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Let an Investment Advisor Help You Plan for the Next Recession 

With the right investment advisor in your corner, you can potentially turn the next economic recession into a positive event for your portfolio — or at least minimize the potential damage.

Let an Investment Advisor Help You Plan for the Next Recession 

Economic analysts predict that the U.S. could experience another recession within two years. It’s not too soon to start thinking about this possibility and taking steps to protect your assets accordingly.

Experts Predict the Next U.S. Recession Will Arrive in mid-2020

The economic analysis experts of Moody’s Analytics predict that the next U.S. recession will strike in June of 2020.

The U.S. economic recovery from the Great Recession began in early 2010 and has persisted through 2017. After more than 105 months of expansion, a contraction now looms on the horizon, and according to many financial experts, may be unavoidable.

Some of the factors driving this prediction are political uncertainty, waning fiscal stimulus, increasing interest rates, dwindling demand, backfiring trade protectionism and a rapidly increasing national deficit.

Although it appears that we have two years to prepare, unexpected events could hasten the event. On the other hand, the U.S. government could also take action to forestall an economic crisis.

In short, no one really knows what will happen. And that’s why having an investment advisor to guide you can ensure you’re prepared, come what may.

Protecting Your Assets in Anticipation of Recession

Some of today’s investors have never suffered through the financial impact of recession. Most millennials, for example, weren’t old enough to have accumulated a portfolio during the Great Recession. However, they likely watched their parents lose some or all their accumulated wealth.

Consequently, most investors recognize the dangers that could strike at any time. But surprisingly few investors are taking steps to protect their wealth in advance of the next downturn.

When the economy is in growth mode, complacency can set in and investors can allow their expenses to gradually increase. When the economy tightens, they could find themselves without a job and no way to cover those expenses — as we saw so clearly illustrated in 2008 and 2009.

How an Investment Advisor Can Help

With the assistance of an investment advisor, you can begin financial planning that anticipates economic events and minimizes your exposure. This will help protect your accumulated wealth and keep you on track to achieve your financial goals.

The conservative approach suggests you should start managing your finances now as though a recession already began, minimizing your spending and increasing your savings and investment. Although that approach may be appropriate for some investors, it won’t be necessary for others.

The right approach for you will depend on — among other factors — your age, your financial goals, your asset distribution and your tolerance for risk. The important thing to remember is that every economic cycle is temporary, and fortunately, the experts believe that the next downturn will be neither as long nor as severe as the last one.

To learn more about how you can protect your assets and accumulated wealth, contact Divergent Wealth Advisors and schedule a consultation with one of our Certified Financial Planners™. No matter what happens with the economy, you should have a solid financial plan that you revisit and re-evaluate regularly. Contact us today to learn how an investment advisor can assist you in achieving your financial goals no matter when the next recession may strike.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

How Safe Are Your Investment Assets?

When you think about the safety of your investment assets, you might think in terms of market volatility, high- versus low-risk investment vehicles or the possibility of your investments simply losing value.

How Safe Are Your Investment Assets?

But that’s not the only type of safety investors need to be most concerned with.

Depending on where your assets are held, they may or may not be insured against the failure of the banking institution or brokerage responsible for them.

Investment Assets Protected by the FDIC

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that protects funds deposited with banks and savings associations.

The FDIC insures deposit balances of up to $250,000 for checking and savings accounts, certificates of deposit and money market accounts, as long as the accounts are held with an FDIC member bank. Each depositor is covered for one of each type of account per insured bank.

Many investment opportunities fall under the protection of the FDIC.

Investment Assets Protected by the SIPC

The Securities Investor Protection Corporation (SIPC) insures cash and securities (stocks, bonds) held by troubled or insolvent SIPC member brokerage firms.

If the brokerage closes and your investment assets disappear, the SIPC steps in to recover them. If they cannot, SIPC will restore up to $500,000 in cash and securities (in like kind), with a $250,000 maximum protection for cash you may have had on deposit with the brokerage.

