I am a (non-profit) low-income personal finance counselor in a major city. I've noticed in many workshops I teach as well as in a few one-on-one counseling sessions that the topic of cryptocurrency investing is becoming very popular. My situation is this:
-I am able to explain convincingly why having an emergency fund is essential before investing.
-I am struggling to be able to convince excited clients about the level of risk they're taking in this style of investing.
For many of these clients, this would be the only or a very significant chunk of the investing they do. I've tried showing the volatility of bitcoin this past year, or bringing up how many failed companies there are for every successful one we hear of, but it tends to be received poorly.
The main thing I'd like to be able to communicate is a realistic portrait of how much risk they're taking on(whether or not it's a good investment) as well as the level of expertise one would need to have to be able to recognize a good value(these companies could be good[albeit high-risk] investments, but in all of my cases, the client doesn't have the level of expertise to be able to determine that).
What tools/examples/charts can I use to better get this across without alienating my clients?
Submitted October 03, 2018 at 04:41PM by 20castanets https://ift.tt/2OzcfVH
