Oct 01, 2022 Last Updated 23:15 PM EDT

Personal Finance

Why Your 401(k) and Crypto Investments are Keys to Your Future, According to Finance Guru Joy Mbanugo

Aug 15, 2022 11:11 AM EDT

Joy Mbanugo
(Photo : Joy Mbanugo)

Investor, financier, and expert in both cryptocurrencies and blockchain technology, Joy Mbanugo is the go-to in the sector. She has vast experience and knowledge across tax services, auditing, business operations, financial analysis, capital markets, and other specializations.

She currently serves on advisory boards and investment committees while lending her expertise to startups looking to level up and eventually scale. Specializing in cross-functional deals, partnerships, and the cloud industry, her experience in the industry is unrivaled. She even led the Treasury Tax initiative at Google while overseeing the management of $100 billion!

Mbanugo has a laundry list of impressive professional stops over her two decades in finance, including with giants like Ernst and Young and BlackRock.

We caught up with Mbanugo to garner her opinion on three topics relating to the importance of contributing to one's 401(k), as well as a few other things to consider regarding digital coins and the expansion of BlackRock's Aladdin platform.

Investing in a 401(k)

Mapping out your financial future is critical as it will not only pay dividends in taking care of you one day but also possibly help future generations in your families as well. According to Mbanugo, there are three things to consider when investing in a 401(k). 

The first thing to do is decide on how much you can afford to contribute to it. The contribution amount will also require a few adjustments as your income changes. The second thing is to choose the right investment to match your financial needs and goals. Picking suitable investments will require research to determine what best meets your needs. The final thing to consider is regularly monitoring your account balance to ensure you are on your way to reaching your preferred retirement goals. After that, your 401(k) should always work for you!

"Investing in a 401(k) is one of the smartest things you can do for your future and is a great way to save for retirement," said Mbanugo. "Not only does it offer tax advantages, but it also allows you to save for the future in a way that suits your current needs." 

By utilizing the above three tips from Mbanugo, you can be sure that you will be well on your way to a brighter financial future.

Cryptocurrencies and Your 401(k)

The looming question for most investors in the crypto world is whether digital currencies should be included in one's 401(k). According to Mbanugo, there is 'not a one size fits all answer to the question. If crypto is going to be an acceptable asset class for retirement plans, a few things need to happen.

The pros to including crypto in a 401(k) are apparent. First, it helps diversify the portfolio with higher returns on investment. Over time, it has shown promise as a viable investment option with the ability to generate significant returns for investors. Another is employers' ability to match a portion of employee contributions made in crypto. The employer match could incentivize employees to consider crypto in their 401(k) plans.

The cons to be considered, however, are also equally as significant. Crypto is still a relatively new asset class and can be volatile at times, with the ability to decrease significantly. Crypto volatility can negatively impact one's portfolio value. Another con highlights the industry's lack of regulation, which makes it risky.

"Ultimately, the decision of whether to include crypto in a 401(k) plan will come down to several factors, including the individual investor's risk tolerance and goals," Mbanugo stated. "Those comfortable with the volatility and potential risks may find that including crypto in their plans could be wise. However, those who are more risk-averse may want to steer clear or speak with a financial advisor to get personalized advice before making any investment decisions."

Coinbase + Aladdin

Recently, BlackRock added Coinbase to BlackRock's Aladdin platform, which marks a big win for the cryptocurrency space and is a huge step forward for both parties. The move also spotlights the gradual growth of Coinbase into institutional trading as a business.

Aladdin is used by some of the largest financial institutions in the world to trade and manage their respective portfolios. Additionally, it's hosted by BlackRock, one of the largest asset managers in the world, which has turned in a staggering over $10 trillion in assets.

"This move pairs Coinbase with BlackRock, which is one of the largest asset managers in the world," proclaimed Mbanugo. "BlackRock's investment in Coinbase also signifies Wall Street's changing views of crypto."

As more people continue to invest in a digital token while backing crypto and the emerging NFT market, the sky's the limit for digital currencies. These tips from Mbanugo will be a great starting point for any budding or seasoned crypto investor.

About Joy Mbanugo

Joy Mbanugo is the go-to-market finance infrastructure expert and implements systems to prepare companies to go public. She has worked in finance for 19years with companies such as Ernst and Young, Google, and Blackrock. To book a call with her to discuss board seat opportunities, venture investment deals, or how her methods can set you up for success, please visit joymbanugo.com

Investment advice disclaimer: Joy Mbanugo is not a certified financial advisor thus this is not financial advice. Please consult a certified financial advisor before making any major financial decisions. The views expressed are not related to Google or any other company mentioned.

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