Bitcoin as part of a diversified retirement strategy.

[Female King]

The most important thing for me in retirement is sequence-of-return risk. If someone start retirement with a large allocation to BTC and faces a 50% drawdown. And is forced to sell that BTC to cover living expenses. Then even if his long-term thesis is correct but his retirement plan will suffer.

To me, the sensible approach is to keep relatively stable asset for necessary near-term retirement expenses. And keep your Bitcoin allocation at a level that allows you to tolerate volatility.

What you said here is reasonable, we should not use because Bitcoin is a hedge against inflation and forget that it is also a volatile asset that can rise and fall at any time which means that even if used a retirement strategy, it will require us to have an accessible means of income whereby we can use to attend to our daily needs while holding our bitcoin investment as part of retirement plan.

In a nutshell, having Bitcoin as a retirement strategy should also be accompanied with real life assets so that it can sustain our Bitcoin investment such that we won't attempt to sell at a time when the market is experiencing a downtrend.

Bitcoin as a volatile asset shouldn't only be what we should plan on as a retirement plan, we also need to plan on an investment that can also be generating income to us regularly so there can be what to depend on while accumulating bitcoin and what can also settle and sustains our daily life needs to avoid selling what we have accumulated over the previous times. Since the price of bitcoin can fall and rise and no one knows how the future will be it's better we shouldn't take in everything into bitcoin as a retirement strategy.

[Zaka1221]

Bitcoin volatility has reduced if we are been for real. I do think Bitcoin has high volatility until I experience how some stocks move with price, you should never let anyone discourage or discourage people not to invest in Bitcoin because of volatility. I wanted to think that since most retired people are old people, Bitcoin might be hard for them to keep but it's not that hard thing to do if you follow as instructed, if there is anyone that can keep things more private, it's mostly the aged people.

There is nothing anyone can't do with Bitcoin as their retire plan and it's better than what some people recommend for retired people. They do recommend that their money be kept as savings, imagine what the value your asset will be the same keeping it for 5 years when you can buy Bitcoin and hold it for as long as you like and I'm sure an average of 5 years in Bitcoin can make a good impact on the price of your investment.

Still many things are manageable with Bitcoin because now as its having more adoption its volatility is also reducing even things are still not easily predictable but peoples those are doing through DCA have better chance of staying on level and take benefit of this keeping money will never give anything in long run while peoples want to do take advantage they have good chance with Bitcoin.

Secondly understanding of safety and risk management is also key for having bitcoin in long run because too many peoples are facing troubling just because of they are not able to have enough knowledge of security and risk management despite many issues too many peoples around are doing good because they have enough changes into their lives through bitcoin which they were not expecting if they will keep staying with fiat which never give profit like Bticoin.

[Nheer]

The most important thing for me in retirement is sequence-of-return risk. If someone start retirement with a large allocation to BTC and faces a 50% drawdown. And is forced to sell that BTC to cover living expenses. Then even if his long-term thesis is correct but his retirement plan will suffer.

To me, the sensible approach is to keep relatively stable asset for necessary near-term retirement expenses. And keep your Bitcoin allocation at a level that allows you to tolerate volatility.

What you said here is reasonable, we should not use because Bitcoin is a hedge against inflation and forget that it is also a volatile asset that can rise and fall at any time which means that even if used a retirement strategy, it will require us to have an accessible means of income whereby we can use to attend to our daily needs while holding our bitcoin investment as part of retirement plan.

In a nutshell, having Bitcoin as a retirement strategy should also be accompanied with real life assets so that it can sustain our Bitcoin investment such that we won't attempt to sell at a time when the market is experiencing a downtrend.

It's sensible to actually weigh in on different investments and choose the one that best suits you. I think it's left to each individual to decide on what to invest in and how much should be allocated but then I also agree with you, that both outcomes should be carefully thought and see if it will be sensible to invest in Bitcoin. Just as it is a hedge against inflation it is also a very volatile asset and the outcome could go either way.