SIPC may help you recover more than these limits if they are able to locate and restore your missing assets from the defunct brokerage firm. They have no limit on how much they can restore. The coverage they provide applies to those assets that are untraceable or unrecoverable. SIPC has a strong track record, as fewer than 350 people have been unable to get the full value of their assets back, and most of those occurred prior to 1978 when the maximum benefit was $50,000.

Countless investment vehicles qualify for SIPC coverage. However, always verify with your wealth advisor that your investment assets will be protected.

Other Forms of Investment Asset Protection

When assets do not qualify for FDIC or SIPC protection, you may be covered by supplemental insurance provided by your investment advisor. This is another important reason you should consider carefully before selecting a financial planner or investment advisor.

When you work with a wealth management firm, you can rest assured that they have a fiduciary duty to put your financial interests above anyone else’s. Among their legal and ethical obligations to their clients, wealth advisors must act in good faith, serve your best interests, use professional skill and judgment in all dealings with you, and disclose all material facts.

Divergent Wealth Advisors is a Registered Investment Advisor (RIA) firm, which means we are registered with the Utah Division of Securities. All our wealth managers are Certified Financial Planners™, the gold standard of financial advisor credentials. Our investment strategies are designed to provide the strongest available asset protections, and we have access to programs insured by the FDIC and SIPC as well as supplemental insurance coverage.

Contact us today to schedule a consultation or interactive planning session to discuss strategies and protection for your investment assets.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Financial Planning for Early Retirement

With the right financial planning strategies, you can make early retirement a reality.

Retiring early poses some substantial challenges that can affect every aspect of your wealth management strategy. However, with the help of a Certified Financial Planner™, you can make this dream a reality without compromising your current or future financial security.

Financial Planning for Early Retirement

Two Significant Challenges of Early Retirement

No matter how close you are to achieving your financial goals for retirement — or how far — expediting the process poses two fundamental challenges.

First, taking an early retirement means you have less time to reach your financial goals. Second, the sooner you retire, the further you must stretch your financial resources.

Fortunately, a Certified Financial Planner™ (CFP) can help you determine the best strategies for overcoming these challenges.

How Will Early Retirement Affect Your Financial Planning?

If you want to achieve this important life goal, the bottom line is that you must adjust your portfolio to expedite the building of assets.

Expediting asset growth typically requires reallocating assets into investment vehicles that pose a higher risk. But as savvy investors know, you should take steps to minimize your risk the closer you get to retirement, rather than increase it.

To identify the best ways to balance these factors, and to ensure that your personal wealth management strategies align with your plans for retiring early, consider talking to a financial planner about your goals.

Finding a Financial Planner Who Can Help You Retire Early

Restructuring your financial plan to facilitate an early departure from the workforce doesn’t have to mean living a life of austerity or taking ill-advised risks with your investments.

Talking to the Certified Financial Planners™ at Divergent Wealth Advisors is a great way to get started. Our credentialed experts work with you to create an interactive financial model based on a personalized planning session rather than the usual DIY template questionnaire. Then, using this powerful modeling tool, we can explore a virtually limitless array of options to find the plan that works for you.

To make sure you stay on track, we will continue to work closely with you to monitor your progress and update your plan, based on shifting market conditions and any changes in your objectives.

The CFPs® of Divergent Wealth Advisors pride themselves on their smart, streamlined approach to wealth management. Let us put our experience to work for you, whatever your goals may be. Contact us today to discuss financial planning strategies for your early retirement.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Talking to Your Wealth Advisor About Market Volatility: 3 Tips

Does calling your wealth advisor move to the top of your to-do list during periods of volatility in the equity market?

Both individual and institutional investors can get heartburn (or worse) when the leading financial indicators move abruptly. Since the beginning of the year, we’ve seen some major swings, particularly in the equity market. But does this turbulence mean you need to modify your investment strategies?

Talking to Your Wealth Advisor About Market Volatility: 3 Tips

No. 1: Keep Calm & Trust Your Wealth Advisor in a Volatile Market

Don’t panic about day-to-day chaos in the equities market. Having a meltdown over a downward trend that lasts only a day or two doesn’t help your portfolio, but it can affect your health, your work and your family.

You can always pick up the phone and call your financial planner — or send an email or make an appointment to meet.

