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How much Bitcoin do you need to retire? — Transcript

by Rajat Soni, CFA · 5,136 words · 710 segments · language en · Watch on YouTube

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0:00How much Bitcoin do you need to retire?
0:02I could tell you you need one Bitcoin,
0:04two Bitcoin, five Bitcoin, 12 Bitcoin,
0:08300 Bitcoin, whatever the number is. But
0:10if you don't have a plan and you don't
0:11know what you're doing with that
0:12Bitcoin, that Bitcoin will eventually
0:15run out. No matter how much you have,
0:17eventually you'll run out because you'll
0:18get crazy with your spending. You'll
0:20give it all away and you'll just buy
0:22things that depreciate in value. This is
0:24something that I've been thinking about
0:25for a really long time. I've had an idea
0:28in my mind of some kind of barbell
0:30strategy where you borrow against your
0:32Bitcoin, then you borrow against a
0:34little bit more Bitcoin, then you borrow
0:35against a little bit more Bitcoin, and
0:36by the time you're at the fourth or
0:38fifth loan, the Bitcoin in your first
0:41loan has already appreciated, and you
0:43never have to give more collateral to
0:44the lender again. This spreadsheet that
0:46I made will make it a lot easier for you
0:48to understand what your collateral and
0:50your stack will look like once you've
0:52actually retired. So, let me explain
0:54what exactly is happening here. I
0:56created a spreadsheet here with a bunch
0:59of different tabs. All of these work
1:01together. I also have a meet with me tab
1:03here. If you want to book a financial
1:05audit with me, you can go ahead and use
1:07this link here. If you want to join my
1:09coaching program to get through bare
1:11markets to be able to really understand
1:12what Bitcoin is at a very deep level,
1:15you can check this link here. And if you
1:17want to send me some Satoshi's, say you
1:19find this valuable, you don't want to
1:21book a financial audit, you don't want
1:22to join my co coaching program, but you
1:24still want to help me out, you can send
1:26me some Bitcoin using this
1:29uh QR code here, you just scan that or
1:32you can just go to the um to the link
1:36and go to the the QR code. Okay. So, how
1:39does the spreadsheet work? The first tab
1:40here that you see is your budget. So,
1:42this is your income, what you're earning
1:45each year. Then you have your expenses.
1:47You have your needs. You have your
1:48wants. And you have your savings and
1:50debt. So this is the amount that you're
1:52putting towards, let's say, your
1:53emergency fund, your goals, your credit
1:56cards, your student loans, whatever that
1:58is. That's this part here. Your needs
2:00are your basic needs that you can't
2:02survive without. So you need to pay for
2:03your mortgage, you need to pay for your
2:04home insurance, you need to pay for
2:05property taxes, maintenance, repairs.
2:07You need to pay for all these things. So
2:08you fill this information in. You fill
2:10in your savings and debt. And you get
2:12some numbers at the bottom here. Your
2:14goal is to make sure that your leftover
2:16is zero because you want to make sure
2:18that every dollar has a job. Every
2:20dollar is going towards something.
2:22Whether it's your expenses, the things
2:23that you're spending money on, or your
2:25savings and your debt. I think that the
2:28ideal ratio between these three
2:30categories is this. Needs are 50%, wants
2:33are 30%, and savings is 20%. So, check
2:35what yours is in our financial audit. If
2:38you do book one, we can go through all
2:39of this together. We can go through the
2:41numbers for you. You can fill this in
2:43yourself as well. If you're really far
2:45from, let's say, for example, if your
2:47needs are 70%, like this example here,
2:49if it's 65% for your needs, you're
2:51spending 15% on your wants, and you're
2:52spending 20% on your savings, that's up
2:55to you if you're okay with it. But in
2:57some cases, maybe you'd want to reduce
3:00your needs a little bit and put more
3:03money towards the things that you want
3:04to be spending money on. Let's say date
3:06nights, for example, with your spouse.
3:08And that could be a really great
3:10expense. I mean, I would say that's an
3:12investment in your family's future, in
3:14your relationship with your spouse.
