Is There a Place for Crypto in Retirement Plans?

Blockchain, Interviews, News, Opinion | October 6, 2021 By:

Waseem Mamlouk is a serial entrepreneur with a background in IT, law, and finance. He is the Vice President of Capital Markets for Nimbus DeFi. Nimbus is a DAO-governed dApp ecosystem providing a range of income-generating streams based on IPOs, lending, crypto and more, with a goal of creating a decentralized bank for platform users.

Cryptocurrency and decentralized finance have begun to challenge the traditional finance and have become popular investment markets for millions. What place does crypto have in your retirement goals?  

Waseem Mamlouk: 20% of liquid net worth with a huge chunk in BTC because I have been paid in BTC on many projects and it outperformed most of my other holdings. If we indeed consider BTC as “digital gold”, then we should be putting at least 5-10% there as anyone would in a traditional asset portfolio. This, it’s possible to sell some off as the amount grows to a bigger amount of holdings. An amount dedicated to trading (experienced traders with nerves of steel only need apply) is also useful for buying dips and selling into rallies/strong markets.

How are financial planners and advisors instructing their clients on how to handle the crypto space? 

Waseem Mamlouk: They’re scrambling to show involvement, mostly through trackers in jurisdictions like Sweden (Saxo Bank, etc) and equities with exposure (US & Canada mostly) which could be a disaster if they aren’t strategic about selection and timing.

Is there a place for these historically volatile assets in your retirement plans? 

Waseem Mamlouk: Absolutely, the ratio should be adjusted to fit individual risk profiles. Diversification is always useful as well so some yield farming and lending portfolios are best for long term appreciation and compounding.

Are cryptocurrencies becoming more stable as an investment as they are adopted by more and more industries and major financial structures?

Waseem Mamlouk: Yes, like the dot coms, volatility is part of the package but it’s all part of innovative technologies and futuristic investment themes. Ignoring the dips and peaks, returns are becoming more normalized over time.