If your wealth advisor believes you have reason to worry, you’ll hear from them. But in the meantime, don’t hesitate to reach out for reassurance.

No. 2: Ask Your Wealth Advisor to Give Perspective to Market Volatility

Ups and downs in financial markets are a fact of life, but at what point should you consider the possibility of a serious downturn? That’s a question that your wealth advisor is best-equipped to handle.

Few financial professionals are as intimately familiar with market chaos as wealth managers and advisors. Leverage that knowledge and experience to gain perspective on what the volatility means to your portfolio.

Your financial advisor can show you trends in your asset returns through similar periods of volatility and help you see how they affected your goals.

No. 3: Work with Your Wealth Advisor to Make Necessary Changes to Your Financial Plan

A rapidly changing equity market does not automatically call for modifying your long-term financial plan or reallocating assets. But some trends may warrant making modifications to your financial planning strategies sooner rather than later.

Ask your financial advisor to review your portfolio and your short-, mid- and long-term goals. The closer you are to retirement, the more important it is to keep a close eye on your level of risk. If a substantial portion of your portfolio is in the equity markets, ask your Certified Financial Planner™ what allocation changes you should consider to mitigate unwanted risk.

The Certified Financial Planners™ of Divergent Wealth Advisors assist both personal and institutional wealth management services for our Utah clients. Don’t panic about market volatility, but don’t ignore it either. Contact our office today to schedule an appointment to discuss today’s topsy-turvy equity markets with your wealth advisor.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

See Your Financial Advisor Before Getting Married, Not After

Many couples wait to visit a financial advisor until after the wedding.

In many cases, they had too much on their minds already with planning a wedding and honeymoon. However, many newlyweds believe that until they tie the knot, they have nothing of substance to discuss regarding their finances.

But they couldn’t be more wrong.

see your financial advisor before getting married, not after

In fact, Certified Financial Planners™ (CFP) strongly recommend that couples seek wealth management advice long before they walk down the aisle.

How Does Getting Married Affect Financial Planning Strategies?

Today, couples are getting married later in life, often well after they have established a career and assets — not to mention debt. This means that each partner will bring assets and liabilities to the mix.

When you get married, your monetary needs and goals change. You will have to decide how to handle existing debts and consider whether (and to what extent) you want to combine your financial assets and instruments.

At this early stage of your relationship, these topics may not seem important. In fact, you may not be totally comfortable discussing them yet with your future mate. But as a financial planner will tell you, this is exactly when you should address them. If you wait, conflicts and unexpected surprises could cast a shadow on your happiness.

When Should You & Your Betrothed Meet with a Financial Advisor?

Ideally, you both should talk with your financial advisor when you first make the decision to forge a life and future together. You should also consider seeing a financial planner if you move in together, even if you don’t plan to get married right away.

If this aggressive timeline sounds reactionary, consider this: Years of research prove that financial issues are the primary source of marital conflict. So the sooner you can get a financial plan worked out, the less the chances that this important topic will cause strife.

And if you would like to save money to finance your wedding or honeymoon, or if you’d like to buy a home together sooner rather than later, your CFP® can help you achieve these important life goals.

What Should You Discuss with Your Financial Advisor?

Before you meet with a CFP®, take a little time to reflect and write down your questions and concerns. Your financial advisor will review your profile, so you should also gather retirement account and stock portfolio statements and other records that document your assets before your appointment.

Some important topics to cover are the implications of merging finances and how you plan to handle the assets and liabilities that each of you brings to the marriage. Your CFP will help you establish a financial plan for your future together, to help you accomplish goals such as saving for retirement and starting a college fund for your children.

Your financial advisor can also assist you with estate planning (it’s never too early) and help you evaluate your need for insurance, wealth transfer, etc.

The personal wealth management specialists at Divergent Wealth Advisors understand how important it is to get your relationship off on the right financial footing. We strive to make financial planning as simple and hassle-free as possible while helping to ensure you achieve all your life goals. Contact us today to schedule a consultation with a financial advisor.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Institutional Investment Management & Tax Reform

Institutional investment management has undergone some changes with the recent reform of the U.S. tax code.

