Cryptocurrencies have been all the craze the last five years. 43% of men between the ages of 18-29 say they have invested in, traded, or used a cryptocurrency*. With so many people involved, it’s easy to get investing FOMO (fear of missing out).
Many investment managers have added cryptocurrencies to their client’s portfolios. Does that further prove that investing in cryptocurrency is prudent and wise? Or is this another example of investment managers giving in to their client’s requests instead of coaching them to do the right thing?
Click on the video below to get a deep-dive into the world of cryptocurrencies and find out:
- Is now the right time to get into cryptocurrency investing while the asset is down?
- What is there to learn from the bankruptcy of FTX?
- What do the Nobel Laureate economists have to say about crypto’s viability as an asset class?
* - Source: Pew Research Center. Perrin, Andrew
Frequently Asked Questions: Cryptocurrency and Retirement Investing
❓ Should retirees invest in cryptocurrency?
Cryptocurrency is a highly volatile and speculative asset. While some investors see potential for long-term growth, retirees typically prioritize capital preservation and income. For most retirement plans, crypto plays little to no strategic role.
❓ What does the collapse of FTX tell us about crypto?
The FTX bankruptcy highlights the lack of regulation, transparency, and oversight in the crypto space. It serves as a reminder that even well-known crypto platforms can fail—leaving investors with large losses and no guarantees.
❓ Why are some financial advisors adding crypto to client portfolios?
In many cases, it’s client-driven pressure. Some advisors include crypto because clients request it—not necessarily because it's in their best interest. At Presidio, we believe in evidence-based investing, not speculation.
❓ Are there any Nobel Prize-winning economists who support crypto?
The majority of Nobel Laureate economists remain skeptical about cryptocurrency as a viable long-term asset class. Most highlight its extreme volatility, lack of intrinsic value, and risks to retail investors—especially retirees.
❓ If crypto is down, is now a good time to buy?
“Buying the dip” can work for long-term investments, but crypto doesn't follow traditional fundamentals. A low price doesn't mean it's undervalued. It's important to distinguish a price decline from a long-term opportunity—and retirees should be cautious.
❓ How should retirees approach crypto-related FOMO?
Fear of missing out is real, but it's not a strategy. A good retirement plan is built around consistency, evidence, and a clear understanding of risk. Diversification, not speculation, remains the most reliable path for long-term financial security.