A bitcoin retirement plan with a disturbing length of years.

[AmoreJaz]

Most people hold their retirement funds in fiat currencies, even though fiat is prone to a high level of inflation, confiscation by the bank or government or a collapse of the financial institution that is holding the funds, but yet people save their money in fiat for longer than 16 years and do not consider it to be ridiculous.

There's nothing ridiculous about holding and accumulating BTC for 16 years, BTC gives the person control of their funds, it is censorship resistant and permissionless and as long as the person owns the keys and do not lose it, the funds will be safe, so it is a better choice for long term holdings. If you're worried about what BTC's price will be at that time, it isn't possible for anyone to know, but because the supply will continue to reduce and because of the usefulness of BTC the demand will also continue to increase, then surely the price will be good even at that time.

what i see on this situation is his friend can always change his approach in the years to come. since he is regularly updated with the crypto market as they have regular discussion, his strategy may change depending on what will happen in the market in the years to come. so for me, there's nothing to worry about his friend's current plan for his bitcoin. let him assess the situation later on. because what he's planning today may not be absolute. as he is also into this market, he is amenable to other options later on.

[1714601955]

1714601955

[lalabotax]

I have this colleague of mine at workplace who is a bitcoin enthusiast just like me. Often times at work when we're less occupied with our job we kind of spend such moment's  discussing about bitcoin generally. Two days ago he was telling me about his plans to start buying BTC with 20% of his salary every month for the rest of the years he has to retirement that's when he will then take it all. And based on the company total years of service he has 16 years left to his retirement.

Actually this is not a bad idea, as long as he can manage money and set it aside to invest in Bitcoin, and already understands the various conditions of Bitcoin, then there's no problem. However, this is a bit risky. However, for the long term, this will be more valuable. Even though there may be pros and cons, how big is the target time and price that might be obtained. Or by taking profits every bullrun and buying back again when it is bearish. This became one of the possible strategies he thought of.

[Bushdark]

I have this colleague of mine at workplace who is a bitcoin enthusiast just like me. Often times at work when we're less occupied with our job we kind of spend such moment's  discussing about bitcoin generally. Two days ago he was telling me about his plans to start buying BTC with 20% of his salary every month for the rest of the years he has to retirement that's when he will then take it all. And based on the company total years of service he has 16 years left to his retirement.

Actually this is not a bad idea, as long as he can manage money and set it aside to invest in Bitcoin, and already understands the various conditions of Bitcoin, then there's no problem. However, this is a bit risky. However, for the long term, this will be more valuable. Even though there may be pros and cons, how big is the target time and price that might be obtained. Or by taking profits every bullrun and buying back again when it is bearish. This became one of the possible strategies he thought of.

I see it as a good move but it is also good for one to understand the path he is going but he start regretting that at the 11th hour. We should never take a decision for us to impress people around us to see that we are making a good us of the knowledge we have rather than looking at the risks that are involved so that we can know how we can balance it to make a perfect decision. If op know that this decision is not going to affect him when the time finally arrived even though the price of Bitcoin drop to cents.

[Issa56]

With the way he was talking to me about it he appears to know exactly what he's about to do and how its going to end for him. But for me his idea has left some apprehension and questioning in my head due to the length of years (good 16 years) he is going to keep up with. From my angle the years are too much as no one can certainly say for sure about what the future of cryptocurrency and bitcoin holds despite how positive it could be looking today.

I don't see anything bad in his plans, the only thing i will tell him is that if the 20% which he is planning to be saving is going to affect him, then he should reduce it, don't hurt yourself because you are planning to make investment, if he can be accumulating bitcoin for 16 years then after his retirement am sure he will enough money in his wallet, because the more he keeps on buying, the more bitcoin keeps on pumping, so his money will be increasing. Am sure you are scared about what might happen in future, but some people that were scared when bitcoin was created are regretting now.

In my opinion I wanted to talk to him with a logical conclusion why he should reduce the length of years, not to do it at a stretch of straight 16years he has in mind without applying risk management technique, maybe by splitting those 16years into four interjecting years. As in he should in every 4 years be taking 50% of whatever total amount plus profit  till it gets to the 16years he planned. At least in worst case scenario this method could save him something reliable to fall back onto.

