Nearly 20,000 Self-managed super funds were issued warnings by the Australian Tax Office that they were concentrating their retirement fund resources too much into one single asset.
According to Australian law, every type of investment is acceptable for retirement funds as long as there is a disparity in the portfolio. What this means is that as long as no more than 90% of the portfolio is a single asset, any type of asset can be maintained there.
However, it seems that Australian retirees have found a liking to cryptocurrencies as thousands of accounts are now primarily focused on coins like Bitcoin and Litecoin.
The Tax Office has said that they have absolutely no issue allowing these people to hold their retirement funds into cryptocurrencies, but they need to follow the law one way or another.
Although it’s nice to see Australian retirees and retirees, in general, become interested in cryptocurrencies, it’s still important to mention that it’s a bad idea to keep all the eggs in one single basket.
There is always the chance of a major recession in one market, therefore diversification is absolutely essential.