Early retirement seems unlikely given the current market conditions, in which Ethereum (ETH -3.04%), along with the rest of the cryptocurrency market, is probably not encouraging people to retire early. This year has been a difficult one for crypto. Inflation and concerns about the economy have caused investors to seek out secure investments, thus riskier areas like cryptocurrency have gotten worse.

This might appear to be a negative situation. However, it’s important to remember that economic difficulties and market downturns do not last indefinitely. This implies that certain strong crypto companies may recover and even outperform in the future. Could Ethereum help you retire early based on this information? Let’s have a look at it.

One of the biggest blockchains

To begin, let’s take a look at Ethereum today. It’s one of the most well-known and popular blockchains in the world. In fact, it is the second-largest crypto by market value, right behind Bitcoin.

Ethereum is a pioneer in non-fungible tokens and decentralized applications. According to State of the dApps, over 2,900 dApps run on Ethereum. And according to CryptoSlam data, it’s also the most popular blockchain for NFTs by sales volume.

Ethereum is also a leader in terms of the number of developers that are working on its blockchain. According to Electric Capital research, they numbered over 4,000 late last year. That’s up by 42% from earlier in the year. This is significant because it demonstrates that developers are becoming increasingly active with the blockchain.

Gas is the most important issue with Ethereum right now, and as a result, transaction fees are excessive. However, this may soon change. Ethereum has implemented a major upgrade. It consists of several phases. The switch to proof of stake validation will boost speed, reduce costs, and use less energy. Furthermore, users will be able to stake their assets using this method of validation.

The merge may happen soon

The transition is expected to begin in the next several months, with what’s called “the merge” at its core. Sharding will be implemented as part of future phases of the upgrade in an effort to improve efficiency and speed. This divides up the workload in order to alleviate congestion.

As a result, Ethereum has a lot of practical applications and is contributing to the evolution of business. The fact that it is already a leader gives it an edge over the newer players. And if the upgrade succeeds, Ethereum will have overcome its most pressing issues.

Now, let’s take a look at Ethereum’s performance over the last several years. Over the previous five years, the cryptocurrency rose by around 1,800 percent. However, it has also had large drops on occasion during that time period.

It’s accurate to say that the cryptocurrency market is volatile. Ethereum, on the other hand, has shown that it may produce significant gains over time. Those who invested in Ethereum five years ago and have been holding on are enjoying a return of more than 400 percent.

Early retirement?

Let’s return to our initial question: Is this crypto giant capable of allowing you to retire early? Perhaps. It is dependent on the time you buy and sell Ethereum. Those who acquired many years ago, for example, may probably sell their investment today and retire early.

If you invested in Ethereum toward the end of last year, don’t be discouraged. In cryptocurrency, losses are rapid. However, gains and losses occur at the same time. Your stake may rebound faster than you anticipate.

Naturally, crypto is an uncertain industry. It’s new – and we have no idea what kind of role it will play in years to come. However, if crypto continues to gain popularity, Ethereum may reclaim its position as the industry leader. And that implies that it might enable some long-term investors to retire early.

For those on a fixed income, significant Social Security adjustments might have a major impact on their pocketbooks. And retirees are expected to see one next year. In fact, seniors will discover that their benefits will increase more than it has in 40 years.

Here’s why Social Security payments are going up so much.

The big change Social Security recipients will see next year

Next year, Social Security benefits will probably rise by at least 8.6% as a result of the cost-of-living adjustment (COLA). So, for example, a person who received the average benefit of $1,661 last year could see his or her benefits go up as much as $142.84.

Last year’s 5.9 percent COLA, while not much lower than the 8.6 percent benefits boost that future retirees may expect next year, is a significant departure from the raise most current benefit recipients have seen for much of their retirement years. In fact, since 2000, the average yearly increase in benefits have been just 2.29%. An increase of 8.6% would be the greatest since 1981.

Why such a big change?

To be fair, Social Security will not be giving elders a large raise just for the sake of being kind. The explanation is simple: Inflation has set a 40-year record, and the calculation used to calculate COLAs is specifically built to ensure that benefits keep up with inflation. When costs rise rapidly, benefit hikes are significant in order to enable seniors to maintain purchasing power.