When bitcoin was created, some people bought bitcoin and after bitcoin price went up a little bit, most of then sold their bitcoin, but am sure their are some people that will be holding bitcoin since it was created up till now, even if the will be few, just imagine the massive profits they will be. If you are in this life then you are not planning to take risk then you wont really achieve anything serious. You are thinink 16 years is much and you don't know what will happen to bitcoin before then, but am sure nothing will happen to bitcoin, the only thing that will happen is that bitcoin price will have pumped hard, but am sure bitcoin have come to stay and its not going anywhere.

[serjent05]

All the plan is good, a 16-year savings plan through Bitcoin investment is really good as long as Bitcoin delivers.  In a cynical mind, it is quite risky because we don't know about the future of Bitcoin.  What it will be for another decade and six years.  So I applaud your friend for his braveness if ever he walks the talk and invests his 20% monthly income in the unknown future of Bitcoin.

[Blitzboy]

Your associate is rolling with a straightforward "Buy and Hold" Bitcoin tactic, betting on the long game of the crypto world. Yet, his 16-year wait game to liquidate is too basic, missing layers of complexity. Suggesting the division of the 16 years into four-year cycles is strategic, echoing the 'rebalancing' concept. This could cushion profits and minimize risk exposure. However, educate your colleague about the tax fallout and fees accompanying such cashouts. As in all money matters, he should consider getting an expert's opinion.

[someone703]

I realized one thing in life as well as looking at this market, the fact that no one can be sure about the future of cryptocurrencies and especially the value of Bitcoin. Therefore, coming up with long-term investment plans for cryptocurrencies needs to be considered and scrutinized. It should be noted that investing in cryptocurrencies is still a risky game, and it is not the right choice for everyone. If your colleague already has a plan and hopes for a good outcome, you can think about sharing with him some notes or backup funds in your successful investment process to help him, we maximize our decisions and minimize risk.
Your idea to reduce the length of your colleague's investment year is a way to reduce risk and break down the investment money into smaller investments year by year. This can help ensure that he doesn't lose too much money in the event of an unexpected event. And also help him control his investment in a better way.

[Findingnemo]

I have this colleague of mine at workplace who is a bitcoin enthusiast just like me. Often times at work when we're less occupied with our job we kind of spend such moment's  discussing about bitcoin generally. Two days ago he was telling me about his plans to start buying BTC with 20% of his salary every month for the rest of the years he has to retirement that's when he will then take it all. And based on the company total years of service he has 16 years left to his retirement.

I don't doubt the existence of Bitcoin in the next 16 years but if that 20% is the amount that he planned to use as retirement fund then I would suggest the diversification of that 20% among different assets and if he is not that much then atleast into gold so he may have something to not worry if Bitcoin is not expected grown. Or as you said taking out the profits after every cycle and invest them on other assets also good idea so it all comes down to our financial management skills.

[umbara ardian]

This is really not bad if he has a plan for the monthly investment of his salary. But actually doing this for 16 years is really just too basic to just buy and hold bitcoin. Yes, this can give you a sense of security, but you won't know the details of your investment year by year until the end of the 16 years. Instead, I think you should determine the amount you spend based on how the bitcoin price fluctuates on a monthly basis. Percentage as well as volatility can be effective in looking at your monthly expenses when you want to check them.

[AbuBhakar]

How do you guys think about this idea of mine for my colleague? Can it really be helpful to him in the long run or it may just obstruct his original plan killing the whole idea?  Please all opinions are entertained but whatever your opinion might be, also try to put the length of years involved into consideration.(16 years)

Your friends good, The years of retirement doesn't since you will have a lot of time to buy Bitcoin in different prices. There's no guarantee too that he can keep up on that straight 16 years when Bitcoin price increase to the new high. Lenght of investment is crucial when we are talking about retirement plan, I think it's better to add more years as much as possible to maximize your savings since this fund is your last source of money once you are not working anymore.

No one really knows what will happened on crypto but atleast he is just allocating 20% to bet in the Bitcoin future which means he still have money left for himself in worst case scenario.