3:15Okay. So, the next tab here at the
3:17bottom is the net worth tab. So, the net
3:19worth tab, what it does is it shows you
3:22the result of all the decisions that you
3:24made in the past, the financial
3:26decisions that you made in the past. So,
3:28your assets are what you own. Your
3:30liabilities are what you owe. You owe a
3:33mortgage. You owe a credit card. You owe
3:35your personal line of credit. You owe
3:36somebody else money. They have to
3:38collect that money from you. you have to
3:40pay them back. On the other hand, you
3:41own these assets. You can sell these
3:43assets at any time in order to pay for
3:45your liabilities if you want to. The
3:47goal here is to just fill in your
3:48assets, fill in your liabilities. I
3:50would even say if you really want to
3:52take a look at your financial position,
3:53get rid of your presence and get rid of
3:56your mortgage from this because these
3:58two assets are correlated. Usually, your
4:02primary residence will grow faster than
4:03your mortgage and it'll just pretty much
4:05cancel it out. You have to pay for
4:06housing no matter what. I wouldn't even
4:09include the primary residence in your
4:10net worth. The next tab here is your
4:13goal. So, what do you want to do in the
4:15next few years? So, between the next
4:17zero years, oh, I didn't close this
4:19bracket. Between the next zero months to
4:22seven years, seven plus years, what do
4:24you want to do? Fill in some of your
4:25goals. You can fill those in. You can uh
4:28do that on your own or we can review it
4:30together. Again, if you go to this link,
4:31we can do a financial audit. If you fill
4:35this in, you can add in some categories
4:37as well. Let's say short-term, uh, you
4:40want to stop living paycheck to paycheck
4:42or immediate. Let's say immediate, you
4:43want to stop living paycheck to
4:44paycheck. Then shortterm, you have some
4:46credit card debt. You want to pay that
4:47off. Then medium-term, you have student
4:50loans, you have a mortgage or you have
4:53personal loans, whatever it is, car
4:54loans, you want to pay that off in the
4:56medium term. And then then in the long
4:58term, you want to save for your child's
5:00college education. What I would do here
5:02is put in these these uh goals. Whatever
5:05your goals are, it doesn't have to be
5:06part of this. Put in your goals and then
5:09try to figure out how you're going to
5:10get to those goals and what they'll
5:12potentially cost you in the future. And
5:14now we have the fun part. So the fun
5:16part is combining the compound interest
5:19calculator that I created before. This
5:21is just showing you what Bitcoin's
5:22growth will look like if you keep
5:24accumulating Bitcoin over time, what
5:25your portfolio will look like. And I
5:27combined this. This one I've gone
5:28through multiple times. We don't need to
5:30go through this again, but I combined
5:31this with the 40-year loan strategy.
5:36This tab at the at the end here. So, the
5:3840-year loan strategy. What that shows
5:40you is what your loans would look like,
5:43what your collateral would look like,
5:45what your stack would look like if you
5:46were to accumulate a certain amount of
5:47Bitcoin over time, or let's say you have
5:49a certain amount of Bitcoin. You would
5:51enter that number here, and you would
5:53include your monthly investment here.
5:55It'll show you what your loan will look
5:56like over time. The first thing that you
5:58have to do is fill in your expenses. You
6:01can put in a number if you want to. You
6:04can just type in a number here if you
6:05want to. But in this case, I'm going to
6:07leave it connected to this. It's
6:08normally connected to this. So, I'm
6:10going to leave it connected. You can see
6:12here portfolio balance needed to retire
6:14today is about $1.6 million. You need
6:16about 20 times your expenses in order to
6:18retire with Bitcoin. And the reason,
6:20I'll explain to you why that is. It's
6:22because of your loans. I'll go into that
6:24later though. But you need about 20
6:26times your expenses to retire today. If
6:28you were to retire based on the
6:30spreadsheet in 20 years or sorry in 31
6:33years, you would need $1.5 million per
6:38year to pay for your expenses if
6:40inflation is 10%. So that's that's just
6:42an example that I did. Let's say, for
6:43example, if inflation's 4%. You need
6:46$24,000 per year to pay for your
6:48expenses. And this comes from uh from
6:52column F in the compound interest
6:54calculator spreadsheet. So column F
6:56shows you what your expenses will grow
6:58to at 4% per year. They'll continue to
7:00grow literally forever. So you have to
7:03account for that. You have to know that
7:04okay, this is what my expenses will go
7:05up by. I'm not going to cut my
7:06lifestyle. I'm going to continue the
7:08same lifestyle. I'm going to account for
7:10that 4% inflation rate in my expenses.