The organizational investment management and portfolio asset allocation strategies in place before the landmark 2017 tax bill’s passage may no longer be appropriate today. As a result, financial planning experts recommend that business owners revisit their benefit-planning strategies.

institutional investment management & tax reform

It is also imperative that your employees take the time to identify how the Tax Cuts and Jobs Act may affect their individual financial-planning strategies.

Will Tax Reform Affect Your Investment Management Strategies?

Fortunately, for most businesses, the sweeping tax reform bill did not significantly affect employee benefit plans. However, it is important to consult with a financial planning professional to determine what changes, if any, you should make to your retirement plan.

As for your overall investment management strategy, this is a good time to review your portfolio’s asset allocation and make any recommended changes. Some provisions of the tax reform may affect deferred compensation plans and maximum allowable tax deductions for pass-through entities. This is especially important if you are a small-business owner.

Will the Tax Bill Affect Your Employees’ Retirement Income Planning?

Some market watchdogs predicted that the tax bill would compel the conversion of defined-contribution plans (i.e., IRAs and 401(k) plans) to a Roth IRA-type structure — which the media termed “Rothification” — in a misguided attempt to raise government revenue.

Had this been the case, income would be subject to taxation prior to funding the investment plan. Fortunately, that provision did not end up in the final version of the bill.

Consequently, the tax bill does not appear to affect individual retirement planning significantly for most Americans. Nevertheless, we recommend that individual employees talk with their financial advisor about how they may be affected.

Discuss Tax Reform with Your Investment Management Specialist

At Divergent Wealth Advisors, our Certified Financial Planners™ understand your potential concerns regarding the tax reform legislation and how it may affect your company’s benefit plan.

This is also a good time to talk with us about potential upcoming volatility in the financial markets, and how it may affect your personal and institutional investment portfolios. Taking proactive steps today can help protect your investments if any significant market losses occur.

For your valued employees, our participant services are designed to provide the guidance they need to prepare for retiring and managing their personal wealth.

Contact the personal and institutional wealth management specialists at Divergent Wealth Advisors today to learn more about our unique approach to financial planning. Our highly personalized services are tailored to the unique needs of each client while keeping investment costs as low as possible. Contact us today to schedule a consultation with an institutional investment management specialist.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

Financial Advising for the Female Investor

Financial advising has long been a male-dominated realm, as many investors (and advisors) have historically been men.

Today, however, women have as much need for financial planning and personal wealth management as their male counterparts — often more. And as the number of Utah women-owned businesses grows, those needs often extend into the realm of institutional wealth management.

Financial Advising for the Female INvestor

Unfortunately, thanks to a lingering perception that financial planners do not understand or cater to the needs of female investors, women may hesitate to seek out a Certified Financial Planner™, even when they have a pressing need for their services.

The Financial Planning Needs of Women Investors

Although a significant wage disparity still exists between men and women in the workforce, research shows that women control more than half the personal wealth in the United States — 51 percent, in fact. Women also save more money than men and are more likely to participate in their employer’s 401(k) programs. Perhaps the most intriguing statistic of all is that women’s investments outperform those of their male counterparts.

Despite these compelling statistics, women tend to underestimate their investment capabilities.

Logic might suggest that female investors would turn to a wealth management expert for help. Unfortunately, many women lack trust in the investment and estate-planning industry. Some women saw their investment portfolio — or that of their parents — dwindle to nothing during the economic upheaval of the late 1990s or during the real estate crisis in 2008.

We recognize that, today, women need to find financial planning solutions they can trust.

How to Find the Best Financial Advising Services for You

Many of our clients express their frustration about finding wealth managers who understand their needs. Some financial planners may wrongly assume that female clients lack the knowledge and experience that male clients have.

In truth, every client seeks financial advising for their own unique reasons, and every client — no matter their gender — comes to the process with goals and objectives for their future.

Financial Advising Committed to Closing the Gender Gap

The Divergent Wealth Advisors team is committed to helping all our clients identify and pursue their financial goals. Our Certified Financial Planners™ (CFP®) understand that your portfolio should be as unique as you are, and tailored to meet your goals in the short-, mid- and long-term.

