That doesn’t mean none of my stocks will lose value or have a bad year. But the fact that the companies I invest in have been around a long time makes me feel good about incorporating them into my retirement savings strategy.
2. It’s too volatile
Stocks are hardly a risk-free investment. In fact, near-retirees are often advised to start shifting away from stocks and loading up on bonds — which are far less vulnerable to price fluctuation — at the end of their careers to avoid taking on undue risk in their portfolios.
That said, I still believe that it’s a good idea for retirees to have about half of their assets in stocks, at least at the start of retirement. But I feel differently about Bitcoin because it’s proven to be far more volatile.
3. I’m not convinced it has staying power
If Bitcoin doesn’t become a widely accepted form of payment, its value could easily plunge to the point where it’s worth nothing. Right now, it’s impossible to know whether Bitcoin will one day become as commonplace as an established currency like the U.S. dollar. But it’s not a risk I’m willing to take for my retirement.
I’m well aware that Social Security will not pay me enough money to secure the retirement I want. And for that reason, I make a point to not only sock away money in a retirement plan, but also load up on stocks in my brokerage account with the goal of holding them all the way into my senior years.