Bitcoin is the new retirement strategy
This is an opinion piece by Robert Hall, content creator and small business owner.
Do you dream of one day retiring? You work all day and work hard to grow your business or do a great job for your employer to get promoted and earn more money. What are we supposed to do with our paychecks after the bills are paid, the food is on the table, and the kids are taken care of?
Conventional wisdom tells us that we should save for retirement to take advantage of our “golden years”. This is not bad advice in itself because we cannot continue working indefinitely. Having money to rely on after you stop working is prudent financial planning. As you know, an entire industry is dedicated to planning your future.
Most financial advisors will tell you to put your money in a 401(k) and let it grow over time. It worked for millions of Americans. For example, the 10-year annualized return of the S&P 500 was 14.25%. It’s not bad when you take it at face value, but once you take inflation into account, this number becomes much lower. Instead of reaping the entire 14% gain, your inflation-adjusted purchasing power is closer to 12% after taking into account the Federal Reserve’s target of 2% inflation each year. . If inflation continues as it has this year for an extended period, your retirement savings might look a lot smaller than you thought. This 2% loss also accumulates from one year to the next along with your earnings; keep that in mind.
It is not fair ! Why should we suffer because of the monetary policies put in place by the Fed? Mind you, we never voted for any of these jokers causing so much difficulty for us and the rest of the world. The Federal Reserve’s policy of printing trillions of dollars and buying government treasuries creates an unsustainable situation that could lead to the dollar’s monetary collapse.
Everyone thinks it can’t happen here, but it can. No one is immune to stupidity and pride. Jerome Powell and the rest of the Federal Reserve fell into the wrong situation. Do they honestly think they can control the economic life of millions of people? How crazy do you have to be to believe that? Once people lose faith in the dollar, it’s all over, folks, and that day is coming sooner than you think. Inflation raging at a 7% clip is a good way to scare people away from the dollar. I’m not saying it’s imminent, but the general trend is not good for the United States
So, with all this economic turmoil, how do you effectively save for your retirement?
Bitcoin is your new retirement account
Bitcoin is the perfect vehicle for retirement for a variety of reasons. The first is that it is designed to enjoy in perpetuity. There are only 21 million pieces that will ever be produced. This is called an inelastic supply. This means that as the demand for bitcoin increases, the price of bitcoin will also increase due to the scarcity of supply. Did you know there was a estimated at three million pieces lost, so the total supply will be closer to 18 million by the time the last coin is produced in 2140?
Bitcoin’s inelastic supply is exactly what you want to see in a retirement fund asset. Investing your retirement savings in Bitcoin will secure your future retirement needs to the point where you can live comfortably.
Bitcoin is the perfect retirement vehicle because you control your assets, not the bank or an asset manager. Believe it or not, none of these actors have your financial interests at heart. Banks and asset managers are on a mission to make money for their business and for themselves. That means there’s a whole lot of hidden costs that you have to pay them to manage your money. This hides the true cost of saving your money with a bank, and they will go to great lengths to make sure you don’t completely understand all the charges. These entities want to take your money and keep you quiet.
When you compare this experience to buying and holding bitcoins, the experience couldn’t be more different. The price of bitcoin is transparent and the fees associated with buying, selling and sending to a non-custodial wallet are not hidden. This price transparency gives you a better idea of how much you are spending on fees. The cost of holding your bitcoin long-term is meager. Buy a hardware wallet for cold storage and you’re good to go. There is no ongoing cost to store your bitcoin wealth. The money you save on fees alone by investing in bitcoin instead of a 401(k) or IRA will accumulate over the years.
What cannot be underestimated is the fact that you control your wealth, not your pension administrator. The economy isn’t exactly great right now, and with inflation soaring to 7%, having easy access to your wealth in times of crisis will make all the difference. Can you imagine a bank run where you can’t withdraw money? Can you imagine your stock portfolio dropping to zero? It can happen to all of us. Lebanon is a good example of what can happen when the debt bomb explodes and everything becomes unaffordable. You are going to wish you had bitcoin! Luckily for you, it doesn’t have to end like this if you’re buying bitcoin now.
Giving up a 401(k) or an IRA may seem like a drastic idea, but have you stopped to think about why you invested in a 401(k) in the first place? What benefit do you get other than having money in retirement? The most obvious reason, besides having savings for the future, is the tax breaks you get by investing your money in the stock market.
I understand; it becomes very interesting when you can deduct your pension contributions from your tax payable. You are bound to do it if you think about it. The government tells you that it will take more money away from you if you don’t invest your money in the stock market. Retirement investing is not entirely a free will choice.
If there were no tax breaks, would you save for your retirement? Is retirement even a concept? That’s for another article, but you understand my drift.
Saving for retirement with bitcoins in self-custody won’t earn you any tax deductions at the end of the year, but you have the security of knowing that your wealth is fully secure and appreciating. I would be happy to make this tradeoff any day of the week. Who would you rather be in control of your wealth? The big banks or yourself? What do you trust more, Bitcoin or stocks? This is the choice we all have to make.
This is a guest post by Robert Hall. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.
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