The Richest Man in Bitcoin - A 7 Step Guide to Wealth - Insure a Future Income

Lesson #6 - There are diverse ways by which a man may provide with safety for his future

This Part 6 of a 7 step series applying teachings from the famous book “The Richest Man in Babylon” to Bitcoin as a revolutionary savings technology.

Lesson 1 Lesson 2 Lesson 3 Lesson 4 Lesson 5 Lesson 6 Lesson 7

None of us want to be old and broke.

Its can be a constant fear as we start getting a little older, and haven’t secured a “nest egg” for our golden years.

Unfortunately, the governments today haven’t promoted good saving habits, and they’ve also created a moral hazard in many countries, “guaranteeing” an income for people in retirement. This hasn’t really gone as planned, as a massive ponzi where young workers fund retired individuals has emerged.

Thus it is up to you!

Never hand off responsibility to the others for your financial well being, as The Richest Man in Babylon states: Insure a future income

Lets look at three possibilities, from worst to first - How to insure a future income.

Providing for Your Future with Government Funded Retirement and Pensions

These are the sources most people rely on today.

Social in-Security, in the United States - and varying other programs exist in many countries around the world. Basically, money is deducted from your pay, sometimes your employer must match that deduction, and its sent off to the government for “safekeeping.”

Sure

This is nothing more than a massive house of cards. Governments don’t invest it in anything that would garner returns like you’d find in the real market, generally sticking it in government bonds.

Basically they are sticking money and stacks of IOUs into their various pockets and moving them around.

All the while their lying faces pop up on TV and they screech at each other about how their opponents are trying to take money from old people.

Now the problem will not come in the actual paying of the benefit, governments are going to keep sending out the “benefit” as promised, whether they actually have the money or not.

The real problem arises in that their money is completely broken, and inflation is going to completely ravage the purchasing power of the benefit over the next one to three decades.

The United States alone has $42 Trillion in unfunded social security benefits due, and this will simply be printed as necessary to payout the benefit.

Pensions too are something people are counting on, and while they may actually be partially funded, again its going to depend on when you retire, and how much inflation has occurred by then. Additionally, many private companies have completely eliminated pensions - so this isn’t even an option for much of the population.

If you’re close to retirement, you may be ok, but don’t count on it! Look to other sources to protect your future.

Providing For Your Future with Personal Investments

Next you may look to personal investments like 401K, IRAs and real estate as sources of income in your old age.

These “traditional” investments have done well for many folks over the last 50 years, as they’ve at least kept up with the pace of currency debasement. If you’ve been wise with your fiat money, and put it into these vehicles instead of letting it sit in the bank, you’ve probably maintained your purchasing power so far.

But will it continue?

Doubtful

Again, inflation will be the issue for the next 10-20 years.

Governments HAVE TO INFLATE away the debt they’ve accumulated, and no matter how tough they talk in the media, watch their actions to determine what they are really going to do.

We’ve already seen it with their COVID response. As soon as a supposed emergency hit, they turned the money printer on full-blast just to keep their debt-laden balance sheets afloat a little longer.

There are limited benefits to these investments like tax deferred growth and low/no tax rates on sales of real estate, but these investments aren’t going to grow purchasing power significantly in the years ahead.

Providing For Your Future With Bitcoin

Finally, we come to Bitcoin.

Engineered as a savings vehicle, its hard cap fixed supply guarantees those who buy in that they will not be diluted by lying Central Bankers and politicians.

Yes - you are going to see some volatility as you move value into Bitcoin. But that is only when you measure the value of your coins in dying dollars.

Remember: 1 BTC=1 BTC

The key is looking far into the future, and not worrying about day-to-day or even year to year movements.

Following a simple plan like putting 10% of your pay into Bitcoin for 10 years will put you on the right track to having an nice nest egg to depend on later.