Does cryptocurrency belong in a retirement investment account? Should investors trade it in the short-term or buy and hold? How much money is too much to allocate to bitcoin or ethereum?
Cryptocurrencies are becoming an increasingly popular option in alternative investments, leaving many Americans wondering when — if ever — they should include this rising asset class in their retirement savings strategies. The answer is: it depends. Retirement planning must incorporate a wide variety of factors, including amount saved, life expectancy, income needs, and risk tolerance.
Still, a little risk in a retirement portfolio is to be expected, especially when the time horizon spans decades. In a Barron’s Live event on Aug. 11, MarketWatch reporters Alessandra Malito and Brett Arends spoke about if, when and how to include cryptocurrencies in retirement plans, and what to expect in the future.
To watch the full episode of this Barron’s Live session, click here. The session sparked dozens of questions from audience members about cryptocurrencies, including the ones below. Here’s what some Bitcoin-focused experts said.
What amount of your retirement savings should be allocated to cryptocurrency?
Whether or not there should be cryptocurrencies in a retirement portfolio depends heavily on the individual’s goals, time horizons, risk tolerance and assets, but