Bitcoin is a good investment asset that has very promising potential but shouldn't be carelessly used for retirement strategy. Retirement funds are mostly not funds we can risk losing so investing them in Bitcoin all could result into some emotional stress and might result to being sold when there is a massive dip. It's better to allocate an amount you can tolerate into Bitcoin and diversify into other investment. Bitcoin being the only retirement strategy might be too risky.

[Stalker22]

Bitcoin as part of a diversified retirement strategy can be a solid plan.  But we need to be aware of the risks, and adjust our investment portfolio accordingly.

The biggest risk, imho, is bad timing.  If you are forced to sell Bitcoin when the price has crashed, month after month, just to cover your living expenses like electricity and groceries, you will wipe out your savings for good.  Bitcoin might be a solid investment over time, but counting on it as a reliable way to protect your entire savings from inflation during retirement seems really risky.

Your electricity bills and groceries falls under your basic needs and not for you to sell your bitcoin to take care of it. This shows that you have used money for your daily needs to invest into bitcoin which is a wrong investment approach. Also, when investing into bitcoin for your future retirement plan, you need to have an emergency funds to take care of any unforseen circumstances that will play out at that period of your accumulation. I wouldn't agree with you that if I start my bitcoin investment with DCA and build it for ten years that if I sell a little portion am at loss regardless the market condition.

But we are talking about a retirement plan here.  How are you going to meet your basic needs if not from the wealth you have built for retirement when that time actually comes?  You are right about the accumulation phase, but there is a fundamental difference between managing daily expenses while working and liquidating assets during your actual retirement.

[Frankolala]

But we are talking about a retirement plan here.  How are you going to meet your basic needs if not from the wealth you have built for retirement when that time actually comes?  You are right about the accumulation phase, but there is a fundamental difference between managing daily expenses while working and liquidating assets during your actual retirement.

If you read the post that I quoted, you will understand why I said it like that. For example, if you start buying Bitcoin with DCA for ten years,  in ten years time the bottom of the bear market wouldn't have any effect of your profit based on the price you bought in the previous circle because in every bear market, the bottom price is always more than x2 the previous one which will definitely put you in profit regardless the price of Bitcoin at that time. It means that you can sell your bitcoin at any time to sort your bills if you have already retired. In 2022, the bottom price was $16k+ and anyone who bought from this price range to $30k range is already in profit at this bear market.

[Jegileman]

To be honest, I am now fully convinced that Bitcoin is a savings that provides financial security to people in their later years. Since Bitcoin is part of a long-term plan, a Bitcoin investor always has to maintain his portfolio and keep the portfolio intact for a long time, only then can they get the ultimate profit of Bitcoin. In that case, if a person continues to invest in Bitcoin, even if it is in the DCA method, from the beginning of his career until he is of working age, then in his later years, he will see that he is able to become financially independent in the future/retirement due to the sufficient amount of Bitcoin from his portfolio.

This is sounding very applause but not everyone can actually get to achieve this throughout their working times and then end up getting to reach a certain portfolio target at their retirement. The DCA method is a very good method but not everyone can still consistently do it because of their money inflow.

During the time the person is working, he may not get to achieve what he wanted because of inconsistency of not being able to save up as a result of personal problems. This retirement plan strategy is very lucrative but it could be hard for many people to afford achieving that because of the nature of economy of their place. The approach isn’t bad but the effectiveness of it is what is the big problem that could affect the result target after retirement.

[Smartvirus]

But we are talking about a retirement plan here.  How are you going to meet your basic needs if not from the wealth you have built for retirement when that time actually comes?  You are right about the accumulation phase, but there is a fundamental difference between managing daily expenses while working and liquidating assets during your actual retirement.

Would have loved to hear a little more on those talking points about, the fundamental differences in managing daily expenses and liquidating assets.

Retirement plans are essential for just anyone who has put in a lot of years in work. For the most part, our youth is meant to serve this purpose of stabilizing such a time when our strength and efforts can’t measure up.

