At its fundamental level, the objective of investing money today is to one day in the future receive a greater amount of capital, or return, on that initial outlay. The future could include plans to make a big purchase like a car or a house, but usually it is for retirement. Investors need to consider what assets to own in order to increase the chances of reaching their financial goals.
The opportunity set consists of stocks and bonds. But recently, a new asset class has emerged as a possible investment option. Let’s take a closer look at whether or notcryptocurrencies should be a part of your retirement plans.
Is crypto a good retirement investment?
The answer varies for everybody. Ever since theGreat Recession ended in 2009, investors have had to deal with a historically low interest rate environment, making the search for yield a top priority. For fixed-income investors, this has been a difficult situation. But for equity investors, the easy-money policies of the past decade have resulted in theS&P 500 producing an annualized total return of 13.2% in the last 10 years. This performance easily beats the broader index’s historical return of approximately 10% per year.
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But cryptocurrencies promise even greater fortunes for those who are bold enough to follow the trend. Bitcoin and Ethereum, the world’s…
