Ninjastic
PostEdited versionsQuotes to this post
Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
Dabs
on 11/12/2020, 01:13:34 UTC
Quote from: Biodom on December 10, 2020, 08:44:38 PM
Quote from: Dabs on December 10, 2020, 06:53:36 PM
Quote from: BobLawblaw on December 10, 2020, 03:32:34 PM
... know that I hold more BTC in reserve than I could reasonably spend in my lifetime.

You could simplify it a bit by setting a fixed (in fiat) amount of extra money to spend, or not spend. If you really want to unreasonably spend everything in your lifetime, you will need either an estimate of how much time you have left or fudge it a bit more, then divide your corns by that number of years, and you have a maximum number or ceiling to liquidate.

A nice number to assume would be 30. Since , as you know, plenty of sources say 25x of your annual expenses and in theory you should be able to live on 4% of that for the rest of your life.

So, if you have say, 300 corns, then divide that by 30, that means you can probably spend 10 corns every year, and you'll be unreasonably spending everything until it runs out. It will take 30 years to deplete, and as the price fluctuates, goes up, or goes down, probably going up for the next 30 years, you'll end up with more fiat than you know what to do with.

Imagine being "forced" to spend 1 corn a month for the next 30 years.

If you're still alive in 30 years, you'll either run out of corn but have a lot of fiat, OR you didn't spend all your corn and can keep drawing on it.

If you're not already a billionaire, do not get a private jet. You will need more than the price of the plane to pay for it, maintenance, expenses, a full tank of fuel everytime you fly, salary for your pilot, all sorts of paperwork. I think flying first class or even business class, when you do need to travel, is quite okay with a lot of people already.

Funny, you are describing a plan that I concocted a few years back...dividing by 30, etc.
However, I deviated...don't want to cash out and spend yet, lol

Plenty of financial independence blogs and websites have been posting along these lines. 25x to 30x. I picked 30 because it's a "safer" number, and it's not too far away from 25.

Any higher and it implies you moved the oft quoted 4% number down lower than 3%, which is safe, but too conservative and probably wasting money. Unless you have more than you can reasonably spend, such as anyone winning some mega millions super powerball for several hundred million. Then you can play it safe and just leave it in any regular deposit account, but everyone is going to call you stupid. (you have 100 million when your annual expenses are below $40k USD? who cares what they say, you are set for life even if you spend a million a year.)