WHAT WILL HAPPEN TO CRYPTOCURRENCY IN THE U.S.?
REGULATORY UNCERTAINTY IN THE U.S. Although criminal usage of cryptocurrency is rather miniscule today, how do you resolve issues with ransomware? One rule proposed by the U.S. government would require anyone holding crypto in a private digital wallet to undergo identity checks if they make a transaction of $3,000 or more. Many believe, however, that this isn’t a long-term solution. Jesse Powell, the CEO of Kraken, the world’s fourth-largest digital currency exchange, told CNBC that the U.S. is more “shortsighted” than other nations and “susceptible” to the pressures of incumbent legacy businesses, like banks, that “stand to lose from crypto becoming a big deal.” Technically, the Securities and Exchange Commission (SEC) regulates most crypto, but even Hester Pierce, a commissioner of the SEC, says, “We’ve seen other countries take a more productive approach to regulating crypto. Our approach has been to say no and tell people [to] wait … we need to build a framework that is appropriate for this industry.” In some ways, crypto is profitable like the stock market is, except you can also use it to purchase goods and services. While this regulatory framework isn’t clear just yet, the longer it takes to establish, the more the American public, like you, might lose out on these multibillion-dollar markets.
Even if you’re not familiar with cryptocurrency, you’ll notice one thing about its market trends — it has been trending higher and higher in the past decade. Then suddenly, in mid- April this year, Bitcoin and other cryptocurrencies plunged significantly in value. That’s because the U.S. government has started the conversation it’s been putting off for some time: Should cryptocurrencies be regulated and, if so, how? Here are some reasons the discussion needs to move forward. CRIMINAL USAGE OF CRYPTOCURRENCIES Is cryptocurrency still popular with criminals? A blockchain data firm Chainalysis reports that illicit activity made up 0.34% of all cryptocurrency transaction volume. That’s roughly 2% lower than in 2019. While the percentage has dropped for overall activity, Kim Grauer, head of research at Chainalysis, told NBC, “Still, ransomware was by far the biggest category in terms of activity growth (311% year over year), and we’re seeing an all-time high for dark-net market activity.” Ransomware is malicious software that hackers use to infect a computer, then demand a fee to unlock it. The bounty is typically paid in Bitcoin or other cryptocurrencies, which are difficult to trace.
Why You Kind of Already Are Should You Take a Retirement Test Drive?
As you inch closer to retirement, you may experience excitement mixed with fear. You may be anxious to start this next chapter, but it’s also normal to worry. This is prompting some pre- retirees to take action. As Ken Moraif explains in an April 2021 MarketWatch article, pre-retirees sometimes test their retirement plans by living in short-term rentals in the cities or towns where they hope to eventually move. They can learn a lot about the community and what to expect in retirement. These “test drives,” as he calls them, can intertwine your dreams with reality, allowing you to plan accordingly. Even if you don’t plan to move in retirement, you may be wondering if a test drive could benefit you. (We get it.
Raleigh has been named one of the best places to retire!) After all, it could put some of your fears at bay and provide a glimpse into what your life may look like once your career ends. But before you plan a three-month hiatus from work, consider this: When you work with a financial planner, you are already taking a retirement test drive . Your retirement plan — investments, tax planning, estate planning, budgeting — cannot be implemented properly unless it has been stress-tested. That’s the point of a financial plan! We are also assessing risk and volatility to ensure we have crafted a plan that can address your goals and needs. That stress test is the test drive — and we’re constantly taking it out on the road to see how it drives.
Financially, your retirement plan is in the dress rehearsal at all times, but a test drive of your personal retirement plans can be beneficial. If you can, try taking extended vacations or opt for a sabbatical in the years leading up to retirement. Test out a new routine, move some place new for a few weeks, or try that hobby you have always wanted to learn. You just might find you need new plans or you actually love what you had in mind for retirement.
As with your financial plan, you won’t know until you try.
If you have questions about your retirement plan and our stress testing, please give us a call.
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