[imamusma]

OP, your friend has great plans for his future and how he's preparing for his retirement.
But the question is, how can he do it consistently with 20% of his salary every month? It's hard for me, of course.

Maintaining a consistent plan is very difficult because the needs that must be met are sometimes never the same from month to month. There are times when you can't save 10% of your salary in one month, sometimes your salary is not even enough because you have to spend it on something very urgent. So I never thought about doing it regularly, but I probably will when I can save some money. Anyway the idea is good, but consistency is not mandatory because you also need to maintain a balance between needs and investment plans.

[kamvreto]

OP, your friend has great plans for his future and how he's preparing for his retirement.
But the question is, how can he do it consistently with 20% of his salary every month? It's hard for me, of course.

Maintaining a consistent plan is very difficult because the needs that must be met are sometimes never the same from month to month. There are times when you can't save 10% of your salary in one month, sometimes your salary is not even enough because you have to spend it on something very urgent. So I never thought about doing it regularly, but I probably will when I can save some money. Anyway the idea is good, but consistency is not mandatory because you also need to maintain a balance between needs and investment plans.

You have to see how much salary you get and what your lifestyle is. Everyone will not be disturbed if they do not have dependents every month and the salary they have is only used for themselves, not for other important needs. For those who have many dependents every month and have to pay for the needs of their wife and children, it will be difficult. setting aside just 10% of the salary is quite a lot, but sometimes there is nothing that can be set aside due to emergency needs. Buying bitcoins every month consistently with money set aside for salary is a good idea, but needs adjustments to all conditions. If it's consistently done it's the same as connecting, but with Bitcoin investments that have the opportunity to go up and provide benefits.

[ajiz138]

OP, your friend has great plans for his future and how he's preparing for his retirement.
But the question is, how can he do it consistently with 20% of his salary every month? It's hard for me, of course.

I can imagine that it is difficult to stay consistent with 20% of his total salary, with a journey of 16 years it is not a short one but on the way everything will not go smoothly according to plan, there are always urgent needs every month.

You have to see how much salary you get and what your lifestyle is. Everyone will not be disturbed if they do not have dependents every month and the salary they have is only used for themselves, not for other important needs. For those who have many dependents every month and have to pay for the needs of their wife and children, it will be difficult. setting aside just 10% of the salary is quite a lot, but sometimes there is nothing that can be set aside due to emergency needs. Buying bitcoins every month consistently with money set aside for salary is a good idea, but needs adjustments to all conditions. If it's consistently done it's the same as connecting, but with Bitcoin investments that have the opportunity to go up and provide benefits.

How much salary and lifestyle is of course that is a factor plus if they are already married and have children who are already in school of course the dependents will be even greater, usually the basic monthly salary will be very limited if someone who already has dependents in them will paying more each month for settled needs.
Emergency money must also be prepared in times of urgency so that an emergency fund will be our savior in an urgent situation.

I know that everyone, even though they are married, has a frugal lifestyle plus a large monthly salary, for example, of course they can set aside a little for bitcoin, if their salary is above $1500 I think they invest a little in bitcoin.

[Hyphen(-)]

16 years of saving 20% of his salary into BTC may be a wrong and risky move because of the uncertainty. I feel he should not dive into this if the saving is really towards retirement.

Although there is a risk behind this, I don't think it is the wrong investment due to the future we see in Bitcoin. This is a great plan, and I am sure he will benefit from it.

I will also suggest that he can do like 5% in BTC for the duration of 16 years(Take the interest as often as possible) In my own opinion,20% is too high. However, if the retirement plan stated above is not available in his workplace then he should invest 15% out of the 20% in a more secure investment because he's saving towards retirement while 5% goes into BTC.

20% in BTC investment is not a poor idea, nor is it a risky investment, as you are saying.

This demonstrates to me that you did not trust Bitcoin, which is why you are concerned about investing 20% of your salary for the next 16 years.
Remember, the employer should have a fixed retirement savings account; hence, if he risks investing 20% of his salary for the remaining period, he has a very good strategy to have enough money to spend after retirement.

