Many people think of retirement as the end of the road: It's the last stop on a long road before you get to kick back and enjoy your golden years. But if you're going to retire in a way that's financially secure, retirement is actually something that needs to be planned for from the beginning — and it needs to be planned for over and over again.
That's because there are so many factors that can affect your retirement, both positive and negative, that it's impossible to account for them all at once. You could lose your job or get divorced, or you could earn a big promotion or win the lottery. And whether you're anticipating something good or bad, planning for it can help you make sure that whatever happens, your retirement savings will still be in good shape.
Another factor to consider is that life expectancy is increasing meaning that we will live longer. At the same, the cost of living goes up over time. The cost of living tends to rise at an annual inflation rate of 2%, according to the Bureau of Labor Statistics. That can make it harder for your money to keep pace with your expenses.
Therefore you may need more money than you think: It may seem like you'll spend less in retirement because you won't be commuting or dressing for work anymore, but that's not always true: You may want to travel or take classes or get involved with other activities — all of which cost money. It is a costly mistake to underestimate your expenses during retirement.
I am a Government Officer and so now during my retirement, I am receiving a pension from the Government. The pension that I am receiving now is about 60% of my last drawn basic salary. From the start, I have already planned to have an additional source of income from my investments if I want to maintain my current standard of living. In order to make wise investment decisions, I have educated myself on financial management and investment. Having an Economics degree and a Master of Business Administration help to some extent. Sadly our education system is lacking when it comes to teaching students about money and financial management.
My principle is quite simple, it is my money and only I have my self-interest at heart. The financial planners, experts, insurance agents and brokers have only one concern; how much commission they can earn from the financial transactions that they try to sell to you.
I only learn about cryptocurrencies when I joined the Steemit blockchain in 2016. Before that I was totally ignorant about the subject matter, I thought that it was just a fad and worse still a scam. The more I learn about cryptocurrencies, the more I liked it. Now my thinking has changed by 360 degrees. If you want to invest in cryptocurrencies long-term and profit from them, then they need to be part of your investment and retirement planning.
I like to share 3 major reasons why cryptocurrencies are part of my investment for retirement.
I Have Total Control Over My Cryptocurrencies
The fact that cryptocurrencies are decentralized means that I have complete control over my assets. This allows me to own and store them without the participation of a third party. Cryptocurrencies cannot be controlled by or manipulated by any government and central bank. Just take a look at the current Ukraine crisis where fiat money and the monetary system have been weaponized.
Furthermore, the value of the assets is not established by the exchange or a middleman, allowing traders to profit from the current exchange rates to the fullest extent possible.
2. Store Of Value Against Inflation
Previously the US dollar was backed by gold. Once this was abolished, the US Government can print as much money as they want. With so much money chasing the same amount of goods and services, inflation is inevitable. At the same time, the national debt of America is into trillions. The reason why the US dollar has value is that it is used in international trade. Other countries are forced to have US dollars in their reserves in order to trade. With such a scenario, it is wise to convert a percentage of our fiat currency into cryptocurrencies.
On the other hand, the supply of bitcoins and other cryptocurrencies is finite. Only 12 million Bitcoin can be mined. As a result, they are deflationary assets, meaning their purchasing power increases with time. Therefore my investment in cryptocurrencies is a store of value against inflation. Bear in mind that inflation is expected to soar to the pandemic and the Ukraine crisis.
3. I Strongly Believe That Cryptocurrencies Are The Currency Of The Future
Cryptocurrencies operate by using digitally encrypted information, rather than physical currency, to transfer value between accounts. This secures the transaction and helps to eliminate the need for physical money. This has to lead to lower fees, faster transactions, less risk of lost cash, and higher security overall.
At the same, more corporations and even countries adopting cryptocurrencies, especially Bitcoins. Corporations that want to diversify their assets have included Bitcoin in their balanced sheet. Just recently El Salvador has accepted bitcoin as legal tender, which means that people and companies have to accept bitcoin as payment. All of this points to cryptocurrencies especially Bitcoin as the currency of the future.
Perhaps the question should not be “Should Cryptocurrencies Be Part Of Your Investment And Retirement Planning?”. Instead, we need to ask ourselves which cryptocurrency should we invest in and the percentage of our total investment that should be allocated to cryptocurrency.
Please note that the above is not financial advice 😀😀😀. Instead, it is an entry for the silver prompt challenge organized by the Silver Bloggers Community.
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The Silver Bloggers Community
The Silver Bloggers Community is started by @lizelle also affectionately known as Sliver-Blond Lizzie. This community has provided a platform for those 40 and above to share their stories and experiences. You can join the community here. I am honored to be part of this community and I consider this community as my tribe. The community runs the Blog of the Month challenge and recently has introduced the Silver Prompt Challenge.
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It won't be long now until I can count the years to my retirement on my fingers and have therefore been seriously planning for what my retirement may look like. For the first few years of retirement, I hope to be able to live of my passive income from crypto and from earnings from things like Hive. I may draw on my assets over time if needed to fund my own care. Lets see, I may not live that long and have a plan of how my children can access my assets after I go.
It is wonderful that you have planned early for your retirement. A passive income would be great and you can maintain your current standard of living. Thank you for dropping by.
Actually my entire direction for the future right now is to grow and invest here on the blockchain for our future.
So love your content and excellent post!
Hopefully one of these days I can get a little bit more gold than just a little bit that I have that was mined. However I think I got to hang on to that.
May your contact continue to grow!
I believe that there is much potential for crypto and that is why it is part and parcel of my retirement portfolio. Hope that you can mine more gold. Do hang it there, success can be yours as long as you don't give up.
Absolutely everyday I got even more successes coming so I'm just going to have to relax and keep doing everything I can.
It's pretty amazing having this amount of support and amazing individuals surrounding me.
Another factor is if you're a woman, who are statistically more likely to become homeless due to not having a retirement fund as they've been busy being wives and mothers! Luckily I'm okay with the love of my life but if something happened to him I dont think I'd be as well off. Not that we have much, but pooled funds are far better.
As a couple pooled funds are definitely better. Tow heads are also better than one when it comes to making investment decisions.
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I think to recieve some revenue from cryptocurrencies in my retirement.
So do I, that is why I have allocated of my investment in Bitcoin.
yes crypto had been part of my planned since 10 years ago and it will continue be part of it.
Then you are one of the early investors then. Hope that you mange to get in while prices are low
Thank you for sharing your point of view. And you are right. The financial funds for retirement are something that should be planned the sooner the better.
Yes, financial planning for retirement is a serious matter and one that should be done earlier. Thank you for dropping by.
You are very welcome 😄 Have a great week!
Your thoughts on this resonates with mine. I do believe cryptocurrency could well be the currency of the future, even though I might not be here to see it. It is a good idea to include cryptocurrency in your retirement funds.
Agree with you. So I feel that there is so much potential for appreciation. But with wild price fluctuations, we need to be careful. Diversification is the key.
Yes, don't put all your eggs in one basket. 😊