Bitcoin would just be another strain because, it would require some management and wouldn’t be great for the faint hearted as a retirement plan. It’s a great asset no doubt but, if you aren’t built to handle market volatility, you would be toggled about the market movement and it would scare you on withdrawing to meet up with your needs at some point.

That’s why it would serve best to have a good number of options to support.

[stadus]

To be honest, I am now fully convinced that Bitcoin is a savings that provides financial security to people in their later years. Since Bitcoin is part of a long-term plan, a Bitcoin investor always has to maintain his portfolio and keep the portfolio intact for a long time, only then can they get the ultimate profit of Bitcoin. In that case, if a person continues to invest in Bitcoin, even if it is in the DCA method, from the beginning of his career until he is of working age, then in his later years, he will see that he is able to become financially independent in the future/retirement due to the sufficient amount of Bitcoin from his portfolio.

If bitcoin moves in the market the same upward pattern in the next couple of years, then simply buying and accumulating method or DCA will definitely guarantee financial stability in the long run. However, it may sound easy for us but others still struggle on how to continuously DCA especially if they suddenly lose their main source of income.

Consistency and discipline are the most important in terms with DCA, if you don't have that, you will never achieve the state of financial security and stability through bitcoin. Having said that, a lot have started buying and stacking bitcoin, but in the end only few have made it and succeeded in the long run.

[Tamaperdana]

Snip

In the long term though Bitcoin can be seen as a good diversification option for retirement funds, and the key could be understanding and learning how Bitcoin actually works.

In the long term, Bitcoin has tremendous potential, as it has already proven its undeniable strength as a powerful store of value. With that in mind, I believe we should no longer doubt Bitcoin, and investing in it is clearly a very good move right now. If someone were to invest in Bitcoin for retirement,, that would be a very good move. In the future, the price of Bitcoin could potentially rise significantly. This would ensure our wealth can continue to offset the never-ending inflation. So, yes, investing in Bitcoin can be a very effective solution for a more peaceful retirement. But not only that, I believe young people should also start investing in Bitcoin, as there's nothing wrong with investing. It's even better for young people to start investing in Bitcoin, as they can enjoy the rewards while they're still young.

[MarryWithBTC]

But we are talking about a retirement plan here.  How are you going to meet your basic needs if not from the wealth you have built for retirement when that time actually comes?  You are right about the accumulation phase, but there is a fundamental difference between managing daily expenses while working and liquidating assets during your actual retirement.

If you read the post that I quoted, you will understand why I said it like that. For example, if you start buying Bitcoin with DCA for ten years,  in ten years time the bottom of the bear market wouldn't have any effect of your profit based on the price you bought in the previous circle because in every bear market, the bottom price is always more than x2 the previous one which will definitely put you in profit regardless the price of Bitcoin at that time. It means that you can sell your bitcoin at any time to sort your bills if you have already retired. In 2022, the bottom price was $16k+ and anyone who bought from this price range to $30k range is already in profit at this bear market.

I carefully followed your conversation from the previous page and tbh, it's very interesting. There are factors you guys pointed out and I would want to highlight them again;

• BTC investment as a retirement plan
• Emergency fund
• DCA
• Liquidation of investment
• Duration of investment

@frankolala really captured everything, but I'll just reiterate.

For long term investment, I'll recommend min 8 to 10 years;
Emergency funds is a must;
You shouldn't investment with money for your daily upkeep. DCA is meaningful when it doesn't stress the investor and the investor remains consistent;
After some years of investment, selling little BTC doesn't liquidate the investor. What is life if you can't sell a bit from your investment?
Someone investigating for retirement should do that with a different untouchable wallet.

[hd49728]

I carefully followed your conversation from the previous page and tbh, it's very interesting. There are factors you guys pointed out and I would want to highlight them again;

• BTC investment as a retirement plan
• Emergency fund
• DCA
• Liquidation of investment
• Duration of investment

Emergency funds is a must;
You shouldn't investment with money for your daily upkeep.

Emergencies can come anytime and to be well-prepared, we need to reserve part of our money in emergency fund which can be used anytime when we have urgent needs.

