Are you trying to build a healthy retirement nest egg? At this stage of the game, it’s important to fully diversify your investments. The stock market is a great place to invest your money, but it doesn’t go up in a straight line. With all of the political turmoil and power struggles going on in the world, the stock market is struggling.
Cryptocurrencies also fluctuate in value. But they tend to become more popular while other investments are faltering. That’s only one reason to consider retiring with a cryptocurrency IRA. I’d like to tell you about a few more specific reasons why this is such an excellent investment opportunity.
Keep reading to discover the truth.
Reason #1: Cryptocurrencies Thrive During Times of Political Unrest
In the past week, Russia has invaded Ukraine and many countries around the world are sanctioning Russia. The stock market is in a tailspin and many investors are bleeding money left and right.
While all of this has been going on, the value of Bitcoin began making a turnaround in a big way. On February 27, 2022, it was trading as low as $37,500. In the past couple of days, while Russia began invading in full force, the value of Bitcoin has gone up $5000. As of March 3, it is currently trading at $42,500.
I don’t know about you, but I like looking for these unique opportunities to get involved with certain investments. The good thing about Bitcoin and other cryptocurrencies is they seem to thrive in every market.
They thrive during political unrest. They thrive during economic certainty. They thrive during economic uncertainty.
As someone investing for the long term for retirement, this is definitely the type of successful investment you need to consider. It’s the best way to grow your wealth exponentially in an ever-changing marketplace.
No one is saying to walk away from your other investments. Keep investing heavily in the stock market because it’s worth it. And remember to add to your portfolio during the down times. But you should also begin investing in cryptocurrencies right now because these hot investments will continue to gain value for many years to come.
Reason #2: Experience Exciting Tax Advantages with a Cryptocurrency IRA
Another reason to invest in a cryptocurrency IRA is the worthwhile tax advantages. The IRS treats a cryptocurrency IRA the same way they treat a traditional or Roth IRA. They give investors the same tax breaks that some people consider a loophole. These benefits aren’t really a loophole, but they are definitely beneficial to retirement investors.
The two specific types of Bitcoin IRA accounts and their specific tax benefits are as follows:
- Traditional Self-Directed IRA – this is better known as a cryptocurrency IRA or a gold IRA, but it ultimately leads to the same benefit. When you open this type of account, you have the opportunity to enjoy tax-deferred investing. You can deposit income into this account that wasn’t yet taxed by the government. You can use this income to lower your yearly taxable income and invest it to grow your retirement account. You’ll pay fewer taxes at the end of the year with this account by lowering your yearly adjusted gross income.
- Roth Self-Directed IRA – this account is set up differently than the traditional IRA because it’s funded using income that was already taxed. All earnings made in this account are yours to keep, which is definitely an enticing and unique benefit to say the least. If you deposit $200,000 into this account and it grows to $500,000 by retirement, you get to keep it all. The IRS doesn’t charge taxes on this account because you paid taxes on the money that you deposited already. It would be double taxation and the IRS doesn’t do this.
Reason #3: Top Cryptocurrencies Have Supply Limitations Built into Their Structure
This is incredibly important because supply limitations mean demand is always going to be high for certain cryptocurrencies. Bitcoin is the most popular one that immediately springs to mind.
Institutional investors and banks love Bitcoin because they will never make more than 21 million bitcoins. No one is ever going to flood the market with Bitcoin and dilute its value. This is incredibly important for investors because it means you can safely invest your money without worrying about demand changes.
By putting a limited amount on the supply, you’ll never have to worry about Bitcoin losing its value due to inflation. The buying power will always remain strong, which is incredibly appealing to investors far and wide.
The US dollar, on the other hand, always loses value because of the way that it’s managed. Whenever a president passes a stimulus bill to boost the economy, it weakens the US dollar just a little bit more. That’s why it costs a lot more to pay for groceries today than it did just a year ago.
Bitcoin and other supply-limited cryptocurrencies are safe investments. The market will never get flooded with extra cryptos that didn’t exist previously because it’s capped at a certain amount.
Reason #4: Cryptocurrencies Have Reached the Mainstream
Believe it or not, many of today’s hottest companies are using cryptocurrencies to accept monetary payments. Companies like Microsoft, Subway, Expedia, Wikipedia, Burger King, Overstock, and more have all jumped on the bandwagon.
This is great for investors because it means cryptocurrencies have worked their way into the mainstream. And the more businesses and individuals adopt these cryptocurrencies, the more valuable they’ll become over the years.
Celebrities and sports franchises have also jumped on the bandwagon. The Miami Dolphins, Dallas Mavericks, and other sports franchises except cryptocurrencies as payment. And Ashton Kutcher, Bill Gates, Snoop Dogg, and other famous people have invested in Bitcoin.
It’s time to get involved with this hot investment opportunity because you’re missing out on some great investments.
Bottom Line
As you can see, it’s definitely beneficial to open a cryptocurrency IRA for retirement. In some cases, it may help you live comfortably without feeling the effects of inflation. Why? Because you didn’t keep all your wealth stored in the US dollar.
This is a great investment opportunity that’s here to stay. Open a cryptocurrency IRA right now and start investing to save for your retirement future. Twenty years from now, you’ll be glad that you took this exciting investing journey.
