Every once in a while a new asset class arrives

Many people dream about retiring early. With the advent of new asset classes over time, markets adapt and investors turn their interest to new assets. From precious metals to fixed income/bonds to equities to crypto, investors must account for all possibilities as they become more or less feasible over time. If the old adage “Fortune favors the bold” applies to investment markets just as it applies to life, then considering crypto as a new asset class in one’s retirement portfolio may secure a piece of the future of this new and growing asset class.

 

Impressive Returns

Early adopters and investors typically receive outsized returns for taking risks in new or little-known investments. Crypto has only existed for a decade but has already produced significant technological advancement and financial disruptions. This impact has drawn many comparisons to the Dot Com bubble of internet stocks in the 1990s on the back of the newly mainstream internet and personal computer. This period of rapid growth in a new technology sector seeded a field of opportunity for new online-based products and services. While the internet was the underlying technology that enabled this sector’s growth, it created an atmosphere to give rise to new companies that would build on top of this global network such as email, online sales, and information. Accordingly, crypto is perceived by some as the next evolution of the internet to Web3.

After the Dot Com bubble popped in 2000, investors were able to identify the legitimate internet companies that had strong fundamentals and forward-looking investment theses. Additionally, it was after this time that legitimate internet stocks rose with the tide of adoption as a previously small percentage of the population using the internet in the ‘90s soon after multiplied in only a few years. In crypto, this same cycle seems to be playing out with the bubble bursting in 2018, weak use-cases deflating thereafter, and legitimate use-cases now experiencing growth and adoption into the 2020s.

 

Compounding Interest

Famously praised by the Oracle of Omaha, compound interest holds its claim as arguably the eighth wonder of the world, especially if utilizing tax-advantaged vehicles. Compound interest’s power harnesses the power of reinvesting dividends over a long period of time, allowing investments to eventually outpace investor contributions. However, compounding interest can be severely hindered if not applied to an appropriate tax-advantaged IRA.

iTrustCapital specializes in creating or transferring custom tax-advantaged Bitcoin IRAs tailored to each investor’s preferences, be it crypto, precious metals, or even traditional. Whereas many investors face paying exorbitant capital gains upon withdrawing outsized crypto gains in the years ahead, iTrustCapital’s crypto IRAs offer tax-free trades and qualified tax-free withdrawals.

 

Financial Independence / Early Retirement

For diligent crypto investors, reaching financial independence (sometimes known as FIRE) or even early retirement is a real possibility. It’s not often that such disruptive technologies are conceived and released to the public, and even less so for non-accredited investors. With a healthy dose of research and due diligence, it’s not uncommon for crypto investors to ride ground floor investments to the bank. We are living in a unique time in history amid a confluence of rapid technological advancement, archaic financial infrastructure, and economic uncertainty.

As macro investors and prominent institutions have begun recently, allocating a small percentage of one’s retirement funds into crypto is gaining popularity as both a long-technology investment and a store of wealth. If crypto continues to provide returns comparable to expected logarithmic growth and store wealth in an inflationary economy, a small crypto allocation may even boost retirement funds enough to warrant consideration for an earlier withdrawal strategy.

 

If you want to learn more about how a Crypto IRA can potentially help you retire early, visit us at www.iTrustCapital.com