DCA is meaningful when it doesn't stress the investor and the investor remains consistent;

DCA is a good accumulation and investment strategy because it does not require people who use this strategy doing either finding market tops, market bottoms, perfect times for entries and profit withdrawals.

This strategy eliminates or minimizes effects from human emotion, then is able to maximize profit while minimize risk and loss especially if applied with investment in a very good asset like Bitcoin.

After some years of investment, selling little BTC doesn't liquidate the investor. What is life if you can't sell a bit from your investment?

Profit taking from your investment portfolio, do proactively by you, is never considered as liquidation. Liquidation is passively unwanted selling by exchanges, not by yourself. It's forced liquidations by exchanges, to be more precise.

Someone investigating for retirement should do that with a different untouchable wallet.

Diversify that fund into different wallets: cold wallets, and backups on air-gapped devices too.

For long term investment, I'll recommend min 8 to 10 years;

Let's make your investment plan in Bitcoin market cycle so it should be either 8 years to 12 years. 5 years are like a safe holding time for profit of your investment portfolio according to https://hodl.camp/

[_act_]

Bitcoin as a volatile asset shouldn't only be what we should plan on as a retirement plan, we also need to plan on an investment that can also be generating income to us regularly so there can be what to depend on while accumulating bitcoin and what can also settle and sustains our daily life needs to avoid selling what we have accumulated over the previous times. Since the price of bitcoin can fall and rise and no one knows how the future will be it's better we shouldn't take in everything into bitcoin as a retirement strategy.

Bitcoin price can rise and fall, but after a long period of time, the price of bitcoin rise. That has been happening since bitcoin was created and it is still happening till now.

But you are not wrong that people can do business, but also diversify their retirement strategy by investing in other valuable assets. Gold, silver derivatives can be bought easily now which is good.

But among them, I prefer investing in bitcoin, but going into business is another thing. It is good to know that some people that also have business may give it to their children to run the business when they are old.

[Alpha Marine]

In the long term, I don't think Bitcoin can save you from that inflation.
I mean, if you save and get up to $1 million in Bitcoin after 15-20 years, the cost of things has gone up so what $1 afforded 20 years ago would be different from what it can afford now. SO even Bitcoin can't save you from that kind of inflation.
The $1 million in stock is still $1 million at any time. The difference is in it's puchasing power.
Yeah, I agree it's good to diversify and have Bitcoin as a retirement plan. It doesn't make sense to have all your eggs in one basket. It's good to have several asset class if you have the means

Yes for sure Bitcoin can be a part of your retirement plan but because of volatility having to depend on it,can be very risky. It good for one to be basically stable, even in having some assets for basic need or expenses will prevent you from selling your BTC at the wrong time mostly during market crash.

When talking about a retirement plan, why are you bothered about short-term volatility? Depending on how old you are right now, you are not going to retire till at least 10-30 years. Pick any number of years here; it would still be long-term, so what does the short-term volatility have to do with you?

[SilverCryptoBullet]

In the long term, I don't think Bitcoin can save you from that inflation.
I mean, if you save and get up to $1 million in Bitcoin after 15-20 years, the cost of things has gone up so what $1 afforded 20 years ago would be different from what it can afford now. SO even Bitcoin can't save you from that kind of inflation.
The $1 million in stock is still $1 million at any time. The difference is in it's puchasing power.

I don't understand you because inflation and purchasing power of fiat currency, US. dollar affect all assets, all people. There is no exception for stocks to be not affected by money printing, inflation and decrease of purchasing power of fiat currency.

However different markets and different assets will have disadvantages, advantages and different growth or loss in purchasing power over time with a same scenario of inflation and purchasing power of the US dollar for example. Like in the last market cycle, stocks market got more benefit than Bitcoin market when capital concentrated on stocks market than on Bitcoin market.

In a next market cycle, that can be changed or not changed, we will only know after the next market cycle finishes.

[Y3shot]

The most important thing for me in retirement is sequence-of-return risk. If someone start retirement with a large allocation to BTC and faces a 50% drawdown. And is forced to sell that BTC to cover living expenses. Then even if his long-term thesis is correct but his retirement plan will suffer.