7:12So based on this number and based on 20
7:14times your expenses, you need $4.1
7:17million to retire. So, this is all being
7:19done in the background. All you have to
7:21do is add in your current stack. If you
7:24want to, you can do it on this one. If
7:25you don't want to, that's perfectly
7:26fine. If you want to keep that private,
7:28I don't know who is looking at this. Um,
7:30it's up to you how paranoid you are. If
7:32you don't want to do that, I don't blame
7:34you. But let's say, for example, you
7:35have one Bitcoin today and you plan to
7:37continue buying $200 worth of Bitcoin
7:39every single month. Bitcoin gives you a
7:4230% growth rate. You'd have a 4%
7:44inflation rate on your expenses. your
7:47total stack in 13 years. So you'd be
7:50able to retire in 13 years. Here you can
7:52see that here in 13 years your total
7:54stack would be 1.119
7:57Bitcoin.
7:58Your the value of your total stack would
8:00be 2.8 million. So it' be more than what
8:03you need at retirement. So this this
8:05changes based on this or sorry this this
8:07number here needed at retirement changes
8:09based on this. So depending on how long
8:11you need to retirement, this will adjust
8:12on its own. So you don't have to do
8:14anything. The only cells that you need
8:15to change are the yellow ones. So in
8:18this case, you'd have 1.119
8:20Bitcoin. In 13 years, you continue to
8:24buy $200 worth. Continue to buy $200
8:26worth. Continue to buy $200 worth. And
8:28when you retire in 2039, you'd have 1.12
8:33Bitcoin. That would be worth $2.8
8:35million. Bitcoin's, let's say, growth
8:37rate continues at 20 uh 30% per year.
8:40Actually, let's go a little bit more
8:41conservative. We'll go 20% per year. So,
8:43Bitcoin's growth rate continues at 20%
8:45per year. You'd retire in 20 years. If
8:47the growth rate decreases from 30% to
8:4920%, it would take you another uh seven
8:51years to retire. So, you'd be able to
8:53retire in 2046. You'd have 1.166
8:56Bitcoin. The fiat value of it would be
8:583.772 million, which is obviously more
9:01than what you need at retirement, which
9:02is exactly what your goal is. And now,
9:04let's go into what exactly this
9:06spreadsheet models. What this
9:07spreadsheet shows you is what your
9:09expenses would look like, how much
9:10collateral you'd have to use in order to
9:13pay for your expenses and how much your
9:16interest payments are going to be over
9:18time. Also, it shows you what your loan
9:20status is. And what the loan status is
9:22is this part here. Keep LTV below 20% to
9:25avoid losing your coins. This is just my
9:27goal. You can change this on your own.
9:28If you go to danger zone, it'll change
9:30it on its own. So, if you type in 40%
9:32here, this number will change as well.
9:34The 40%. You can see that changed. You
9:36don't want to base your retirement
9:38numbers on the top of a bull market
9:40because at that point the price can fall
9:4260 70 80% and if you retire then you're
9:45probably going to be left with very
9:47little in your multiple of expenses. So
9:50let's say for example in 2046 we're in
9:52the top we're at the top of a bull
9:54market and you finally reach your 20
9:56times expenses. Maybe you don't want to
9:58retire at that point. Maybe you want to
9:59retire at the bot at the bottom of maybe
10:02the next bull market because at the next
10:04bull market you'll probably have 20
10:06times your expenses. So this is just a
10:07guideline. This is not an exact figure.
