You’ve finally come to your senses and decided that a diversified retirement portfolio was in order. Good for you! It’s about time that you finally took the necessary steps to protect your retirement nest egg.
But how do you begin?
That’s the question on everyone’s mind when they first consider portfolio diversification. And you’ve likely asked yourself many questions recently since diversity has become a top priority.
You might be wondering things like:
- Do I invest in stocks and bonds for diversity?
- Do I consider opening a gold IRA account?
- Should I open a cryptocurrency IRA too?
- Can I invest in real estate as an alternative investment?
Each one of these questions are valid. And they make sense because the stock market is breaking records and it’s likely to pull back soon.
Do you give back all your gains and wait for a recovery? Or do you sell some of your investments at a profit and move them into better alternatives?
I don’t know about you, but I’m certainly tired of watching my portfolio go up and down like a yo-yo. It’s all because the stock market can never pick a direction.
It’s up one minute and down the next. And it’s trading flat or sideways when you least expect it and your investments remain dormant.
A Good Rule of Thumb for a Diversified Retirement Portfolio
Everyone has to consider their own needs as they build their retirement portfolio. I can lay out a strategy that you can use as a starting point. But ultimately you have to decide what percentage of your portfolio should be allocated for each category.
A good rule of thumb for a diversified retirement portfolio includes:
- 40% Equities
- 20% Precious Metals
- 20% Cryptocurrencies
- 20% Real Estate
Is This Retirement Portfolio Strategy Too Dangerous?
Some retirement experts would tell you that you’re crazy if you follow this pattern. They’ll say you’re too heavily weighted in alternative investments.
Are they right? I don’t think so. Gold and Bitcoin have been way too hot to ignore over the past two years. By investing in these markets, you could have grown your retirement portfolio by a wide margin.
And guess what?
The party isn’t over by a long shot. Cryptocurrency is still in its infancy so it definitely makes sense to open a cryptocurrency IRA.
And gold and other precious metals are some of the most stable investments you could ever own. They have consistently gained value for decades and as they become scarcer, their value will continue to rise.
Everyone knows to invest in stocks to grow their retirement portfolio. This is a great strategy that works wonders for investors far and wide.
And until the 2008 housing market crash, real estate was one of the most stable investments in the US. Investors know the value of owning real estate as part of a self-directed IRA account.
But here’s where things go off the rails…
They fail to recognize the value of investing in cryptocurrencies and precious metals. And because these alternative investments aren’t really mainstream, their financial advisors attempt to scare them.
Why? Their financial advisors do not understand these investments all that well. And they have no business keeping you away from them.
How to Move the Needle to Secure Healthy Retirement Accounts
As I mentioned, investing in alternative investments like gold, silver, platinum, palladium, and cryptocurrencies makes a great deal of sense.
These investment strategies will move the needle on your retirement portfolio so to speak. They will help you kickstart your retirement because they’re in big demand.
And as we all know…
In demand investments make investors a great deal of money relatively quickly.
That’s what I’ll tackle next. Because you have to understand the benefits before you could ultimately reap the rewards.
The Benefits of Opening a Cryptocurrency IRA for a Diversified Retirement Portfolio
As you can imagine, there are definitely huge benefits to opening a cryptocurrency IRA. And the biggest and best benefit is controlling your own diversified retirement account.
With this account, you make all the decisions. No financial advisor or portfolio manager is going to tell you how to invest your money. You can allocate as much as you want toward cryptocurrencies as long as you feel comfortable doing so.
But this isn’t the only benefit. Far from it.
Other cryptocurrency IRA benefits to consider include:
- Enormous tax breaks – depending on how you set up your account, you can make the most of tax breaks made available by the IRS. With a tax-deferred account, you lower your yearly tax basis. And you avoid paying taxes on your investment until you take distributions once you reach 59 ½ years old or older. A tax-free account means the taxes were paid upfront. So, everything that you accumulate in this account is yours to keep. The IRS will never attempt to collect taxes on this money. They were paid in full earlier when you satisfied your obligation.
- It’s a hedge against a struggling US dollar – and the value of the US dollar is only going to get worse. With the latest $1.9 trillion stimulus package, the US government diluted the value of the dollar even further. This means it will cost more money to pay for goods and services. As an example, you may pay three dollars for a dozen eggs right now. In the future, because of inflation, the price of a dozen eggs might cost six dollars or more. Cryptocurrencies like Bitcoin do not experience the same level of inflation as the US dollar. In fact, their intentional limitations have put an end to Bitcoin inflation altogether, which is truly amazing.
- And speaking of supply limitations – the reason why Bitcoin and other cryptocurrencies will never suffer from inflation is because of supply limitations. Did you know that there will never be more than 21 million Bitcoins in existence? The creators of this digital currency did this intentionally. And they did it to prevent inflation from ever ruining the value of this powerful currency.
Do yourself a favor and read my review of the top 3 cryptocurrency IRA companies in business right now. I share the names of my favorite companies and tell you why I think they’re the most reputable in the industry today.
The Benefits of Opening a Gold IRA for a Diversified Retirement Portfolio
Although the cryptocurrency IRA benefits are tremendous, you’ll capitalize on even more advantages with a gold IRA.
Believe it or not, by investing in gold you’ll open yourself up to bigger and better opportunities. And this also holds true for investing in palladium, platinum, and silver as well.
Other reasons to open a gold IRA include:
- Gold liquidity is booming – you never know when you’ll need to cash in one of your gold investments. The last thing you need is to get stuck holding onto your precious metals when you need money for retirement. This is never going to be a problem with gold because it has tremendous liquidity. And huge investors all around the world are always dying to buy more gold because it’s such a valuable commodity. Gold is more liquid than government bonds, T-bills, the US dollar, municipal bonds, real estate, derivatives, and more. Turning your precious metals IRA investments into cash will never become a problem.
- All the big players want to own gold – as if liquidity wasn’t reason enough to own gold. The fact that many powerful countries and investors want to get their hands on more means it’s a hot commodity. Gold investing nations around the world include China, Russia, and the United States. And as far as individual investors go, there’s Janet Yellen, George Soros, John Paulson, Stanley Druckenmiller, and other billionaires. Even David Einhorn of Greenlight Capital has added to his gold portfolio in a big way. He grew his portfolio from $900,000 to $11 billion worth of gold. Why? Because he keeps investing in this amazing precious metal.
At this rate, you should clearly see that a diversified retirement portfolio contains gold and other precious metals. Learn about the top 10 gold companies by reading my detailed review of the best in the business. You’ll learn why each one of these companies excels and much more.
How to Manage Retirement Portfolio Risk as You Age
Before we leave, it’s important to manage diversified retirement portfolio risk as you get older. When you’re young, you can afford to take greater risks. It makes sense to overload your portfolio with rewarding cryptocurrencies and gold investments.
As you age, you should focus on minimizing your exposure to risk and locking in some of your gains. Cut the percentage of these investments in half to lessen your risk profile. Make the most of these opportunities while you’re young and you can afford to wait for a turnaround if necessary.
Before you go…
Take some time to read about the top 3 cryptocurrency IRA companies that I trust and respect. This information will help you decide which company is best to do business with.
And when you’re finished:
Read my review of the top 10 gold IRA companies as well. My insight and information will help you choose the right gold company to meet your needs.