Everyone should be thinking about their retirement plans, and bitcoin can help you achieve this major life goal.
Before finding bitcoin, I was investing heavily in real estate to take early retirement and build generational wealth. When I discovered bitcoin and understood its value and future implications for the world, I knew bitcoin would be the best asset I could ever buy to maximize the time I could spend with my family. From a generational wealth perspective, I realized that I would be able to install my family with a perpetual wealth preservation machine, bitcoin. You have the same opportunity to do this for your family with as little as 0.001 ($ 68) or 0.01 ($ 680) of a bitcoin. As of this writing, bitcoin is worth $ 68,000 per coin.
Nothing in life is easy and there is no get-rich-quick scheme that will allow you to achieve early retirement or generational wealth. You have to work hard! I have worked really hard to learn more about real estate and I know it will help me retire early, but bitcoin will get me there much faster. The over 1000 hours I spent learning bitcoin have been the hard work I had to do, and I continue to learn more about bitcoin every day! You can never stop learning about Bitcoin. I live by the mantra, “The day you stop learning is the day you die.”
Here’s how you can achieve retirement, potentially early retirement, with bitcoin, whether you own 0.01 ($ 680) or 0.001 ($ 68) of a bitcoin. I am not a professional financial planner, but I have been planning my retirement for over 10 years and am so infatuated with early retirement that I created my own blog on early retirement. None of what I’m about to disclose is financial advice, but my calculations are all real calculations with my very conservative and liberal retirement scenarios.
I have used this tool for my calculations in case you want to run your own retirement calculations for your specific scenario. My calculations do not take into account inflation, cost of living adjustments, and other variables that traditional financial planners incorporate into retirement planning calculations. The beauty of bitcoin is that its huge rate of return avoids having to really factor in these variables.
The hardest thing about planning for retirement with Bitcoin is figuring out which compound interest rate you should use. I chose my compound interest rates using common sense and good judgment, but many “Bitcoin Maxis” would probably tell me “why so bearish?” I wouldn’t disagree with this comment as the compound interest rate for bitcoin will likely be much higher than 25% to 37.5% over a 15 to 30 year period. I came across my 37.5% interest rate by just taking the average between a 25% interest rate and a 50% interest rate (50% + 25% / 2 = 37.5% ). I think this interest rate is achievable within 30 years for bitcoin’s appreciation. I believe so because estimates currently indicate that less than 10% of the world’s population owns bitcoin and that it is valued at $ 68,000. Imagine what will happen to the value of bitcoin over the next several decades when only 10% more of the world adopts bitcoin, even more when 50% or more of the world adopts bitcoin?
For the calculations below, I’m assuming a CONSERVATIVE compound interest rate of 25% and a SEMI-CONSERVATIVE compound interest of 37.5%.
Let’s start by planning for the retirement of someone who owns 0.01 bitcoin and wants to retire in 15 or 30 years. Here are my CONSERVATIVE and SEMI-CONSERVATIVE calculations to find out how much you could have in retirement:
Scenario 1 (CONSERVATIVE):
Current value of 1 bitcoin = $ 68,000
The person has 0.01 bitcoin
Individual saves $ 100 / week ($ 5,200 / year) for 30 years
Estimated compound interest rate of bitcoin in 30 years = 25%
Scenario # 2 (CONSERVATIVE): Let’s go back to scenario # 1 except over a period of 15 years:
As you can see, the power of compound interest is magnified over a 30-year period versus a 15-year period. That’s why it’s important for people to start planning for retirement as early as possible.
Now let’s do the same calculations above but be SEMI-CONSERVATIVE and use an interest rate of 37.5%:
Scenario # 3 (SEMI-CONSERVATIVE):
Current value of 1 bitcoin = $ 68,000
The person has 0.01 bitcoin
Individual saves $ 100 / week ($ 5,200 / year) for 30 years
Estimated compound interest rate of bitcoin in 30 years = 37.5%
Scenario # 4 (SEMI-CONSERVATIVE): Let’s do scenario # 3 except over a 15-year period:
Now let’s plan for someone who has 0.001 bitcoin and wants to retire in 30 years:
Scenario # 5 (CONSERVATIVE):
Current value of 1 bitcoin = $ 68,000
The person has 0.001 bitcoin
Individual saves $ 100 / week ($ 5,200 / year) for 30 years
Estimated compound interest rate of bitcoin in 30 years = 25%
Scenario # 6 (CONSERVATIVE):
Identical to scenario 5 but over a period of 15 years:
Scenario # 7 (SEMI-CONSERVATIVE):
Scenario # 8 (SEMI-CONSERVATIVE):
Same as scenario 7, but over a period of 15 years:
As you can see, whether you have $ 680 of bitcoin (0.01 of bitcoin) or $ 68 of bitcoin (0.001 of bitcoin), please do not consider what you own to be insignificant. The above calculations prove that you should treat your Bitcoin with the utmost care and respect. Please treat any Satoshi you own as “chunks of your most precious TIME”.
If you want to run some numbers over a 5 year period, in my opinion compound interest rates from 100% to 200% would be considered sustainable and easily achievable. Here are some other scenarios that are very feasible for people to reach EARLY RETIREMENT.
Scenario # 9 (CONSERVATIVE):
0.01 bitcoin
The person saves $ 100 / week ($ 5,200 / year)
Scenario # 10 (SEMI-CONSERVATIVE):
0.01 bitcoin
The person saves $ 100 / week ($ 5,200 / year)
Scenario 11 (SEMI-CONSERVATIVE):
0.001 bitcoin
The person saves $ 100 / week ($ 5,200 / year)
Scenario # 12 (SEMI-CONSERVATIVE):
0.001 Bbitcoin
The person saves $ 100 / week ($ 5,200 / year)
For scenarios 9-12, I describe them as conservative and semi-conservative scenarios against historical interest rates of 100% and 200%. It would roll the eyes of a traditional retirement planner, but bitcoin is not a typical investment and traditional investors fail to understand the implications of bitcoin that are changing the world and justifying these “conservative” and “semi-retirement calculations.” -conservatives “.
As you can see, in five years, with just 0.001 bitcoin and $ 100 in savings per week, you can achieve early retirement in a feasible and justified way. Do not take the satoshis you own lightly, as any irresponsible action of not protecting your precious satoshis could literally cost you TIME. Bitcoin is an asset that allows you to save and exploit your hard earned time. As Archimedes said, “Give me a long enough lever and a fulcrum to place it on, and I will move the world.” Bitcoin is the lever and your TIME is the fulcrum.
In conclusion, many people don’t realize how their bitcoin can sustain perpetual and generational wealth for hundreds of years. Here is a final calculation to demonstrate this notion, if you only have 0.1 bitcoin ($ 6,800 of bitcoin). After 50 years of 25% compound interest and you save $ 100 / week, a person could become a billionaire.
A lot of people laugh at me when I show them these calculations, but few realize that these calculations are VERY CONSERVATIVE. For the purposes of this article, I wanted to be very conservative in demonstrating how bitcoin can be life changing from a generational wealth perspective.
Please play around with the compound interest calculator located here and plug in what you think are realistic compound interest rates based on your opinion.
Happy retirement and generational wealth planning !!
This is a guest article by Jeremy Garcia. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
