As institutions like Schwab and Fidelity adopt digital assets, cryptocurrency is no longer just a speculative investment. The surprising truth? Even if you’ve never purchased Bitcoin, your retirement portfolio might already be exposed. And that exposure—intentional or not—can carry real risks for retirees.
Resources:
Cryptocurrency Is Now Mainstream
The financial world is shifting. Schwab is entering the crypto space, Fidelity already has exposure, and major companies are holding billions in cryptocurrency on their balance sheets. This institutional adoption is rapidly reshaping what shows up in traditional investment vehicles.
You don’t have to own Bitcoin directly to be affected. Mutual funds, ETFs, and model portfolios may include companies with heavy crypto involvement—creating exposure without you even realizing it.
Unseen Risk in Retirement
For retirees, risk management is critical. You’re no longer building your portfolio—you’re living off it. Volatility that might have been tolerable during your working years can now threaten your ability to generate consistent income.
Cryptocurrency is known for its price swings. If your portfolio includes even modest crypto exposure during a down market, it can impact the timing and sustainability of your withdrawals.
Understanding How You’re Exposed
Exposure to cryptocurrency in retirement often comes in through the back door—via tech-heavy funds or indexes. Retirees may assume they’re fully diversified, yet still carry crypto-related risk through stocks or funds tied to blockchain technology.
This isn’t inherently bad. But unmanaged exposure to cryptocurrency can increase portfolio volatility and reduce clarity around your income strategy.
How to Use Crypto Exposure Wisely
Exposure to cryptocurrency in retirement can be beneficial if it’s deliberate and controlled. For some, it may offer growth potential or diversification benefits. But the key is knowing:
-
Where crypto exposure exists in your current investments
-
How that aligns with your income goals and risk tolerance
-
What steps to take during high-volatility periods
Work with your advisor to build a strategy that factors in crypto-related risks without overreacting to headlines.
Protecting Your Retirement Plan
The goal isn’t to fear cryptocurrency—it’s to be aware of how it fits (or doesn’t) within your retirement strategy. Make sure your exposure matches your goals and doesn’t introduce unnecessary stress or confusion.
Cryptocurrency in retirement is here, whether directly or indirectly. With the right framework, you can account for it, manage the risk, and keep your retirement plan strong.
Seek Professional Guidance
Join the 964+ other retirees and get weekly articles and videos to help you retire with confidence.
Subscribers also gain access to our private monthly client memo.
This does not constitute an investment recommendation. Investing involves risk. Past performance is no guarantee of future results. Consult your financial advisor for what is appropriate for you. Disclosures: https://onedegreeadvisors.com/disclosure/