10:10Um you don't want to base your
10:11retirement numbers on the top of a bull
10:13market because it can always fall. Most
10:14of the time Bitcoin is below its
10:17all-time high pretty much I would say
10:2090% of the time. It only stays at the
10:22all-time high for a very short period of
10:24time because it immediately comes back
10:26down. And that's perfectly fine. That's
10:27just how it works. Only change the cells
10:29with the yellow background. You can see
10:31that here. These ones, these are the
10:32ones you want to change. And 20 times
10:34your expenses is a safe zone because if
10:36inflation and interest are high, you're
10:38still safe from being liquidated. And
10:40I'll show you exactly what I mean there.
10:42If you want to retire with 20 times your
10:44expenses, you can adjust that here.
10:46That's what I would suggest, 20 times.
10:48If you want to retire with 20 times your
10:49expenses, you get loans against your
10:52Bitcoin at 11% interest. I think at that
10:54point, the interest rates will probably
10:56fall. And I'll even show you that that
10:57actually shows up on this as well. And
10:59you want to borrow at a 50% LTV to
11:02reduce the amount of Bitcoin that you
11:04have to give to your lender. If you go
11:05with a 30% LTV, you have to give your
11:08lender a lot more Bitcoin. You can see
11:09that here. Collateral used 0.1877.
11:13You have to increase the amount of
11:14Bitcoin that you give to your lender. So
11:16in this case, we'll go 50% LTV. We'll
11:18keep the danger zone at 30%. The reason
11:20why I keep it at 30% is because you want
11:22to keep your total stack LTV below that
11:26number so that if your lender does go
11:29bankrupt, you don't lose too much of
11:30your Bitcoin. If your danger zone was
11:3390%, your LTV can go up to 90%.
11:36You might be able to retire a lot
11:38sooner, but you're also giving your
11:40lender a lot more of your Bitcoin in the
11:42earlier years in order to retire. If you
11:44go 10 times your expenses by
11:482050,
11:50you're actually giving your lender, your
11:52lender holds, you can see here, um, your
11:55lender holds 0.86 of your Bitcoin.
11:58That's the highest, 0.868 of your
12:01Bitcoin because you have to borrow money
12:04each year. Then you have to pay off the
12:06old loan by borrowing new money. That's
12:08the way that this works and that's
12:10exactly what this shows you. So you can
12:11see here in the first year you're
12:14borrowing against 0.23 Bitcoin. It gives
12:16you a loan of $149,000.
12:20The Bitcoin is worth $299,000 which is
12:23based on the 50% LTV. I'll change it
12:25back to 30%. So it'll be 50% LTV.
12:29Your danger zone is 30%. You can see it
12:31changes to danger. Your collateral is
12:33worth 299,000. You borrow $149,000 to
12:36pay for your expenses, $149,723.
12:39In that year, you accumulate $16,469
12:43worth of interest. So, at that point,
12:45your total stack LTV is 9.93%.
12:48You've given your lender 18 or 19%
12:5319.86% of your stack. And that's at
12:56risk. If they go bankrupt, they can take
12:59your stack with them, right? And that's
13:00that's the problem. So if you have 10
13:02years of expenses, you have to give a
13:04higher percentage of your stack to your
13:05lender upfront
13:08in case they go bankrupt in the short
13:09term, you lose. So we go back to 20 20
13:12times here. You can see here if you have
13:1420 times your expenses, you have to
13:15retire a little later. You retire 5
13:17years later,
13:19but
13:21your LTV stays low. You can see here the
13:25maximum that your LTV goes to is 18.19%.
