Bitcoin Replaces Bonds? Edelman Declares 60/40 Dead

Time to Rethink Retirement? Edelman Says Go Crypto

Influential financial advisor Ric Edelman this week issued a call to hold anywhere from 10% to 40% of an investor portfolio in cryptocurrencies. Edelman, who heads the Digital Assets Council of Financial Advisors, has been saying for some time the traditional 60-40 portfolio of stocks and bonds is outdated because people are living too long for it to work.

Now, he says crypto like bitcoin that have uncorrelated returns also need to factor to an even greater extent in portfolios of the future alongside much higher equity holdings later in life.

Ric Edelman, recommends up to 40% allocation to Bitcoin and crypto

Ric has suggested that financial advisors should recommend between 10% and 40% allocations to cryptocurrencies, a shift from his previous recommendation of a 1% allocation. Edelman believes the shift is due to the industry's massive evolution in the past four years, which has made cryptocurrencies a mainstream asset . As mainstream crypto becomes more prominent, it will feature more prominently in investment portfolios, with Bitcoin ETFs taking in billions this year, indicating its increasing importance to financial advisors and long-term investors.

The traditional 60/40 stock-bond allocation model is dead

Crypto asset expert, Ric Edelman, believes that the traditional 60/40 model of long-term investing, with 60% in stocks and 40% in bonds, is obsolete due to increased longevity. Edelman suggests that crypto should play a bigger role in investing, as it offers higher returns than other asset classes. He believes that investors are starting to recognize it as a "wonderful way to improve modern portfolio theory statistics." Some analysts predict bitcoin to hit $150,000-$250,000 by the end of this year and $500,000 by the end of this decade.

Bitcoin Gains Popularity: A Financial Revolution Is Happening Right Before Our Eyes

Bitcoin is here to stay, that much is certain. Bitcoin may provide a sophisticated, opportunistic way to move forward with a noble purpose that is hopefully up to the challenge of any crisis, even though we are currently exposed to the harmful inefficiencies of an outdated traditional financial system. Now is the ideal moment to interact with this game-changing tool, regardless of your level of experience as a advisor or your level of curiosity as a novice.

Coming Soon: Tokenization Will Change the Investment Industry

Tokenization is being embraced by global fund managers, governments, and institutions as traditional finance is not sustainable. It allows fractional ownership of expensive assets, liquidity, transparency, security, speed, Web3 (a decentralized version of the internet), and programming. Tokens can include special rules and be integrated into the DeFi ecosystem for advanced financial operations, making them a more sustainable alternative to traditional finance.

Larry Fink, the CEO of B lackRock the world's largest asset manager, predicts that the next generation of markets and securities will involve the tokenization of real-world assets. This will transform how we own, trade, and invest, allowing for fractional ownership, 24/7 markets, and transparency. Tokenization is not about adding buzzwords to your portfolio; it aims to unlock real value, making markets more inclusive, liquid, and resilient. The future of finance is being built right now, and it's crucial to position yourself for this transformation.