Your pots of money and thinking long term / retirement / life after retirement

[Kakmakr]

Do not put all your eggs in one basket into Crypto currencies, because it is a very high risk investment to gamble your retirement on something like this. Yes, some of the early investors made use profits with Bitcoin and some pump n dump coins.. but I will never put more than 15% of my life savings in Bitcoin or any other Alt coin.

Buy small amounts every week and when there are a large drop in the price... you buy a bit more.    It can give you a big profit over several years or it can go to zero. 

[uneng]

To save money is the first step, but saving without investing in a profitable way is worthless. I'm reaching to the conclusion fiat investments besides being unprofitable against inflation are more risky than bitcoin. Just an example: last year (2020) inflation in my country reached to almost 5%, while the considered safe investments (fixed income) stayed between 3%-4%. It makes no sense to invest this way as you are actually losing purchasing power, losing money.

If you want to have minimum profit percentage against inflation you need to move to variable income, which is more dangerous and if your economy breaks, you will probably lose money with this kind of investment. So risk for risk it seems bitcoin is the best option!

[The Sceptical Chymist]

For someone like me who doesn't have any idea about these S&P 500 index funds or the CAPE, I will likely just go stick with option (C) crypto products like the KCS token that will provide dividends or the Casino tokens that distribute coins as well.

That's extremely risky if you're talking about saving for your future.  Anything related to crypto is, but I wouldn't count on any sort of dividend-paying crypto or PoS coin or anything like that to be a reliable source of income.  You'd be much better off either buying an index fund or some stocks that pay high dividends (and keep them in an IRA or whatever's available in your country).

I wish I had pots of money, but I don't.  I've come to accept the fact that I'm going to be working until they put me in the ground--but that's OK.  Some people retire and have no idea what to do with their free time, and I'm afraid that's how I would end up.  Work is good for the soul I've found.

[Poker Player]

For someone like me who doesn't have any idea about these S&P 500 index funds or the CAPE, I will likely just go stick with option (C) crypto products like the KCS token that will provide dividends or the Casino tokens that distribute coins as well.

That's extremely risky if you're talking about saving for your future.  Anything related to crypto is, but I wouldn't count on any sort of dividend-paying crypto or PoS coin or anything like that to be a reliable source of income.  You'd be much better off either buying an index fund or some stocks that pay high dividends (and keep them in an IRA or whatever's available in your country).

The dividend issue is also misleading. You can buy a low-cost S&P 500 fund that does not pay dividends and an ETF of the same that does. The difference between one and the other will be reflected in the final return. The dividends you don't get paid in one are reinvested and improve the return. The longer the term, the greater the difference in profitability.

So for these purposes it doesn't matter, you can take the fund without dividends from the S&P 500 and when you need it you can withdraw what you need, like the typical 4%.

The point is that dividends are part of the total return and if they are paid to you before you need them (for example in retirement) you will lose profitability in the long term (if you do not reinvest them).

[Lorence.xD]

That's extremely risky if you're talking about saving for your future.  Anything related to crypto is, but I wouldn't count on any sort of dividend-paying crypto or PoS coin or anything like that to be a reliable source of income.  You'd be much better off either buying an index fund or some stocks that pay high dividends (and keep them in an IRA or whatever's available in your country).

I wish I had pots of money, but I don't.  I've come to accept the fact that I'm going to be working until they put me in the ground--but that's OK.  Some people retire and have no idea what to do with their free time, and I'm afraid that's how I would end up.  Work is good for the soul I've found.

Exactly, no matter how much we love bitcoin and defend it, we can't ignore the fact that it is a volatile asset to be able to make it into an insurance for your retirement and future. If you are still legible, I heard that Roth IRA is a better option than a regular IRA and Index Funds is the best passive income stream in my opinion, with Warren Buffett supporting the idea that it is better than actively trading in which he did won the bet. You can make more money if you know where to make one, working until retirement is not the best thing but there will be opportunities that will come along the way like side hustle.

