Retirement is something that is often discussed in financial circles. There is good reason for it. Almost all of us, unless we die first, will reach the age where we can no longer earn an income from our work. We simply get to the point where it is time to "head out to pasture". Sure there are exceptions like Warren Buffett but that is far from the norm.
The challenge is making sure we have enough in the account when we get there. For a country like the United States, the primary vehicle for retirement is the 401K program. Pensions have fallen over the past few decades.
For those outside the United States, especially in the EU, be mindful of depending upon a pension. This could have (is likely) going to have catastrophic results. There are a lot of promises made by politicians, with little thought of how to fund it. The ECB is already forcing the EU bonds on the banks within the zone since New York banks will not touch European debt.
For that reason, we all need to be sure to take control of our financial future. Fortunately, cryptocurrency is becoming a larger part of the picture.
The US retirement situation is very poor. The following taken from a recent video explaining how things look for most Americans.
Even though it is a bit tough to see, the numbers are bad. The average balance in the age brackets cited is okay but things get very poor when you look at the medium. For those who don't know the difference, the average is swayed by those with larger accounts. So an individual with $5 million in his or her 401K will really alter the numbers. This is where medium is a better metric.
And it is truly sickening. In most of the United States, there is no way to live on those numbers. No wonder the "Golden Years" are rather dismal for many (if not most).
There is a solution to this problem and it is the Hive Backed Dollar. This is something we cannot stress enough.
When HBD is placed into savings it pays out a 20% APR. Few realize how much this will equate to.
We can use HBD to build wealth over time. This is a fantastic option for setting oneself up for the later years in life.
How much can it generate? That naturally depends upon a variety of factors. That said, playing with a compounding calculator reveals how big the numbers can become.
If you truly want to see how anyone can become like Warren Buffett, simple look at the numbers long term.
Here is one scenario that should not be too difficult:
Starting capital: $100
Monthly contribution: $100
APR: 20%
Compounding: Monthly
As we can see, there are some big numbers that can be achieved. Now compare it to the average 401K and notice the difference.
One key here is the fees charged in these accounts. When you have management fees eating up 1%-2% plus often fees for the individual investments, that will add up over time. With HBD in savings, there are no fees.
With this option, people can literally make their own pension fund.
Obviously, for those who are in their mid-30s or younger, adopting this mindset is crucial. By embracing it, we can see the difference in the money one is holding.
Many focus upon speculation believing that is the road to wealth building. While there is no doubt that "mooning" can enrich someone, it can also wipe someone out. It is not a great idea to go all in on risky plays.
Here is where the hunt for yield enters. When you start to compound the returns, as shown by the calculator, over time, there can be a significant impact.
Fortunately, the model is similar for both individuals along with Hive. Once people understand that HBD is a tool for collaboration, we can see how it can be used to expand the Hive economy. This means that the 20% is more than sustainable over the coming decades. When you consider the potential expansion in the digital world, we can see how sustainability is before us.
This is why we have such a powerful opportunity. The economic productivity that can result from the evolution of HBD can take on levels few are considering. The stablecoin market is going to require tens of trillions. This is something that is badly lacking in the global economy at the moment.
Ledger banking has been in operation for over 70 years. Reserve-less, private bank money is nothing new. Now, we are creating it without governments or commercial and central banks.
And for that reason, people who are involved should enjoy a stress-free retirement.
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