There are a variety of reasons inflation has grown, including abnormally high demand for items and services, coupled with supply shortages as a result of the war in Ukraine and the pandemic. Although the specifics may not be crucial to individual retirees, every senior should understand that their large Social Security raise is due to economic circumstances that could have a significant impact on society.

The fact is, because costs have skyrocketed, a bigger check won’t provide retirees more purchasing power; instead, it will try to ensure that their Social Security payments allow them to purchase the same level of goods and services as when prices were much lower. And if inflation continues to rise past this year’s COLA calculation, which happened in 2022, the benefits increase may not even be able to do so.

So the underlying reason for the increase in benefits is what recipients must prepare for. When inflation rises, you must change your investing strategy and personal budget.

A number of Cathie Wood’s favorite stocks started the holiday shortened trading week by increasing significantly. Is her approach to growth investing becoming more popular? There’s no doubting that ARK Invest’s main stock picker has had a bad year following an incredible 2020. You’ll want to pay attention if sentiment shifts in her favor.

Roku (ROKU 5.60%) and Deere (DE 5.13%) are two of the ARK Invest family of exchange-traded funds’ stocks that have performed well recently. Let’s look at why these two choices might provide you greater returns.

Roku 

Roku is well aware that we’re watching a lot of television these days, and no one knows this better than them. Roku has a staggering 61.3 million accounts at the end of March, and they’re not all dormant homes. Roku users are viewing 3.8 hours of content each day on average. Roku, as the leading operating system for smart TVs, is taking advantage of its position by commercializing its free platform…. Average revenue per user increased 34% over the last year as advertisers have payed up to reach Roku’s engaged viewers.

Roku’s shares have tumbled by almost 82 percent since their peak last year, but it is possible that the decline will bottom out. The first bearish thesis, which predicted that we would be streaming less as the gravest pandemic threat fades away, hasn’t come to pass. Roku has seen an increase of 14% in streaming hours over the past year. A recession may result in advertisers scaling back their spending, according to the new fear; however this may not materialize. Traditional advertising may take a hit, but there are now several premium streaming applications that will pay to be featured on the country’s top streaming platform. Roku should be able to hold up just fine.

Deere

Wood is a disruptor in her own way, but she will not avoid a 180-year-old business that has been a leader in commercial, agricultural, and construction equipment since long before most of us have been alive. Construction-site-clearing backhoes and farm tractors may not appear to be cutting edge, but Deere believes itself to be the technology, automation, and even AI leader.

Deere remains one of the most consistent names in farming, and its success has been long-lasting. The firm’s revenue rose 24% in FY 2021, albeit from dismal single-digit top line growth the previous year. Analysts still anticipate Deere’s top line to grow 18% this year and 11 percent in FY 2023. This stock is currently trading at just 12 times next year’s expected earnings. There is also a 1.6 percent yield, which makes this one of Wood’s few stocks that give a quarterly dividend.

For the next several years, infrastructure will remain a worldwide subject. The economy may slow down the construction and rebuilding industry, but Deere is in the correct spot as it waits for the appropriate moment.

The crypto market has damaged a lot of investors in recent months as rising interest rates caused them to flee from dangerous alternatives. Bitcoin’s value has decreased by about 70% since its all-time high last Nov., with the majority of smaller altcoins suffering dramatic losses.

The cryptocurrency crash may provide an opportunity for investors that can handle the volatility, but most people should probably stay away from that sector and focus on more diversified fintech plays. So right now, I will look at two promising fintech stocks in greater detail: Adyen and MercadoLibre, and why they might be superior alternatives to most cryptocurrencies.

1. Adyen

Adyen is a Dutch software firm that offers an end-to-end platform for financial management services, processing payments, and data analytics. With only a few lines of code, it may be integrated into current mobile, online, and in-store payment systems.

There are over 250 different payment options that merchants can now accept thanks to these flexible integrations. Instead of developing separate consumer-facing apps like PayPal or Block’s Cash App, Adyen’s back-end technology enables businesses to generate their own mobile wallets and payment cards. Adyen does not offer any crypto trading services, physical debit cards or stock trading tools.

Adyen is a relatively unknown payment processing firm that works in the background. However, it’s exploding like weeds. In 2021, its revenue and adjusted EBITDA both rose by 46% and 57%, respectively, as it outran an uncommon decline during the pandemic in 2020.