[iamsheikhadil]

This is a good analysis and I appreciate it. However, when it comes to savings, I'm kind of repulsed by the idea of it because of uncertainty. Everyone of us actually assumes that one day we will get old, we will have healthy bodies, the world will still be the same and we will need money for our needs, but as they say, "there are many slips between cup and lips", I guess if I earn decent, I would just spend most of it enjoying the moment now, and then also do some charities and then look after my relatives, and then if some amount is still left, that would be for my retirement because who knows, I can just die in a car accident tomorrow. While this idea is very repulsive and out of topic, it's just how I think because savings is a big trending topic nowadays which I don't quite understand. But it's important, no doubt on that

[Mauser]

This is a good analysis and I appreciate it. However, when it comes to savings, I'm kind of repulsed by the idea of it because of uncertainty. Everyone of us actually assumes that one day we will get old, we will have healthy bodies, the world will still be the same and we will need money for our needs, but as they say, "there are many slips between cup and lips", I guess if I earn decent, I would just spend most of it enjoying the moment now, and then also do some charities and then look after my relatives, and then if some amount is still left, that would be for my retirement because who knows, I can just die in a car accident tomorrow. While this idea is very repulsive and out of topic, it's just how I think because savings is a big trending topic nowadays which I don't quite understand. But it's important, no doubt on that

I totally understand where you are coming from. It feels kind of wierd to save for 30 or 40 years in the future if we might not even be alive then. The world is such an uncertain place which makes investing for a long period of time very difficult. The big issue with long term investing is that we are able to take a lot of more risks with our investment decisions. If we only want to invest for the next 3-5 years we wouldn't really put all our money into stocks, but with a time horizon up to 40 years we can invest a lot of money into stocks. And over a long period of time, stocks tend to outperform all other asset classes.

[Sterbens]

I just need to read and examine your presentation, because obviously we are not as proficient in the field of statistical calculations as you can understand. maybe you are a person who chose to major in banking economics. we have to be observant, not in discussing how millennials and others are, but to be able to understand the essence of the index calculation that you are trying to simplify. but I too have studied, and have not yet graduated. maybe I will be interested in the basic basics of calculating using a 50:50 appeal scale, then combining it with the percentage of daily profit. We are not as detailed as you are in managing finances and even growth in order to prepare for the future.


long live sir @paxmao

[SquallLeonhart]

That's extremely risky if you're talking about saving for your future.  Anything related to crypto is, but I wouldn't count on any sort of dividend-paying crypto or PoS coin or anything like that to be a reliable source of income.  You'd be much better off either buying an index fund or some stocks that pay high dividends (and keep them in an IRA or whatever's available in your country).

I wish I had pots of money, but I don't.  I've come to accept the fact that I'm going to be working until they put me in the ground--but that's OK.  Some people retire and have no idea what to do with their free time, and I'm afraid that's how I would end up.  Work is good for the soul I've found.

Exactly, no matter how much we love bitcoin and defend it, we can't ignore the fact that it is a volatile asset to be able to make it into an insurance for your retirement and future. If you are still legible, I heard that Roth IRA is a better option than a regular IRA and Index Funds is the best passive income stream in my opinion, with Warren Buffett supporting the idea that it is better than actively trading in which he did won the bet. You can make more money if you know where to make one, working until retirement is not the best thing but there will be opportunities that will come along the way like side hustle.

You guys do not need to make money from the staking or dividend paying crypto, sure making money on top of having it is great but you could just have crypto and that could go up in price, so you do not have to worry about that. Just buy bitcoin for example and you would be able to retire easily with all the extra money that it makes you could spend that when you retire.

I think about that a lot, that is my dream, I want to retire early, and to think that when I am 70 it will be 2060 and I can't think what bitcoin will be like by then, I am sure it will be millions of dollars per bitcoin for sure without a doubt, that is why I keep investing into crypto because I know that even if I do not get dividends or staking profits, the amount bitcoin goes up will be more than enough for me to retire when I need the money but can't work for it anymore.

