ScaredyCatGuide Says the Masses Look at Retirement All Wrong!

in #leofinance7 months ago

It is crazy the way the masses have been trained to think. Trends that become the norm one way or another and then somehow they last generation after generation.


Retirement isn't an age, it's a number!

Most people, well mainly the 9 to 5ers thing about what age they will work till until they retire.

However, age has nothing to do with it. It's a financial number you need to focus on.

And that number is different for everyone depending on where you live, how you live and what responsibilities you have.

Generating Income from that Number

The amount of income you can generate from your number is also a factor, but you can have a rough estimate of that.

So in the end the working number is still the main goal.

For example, everyone talks about 1 million dollars as this magic number in the U.S.

But is that really enough to retire on? If that million is earning you 4% (because you are supposed to be in "safe" fixed investments at that point, and lets be real 4% is generous right now for traditional investments) then you are bringing in 40K a year.

If that isn't enough then you need to draw on your principal too and your million shrinks because of that and then in turn generates less income for you.

Thus, it is important to know your number. Forget the age. I plan on retiring well before the "typical age."

This issue of not enough return on your money in the fixed space is why so many have their retirement funds, full tilt in the stock market even after they have retired.

It is basically forcing being to gamble their retirements. Alternative investments may be a possible solution. It will be interesting how crypto continues to penetrate this.


I'm 100% on board with the cashflow game model. Passive income > expenses = retired.

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If Bitcoin keeps doubling in value every year all you need is $1000 in Bitcoin for 10 years to get that million. Once you have the million you don't even need to sell the Bitcoin... simply use it as collateral to take out loans and pay it back once the principal moves even higher... or maybe never pay back the loan and just allow that Bitcoin to be locked as collateral. If the interest on the loan is less than Bitcoin's gains it's not worth paying back unless it's a mega-bubble (every 4 years) and you know turning bearish is a smart move.

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That's how it works in America, in Europe is a whole different situation. In here, almost everybody is contributing to their retirement with a small percentage from their monthly salary and when you get to that age is that state that's going to pay your retirement money. We unfortunately, or maybe fortunately, don't have this mentality as you do, or retirement plan.

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That's just it, retiring sometimes isn't the age, it's having the means to actually not want to work again because you have a financial setup that already works for you whether you go to work or not.
I enjoyed reading, in Nigeria people work till they actually can't lift their arms again.

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Lol retirement in Nigeria is a total different psychology, we have people who have well aged past retirement age still occupying corporate positions making it extremely difficult for new entrants to have a chance, long as their limbs are still moveable, work goes on.

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Quite right and why the age should have nothing to do with it. Every year you aren't earning there is a risk of eating into your savings anyway and that is no good. The number will always fluctuate and having an income after retirement even if it is a passive one is crucial I believe. Having Hive and Leo is part of that plan as in the next 10 years things will change for the better.

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Well, in reality there is no way to retire that works for everybody.

Ummm, except we develop StarTrek technology and robots farm and build everything.

Every method requires someone else to keep working for you.

Why do dividend paying stocks even exist on the open market?
They should all be held in such tight hands that someone has to die before they are resold.
Think of it, you put money into it and it pays out each year without you doing any more work?

The only reason this "dividend" exists today is that people have been slow to get into the stock market.
50 years ago it used to be an only rich man's game.

My best idea is that you pay off your house, buy 20 years of freeze dried food that lasts 20 years, and then have enough cash to pay the little that is left... that is close to a retirement that everyone can do.

Retirement is not a concept I believe in for my generation and for myself. The German Model will break until I am 67 or probably 73-75 as the age to retirement will increase first before it will break. For myself I always try to to a job that is satisfying and that I don’t see as something I need to retire from. So far I am on a good way and hope to find things that are interesting to me and also bring in a revenue also in the future. Also in retirement the days have 24 hours that you need to fill. Combining fun with revenue is the way to go.

The retirement age in the Netherlands is going from 65 to 70 in a couple of years.
I'm also not planning to work until I'm 70 or maybe even longer (still have a long way to go).
Crypto could indeed be a good investment although a risky one.

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I hope that for me, crypto will be the solution for my retirement because I can't expect anything worthy from the country I'm living in.

Thanks for the read and have a productive week ahead!

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