There’s no denying cryptocurrencies have done extremely well in 2023 with Bitcoin up around 150pc. So I’m sorry to be a party pooper but cryptocurrency markets are subject to wild swings and abrupt reversals.
You don’t have to go far back on the charts to see that gains can be very quickly wiped out in this notoriously erratic asset class – take the sell-off in 2022 as a reminder when Bitcoin’s value ended the year at around a quarter of where it started.
I would hate to see your wealth slashed like that, especially as your retirement years approach.
Fortunately, this year’s crypto bounce means now isn’t a bad time to sell your Bitcoin and ether so you can build up a secure, resilient, and sensible portfolio instead.
I’d start by focusing on some “core” building block funds across equities and bonds, making up the lion’s share of your portfolio.
These will provide geographical and asset class diversification to help spread your risk and protect your wealth. Then if you want to have some fun with a much smaller allocation to riskier assets that take your fancy, such as crypto, or some higher-risk equity funds then that’s your call.
With an allocation of around 40pc, you could invest in some core equity funds covering the world’s major investment economies such as the US, Continental Europe, UK, Japan, and a smaller allocation to riskier emerging markets.
You can do this by selective individual tracker funds such as Fidelity Index UK, Vanguard US Equity Index, HSBC Japan Index, Vanguard FTSE Developed Europe ex UK ETF and Fidelity Index Emerging Markets.
All of these are components of our interactive investor Super 60 recommended funds list. But if you want to keep things even simpler, you could go for a one-stop-shop equity fund such as iShares Core MSCI World Ucits ETF or Vanguard LifeStrategy 100% Equity.
