In the FIRE community there’s something called a safe withdrawal rate. As long as your annual expenses under that (traditionally 3-4% of nest egg) you’re good to last through 30 years through most simulations. A poor early sequence of returns (market dips as soon as you retire) can sometimes complicate things. If your living expenses are even lower then naturally your nest egg will increase despite being retired.
This presumes you have no other income and have to sell your bitcoin rather than borrowing against it.
Borrowing against it is the new cycle strategy
Can you share how to do it actually?
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For clarity, I DO NOT:
I do:
Who wants to retire anyway? I imagine that is boring.
When I think about "retirement", I usually think about financial independence
Same here
Yes I also look at retirement as I can go do whatever I want even if there isn’t a financial benefit to the work as you have that side sorted
Depends on what your job is I suppose.
That's pretty neat and very encouraging.
Impossible to read 👍
Maybe a separate plot for each set of retirement ages.
Shouldn't retiring at 35 require a larger amount than someone retiring at 55 or 75? They have so much longer to live.
In the FIRE community there’s something called a safe withdrawal rate. As long as your annual expenses under that (traditionally 3-4% of nest egg) you’re good to last through 30 years through most simulations. A poor early sequence of returns (market dips as soon as you retire) can sometimes complicate things. If your living expenses are even lower then naturally your nest egg will increase despite being retired.
No, because they are more likely to get hooked on drugs and alcohol and die early.
So for someone 36 could pack away the work boots with just under 1 bitcoin and retire at 45 if they are wanting 50k living is that how you read it
Good thought it’s a bit busy. I prefer financial independence. Retire and do nothing and die!
If only one would have so many BTC
Very cool chart! Can you provide a little more detail around the assumptions?
Is there a particular % increase annually you used in the model?
I see the note of 50% power law regression, is there a place we can see the annual % increase or bitcoin price assumed in this regression model?
Also, is the assumption that one sells bitcoin equal to the stated "Annual Living Cost"? Is that a pre/post tax figure?
Thanks for sharing this, very interesting!