2. MercadoLibre

MercadoLibre is Latin America’s most well-known e-commerce firm. However, Mercado Pago, the company’s PayPal-like payments platform that connects merchants, customers, and offsite organizations to its ecosystem, makes it the area’s top fintech business as well.

It also has a credit-based payment system (Mercado Crédito), online ins. policies, financial services, and cryptocurrency trading instruments. It had 35.8 million consumers at the end of the first quarter of 2022, up 31% from a year ago, and 20.2 million mobile wallet customers, and almost 23 million investment accounts in its ecosystem.

The stock price of MercadoLibre appears to be fairly valued at 35 times this year’s anticipated adjusted EBITDA, and it may still have a lot of room to grow as e-commerce penetration rates and income levels increase throughout Latin America.

Cryptocurrencies have undoubtedly made some fortunate and daring early adopters extremely wealthy beyond their wildest imaginings. Shiba Inu, for example, grew more than 20 million percent in 2021, which has to be the single greatest one-year gain in financial history. It follows the same pattern as a lot of other digital assets: it is the result of huge speculation more than anything else. Furthermore, it is doubtful that it will ever be matched again.

Despite that remarkable return, the Shiba Inu is currently down 89% from its high (as of June 29). And while it may appear to be a good investment opportunity, SHIB is one of the cryptocurrencies that you should avoid no matter what.

No competitive edge

Shiba Inu is an ERC-20 token, which means it runs on the Ethereum (CRYPTO: ETH) blockchain and was launched in August 2020 as a dog-inspired alternative to Dogecoin. As a result, SHIB is interoperable with the whole Ethereum ecosystem, but it offers no significant distinction from other ERC-20 tokens in terms of functionality. Shiba Inu lives on top of Ethereum, so it has the same technical requirements as the platform. As a result, for users or developers, it doesn’t stick out from the crowd.

Examine the price of Bitcoin with those of its rivals. With a first-mover advantage and worldwide recognition, bitcoin (CRYPTO: BTC) is gradually becoming acknowledged as a real store of value. And, with the implementation of the Lightning Network, Bitcoin’s potential to be adopted as a genuine decentralized internet currency isn’t out of the question.

Pure speculation

The only reason someone would buy SHIB today is because of speculation, as there is no real competitive edge in the crowded market of tens of thousands of cryptocurrencies. It’s similar to playing a table at a casino and betting on something with an incredibly small likelihood of success. Many people are hoping SHIB will have a significant price rise, similar to what it did in the summer of 2021 when the meme-stock craze boosted certain digital assets to new heights. This isn’t a good financial strategy.

It’s easy to see why someone would be interested in investing in crypto. Some of them have a long history of providing excellent returns. Other cryptocurrencies, on the other hand, are tackling real-world issues in creative ways.

However, the cryptocurrency market may be somewhat dangerous. Here are two of the most serious risks I see threatening your potential for favorable outcomes.

Risk 1: Terrible tokenomics

When demand for a currency or token outstrips the supply, it indicates that its value is increasing. When cryptocurrencies are designed, their developers attempt to stimulate interest and control production. “Tokenomics” is the term used to describe this process, which varies depending on the project. Some of the designs are quite effective. However, in several scenarios, the tokenomics do not encourage long-term price appreciation.

As an example, I think STEPN (GMT) did not create its Green Satoshi Token (GST) to increase in value sustainably. GST is earned by using the app for exercise and is used in the app to level up and play. When GST is utilized – taken out of circulation – it is burned. There’s no limit on the amount of GST, though. The more people use and play the program, the more GST may be generated.

It’s not ideal to have an infinite supply of coins. However, it is more than that. You may trade GST for USD Coin and trade USD Coin for any other crypto. The only people enticed to purchase GST tokens would be individuals attempting to rise quicker in the STEPN app.

The irony is that individuals who join the STEPN network allegedly enhance GST values for a short time. GST, on the other hand, is produced faster as a result of this influx of new users, lowering long-term value.

STEPN seems like a fun fitness app, and it certainly should be enjoyed. However, I am doubtful that it is a lucrative long-term business opportunity.

This is not the case for all bad investments. However, investors should be aware of what’s driving token demand and what is limiting its supply. To summarize, studying tokenomic principles may help you avoid poorly structured systems.