We know that money is power for all investors, and we will help you chart a course for the secure future you envision for yourself and your family. That’s why we offer a variety of services, including estate planning, investment analysis, portfolio management and risk analysis. All our advisors carry the CFP® designation, and our uniquely affordable investment services are always fee-based rather than commission-based.

Contact Divergent Wealth Advisors today to learn more about how our innovative approach to financial advising can help you navigate the unique challenges that face women investors.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

What to Ask a Wealth Management Advisor

If you’re looking for a wealth management advisor to assist you with your financial planning and portfolio management, you have your work cut out for you.

Wealth Management Advisor

Protecting your and your family’s financial future is one of the most important tasks you will ever address, so choosing the right financial planning professional is paramount.

The secret to choosing the right investment advisor is finding one whose services are well-matched to your needs. But it’s equally important to ensure that whomever you choose is qualified to do the job.

What should you ask a wealth management advisor?

No. 1: What Wealth Management Services Do You Offer?

Although it may sound obvious, you need to choose a financial advisor whose services and areas of expertise align with your needs.

For example, if you need tax planning, estate planning or wealth transfer assistance in addition to portfolio management, ensure that any firm you consider offers those services. Likewise, some financial management professionals do not offer real estate or insurance risk analysis, even though these services are critical for many investors.

Finally, some wealth management firms have a minimum investment portfolio limit. Before you spend time getting to know a planner or firm, make sure you fit into their target profile.

No. 2: What Wealth Management Qualifications or Certifications Do You Have?

You might think that all wealth management professionals need some minimum training or certification, but unfortunately, they do not. In fact, fewer than 20 percent of financial advisors hold a recognized certification.

One of the best ways to identify the investment experts you can trust is to look for the Certified Financial Planner™ (CFP®) designation. Issued by the Certified Financial Planner Board of Standards, a CFP® must meet exacting foundational and continuing education standards. They must have an extensive, industry-specific background, ascribe to a comprehensive code of ethics and pass a rigorous examination to obtain this designation.

You can ask about all these qualifications yourself, but the CFP® designation takes care of that for you.

No. 3: Will You Be the Only Wealth Management Advisor Working with Me?

Do you think that having one advisor work with your portfolio over time is the best way to protect your financial future? Most investment experts believe that working with a team of wealth managers is more effective.

Just as diversification in your portfolio minimizes risk, diversification among your wealth management team provides several key advantages.

The diversity that characterizes the financial industry today makes it virtually impossible for one person to amass enough depth and breadth of knowledge to advise you effectively. Working with a team also provides an important level of checks and balances to give you peace of mind. Finally, financial professionals can retire, move away or change careers at any time. Working with a financial planning and management team ensures that you enjoy the continuity of service.

Divergent Wealth Advisors provides a full range of enterprise and personal financial management services to clients throughout Utah and the United States. Our services are provided exclusively by credentialed financial experts with the highest levels of ethics and expertise. Contact us today to learn how our wealth management advisors can help you plan for and protect your financial future.

The Importance of Wealth Management for Millennials

Sound wealth management strategies are important for everyone; however, the millennial generation — sometimes called Generation Y — faces greater challenges than any generation that’s come before them.

wealth management for millennials

Millennials, those born between 1980 and 1999, came of age during one of our nation’s worst economic downturns. The deck was stacked against their future, and the level of distrust for financial institutions was unprecedented.

Today, although many millennials have families of their own, few have taken the steps necessary to implement wealth management strategies or plan for their financial future.

Millennials Face Myriad Financial Challenges

A recent study conducted by BMO Harris Bank found that more than half of the millennials surveyed reported that their personal financial situation was their life’s most pressing concern. But despite their concern, more than half the Gen Y participants indicated that their financial planning involved a simple savings account and nothing more — and only 10 percent reported having begun saving for retirement. Of this cohort, 70 percent have significant student loan debt, now averaging almost $40,000 each.

As more than 75 million U.S. residents fall into this age group, a large segment of adults may find themselves unprepared for retirement.

The researchers concluded that Gen Y will need help with financial planning and literacy soon, if they are to achieve their economic goals and be ready for the challenges of later life.

Why Do Millennials Eschew Wealth Management?

