I've been thinking about stacking HBD as part of my retirement fund recently.
It's been nice over the last several months to see my HBD stack increase and to see those interest payments increase as a result.
ATM we get a tasty 20% APR, but I've based my future modelling on a 10% APR on the basis that literally every stable coin project offering a 20% return as collapsed, so it's probably not sustainable.
10% just sounds much more realistic in the long run.
NB compound interest makes A LOT of difference!
$500 a month plus compound @ 10% chart...
I've started the stack @$10K (not sure why but there you go)....
If you're adding in $500 of yer own money per month then the increase with compound interest @10% reaches $50K after only 56 months, that's just shy of 5 years...
The magic of compound interest over time...
Obvs that'll be a bit slower if you have to stack that initial 10K... you'll be looking at another 18 months roughly, it is a slow start early on with much lower interest!
--
But by the time you're 4 years in....
The compounding really kicks up to $400 a month once you're into the the high $40Ks....
And then to skimming...?
I'm not sure what I'll do when I get to my $50K target... the option is to skim $400 a month, or $500 a year, assuming the 10% rate is still good. Or just to keep on stacking!
$400 a month isn't a massive amount of money, but as part of a broader portfolio, it's not insignificant, and it's around one third of what you need to meet yer basic needs in the UK post housing costs. Not beer and coffee needs, but food and bills.
Probably more like 20% of a reasonable income in retirement, but it's something AND a realistic goal too...
Not financial advice, and this is only a tiny part of my retirement portfolio....
Obvs this is not financial advice, do not on any account take this post as advice it is purely for entertainment purposes only.
And for me this crypto malarchy is only part of a wider retirement portfolio consisting of more standard Vests. You simply have to assume that the whole of the cryptosphere could just disappear into a 0 value blackhole at any time!
But it's nice to dream!