If there is one thing we should all have learned from the Great Recession, it is that our retirement is no longer certain. We simply cannot place all of our eggs in one basket and hope for the best. Never before has it been this important to have a diverse investment portfolio to help build a nest egg, and that means considering alternative options as well. One such alternative option is the digital IRA.
Why the Digital IRA Is such a Good Investment Option
Once upon a time, the dollar was mighty and strong, but this has all changed. Today, the total debt of the United States is larger than that of the whole of the European Union! On average, around $85 billion is printed every month, and with each dollar that is printed, it becomes a little bit less valuable. Then, there is the fact that countries such as China no longer accept the dollar as the reserve currency of the world. This means that the value of this once mighty currency is no longer to be trusted at all.
Of course, there are always precious metals. Smart investors have included a significant proportion of gold and other metals, in various forms, in their investment portfolios. For the past 15 years or so, gold has only risen in value. There was a short break in 2013, but gold has always been valuable and will continue to be so. It has a track record of this, predating our monetary system. Gold is also tangible, which means you can actually hold it in your hands. Unfortunately, gold is also expensive and many companies that allow investments have quite high minimum amounts, making it untouchable for everyday individuals.
And that is where the digital IRA comes in. With these IRAs, you have the option of also investing in cryptocurrencies. That does not mean, in any way, that 100% of your portfolio should be dedicated to crypto. No investment portfolio should be 100% dedicated to anything, because it needs to be diverse. However, cryptocurrencies are incredibly interesting because they are decentralized, meaning they are not linked to governments, central banks, or other third party influencers. Rather, they are worth however much everyday individuals are willing to pay for them. Best of all, they are affordable. While a single bitcoin goes for several thousand dollars (it hit heights of above $10,000 at some point, in fact), you can purchase fractions of bitcoins instead. This means that you can purchase them, regardless of how much money you have in the bank.
A good digital IRA will allow you to roll over your existing IRA so that you don’t lose out on the investments that you have already made. Make sure you research the ins and outs of these plans, however, and get to know your custodian. Cryptocurrencies are a hot topic right now, and you should ride this wave while it is still going or find yourself being left behind.