Risk 2: FOMO

The most dangerous risk for crypto investors is FOMO (the fear of missing out). Cryptocurrencies like Bitcoin and Ethereum, despite recent dips, have far outperformed most equities in terms of performance. And the promise of extremely high returns like these might cause investors to invest in crypto before they are ready or before they’ve fully understood what they are investing in.

FOMO is an emotional reaction to a bullish thesis. We believe it will rise quickly. As a result, one of the most effective ways to resist FOMO is to spend time creating a bearish thesis – which is an explanation of what might go wrong.

Take Ethereum for example. In the world of decentralized applications and smart contracts, I believe the Ethereum blockchain has a lot of potential. With Ether prices at their lowest level since early 2020, it would be simple to get FOMO with Ether right now, anticipating a quick recovery.

However, with Ethereum, there is a lot of danger right now. This blockchain is moving from a proof-of-work chain to a proof-of-stake network. Let’s say it Simply put, the tokenomics are changing. Nodes will stake Ether to execute transactions, instead of mining it by using many computers to solve math problems that are complex. Holders will join staking pools to earn yield and participate, as Ether is being locked up for lengthy periods of time. The shift to proof-of-stake completely transforms the Ethereum playing field, making it difficult to predict what the long-term consequences might be.

Simply asking what could go wrong is an effective deterrent to FOMO.

Nobody wants to see their stock portfolio plummet, but bear markets provide long-term advantages to investors, especially those seeking passive income.

When stock prices fall, dividend yields rise, giving investors a better return for their buck.

Remember to concentrate on investing in higher-quality stocks; here are two blue chips that you should buy now.

1. Intel

Semiconductors are the basic components of technology, tiny chips that enable devices such as computers and automobiles to function. Intel (INTC) is a multinational semiconductor company. It created x86 processor chips, one of the world’s most widely used chip architectures, and owns 63% of the market share worldwide.

Intel has paid and increased its dividend for the past eight years, offering investors a 4 percent yield at this time. Its dividend payout ratio is just 58%, so it’s not a significant financial burden.

The stock is currently trading at a price-to-earnings ratio (P/E) of 10, which is lower than its median P/E of 13 over the previous decade. Intel’s prospects look good; the company is pouring billions into increasing chip production in the United States, positioning it to become a leader in the industry.

Analysts predict Intel’s earnings per share (EPS) will rise by 7% each year over the next three to five years, allowing for additional dividend hikes.

2. 3M Company

Consumers are rarely aware of the numerous small elements that go into producing products on store shelves. 3M Company (MMM 0.49%) produces many of them; it generates over 60,000 items including window film, Post-it notes, and respirator masks.

Because of its excellent brand and a wide range of goods, the company has become a dependable dividend stock; it has paid out an annual dividend for 65 years, making it one of the few remaining active Dividend Kings. Today’s investors may get a 4.6% return with a healthy 67 percent payout ratio.

3M is expected to grow at a rate of around 10% per year over the next three to five years, according to analysts.

The company’s industrial roots may make it susceptible to a recession, but management has managed several economic situations to preserve dividends and is positioned to continue. The firm presently has $3.3 billion in cash and a leverage ratio of just 1.9 times EBITDA (earnings before interest, taxes, depreciation, and amortization). Investors can sleep well knowing that they own this established blue-chip stock. Against its ten-year average of 20, the share price sells at a P/E ratio of 13.

Without a doubt, drawdowns in the stock market are frightening. However, history has shown that deep drops in U.S. equity prices generally result to be a golden opportunity for investors.

What are the finest steals today? AMC Entertainment Holdings and Beam Therapeutics  are two of my personal favorites in this market. Here’s why I feel that, even at $1,000 invested in either one of these undervalued growth stocks over the next ten years, you’ll come out ahead.

AMC: A misunderstood value play

AMC Entertainment Holdings’ near-term growth prospects and fundamentals aren’t likely to attract many traditional value investors. The company is saddled with debt as a result of the pandemic, and the movie industry is only now beginning to recover from this crisis.

A deeper look, on the other hand, reveals that AMC stock might be a real bargain at these levels. Here’s a quick rundown of why this company is so undervalued.

To begin with, the competitive risk from streaming appears to be greatly exaggerated at this time. In light of AMC’s excellent first-quarter 2022 results, it is abundantly clear that the filmgoing industry is still a viable business model in today’s global scenario.