[Riginac111]

I do the same because i also budget a few per cent of my salary to buy bitcoin every month but in this case the difference is probably in terms of plan.

i have thought of this before but i was sound knowing bitcoin proper, now I want to tell you that Bitcoin investment that you are not interested to sell within short space of time I wish to join deducting a specific amount of my salary to purchase bitcoin everyday or months received salary, i believe that with such i will have so many bitcoin since I'm a fresher in bitcoins investment, by the time I have stayed up to three years in buying bitcoin every month i received salary for three years i would Have make a lot saves through slow buying and investing in bitcoins.

I want to ask if it's good for somebody to use half of it's saves to invest in bitcoins, will the person make it in bitcoins industry or it's good for someone to start small in bitcoin investment with little capital because of lose that is involve for Bitcoin investment, in my local environment some of us is discourage of bitcoins because of the negative information people has been telling of bitcoins, i know that with this forum i will understand the necessary information I need to get exploit in bitcoins and fall back to base and transpired the information of bitcoins to them in different way.

Learning is a continuous process

[yhiaali3]

Holding Bitcoin all this long time may be a bit exaggerated, but perhaps from your friend's point of view he is looking for a comfortable retirement and he sees that the price of Bitcoin at that time will rise dramatically to achieve this comfortable retirement.

But in my opinion, this long period can be divided into at least four stages. He can sell 25% of his Bitcoin every four years, for example, after each halving, as the price of bitcoin is expected to peak, then he can buy a larger amount after the correction or keep the profits if he wants.

[royalfestus]

Retirement planning involves careful consideration of multiple factors. Age plays a crucial role as it determines the investment time horizon. The financial goals should account for the risk associated with approaching retirement. It's beneficial to diversify investments to both stimulate personal growth and secure additional income sources. Furthermore, healthcare expenses, which can vary by country, must be factored in, particularly during old age. The size of one's family and any dependents should also be taken into account. Lastly, both the current and desired future lifestyles need to be considered when planning for retirement.

[Fiatless]

16 years is not a disturbing number of years, it's a regular number if you're thinking long term investments. If one is not certain what it could look like in 16 years then you are equally not certain how the next day or week would affect the currency.

We sometimes refer to how cheap it was 10-12 years ago, but to have been able to benefit from the price increase you need to have held for a long period of time, close to the retirement plan of your friend.

Sixteen years is not too much if he can be able to afford it. If investing 20% of his salary wouldn't affect his expenses, then it not a bad decision.  If he has a family it shouldn't affect the provision of the basic needs and other key expense. It should also be fund that the individual can afford to lose. It is risky to keep it that long but the benefit is commensurate with the risk. Every business has risk, recently a new government in my state began to destroy buildings that was allocated by the former government. So real estate also has risks. When I checked how much people bought bitcoin few years ago, I always wished I bought the coin long time ago. So in order to avoid regret, keep as much as you can afford to hold.    

[Outhue]

I don't know how big that 20% of his salary is but that's a good investment plan, because the whole 80% is available for him to use or spend on other things, I don't see anything wrong with his plan, there is only one advice that I can give someone like your friend, and that's if or when Bitcoin makes a new all time high, he should not sit on the gains because he planned for 16years accumulation, he should take profits and buy back when Bitcoin faces some difficult time again, there is no point accumulating Bitcoin and watching is shoot through the roof and you just keep staring at your Bitcoin wallet for what it has become, take profit.

There are other things he can use part of the profit for, just for a promised future sake, like other business that will run in his name?

Yhiaali3, he doesn't have to sell the 25$ of his Bitcoin in bull market, I except him to sell everything for USDT, his retirement plan will be fulfill in a short period of time doing this, after selling all the Bitcoin, he should wait for the biggest correction and buy again, it's like selling at 67,000$ and buying back at 17,000$, he will have more quantities of BTC using this method.

[Jawhead999]

I mean it's just his choice, why you bother and you need to change his decision?

It's true we don't know about the future and what will Bitcoin looks after 16 years, but he has a control over his decision, it's not like he's programmed to buy Bitcoin every month for 16 years. If Bitcoin hacked, get banned by every countries and the price went to $1, he will rethink to keep DCA-ing Bitcoin.

He can just stop after 5 years or 10 years etc.