Counting and accumulating wealth in terms of local currency?
Another brief random post to do a personal reality check of personal finance strategies.
This time it is about the end goal of wealth accumulation for retirement, whether it is to be for consumption in our locality or just for sake of investing; if it is the former, then we need to think about our investment strategies for creating the most wealth in the local currency for the end when we need it.
Ultimately, our wealth is for spending in the immediate location we are in when we retire, such as buying food, rent, medical etc.
What good is our wealth stored in USD if we are not living in the US? Or in Bitcoin or whatever if we cannot use it at will for our daily expenses?
Well, this is where we fall back on the overall idea of asset allocation. I think we need to count the overall weath we have in our local currency but have a clear mind about how our different assets invested are distributed efficiently to increase our yields in local currency amounts eventually. During the process of investing, the liquidity of funds in teems of local currency can be bad, but we should set our sights intentionally on the amount we need for retirement in the local currency.
This is important because it gives us a sense of goal in our investment.
Remember, we can’t eat bitcoin and if the conversion to local currency is bad due to drop in price or poor liquidity, then we are in trouble if we need some local currency urgently.
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Disclaimer: This is not financial advice, and you should always do your own due diligence before investing!
Investing for the future in the local currency is very important. A very important and correct point is made if we can't spend then what will happen with Bitcoin or USD. So this matter should also be thought. Because all our investments or thoughts are all about the future. We should do anything that will help us in future.
You have a good point considering that crypto is very volatile and the process of converting dollars to our own local currency might not be easy in time of urgency. Starting a business or any investment in local currency is actually good.
I think Crypto has taken a lot of people's attention away from the local currency worth which should not be. In some instances, the local currency is still valid
Investing is more like planning for the future. However, that doesn't help if you can't pay for your normal expenses. I don't blame anyone for getting out of crypto if they can't handle the volatility. It's a hard part of this space and that is why people should only invest what they can lose.
We need to start taking some investment in local currency no matter what I strongly believe that. Yes crypto might be the future but we still need to consider local currency
I think so. The cash flow is desired.
local currency in not worth to invest or keep your money anymore.
People are trusting more in crypto.
We need to diversify our portfolio, we should keep some money in $ and some in crypto.
Being prepared for overall scenarios in a diversified, risk-managed portfolio is the best strategy for me.
It is exactly like that, two years ago, the price of the dollar in our country was about 80 Pakistani rupees, and now the price of the dollar is about 280 Pakistani rupees. We have to take account of all these things and every time We must have some money in dollars so we can buy when the market goes down.
Everyone should be prepared for everything in the mind, it may go up or down