Second, although AMC’s debt overhang may be a problem, it isn’t the end of the world. Bears have argued that AMC’s large debt load might be difficult to tackle given its debt-related interest expenses.

Fortunately, AMC’s leadership has a solid strategy in place to handle this problem. The firm, for example, aims to diversify its business model in the coming years so that it may generate multiple sources of income. Bears have panned AMC’s plan to convert the company into a Warren Buffett-style company as unrealistic, arguing that management lacks the financial resources to execute such an endeavor. However, with $1.16 billion in cash and equivalents on hand as of late, AMC should be able to add a few more sources of income in the not so distant future.

I’m a firm believer in AMC’s core business, with its combined with the corporation’s stated growth goals, will ultimately result in market-beating returns for its shareholders over the rest of the decade.

Beam: A gold mine in precision medicine

Beam Therapeutics is a gene-editing firm that focuses on developing game-changing therapies for a variety of serious illnesses. While the firm is still in its preclinical stage of its life cycle, I believe Beam has the potential to become one of the field’s most powerful players.

My enthusiasm comes from the biotech’s breakthrough base-editing tech, which has the potential to become a best-in-class platform in terms of precision. Furthermore, Beam’s tissue-specific delivery systems may give it a significant edge in terms of efficacy.

What are the company’s future objectives and inflection points? In the near future, Beam intends to begin human clinical trials soon for its sickle cell disease initiative. The firm is also working with Pfizer on treatments for muscle, liver, and central nervous system rare genetic disorders. Over the next 12 to 24 months, both of these initiatives should result in several catalysts for shareholders.

What is the long-term goal? The biotechnology industry as a whole may be valued at $20 billion by the end of the decade, according to an Emergen Research research report. Beam’s unique platform and focus on using very efficient delivery systems for certain diseases might allow it to capture an outsized share of this quickly expanding market. That’s a big opportunity for a firm with a current market value of only $2.8 billion.

You may be in the middle of signing up for a 401(k) program if you’re just starting to work full-time or are at your first job with a larger firm. Because you’ll need external resources to manage your expenses throughout retirement, signing up for a plan is critical. And the longer you let your savings grow, the more money you’ll have when it’s time to retire.

However, if you’re going to try to save in a 401(k) arrangement, it’s critical to get started on the correct foot. As a result, making these crucial adjustments as quickly as feasible is critical.

1. Find out what the employer match entails

Saving in a 401(k) has a lot of appeal. There’s a reason why a lot of people enjoy contributing to one. Many employers who offer these plans also match employee contributions at various rates.

It’s worth knowing how much you’ll need to contribute in order to get the full match, then putting every effort forth to reach that amount. Not claiming your whole match is equivalent to leaving free money on the table, and it’s something you don’t want to happen.

2. See if your employer will impose a vesting schedule

Employers who contribute to their employees’ 401(k) accounts do not want to end up losing money. As a result, they commonly use vesting schedules that discourage employees from taking their free retirement cash and fleeing. It’s crucial to understand your firm’s vesting schedule so you can decide whether to stay or go depending on it.

For example, your employer might have a five-year vesting schedule such as this one, in which you earn 20% of your matched dollars each year until you’re fully vested. Alternatively, you might need to stay with your firm for a specific length of time before receiving legal ownership of any free money. Figure out what your organization’s policy is so you can plan accordingly.

3. Find the top funds for your money

When you first join a 401(k), your money will typically be placed in the plan’s default investment option, which is often a target date fund. These funds change sensitivity to risk as the milestones they’re intended to reach approach, making them a simple way to tame investing volatility.

Target date funds, like all mutual funds, have disadvantages. They not only tend to charge high fees, but they also frequently invest too conservatively, resulting in savers having less money at the end of their investment period.

Investing may be complicated, but it doesn’t have to be. Instead of settling for a target date fund, you might want to look at other investment options inside your employer’s plan. Investing your money in broad-market index funds is a smart alternative to consider. This gives you an instant diversification without having higher costs associated with keeping your money in a target date fund.

A 401(k) is a terrific first step on the road to retiring comfortably. Make these essential adjustments early on so you will get the most out of your retirement account and retire with enough cash to meet all of your objectives.