To me, the sensible approach is to keep relatively stable asset for necessary near-term retirement expenses. And keep your Bitcoin allocation at a level that allows you to tolerate volatility.

Before retirees go into Bitcoin investment, there are things that need to be considered before investing. First of all, there needs to be a good plan of not expecting returns within a given time. One of the reasons why some Bitcoin investors succeed is that they invest to wait for the best return in the future and do not expect to make a good return in a particular timeframe.

Retirees need to make other plans aside from Bitcoin investment because this will also help the investment to go long-term. Some retirees don’t have any plans to generate income that they can rely on, and when they invest in an asset like Bitcoin, they look upon the investment to get a good return; when they can't hodl any longer, they end up selling their Bitcoin. At the stage of being retirees, the most important thing is how to generate income, and when there is a flow of money, it is possible to invest.

[Alpha Marine]

I don't understand you because inflation and purchasing power of fiat currency, US. dollar affect all assets, all people. There is no exception for stocks to be not affected by money printing, inflation and decrease of purchasing power of fiat currency.

Right now, I don't even understand what you're saying. Did you read what I wrote at all, or do you not understand it? Where did I say or insinuate that inflation does not affect stocks? Where did you see me insinuate that inflation doesn't affect all assets?
When you read something, try to read it to understand before you reply. No need rushing to reply to what you do not understand.

My point was that diversifying to Bitcoin is good for retirement, but it doesn't mean he would be immune to inflation simply because he saved in Bitcoin. Things will become more expensive so even if his beitcoin doesn't lose value, his purchasing power would be affected.

[hedgeh0g]

In the long term though Bitcoin can be seen as a good diversification option for retirement funds, and the key could be understanding and learning how Bitcoin actually works.

When I first saw that pension funds were actually already investing in bitcoin, I was very surprised. It's very cool that events that we previously only cautiously discussed are now reality. Not directly, of course, but for example in the USA they bought a bitcoin ETF. There was a very small share, literally 0.1 percent of the portfolio. Also in Japan, pension funds are exploring bitcoin as a new asset.

[hedgeh0g]

Retirement is usually a make or break period for a lot of individuals, as it is associated with accumulated funds when active, and how these funds are utilized becomes an important factor.

A lot of persons are waking up to a very troubling reality. At retirement, the number on the statement might look the same, but what that money can buy you keeps getting smaller and smaller, that's inflation working against these individuals.
Inflation doesn't always show up on a person's retirement statement, but it can quietly reduce what a person's savings are actually worth.

If your retirement is just in stocks and bonds, you're not diversifying, because when the market drops, everything moves in the same direction. One may then begin to explore a course of action that can harness value during a period of inflation and recession.

In exploring a diversified retirement strategy, you can see Bitcoin playing a great role alongside assets like gold, bonds and real estate.
You can partially rely on Bitcoin to hedge against inflation because of it's scarcity through fixed supply, and another factor is that it's not tied to a particular national currency. So $1 million dollars is $1 million dollars, wherefore the depreciation of one local currency doesn't need to affect the value of your BTC if it's considered an option. This alongside a host of other merits.

However, you can't talk about merits without mentioning demerits. Diversifying retirement funds in Bitcoin would not necessarily guarantee an hedge against inflation especially in the short term, as Bitcoin can experience volatility influenced by factors like liquidity and regulation.

In the long term though Bitcoin can be seen as a good diversification option for retirement funds, and the key could be understanding and learning how Bitcoin actually works.

When I first saw that pension funds were actually already investing in bitcoin, I was very surprised. It's very cool that events that we previously only cautiously discussed are now reality. Not directly, of course, but for example in the USA they bought a bitcoin ETF. There was a very small share, literally 0.1 percent of the portfolio. Also in Japan, pension funds are exploring bitcoin as a new asset

In general, I think bitcoin is great as a means of diversification, because then the investor does not take on all the risks of volatility, but only partially. But as an investor, I invest in bitaoin completely, for example, I bought 60k each.