How much Bitcoin do you need to retire?
How much? Bitcoin, do you truly need to
retire? Do you need one Bitcoin .1
Bitcoin .01 Bitcoin .0001 Bitcoin?
What if I told you that no such magic number exists, and that
you may want to avoid this mindset altogether?
It it depends on how long you can hold it, but I think it'll
have infinite purchasing power eventually.
Stick around to the end of this video and you may just change
your tune about retirement altogether.
I emotions. This is beyond Bitcoin, truly
beyond Bitcoin. Let's dive in.
We're all after the same thing, an easier, more thoughtful life
that allows us the freedom to do what we want, when we want.
The desire to retire has never been stronger with the influx of
the boomer generation and Gen. X reaching retirement ages, it
has the rest of us thinking when is our time.
But with the current economic landscape, rise in the cost of
living in all kinds of economic uncertainties, many of us are
understanding more and more that retirement will be out of reach
for good. But here's some good news for
those of you who are holding Bitcoin.
Traditionally, when we think about retirement, we're thinking
passive income, lake house, property, fishing.
But there's a couple of problems with this approach.
Number one, on average, what happens to the health of those
who retire? And more importantly #2 what
happens when your retirement plan doesn't compensate for the
rate of inflation? This makes me think of all kinds
of questions. One important one is, if the
currency is getting debased at such a rapid rate, should we
really be looking to retire at all?
You do know we're getting debased, right?
Trump wants to cut rates. Are there.
Things. Are there things the chairman
can say to you today that would make you back off some of the
earlier criticism? Well, I'd love him to lower
interest rates. Other than that, what can I tell
you? Our country's going to make a
lot of money. We would be helped if interest
rates would come down, but we're going to see how the board rules
on that soon. I I'd love to see them come down
a. Lot.
Doesn't that mean like money printing or something?
I mean, this is a serious question.
What do you think, Michael? You know, if we take, for
example, during the pandemic, the the response of the
political apparatus was to lower interest rates to zero and to
start start buying assets, in essence printing money.
And the defense was there's no inflation.
Yeah, but of course you had one part of the economy where it was
locked down, so it was illegal to buy anything.
But you couldn't, you know, it was either illegal or it was
impractical. So it would be impossible for
demand to manifest. So of course there is no
inflation. On the other hand, there was
instantaneous immediate inflation in another part of the
economy. For example, you lower the
interest rates to 0. At one point we saw the the swap
rate on a 30 year note go to 72 basis points.
OK. That means that the value of a
long dated bond immediately inflate.
So the bond market had hyperinflation within minutes of
these financial decisions. The asset market had
hyperinflation. We had what you call AK shaped
recovery, what we affectionately call a shake K shaped recovery.
Main Street shut down, Wall Street recovered all within six
weeks. The inflation was in the assets
like in the stocks and the bonds.
You know, if you look today, you see that typical house according
to Case Shiller index today is up 19.2% year over year.
So if you're a first time home buyer, the inflation rate is
19%. So retirement sounds like the
dream that we've all been waiting for, the freedom to
relax, the freedom to do what you want.
But if your monthly stipend is the same and cost of living is
increasing, what will your retirement look like
incrementally? Anyone got a chart on that?
Retirement is fine, but do you have a survival plan?
These past few years have been crazy for natural disasters,
solar flares, and power grid failures.
I bet you want to be prepared for all that right?
When your lines of communication are cut by
traditionalmeanssat123.com. Is there SAT 123.com offers a
variety of satellite phones, Faraday bags and power solutions
for those times of crisis so you can reach your loved ones or
local agencies in a time of need.
Go to sat123.com and use the promo code simply for 15% off
your purchase. 15% Wow, that's pretty good.
Disaster comes at you fast, but with sat123.com you will be
prepared. Now I want to go back to another
question. What happens to your health on
average when you retire? Today I would like to talk to
you about how under certain circumstances, retirement could
speed speed up aging of our brain.
It would make us slower and more forgetful, and ultimately it
could increase our risk of Alzheimer's disease.
This study, called the Path Through Life project, started in
about 2001. Since then, the participants
have been contacted every four years.
And today I'll show you data that's been all the way through
the 4th data collection that occurred in about 2015, when the
oldest participants were around 77 years old.
I mentioned earlier that retirement could be a trap.
To show you what I mean, I want to use changes in memory
performance or in our ability to remember things.
As an example, to test memory, the participants were asked to
repeat back words that were just read to them.
They were supposed to repeat as many as they could.
The words were sort of random and from unrelated categories
like tools, fruit, kitchen utensils.
So the task was quite challenging.
If you look at the slide behind me, the horizontal line at the
bottom shows you ages of the participants across this
longitudinal study. And the vertical line on your
left tells you how many words people actually recalled.
And here are the results. What you see that at the
beginning of the study, these participants were most likely to
recall close to 8 words. Later on, about 12 years later
in fact, they were more likely to recall closer to 6 words, and
this is quite normal and not bad.
Now the story gets more interesting when we separate
scores obtained when people were still working from scores
obtained when people were already retired.
What you see is that the decline in memory was almost exclusively
restricted to the scores obtained when people were
already retired, whereas those who continue to work showed a
pretty stable performance. Something seems to happen around
the time of retirement that could make people more
forgetful. Let's look at this from a
slightly different perspective. OK, Let's say that we're all
members of the same bank, all of us here.