[Lorence.xD]

~

You guys do not need to make money from the staking or dividend paying crypto, sure making money on top of having it is great but you could just have crypto and that could go up in price, so you do not have to worry about that. Just buy bitcoin for example and you would be able to retire easily with all the extra money that it makes you could spend that when you retire.

I think about that a lot, that is my dream, I want to retire early, and to think that when I am 70 it will be 2060 and I can't think what bitcoin will be like by then, I am sure it will be millions of dollars per bitcoin for sure without a doubt, that is why I keep investing into crypto because I know that even if I do not get dividends or staking profits, the amount bitcoin goes up will be more than enough for me to retire when I need the money but can't work for it anymore.

With the current price of bitcoin, making it your means of retirement is like looking for the Holy Grail, impossible. Do you know how much is needed for a stress free retirement? A lot because those are the times that you will be getting more medical bills. Why not stake with crypto, it is better than just hodling it which doesn't give you any dividend when it is stagnant, at the least it is invested into something and it will grow.

[verita1]

Thanks OP for this post. I love how you wrote it. You know how to attract attention with your good writing. I traveled in time with your ideas. I work with the idea of ​​saving for a long time. Although at present I am experiencing unexpected situations that if I had not saved money, it would be difficult for me to solve it.
I work hard for the present and the future of my thirteen and twelve year old nephews and for my old age.
I have learned that enjoying life is not in the future only in the day to day. Thank God that he fills us with wisdom to understand things.
I also thank Satoshi for creating bitcoin because he gave us the economic freedom that we are enjoying. He gave us the freedom to choose, to speak up, and to be heard.

[Hydrogen]

Most traditional financial planning advice is pre internet era, dating back to the 1950s.

The modern climate shifted significantly. Job security declined. Taxes and inflation are much higher. The internet changed everything related to finding side hustles, investment and job opportunities. The best options many could hope for decades past was some type of stock market investment. That was the only action in town, so to speak. I think overwhelmingly a very high percentage of newly minted millionaires/billionaires are tech/internet related. That is where most of the money and opportunities are atm.

There are many stories about randoms who get bored and decide to learn to write a mobile app one day. Not long afterward they're doing very well financially. I seem to remember the creator of minecraft doing $300,000 in sales, per day, years back. Searching for side hustles through search engine or youtube. There are many angles and opportunities people don't mind sharing. The best method for someone physically attractive that has a life could be to run a social media account and gain as many followers as possible. Then sell merchandise, post affiliate links or do some type of promo.

[iamsheikhadil]

This is a good analysis and I appreciate it. However, when it comes to savings, I'm kind of repulsed by the idea of it because of uncertainty. Everyone of us actually assumes that one day we will get old, we will have healthy bodies, the world will still be the same and we will need money for our needs, but as they say, "there are many slips between cup and lips", I guess if I earn decent, I would just spend most of it enjoying the moment now, and then also do some charities and then look after my relatives, and then if some amount is still left, that would be for my retirement because who knows, I can just die in a car accident tomorrow. While this idea is very repulsive and out of topic, it's just how I think because savings is a big trending topic nowadays which I don't quite understand. But it's important, no doubt on that

I totally understand where you are coming from. It feels kind of wierd to save for 30 or 40 years in the future if we might not even be alive then. The world is such an uncertain place which makes investing for a long period of time very difficult. The big issue with long term investing is that we are able to take a lot of more risks with our investment decisions. If we only want to invest for the next 3-5 years we wouldn't really put all our money into stocks, but with a time horizon up to 40 years we can invest a lot of money into stocks. And over a long period of time, stocks tend to outperform all other asset classes.

I agree with it, investing when the future time is really far away gives us lots of room to invest in many options because time is money, and the more we invest in time, the more is the return, but to think of a saving plan for 30-40 years in future looks so scary, it's like I'm planning for my deathbed if somehow I survive by then. But we should be optimistic actually, if we put enough effort into our health and lifestyle, we can actually get a long healthy life without much risks etc