Good discussion...
When you feel burned out, it most definitely means that something has to change.
I am only 9 years into my second career cycle. So far so good, but who knows how long that feeling would last.
Having bitcoin as a 'hobby' certainly helped as it makes things interesting, especially when I had to learn a thing or two about it.
One point regarding drawn-downs: I cannot imagine myself stopping accumulation and starting a strict draw-down. I think this would make me feeling empty and/or exposed.
Spending from IRA just does not feel right and I am not even talking about selling btc for spending. It would be difficult to overcome the hodling philosophy.
Of course, there are three main phases that any long term investment should attempt to follow, and even though those phases might not be pure in their form, they do tend to dominate at certain stages that coincide with beginning, middle and end.
The three stages are accumulating, maintaining and liquidating, and so sure, you are correct Biodom that it would likely NOT make too much sense if you would bounce between accumulating and liquidating because then you would no longer be engaging in any kind of long term investment but instead either trading or gambling with that portion of your BTC holdings.
You certainly have to judge where you are at with your own investment, including comfort levels to transition from one stage to the next or how much of a mixture you might deem reasonable to employ based on your own assessment of your investment in BTC based on your personal circumstances that would of course include all of the basic considerations of cashflow, other investments, view of bitcoin as compared with other investments, risk tolerance, timeline and time, skills and abilities to research, plan or strategize in terms of your investment whether that involves reallocating or trading or tweaking your approach.
@jbreher and @JJG were discussion spending $92K from a $2.3mil account as an exercise, 4% yearly and all...
That's all peachy, unless either $ value significantly declines or, alternatively, market would not appreciate for, say, 20-30 years.
Then, all money is gone in 25 years, someone is a 90 year old man (if you start at 65) in relative poverty (if social programs collapse or become highly insufficient).
The 4% is a traditional base amount that presumes that the value of your investment will average at least that level of appreciation on an annual basis, so that when you are withdrawing the presumption is that the principle value is largely unchanged based on that level of withdrawal. Of course, if you are not able to achieve an average of a 4% return, then sure you could reduce the amount or reconsider what you are investing in.. but the 4% is widely accepted as being a principle preserving amount, so in that case, if you were to stick with 4%, then your principle would never be depleted, and you could continue to withdraw at that rate in perpetuity... if you are not able to achieve the in-perpetuity withdrawal rate, then sure, you might either need to tweak it down or to reconfigure your investments.
I tend to believe that 4% is hogwash and recent events show that we don't know what to expect down the pike.
It is probably wise to have some residence paid out by 65; at least take this part of the equation out.
Regarding yearly withdraws: 3% sounds much more realistic, at least I use this number for calculations.
Fair enough... You can use whatever number you like, and if you under withdraw, then you are just left with more principle, and sure that might work, but it also might cause you to delay pulling the fuck you lever because you are too conservative in your expectations... and in the end, it is totally up to you to pick your comfort level and hopefully understand the tradeoffs in your tweaking the assumptions.
You can use your BTC stash as collateral for a 5% interest rate personal loan - borrow $10,000 with $40,000 of BTC
Celsius.network
I've earned interest with them for a year now, a good business.
Interestingly, blockchain.com (the one that used to be blockchain.info) says that it would pay YOU 4.5% on btc in their custody account.
Not sure whether it is in btc or in fiat. Seems to be a better deal, not sure what conditions are, though.
The conditions might be that you are fucked by leaving your keys with a third party when it is not necessary to risk leaving your shit with a third party in order to feel comfortable with the likelihood that your underlying asset (namely BTC in this case) is likely to appreciate in value at least 4% per year on average while you keep complete control over the keys.
Poll
