Entirely Hypothetical 5 year plan...
I was thinking about stacking a few coins into stables over the next few years and I got to wondering what I'd need to convert into stables every month to reach a $50K target over the next five years.
That 5 year date and amount is meaningful to me as it's around the time I kill the mortgage and then I've got just under 5 years until my private pension kicks in, and $50K is a nice slush fund for just under 5 years to pile into, meaning I'd have to work extremely minimal hours.
This entirely hypothetical scenario is kind of a hopeful worst-case scenario which assumes current prices remain stable and there's no more upside.....
Here's one way one might achieve this $50K target over five years based on a monthly cash-out...
These are entirely hypothetical!
Over five years
Over five years this would mean sales of (at current prices, for example Hive at $0.40 and SPS at $0.02)
- Hive - 55K
- SPS - 300K
- LEO - 14K (@ 0.10)
- RUNE - 150 (@ 10)
- BTC - 1.5 (@ 75K)
- ETH - 50K including the fees.
Obvs the last one is a joke, like ETH itself.
Actually not too bad!
Given that the above is the WORST case scenario (I hope) it's fairly easy for someone to sell SOME tokens and stack $50K over 5 years.
And for tax purposes, this is manageable under UK tax regulations if yer on a low income because you'll only be paying 10% on yer gains every year.
In fact with Hive, this is pretty much just cashing out MOST of one's earnings, but not necessarily all.
The same goes for SPS too, especially as by SPS I also mean DEC. It's all the same after all. I have a sneaky feeling SL is just going to carry on drifting down, save maybe some interest if we have a massive crypto bull lifting everything.
Obvs not regular cashing out... probably not...
It's highly unlikely I'll cash out on a regular basis, much more likely is more intense conversions during up periods, and much less conversion during down periods.
The role of HBDs...
I got my $200 a month calculating a 10% return on an average of $20K HBD over the five year period, NOTE I'm not expecting that 20% yield to last!
Conclusion - I'm happy with this hypothetical...
What this shows me is that if you've got a few squid in crypto, it's relatively easy to stack a nice $50K chunk over 5 years without selling off too much of yer crypto-capital.
And of course one can always collateralise that BTC to keep that in the game!!!!
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If a pension comes from employers who depend on the dollar, if banks continue to fail in the coming months, that might be an issue depending on if any of that could interfere with your future. Silver is doing better than gold. Bitcoin is still the goat compared to other crypto
It's a teacher's pension so if that's fucked everything is fucked! I am gonna pick up a bit more silver for sure!
cool
I suspect there's going to be other options, that we don't have yet, as well.
That’s a good point, who knows what will happen in the next few years.
I'm sure squidgro will go to $1 that'd be nice!
%20 interest rate for HBD is a great opportunity, I accumulated 1000 HBD and I will go on accumulating the interest payout.
It's been great I am enjoying it too!
Haha yes ETH is a joke and I sold my ETH bag yesterday. ETF or not, the chain is useless old tech.
Great that you are making a plan like this. Did you fill your ISA bag with MS before it popped? That seems the best tax free way to get bitcoin exposure in the UK.
MS - microstrategy? No I just have BTC - if I buy any shares I'll go for Fundsmith again I think
yeah, MicroStrategy, it has been pumping lately too. I didnt hear about Fundsmith.
Fingers crossed, sounds like you’ve put a lot more thought into this than I have.
This is the back up plan - obvs if Hive 10* it'll be a lot easier!
That’s the dream!
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I'm hoping $HIVE goes up a fair bit by the time I want to retire. I'll have a lot more by then anyway. Being able to live off crypto income would be nice, but can't be relied on.
It's why I cash some out into stables every week, just a little, it reduces the risk, of course it doesn't get rid of it entirely!
Not depending on the crypto, for sure! And of course retirement is a LONG time, anything can happen in 30 years!