The Charles Schwab Modern Wealth Survey 2025 reveals that cryptocurrency constitutes 10% of the average American investor's portfolio, outpacing ETFs at 6% and bonds at 8%. Currently, 35% of investors hold crypto, with 65% planning to increase their allocation over the next two decades. The survey indicates a significant shift in portfolio composition, particularly for retirees, who must consider withdrawal timing and asset volatility. Sequence-of-returns risk becomes crucial for those drawing down portfolios, as recent market fluctuations have impacted cash realized from asset sales.
"The average investor's portfolio now carries more digital asset exposure than ETF exposure, a structural change from how household portfolios were typically built a decade ago."
"The order in which gains and losses occur matters more than the average return when an investor is drawing down a portfolio, a dynamic known as sequence-of-returns risk."
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