Members of this age group watched their families get financially hurt (or wiped out) by the economic downturn of 2008 and 2009, with many losing their homes to foreclosure. They watched the scandals that rocked Enron, Wall Street and other star players in the financial sector.

These experiences engendered distrust in the government, Wall Street and — most strikingly — in the banking system. In fact, 71 percent of millennials say they would rather go to the dentist than talk with anyone at a traditional bank.

While 63 percent of millennial adults don’t even have a credit card, 20 percent of them have never written a physical check.

This innate distrust of financial institutions, combined with the financial challenges faced by Gen Y, leaves most members of this age group similarly leery of wealth management professionals.

Seeking Help from a Personal Wealth Management Professional

Today, as the Baby Boomer generation (the millennials’ parents) ages out, their children will soon experience an unprecedented level of wealth transfer — almost $30 trillion, according to some estimates.

Despite an innate distrust for human financial consultants, no app or technological artifact can replace the many benefits provided by personal wealth management advisors.

Here at Divergent Wealth Advisors, we approach financial planning a little differently than many of our competitors. In fact, our firm’s founders and managing partners — some of them Gen Y members themselves — left great jobs with a global wealth management firm to found our company, because they believed they could better meet the changing needs of our clients. Contact us today to learn more about how personal wealth management can help you have a secure and prosperous financial future.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.

A Utah Financial Advisor’s Perspective on Bitcoin

In the past two months, financial advisors across Utah have been inundated with client calls about the value of pursuing bitcoin as an investment strategy.

Even if you haven’t tried to call your financial planner to ask this question, you likely have a friend or two (or six) who have made these inquiries. So what’s the deal with bitcoin? Is it the best-kept investment secret of the century, or does it pose an unacceptable level of risk?

Utah Financial Advisor

Today, we offer a financial advisor’s thoughts on this unusual — and somewhat enigmatic — cryptocurrency.

What Is Bitcoin?

For lack of a better description, bitcoin is a form of digital currency otherwise known as cryptocurrency.

You can only transact this type of currency electronically, so you’ll never hold a wad of it in your hand, and it is not accepted as legal tender everywhere. More important, it is not centralized. In other words, no one controls bitcoin.

Bitcoin was developed based on a mathematical algorithm, calculated with open-source software. Unlike other government-backed currencies, this currency is unregulated, anonymous yet transparent.

Because it’s not regulated, however, you won’t get your bitcoin back if someone swindles you. That’s one of the primary reasons that financial advisors recommend against trying to purchase it from private sellers.

What Are the Advantages and Disadvantages of Bitcoin?

Financial advisors recognize that, as bitcoin is not regulated, no central authority, federal bank or national interest can influence the value of this currency. However, those advantages also form the basis of bitcoin’s biggest disadvantage: No one is there to shore up its value if things get dicey.

The supply of this cryptocurrency is limited, at a number estimated to be about 21 million, total. Consequently, no one can print more. In fact, other than buying this elusive currency, the only way to obtain it is through bitcoin mining.

The most striking disadvantage of bitcoin, according to financial managers, is its lack of intrinsic value.

Financial Managers Expound on Bitcoin’s Exponential Value Increase in 2017

Approximately one year ago, a single bitcoin was worth about $750.

In October of 2017, when one bitcoin was worth almost $5,000, some hedge fund managers estimated bitcoin’s value could hit $10,000 in six to 10 months. By mid-December 2017, the value had reached almost $20,000, and some analysts suggest it could surge well into six figures.

One prominent Wall Street hedge fund manager will not touch this cryptocurrency, due to the lack of government oversight. Still other financial managers — more than 120 hedge fund managers as of mid-October 2017 — believe that bitcoin may help investors reach their wealth goals.

For most traditional investors, however, cryptocurrency holds no value for an investment portfolio. Before you seriously consider investing in bitcoin, talk to a Certified Financial Planner™.

The personal wealth managers of Divergent Wealth Advisors, all of whom are Certified Financial Planners™, work closely with you to tailor an investment portfolio that reflects your goals and appetite for risk. Contact us today to schedule a consultation with a financial manager to discuss bitcoin and other potential investment vehicles.

DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.