Let's call it the the Bank of TEDx, OK?
And we each get $14140 every day.
Not for anything we actually do. We just get the money deposited
into our account and we can do anything we want with it.
Just imagine the possibilities. But every night, whatever we
don't spend or invest into something disappears.
But the next day, voila, a brand new deposit of $14140 again
appears in our bank account. So we can have some fun.
Well, as some of you may have already figured out, I'm talking
about the 14140 minutes that we get in every day.
It's a gift. When we work, we devote some 500
of these minutes every working day to work.
When we retire, well, guess what?
We even get to keep these extra 500 minutes instead.
Nice, right? Well, maybe not.
It seems like when people enter into retirement, sometimes they
become tempted not to invest enough of their time into things
that are challenging. They sort of drift into a
permanent vacation, and as they go on this really long vacation,
guess what? They fall into the retirement
trap. Research suggests retirement may
increase risks like with depression and cognitive
decline. It seems likely that staying
active and purposeful can mitigate these health drawbacks.
But the evidence leans towards retirement posing challenges
like social isolation and reduce mental stimulation.
The current economic landscape of the S&P 500 at record highs
and Bitcoin at $120,000 might encourage retirement for those
with strong portfolios. But inflation is at 2.7% on
paper, and lower knows how much it is in reality.
Let's say you come up with a number to retire.
You put all of your calculations inside of some sort of retiring
calculator and you come up with a number.
And let's say you achieved that number.
Problem is, do you know what the economic landscape will be when
you do? No way.
Here's some figures to think about while you're considering
retirement now in your 30s and 40s.
This chart estimates costs of healthcare over time for
retirees from 2002 to 2018. This is before the big print.
In 20/20/2002 had $160,000 estimated for health costs for
retirees, and in 2018 $280,000. That's a 75% increase.
Not only is this metric rising 75%, but that's not compensating
for the fact that cost of living itself has gone up dramatically.
Groceries, automobiles, vacations, all of these things
are costing more money as time goes on.
Here's another chart from Business Insider that I thought
was a little funny. This chart shows that how much
in millions you'll need to retire based on the desired
salary you want to earn annually, and this estimates at
a 4% withdrawal rate every year. You're supposed to be
withdrawing 4% of that Piggy Bank of income that you have,
but the inflation rate is already at 2.7% on paper and we
don't know what it is in reality.
In fact, inflation probably is calculated a lot closer to what
your personal situation is and where you live and the cost of
goods in your local area. This chart already shows you
that if you want to earn 100 KA year, you'll need $2.5 million
to save. Or if your desired income is 250
KA here, you'll need to save $6.25 million.
Now, that's in today's prices. What's funny about that is that
what happens when the inflation rate goes up?
What happens to that $6.25 million?
Does $250,000 mean the same now as it does in five years?
My guess is no. So we can see that the big
problem here with the traditional way of thinking
about retirement and even Bitcoin retirement calculators
is that none of these models can factor in the uncertainties of
existence. And man, do we have a lot of
uncertainties. These can be internal and
external. What do I mean by this?
You're sitting here with your retirement calculator trying to
fix your mind on a particular number based on this particular
situation at this moment in time.
So you do everything you can to achieve this golden number
you've come up with. You take extra shifts, you cut
spending, and you make a series of choices based on the
assumption of constants. Then the unthinkable happens.
A lost job, an added monthly expense, a giant medical bill.
The list goes on and on. Of unfortunate circumstances
that could upend your retirement plans.
Also, the inverse is true. Say you get a better paying
position, or a hefty bonus, or a massive inheritance from an
unknown auntie. Suddenly you're stacking and
retirement goals shift and you start thinking about not just
your own future, but the future of those around you.
The point is that whatever economic position you are in, it
is subject to change, for better or for worse.
So really, the question about how much Bitcoin is needed to
retire and at what age might be the wrong question entirely.
Instead, I would encourage you to take a far more flexible
approach. Every day is a Bitcoin stacking
opportunity and based on the fundamentals that we all know,
Bitcoin will continue to rise against the dollar.
I don't think we were meant to retire.
What happens to a car when it retires on the front lawn?
Same thing that happens to you when you retire.
Atrophy and entropy. So instead I would say stack
often but not at the expense of your life.
There is no magic number out there and the future is
uncertain. Thank you so much for watching.
But real quick, with SAS mining.com you don't have to
wire up a warehouse or babysit humming rigs.
No, they place your ASIC on renewable powered farms, handle
the maintenance and stream the SAS straight to your wallet.
So you're stacking and not stressing.
Think of it as a set in, forget it DCA.
Every block adds a little bit more sound money that you earn
and not bought. If you believe in sovereignty,
SaaS mining turns that belief into hash rate.
Claim your plot on Bitcoin island.
Go to saasmining.com and book a call with one of their expert
team members today so you can start mining immediately.
Guys, thank you so much for watching.
If you like this content you want to see more, make sure you
drop a like at the bottom or you can subscribe to the simply
Bitcoin channel for more content like this.
We're coming out with it every single day of the week.
Also don't forget to hit that notification bell emotions.
This would be on Bitcoin. Until next time.