13:29LTV is loan to value. What your loan to
13:31value is is the amount of money that you
13:33borrow divided by the value of your
13:35total stack. So in this case, we would
13:37have $182,000 worth of total loans
13:39divided by the fiat value of your stack
13:41at 3.77
13:43million. In year two, what you would do
13:46is you would get a new loan with
13:470.1079166
13:50Bitcoin. This would include your
13:53interest acred from the first year plus
13:56the expenses from the second year. So
13:58this amount 0.107 107 would cover all of
14:02your expenses. So, it would cover the
14:03interest that you have to pay back in
14:04the first year plus whatever you need to
14:07pay for your expenses today. You can see
14:09that in the borrowed funds column. So,
14:11the borrowed funds column goes to
14:13$29,000 because you not only saw your
14:16expenses go up by $7,000 plus your
14:20interest has to be accounted for. So, if
14:22you have to pay back your interest every
14:23year, this is the strategy that you
14:25would use. In this case, what would
14:28happen is you would have given your
14:30lender a total of 0.201
14:35Bitcoin. And the reason why this is
14:37smaller than these two combined, you can
14:39see here the two combined is 0.2205
14:42Bitcoin. This one is 0.201 Bitcoin. It's
14:45because of the appreciation. Because
14:47Bitcoin goes up, you see here, Bitcoin
14:49goes up. your initial loaned amount, the
14:53collateral that you used in the first
14:54year appreciates in value. So you can
14:57get a new loan based on that amount and
14:59you can take back the difference. So you
15:01bought basically got to take back about
15:030.02 bitcoin about um
15:07what is itund or 1.9 million satoshi's
15:11or something like that. You got to take
15:12that back because the value of your
15:14collateral has gone up. So your LTV from
15:17year 1 to year 2 went from 4.829 8299%
15:20to 8.6535%.
15:23Over time, you'll notice that the amount
15:25of Bitcoin that you need is going to
15:26continue to decrease and the amount of
15:28Bitcoin that you have outstanding is
15:31also going to continue to decrease. So,
15:33you can see here if you had 0.11 Bitcoin
15:36already with the lender in year 1, in
15:38year 2, you add 0.09 Bitcoin and then
15:41you can refinance the whole loan. That's
15:43what the refinance collateral amount
15:45shows you. So, you have 0.2 2 Bitcoin
15:46already outstanding with your lender in
15:49year two and in year three you're going
15:51to borrow against 0.103
15:54Bitcoin again. The point here is that
15:56the value of your refinance collateral
15:58goes up by the time that you have to
16:00borrow against your Bitcoin again. And
16:02because of that, you're able to get some
16:03Bitcoin back at a point you don't even
16:05need to add more Bitcoin to your loan
16:07accounts because the value of Bitcoin
16:09just keeps rising and it keeps rising
16:11and the amount that you're having to
16:12borrow is decreasing in terms of
16:15Bitcoin. It's depreciating because the
16:17value of Bitcoin is going up. So in this
16:19case, if you had one Bitcoin, you were
16:21buying $200 worth of Bitcoin per month,
16:22it grows at 20% per year, inflation is
16:254%, you'd be able to retire in 20 years
16:28with 20 times your expenses. But let's
16:30say, for example, if you're okay with
16:31getting 15 times your expenses because
16:34this never goes above 30%. You see here,
16:36the LTV, the stack LTV never goes above
16:3830%. You're always safe. Meaning that
16:41you never give too much of your Bitcoin
16:43to your lender. This means that if you
16:44have 15 times your expenses in year 18,
16:472044, you can retire. There are some
16:50situations where people are okay with
16:51their lender holding 40 50 60% of their
16:54stack and you can adjust that here in
16:56the danger zone. But my recommendation
16:58would be to keep it less than 30%. If
17:00you are okay with having 50% of your
17:02Bitcoin with a lender, you can update
17:03that here. And then you can change the
17:05multiple of expenses number in the last
17:07column in order to see what gives you a
17:10danger status. So let's say we go to 10
17:13years, you're good. 10 years of expenses
17:16would keep you okay. You'd have given a
17:19maximum of 35% or 37.5% of your Bitcoin
17:23to your lender. But let's say if you go
17:258 years, 8 years maximum 43% of your
17:28Bitcoin is given to your lender. Let's
17:29say we go 6 years. 6 years you can see
17:31it changes the danger. So, if you retire
17:33with six times your expenses, if you
17:35retire with, you can see here, $798,000
17:39in Bitcoin in 12 years,
17:42that's six times your expenses,
17:45you would have given your lender 58% of
17:48your Bitcoin because the amounts that
17:50you're going to give your lender are
17:51going to add up faster than Bitcoin can
17:53grow. What you're doing with a higher
17:55multiple of expenses is you're allowing
17:57your Bitcoin to grow before you start
17:59relying on it. In the case where you
18:01have six years of expenses, you are
18:02retiring sooner than you should in my
18:05opinion. Something else that you may
18:06want to consider is that the amount of
18:08interest that you pay on your loans in
18:0920 years may be a lot lower than it is
18:12today. Meaning that you need to use a
18:14lot less of your Bitcoin as collateral
18:16to get another loan in year 2 3 4 5. And
18:19I'll show you what that looks like. So
18:20let's say the interest rate goes down to
18:215%. You can see here the interest acred
18:24amount is much much smaller. In 2054,
18:27you accumulated $116,000 worth of
18:30interest at 5% interest. If you have an
18:3211% interest rate, you'd have
18:34accumulated $324,000
18:37in interest in that year at a 11%
18:40interest rate. It's up to you what you
18:42put here. If you want to put 7%, if you
18:44want to put 8%, 7% is already available.
