Things to Remember When Adding Bitcoin to Your Retirement Plan

One needs to be wary of the risks involved when investing superannuation with Bitcoin for retirement. Bear in mind that it’s the money you put aside for you to use after taking your exit in the corporate world. Sure, Bitcoin has the potential for high returns. But on the other side of the coin, it also has the potential for large losses. 

So, here’s a piece of advice: invest wisely! 

Don’t worry, though. We’ll help you make the right choice if you consider adding Bitcoin to your retirement plan. In this guide, we’ll walk you through the essential factors you should consider before investing in Bitcoin. 

Bitcoin and Retirement: Do They Make a Good Pair? 

As of today, Bitcoin is highly volatile. One day, its value goes up; the next day, it goes down again. With its unpredictability, investors can both expect the best and the worst of Bitcoin.  

Regardless, individuals and some companies have embraced cryptocurrency. More and more people have invested in Bitcoin, and there are now several companies that accept Bitcoin as a mode of payment. Who knows? This may be the future of transactions. 

Retirement accounts such as Australia’s superannuation doesn’t ban Bitcoin as an investment. All you have to do is to set up a self-managed superannuation fund structure. However, choosing cryptocurrency as your superannuation investment involves a complicated process. That is what Bitcoin Superannuation is here for—to make the process hassle-free on your part. 

But first, here’s everything you need to know and do before we set up the structure for you: 

Strategise Your Investment 

Investments provide you with a source of income—well, most of them do. However, digital currencies don’t generate income. People invest in it with the hopes that its value will increase as time passes by, and they will have more assets in the future than what they began with. And at this point, this system is your sole investment strategy. 

Remember the Sole Purpose Test 

The goal of the SMSF sole purpose test is to ensure that the fund trustees will make decisions based on the best interest of their members during their retirement and not the current interests. While there is no formal sole purpose test the trustees need to pass, they should follow the rules of releasing the money for retirement. 

As such, the members need to be informed that the investment can’t be in combination or replacement with personal assets. Therefore, the fund provided to the members or their dependents will be the cryptocurrencies invested. 

Think About the Value 

The valuation of the assets in the super fund is the market value. Hence, the trustees should know that the value of the Bitcoins the super fund holds will change, depending on its value on the relevant financial year of its release. 

Ask Yourself Why You Are Investing in Cryptocurrency 

Different investors have varying thoughts when it comes to the reasons why they invest in a particular thing. That is why it is essential to ask yourself why you are investing in superannuation with Bitcoin for retirement. 

Is it because you want to go with what’s trendy nowadays? Did the cryptocurrency craze entice you into investing? But what if it won’t be the trend in the future? 

Or have you done your research, and you find out that Bitcoin holds a promising value appreciation in the years to come? 

If you are only investing in Bitcoin because of the hype it draws, then maybe it’s time to re-evaluate your decisions. When wanting to gain the benefit, you also have to make sure that you’re ready to take the risk. 

Know How Digital Currency Works 

Having the know-how of digital currency will lessen the risks of investing in Bitcoin. Why? Because you’ll know the right steps to take once you’re in the world of cryptocurrency.  

Moreover, it will also be of great help if you take your time learning about blockchain technology so that you can determine whether or not it is worth it to invest in Bitcoin in the first place. 

Join a Community of Cryptocurrency Enthusiasts 

The active community of Bitcoin and cryptocurrency enthusiasts helps develop digital currency at a faster pace. When you join a group of like-minded investors, you will know the on and about of Bitcoin. The people in the community will serve as your guide as you exchange meaningful conversations about digital currency. This exchange of knowledge will help you navigate the world of digital currency more easily. 

Strike at the Right Time 

Before taking your first step into Bitcoin investment, you need to conduct in-depth research about it. As previously mentioned, cryptocurrency moves rapidly, and Bitcoin is highly volatile. For this reason, you need to time your investment and pour your money at the right moment. 

So… When Can You Withdraw Your Self-Managed Superannuation Fund? 

Let’s say you’ve spent your employment years investing in Bitcoin for your retirement. Now, you’re under employment from any company anymore. Thus, you need to get whatever benefits you can from your self-managed superannuation fund. 

The question is, are you qualified to withdraw your super funds? 

Yes. You are qualified to make a lump-sum withdrawal of your super funds once you are 65 years old and you’re already retired. However, the law does not allow you to withdraw your super funds even if you are over 65 years old if you’re still employed. 

Invest Your Superannuation with Us! 

Are you ready to take the risk of investing your super funds in Bitcoin? And are you confident that you can take advantage of it when you retire? 

If you are firm on your decision on investing in superannuation with Bitcoin for retirement, you can always come to us, and we’ll help you set up your self-managed superannuation fund. Moreover, we’re more than willing to lend a helping hand to you not just in creating an SMSF structure but also in buying bitcoins. Just reach out to us through our contact page at https://bitcoinsuperannuation.com.au/contact/ and fill out the necessary information, so we can get started.

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