Should you consider alternative investments for your retirement funds?

Consider alternative investments for retirement funds

You’re at a social gathering and you mention, I put some of my retirement funds in cryptocurrency. What type of response would you get from your circle of friends and acquaintances?

My bet...not a positive one.

It's Only A Fad

Is digital currency and money a fad and another madness of crowds? It truly depends upon who you ask. And, what's the use case for economies where money and the banking system just work?

I encourage you to do a deep dive and form your own opinions. Generally speaking, following the herd rarely turns out successful with investing. You'll tend to get in late, buy high, and sell low...only after a lot of sleepless nights.

Macroeconomic Drivers

Right now, many macro-level economic facts are ever-present in our daily lives. Facts are indisputable statements. And, they do exist regardless of what people believe. As an example, how sure are you that the sun will rise tomorrow? I think you get the point. It's a choice on what story you want to trust to satisfy your own needs.

When it comes to emerging technology and investing, the question is, why and when? That's the research you'll need to do to form your own opinions. Yes, it takes time, and it can be challenging to sort through all the data and opinions.

If you were able to travel forward in time 20, 40, or even 60 years, what would life look like? Ok, that was a joke...maybe. If you've studied the past, you'd know there have been many unpredictable events in the last 100 years. What makes anyone think the next 100 years will not be the same? Since you can't predict the fringe events, it's about looking for the likely events.

For example, think about what the future looks like concerning particular national and global facts:

  • Rising national and global debts

  • Longevity of USD as the global reserve currency

  • Economic boom and bust cycles

  • Polarized governments and the inability to make critical policy decisions

  • Tools to effectively respond to economic downturns

  • History of money and the digitization of assets

  • Political structures of geographies and countries

  • Human impact on the environment

  • Entitlement programs

  • Growing separation between the rich and poor

  • Trends in healthcare and education

  • Efficient cross-border money transfers

  • Inflation cycles

  • Terrorist attacks and other acts of violence and sabotage

  • Personal sovereignty and ownership of data

  • Privacy

  • Insert your own...there are many, many more

These issues aren't fringe events or exceptions; they are real. If multiple items need to be addressed at the same time, by one or various countries, it could cause significant instability in the global financial markets.

The above points aren't a partisan or political discussion; they are issues and facts ever-present in today's economic and social environments. The current trend of how we resolve our problems give rise for the automatic selection of alternatives for us. Remember, it's all about choice.

Consideration

I am making a case to consider macroeconomic trends and their impact on society as it relates to your hard-earned dollars. Digital money is real today. When you log into your bank account and see a number on the screen, it's virtual and digital right now. The question is, where is all this going?

Here's a simple example. The basis of the US banking system is a fractional reserve system. Let's talk about your mortgage relating to that statement. Hypothetically, what if the mortgage company said, I need for you to pay off your entire remaining balance now right now, would you be able to? The same is true of banks. They lend money they do not have, and the government promises solvency. Who called the shots during the last US financial crisis, printed money, increase the deficit, and bailed out to big to fail? These are historical facts and something you can use to your advantage. The past is always a great predictor of the future, and history does repeat.

Are We All Doomed?

No, nothing of the sort. Just tonight, I was having a conversation on what each of us can do to help modify the human condition at the highest positional levels in our countries. Sure, some are called into service to work with the political infrastructure directly. Most of us are not, but we still can choose.

If you believe in a democratic society, people still have the power. Voicing your beliefs is also demonstrated on how you spend your money and where you invest your monies. There are many ways to be in service of changing the human condition for the betterment of your country.

What's Next?

How do you use this type of information to promote positive change as well as personal gain using the emerging industry of digital currency and money? Simple! You'll need to use your left AND right brain and form your own herd.

Your Digital Money Herd is a four-part series on retirement investing in cryptocurrency. Continue with the series by reading the second article, Buying cryptocurrency in your retirement account. There, we'll talk about some options on how to invest retirement funds in cryptocurrency.

Please share your thoughts, concerns, and comments below!

Disclaimer: This article does not contain investment advice and has educational value only. Moreover, the author may have a financial stake in securities mentioned in this article. As a result, the opinions presented in the article above are never intended to provide advice for any investment.

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