18:465% is already available with Coinbase.
18:48It's just a matter of whether you trust
18:50them or not. And now I want to show you
18:51some relationships between these
18:53numbers. I made some charts at the
18:54bottom here. You can see the refinance
18:57collateral. This amount peaks in year
19:00207 and then it starts going down. You
19:03can see the numbers here. The refinance
19:04collateral is the amount of Bitcoin that
19:06you have with your lender. It goes from
19:080.10 Bitcoin to 0.19 0.25. It maxes out
19:13around
19:142057 at 0.3977
19:17Bitcoin. You can see that on the chart
19:18here. If the interest rate is higher at
19:2111%, you'll notice that the refinance
19:23collateral peaks out at a much higher
19:24number as well. And I think this is
19:26really important because if you are
19:28planning to do this, you need to know
19:30what exactly your loan will look like. I
19:32think 7 or 5% is much more realistic. If
19:35it's 23 years from now, I think the
19:37rates on Bitcoin backed loans will be
19:39much lower at that point. The next thing
19:40that you want to look at is your
19:42interest versus expenses. You can see
19:44here your expenses are going up but your
19:46interest is going up much much faster
19:49because the amount of loans that you
19:51have keep rising. The amount that you
19:54borrow keeps increasing but in terms of
19:56your Bitcoin stack you see that in your
19:58LTV in terms of your Bitcoin stack it's
20:00actually going down. And that's what I
20:02showed in this chart here. So the
20:04borrowed funds rises and it rises but
20:07the LTV drops because your stack is
20:10growing much much faster than the
20:13interest on your loan. So just as a
20:14summary of everything that I said there,
20:16you can add in your annual expenses or
20:17you can put them into the budget
20:19statement. You can see everything else
20:22change on its own. You can adjust the
20:24inflation rate. You can adjust the
20:26Bitcoin growth rate. You can adjust how
20:28much money you put into Bitcoin every
20:29single month. It's up to you. Whatever
20:30you want to put in. Let's say you want
20:31to put in $500 a month. You can see the
20:33difference in the amount of years that
20:35you have till retirement. If you go
20:372,000 a month, you can see you'll be
20:39able to retire in 16 years if you
20:40already have one Bitcoin and your
20:42expenses are 83K today. So adjust the uh
20:45the growth rate, the inflation rate, the
20:47monthly amount that you put into
20:48Bitcoin. You can adjust your current
20:49stack if you want to, up to you. Uh you
20:52can also adjust the interest rate on the
20:54loan. So you can do different models.
20:57Let's say for example, you want to go
20:588%, you can do that. There could be
21:01potentially negative interest rate loans
21:03on Bitcoin because lenders want you to
21:06give them your Bitcoin. So, they'll give
21:08you an incentive to give them your
21:09Bitcoin. In column G, you would see the
21:11total amount that you invest into
21:13Bitcoin other than this amount. The
21:15total value of your stack would be $3.2
21:17million. You would have invested
21:18$384,000 into Bitcoin over the next 16
21:20years. The most important takeaway from
21:23this spreadsheet is the retirement year.
21:25Of course, this is a ballpark. It could
21:27be three or four years ahead of that. It
21:29could be three or four years behind. But
21:31because of this, you'll have some idea
21:32of when you may be able to retire.
21:34Again, if you need help with this, you
21:35can book a financial audit with me.
21:37That's a 90minute session. You can also
21:39join my coaching program, the Bitcoin
21:41Retirement Accelerator that's here. It's
21:44a classroom. It has all kinds of content
21:46in it. It has a specific plan that you
21:49can use in order to retire 10 or more
21:51years earlier. We also do weekly live
21:53Q&A sessions. Every single week, we have
21:55a meeting between all the people in the
21:57group. whoever can join, we talk about
21:59what strategies we can use, anything
22:02that you may have questions about, maybe
22:03something that you don't understand
22:04about Bitcoin. So, if you are putting
22:07this off, if you've thought about
22:08Bitcoin, if you've watched my videos
22:10before, if you've really thought about
22:12what Bitcoin is, this program may be
22:14perfect for you if you haven't taken
22:15action yet. I think the most important
22:17thing that you can do again is just
22:18stack some Bitcoin. It doesn't even
22:20matter how much you have up front.
22:21Eventually, if you were to stack, let's
22:23say, $500 per month, you'd be able to
22:26retire at some point. At some point,
22:28you'll be able to retire. And that's
22:29with that's 30 years with $500 per month
22:31with an 18% growth rate. If the growth
22:34rate is higher than that, keep in mind
22:36that Bitcoin grew like 50% in the last
22:38few months. Let's say the return is 35%
22:42you'd be able to retire in 17 years. If
22:44you already have one Bitcoin and the
22:46growth rate is 35% and you buy $500
22:49worth per month, you see here you'll be
22:51able to retire in 11 years. And keep in
22:53mind that 11 years would give you 20
22:56times your expenses in savings if
22:58Bitcoin grows at 35% per year. So in the
23:02case of your loan, you would never be
23:05over a 10% LTV. In this case, you can
23:07see here, never over 10%. I think the
23:10safest route you can take is keep your
23:12LTV below 10%, 15%, 20%. Keep working as
23:18long as you possibly can. Find something
23:20to generate cash flow for you. I would
23:23say don't go below 20 times your
23:24expenses because anything lower than
23:26that, you're kind of putting yourself at
23:27a danger of giving the majority of your
23:30stack to your lender. In the case of a
23:3135% return, you can see how the chart
23:34looks. The maximum that you would have
23:35given your lender is about 0.36 Bitcoin
23:39as collateral. So, how much Bitcoin
23:41would you need to retire? If you wanted
23:42to retire today with $83,136
23:45of expenses per year, you would need
23:48about 20 Bitcoin in order to retire. If
23:51Bitcoin gives you a 35% growth rate and
23:53you continue to buy $500 worth per
23:55month, if you have one Bitcoin today,
23:57you'd be able to retire in 2037. That's
24:00only 11 years. If you have 0.2 two
24:02Bitcoin today and you continue to buy
24:04$500 worth of Bitcoin per month grows at
24:0535% per year, you'll be able to retire
24:08in 15 years. With 0.1 Bitcoin, a 35%
24:11growth rate and $500 worth of purchases
24:13every month, you'll be able to retire in
24:1516 years. The most important thing
24:18though is that you continue to buy
24:19Bitcoin. If you keep accumulating, keep
24:20buying as much as you can whenever you
24:22can, you keep producing value for other
24:24people, exchanging that value for
24:25Bitcoin, eventually you'll be able to
24:27retire. Even if you can only put $20 per
24:29month into Bitcoin, it grows at 35% per
24:31year. You'd be able to retire in 29
24:32years based on this spreadsheet, you
24:35would have put in $6,960, but your stack
24:38would be worth $5.5
24:40million. These numbers may seem
24:42completely ridiculous. You can see here
24:44at retirement, one Bitcoin is worth $57
24:46million. But we can be a little bit more
24:48conservative. Let's say it grows at 25%
24:50per year. In 40 years, that's when you'd
24:53be able to retire. You'd have 20 times
24:54your expenses. One Bitcoin would be
24:55worth $633 million. But you may not want
24:59to retire in 40 years. If you could put
25:00a little bit more than that into
25:02Bitcoin, let's say you can put in $100
25:03per month, you still have $83,000 of
25:06annual expenses. You'd be able to retire
25:08in 31

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