Rethinking Long Term Savings Plan

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4 years ago, comments: 3, votes: 37, reward: $0.58

Image by Nattanan Kanchanaprat from Pixabay

I was playing the calculator game for thinking of retirement. I'm altering my long term savings plan to increase my contributions. For the record, I expect there might be something from Social Security (if the government can still afford it when I retire), a pension, and whatever savings I have put aside on my own. In terms of savings, I'm working on crypto, stocks, and a pile of emergency "cash" (probably stablecoins earning interest). In the crypto, I am including HIVE.

My current savings target is $150/mo. Recently, added a recurring purchase feature to the app, which allows me to buy $50 of BTC every month. That will use up $50 towards the savings target. I have also been buying $20/wk in HIVE, which amounts to $80 per month. That brings our total to $130. I am also putting away $10 per week for the purchase of ETF stocks that pay dividends. That closes out $150/mo in savings. Well, not quite.

I have decided to bump up my monthly savings in Hive to $25/wk for the time being. I have a goal of 10,000 Hive at the moment. Once I reach 10,000 Hive, I will have to re-evaluate my savings plan again before striving for a larger number. This puts us at about $170/mo in savings. I hesitate to call this investing because investing has a definite start date, end date, and target profit. These contributions I am making are rather open-ended.

Let me highlight that at some point, the numbers generate themselves rather than requiring constant investment. Let's say, for example, that I lease out my entire 10,000 Hive for 16% interest. That would yield 1600 Hive per year. That's a Minnow in HP every year.

If I reach 35,000 Hive and lease out all of it at 16%, that yields 5,600 HP. That's a Dolphin per year.

Clearly, my HIVE presence will stand on its own two feet at some point. I won't need to keep subsidizing it. Obviously, I won't lease out all the HP. I still plan on being active on Hive. I enjoy being able to reward others with my upvotes. I just wanted to illustrate that accumulating wealth starts to change the dynamics on your investing. So, if I am generating 5,000 Hive each year from leases, do I still need to be contributing $25/mo?

That's where the pause after reaching 10,000 HP will come in. I'll need to evaluate where my $25/wk will make the biggest impact. I am 300 HP away from reaching 4000 HP, which I'll probably reach in a couple of weeks as the last of my STEEM gets converted. 5000 HP shouldn't take long after that. 10,000 might take a little longer without any more STEEM boosts. It comes to about 50 weeks, almost a year, not counting rewards from posting and curating. I have plenty of time to think about what to do when I reach 10,000 HP.

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