Building a Resilient Bitcoin Retirement Plan
Updated thoughts on saving real money
Introduction
In past newsletters, I have shared my thoughts on the Bitcoin Retirement Plan, a simple yet powerful approach to securing your financial future. Since then, I've continued to refine my strategy and adapt to changing circumstances. In this updated guide, I'll share additional insights and steps you can take to make your Bitcoin Retirement Plan even more effective and resilient. If you are a long term reader you know I believe in self-reliance and financial freedom, and Bitcoin aligns perfectly with these principles. Let's dive in.
Why Bitcoin?
Before we delve into the nitty-gritty of enhancing your Bitcoin Retirement Plan, let's recap why Bitcoin is such a compelling choice for securing your financial future:
Absolute Scarcity: Bitcoin's capped supply of 21 million coins ensures it remains a deflationary asset, immune to arbitrary inflation.
Peer-to-Peer Transactions: Bitcoin allows you to transfer value directly to anyone worldwide, without intermediaries.
Independence from Legacy Systems: Bitcoin operates independently of traditional financial systems, making it a decentralized global payments infrastructure.
Trustless and Immutable: Bitcoin isn't controlled by any single entity, making it resistant to censorship and manipulation.
Hedge Against Fiat Debasement: Like gold, Bitcoin serves as a hedge against fiat currency devaluation but offers greater ease of use, storage, and security.
Enhancing Your Bitcoin Retirement Plan
Using Peer-to-Peer Exchanges and Dedicated Wallets
Consider acquiring Bitcoin through non-KYC peer-to-peer exchanges like Bisq for improved privacy.
Transfer your peer to peer purchased Bitcoin into dedicated cold storage hardware wallets to maintain control, security and non-KYC status.
Leveraging Multiple OTC Trading Desks
Diversify your sources for acquiring Bitcoin by using multiple Bitcoin-only OTC trading desks, including offshore options with Bitcoin friendly banks.
These relationships can also prove valuable when you need to sell Bitcoin and convert it back into fiat, should the need arise.
Multiple Wallets for Security
Maintain multiple hardware and software wallets, including software Lightning wallets for convenient spending in the circular economy.
Adhere to best practices for wallet security, such as storing wallet and seed phrase separately for single-signature setups and using multisignature arrangements for larger savings portions (store each multisignature key in a geographically separate, locked physical location).
Collaborative Custody for Large Holdings
Explore multisignature and collaborative custody arrangements for a significant portion of your Bitcoin savings.
Collaborative custody with multisignature (2 of 3) allows you to have access at all times to your coins using the two keys you hold, but also gives you a backup if one of your keys becomes compromised improving resiliency; the collaborative custodian can also provide other useful services to you including purchasing Bitcoin directly into your multisignature wallet, loans, education, key management best practices and assistance with estate planning.
Make arrangements for proper asset titling, such as a revocable living trust, and provide clear instructions to your executor to ensure secure transfer to heirs upon your passing (see below).
Make Sure You Have a Bitcoin Estate Plan
Do your estate attorney and your heirs a favor and keep your Bitcoin holdings well organized so they don’t have to go on a “treasure hunt” when you are no longer here.
For more on Bitcoin estate planning, check out my past newsletter on this topic:
Adequate Fiat Currency Reserves
Not my favorite recommendation, but we have to be realistic that we still live in a fiat world and we need fiat for the time being to manage day to day.
Maintain an emergency fund in fiat currency to cover unexpected expenses.
Keep a portion of your savings in fiat to "buy the Bitcoin dip" during market downturns.
Manage Debt and Insurance
Keep debt levels low and manageable to avoid the need to liquidate Bitcoin in emergencies.
Be careful in using leverage to buy Bitcoin - remember it does you no good to have to liquidate your Bitcoin if you get into a financial bind - don’t rug yourself!
Maintain adequate insurance (home, auto, umbrella liability) coverage to meet obligations and prevent forced Bitcoin sales during unforeseen circumstances.
"Pay Yourself First"
Prioritize saving for retirement by regularly purchasing Bitcoin and transferring it to cold storage.
One rule of thumb I like and have adopted myself is to set a goal of saving at least 10% of my gross paycheck each time I get paid.
Adopt a disciplined approach to accumulate Bitcoin over time (dollar cost average and buy dips with excess cash, when it makes sense).
Bitcoin Roth IRA
Consider the advantages of a Bitcoin Roth IRA, which offers tax-free growth and withdrawals, the ability to pass down assets tax-free to heirs, and no required minimum distributions. Explore reputable Bitcoin-only companies like Unchained Capital and Swan for Roth IRA options.
Remember, the government can change the rules on tax-advantaged accounts at any time they choose (especially with massive and growing fiscal deficits that seem unlikely to change), so maintaining a blend of taxable and tax-preferred accounts is wise. Don’t get rugged by the government!
Conclusion
In the world of retirement planning, simplicity, and resilience are key. Bitcoin, with its unique properties and the strategies outlined above, can be a powerful tool in securing your financial future on your terms. Saving in Bitcoin can also free you from the Wall Street shitcoin casino and you can put your energy into other, more positive things than watching the Federal Reserve’s every move and trying to be Warren Buffett!
Not financial or legal advice, for entertainment only, do your own homework. I hope you find this post useful as you chart your personal financial course and Build a Bitcoin Fortress in 2023.
Always remember: freedom, health and positivity!
Please also check out my Building a Financial Fortress Podcast on YouTube here and on all your favorite streaming platforms. I do a weekly Bitcoin news update every week on current items of interest to the Bitcoin community, usually 30 to 60 minutes depending on the number of topics to cover. Please check it out if you haven’t already. Also now on Fountain, where you can earn Bitcoin just for listening to your favorite podcasts.
Follow me on Nostr:
npub122fpu8lwu2eu2zfmrymcfed9tfgeray5quj78jm6zavj78phnqdsu3v4h5
If you’re looking for more great Bitcoin signal, check out friend of the show Pleb Underground here.
Lightning tips appreciated here:
