‘s Chief Wealth Strategist. It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting.