Topic: He wants to Invest in Bitcoin for His Retirement. - page 3. (Read 1790 times)

I don't also think that it is bad to introduce people to invest in Bitcoin. Investing in Bitcoin is not illegal and it can be profitable. After all, it was someone who introduced some of us to Bitcoin. Some people might blame you in future for not advising them to invest in it. We shouldn't only look at the negative consequences, the investment might become fruitful.

But also understand the reservations of Mpamaegbu, some retirees don't have other sources of income and depend solely on the pension or gratuity. I will suggest that your pastor invest part of his retirement benefits and keep others for his upkeep. But if he has other sources of income that can sustain him, Bitcoin is a good investment. But don't forget to teach him how to keep his funds safe.       

All your points are good. And mostly the second point. Forum has thought me a lot of lessons so when I am involved in cryptocurrency with anyone I have to be very sensitive and be careful with the person. I will not invest and monitor someone investment. I can only direct the person to buy and invest for the first two to three times. And when the person can buy by him or herself then I left everything for them to do. And as you said, can only answer questions from them I'd they don't understand anything either they want to sell and they don't know whe to do. When you involved in another person investment and if anything happens then you are to blame and to avoid such. I have to tell them everything both the advantages and disadvantages so that when it happens I will not be blamed again. But their errors or impatient.  As for the second point, I think it is not bad to tell someone to invest in bitcoin if the time before the person will retire is still far. And before then as I said, tell the person both the pros and cons so that you not be held responsible when there is any downfall. And it is very wrong for someone to start planning to invest when he about to stop working. There is no need for that unless the person has another business running to fetch him coolly money.

There are lots of holes I picked in the whole clergy situation as you narrated. Let me dwell on just three of them for didactic purposes.

First, I like the part you posited that you didn't want to hodl the investment for him but that he should get a trusted child of his to hodl and monitor it on his behalf. That's what I also do. This has helped keep me out of trouble with people. Once I set it up for them, I let them keep it. I only get involved when they want to sell or transfer if they can't do it on their own. Nobody likes to see their investment depleted and if that begins to happen they want to quickly blame it on someone if they aren't seeing it go down themselves.

Second, I would never suggest crypto investment for someone going into retirement. It's too dangerous, whether it's on a short term or long. What if wallets get hacked? What if passwords get misplaced? What if coins dip at a time they're in dire need to sell off and attend to their financial needs? There are so many "ifs" to it.

Third, I don't understand the part where people have to wait until their retirement to start up something that can get them passive income. Your clergy's situation cuts across many civil servants I know. Most of them find it difficult having investments by the side while in active service and that's lack of financial wisdom.

I understand you so well. If we are lucky to diversify into a better asset then the reverse will be the case. Some persons are lucky enough that they diversify into an asset that yielded profit which helped them boos their accumulation in Bitcoin investment quickly reaching their target.

My own definition of diversification simply refer to investing in a business. Because if the business is thriving it will sort out many things. Not jsut stopping us from tampering our Bitcoin investment, but it will serve as a sustain for our other expenses and yet little profits from it can be added to increase our Bitcoin accumulation.

"Investing in Bitcoin for retirement? Well, that's one way to keep the faith strong! 😅 But tell the pastor that Bitcoin might be a bit too volatile for divine intervention—he might need more than a prayer to retire comfortably! 🙏📉"

Bitcoin investment definitely not an ideal investment for him not with his retirement money, retirement money is issued so a person can invest it in something that he can make a living from which definitely bitcoin cannot do that for him. Bitcoin is a risky investment that needs a lot of time and patience and also invest only money you can afford to lose but clearly retirement money is not one a person will be willing to lose.

Trying out other businesses is not a bad idea but then even businesses are not safe as they also involve certain risks and nothing is guaranteed. Business is not an easygoing process, it’s easy to establish when you have money but not so easy to manage, alot of people have tried out several businesses and end up as failures so even businesses are risky and also there. Are several factors to be considered to establish a successful business.

If he can think of a very suitable business then i think business is the way for him, at least he will see how his money is spent and when the business fails there will be no regret compared to if he invested in bitcoin.

Good recommendation.

I will say here bitcoin is the best for making investment on cryptocurrencies but bitcoin has the high volatile market conditions and that's is of the big cause people are still facing losses even they are invest on bitcoin. And here investing for the retirement can't be good idea.

Because here the man who will make investment is old person and the emergency situation with the health issues are mostly happens in this period and here even the risks management strategy the DCA method applied their have also risk if the person need the money in the bear season. So I will also not recommended that idea but he can do investment on bitcoin with DCA what doesn't make any impact to his life for the investment.

This is the reason why it's not recommended for anyone to invest their savings or the money that they have to feed themselves or their families because you can't always expect to get quick results from cryptocurrencies even though they sometimes can surprise you, and this is for all of them, including Bitcoin. Someone who invests the only money they have in a cryptocurrency hoping that they might get weekly or monthly earnings might get disappointed at some point.

So those who don't know much about the market and cryptocurrencies need proper guidance before they make a final call because if they make a decision based on what they have heard, they might make a wrong decision because there are millions of mouths with different words and interpretations about something. We wouldn't know what the truth until we do some research ourselves.

I think Bitcoin may not be able to fully meet its demand. The probability of Bitcoin's failure to meet its demand is high. Because We know Bitcoin is profitable in the long term but can be counterproductive in the short term. Bitcoin often continues to decline in value month after month. How will he handle the situation where investment is his only breadwinner? Will he be prepared for the loss then? Will it suit him?

I think you should convince him as much as possible so that he doesn't expect this from Bitcoin. If he is not willing to take the risk then suggest him to invest at his own risk where you will be his advisor only and you will not be responsible for any profit or loss. Because you should not cause harm to someone where there is a definite possibility of harm. Better advice for him would be to invest by fiat in a business that is most capable of meeting his needs.

If he is going to retire in a few months then what is the point of DCAing because the monthly income he gets would be stopped right ?
How would he keep buying bitcoin after his income has stopped ?
In this case, it is not really a good idea to invest in bitcoin because he cannot invest for a long term.
He would need an investment which is liquid and easy to access and with bitcoin he would have to go through the hassle of exchanging to fiat and then get it to his bank account in case of an urgent need.
It would be better for him to invest in a fixed deposit and get an assured return on his capital.
His capital amount would be safe and he would be getting fixed monthly/quarterly returns as well.

As per the comment you mentioned if the pastor retires soon I would suggest he invest in some other real estate instead of investing in Bitcoin. Because you mentioned that you analyzed him for short term and long term investment but he chose short term investment. He might have thought that investing in Bitcoin would make him rich overnight. Maybe he's wrong because Bitcoin is not a get-rich quick scheme. Whenever we invest in Bitcoin it is with a long-term and holding mindset that may be four years six years or more.

It can be a best move for him if he invests his money in a store or business after retirement and buys bitcoin regularly on weekly or monthly basis using DCA method with the proceeds.

Nice, though It's a very good thing I agree with you. Investment in Bitcoin is for long-term holding. You didn't use it whenever you needed. for emergencies, you have more than one source of income. if you invest in crypto, especially in Bitcoin, you should have multiple sources of income that are necessary for basic needs and not use Bitcoin investment for having profits in long-term holding. If a person with multiple sources of income has multiple sources of income, he will not be able to withdraw their Bitcoin investment, and if necessary then he will be able to withdraw money from our other business and invest it DCA is a good formula by which we invest profit every month in bitcoin and holding it for long-term to get benefit from it.

That would be considered trading and the potential investor here is not very knowledgeable about bitcoin or trading. For someone who has no job and is planning on investing his pension in bitcoin, how would he handle the risk of losing since the market can move in an uptrend and downtrend? Investors who do not have other means of income usually find themselves in life situations where they sell their hodlings irrespective of where the market is at.

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OP hasn’t updated the thread on the meeting with his pastor. I think that will give us information on whether the pastor invested in bitcoin after the suggestions and advice from this thread.

The concept is actually wrong if in the end we only depend on investment profits for survival. It is okay to do something like that because all rights and decisions are ultimately in your own hands, but we must be aware that in the end this concept will only make you lose your own potential because you always depend on your life only on the investment profits made, while we certainly understand that investment is an option to make our future better, which means indirectly we certainly know that as long as there is no urgent need, you will not stop the investment you are making in this case because you think that this is good for the long term, while the needs we currently have can still be met with the income from the work we have.

Taking advantage of the investment we make may not be considered wrong because it is the right of each person, but what makes this less appropriate is when you depend on your life as if the investment you make can cover the life you do just because of a naive view where every day it gets profit but does not know that the worst possibility is that the investment made experiences decline and loss.

It is true that diversification is the key to reducing risk but this is only true when you have a significant amount of capital. But if you don't have that much capital, diversification won't make sense and won't be possible  .  We often advise diversifying our portfolio with gold and real estate , but how many of us have such large sums of money ?

So this will depend on how much capital we have. If we only have a small amount of savings to start our investment journey, we should spend a lot of time researching and investing in a single asset . Such as bitcoin , that would give us the opportunity to earn more significant profits instead of diversifying our portfolio with our small capital .

Right. It is smart for man to invest in things that will give him steady income other than putting all of his money into Bitcoin. If he invests in Bitcoin he might get frustrated and lose money because he needs to use his money for personal things too.

Having business like restaurant or store that brings money every day would be good idea. Then he could invest in Bitcoin and wait for it to increase in value. Investing in Bitcoin without stable financial situation is risky and could lead to big losses.

It is good to prioritize financial security especially when retired and not working. By focusing on good investments and building business that generates cash he will make better investment choices and can achieve his financial goals.

There's no rule as this. You can invest in bitcoin and still feed from it especially when there's upwards movement, you can take profit and take care of yourself. So, the bitcoin belongs to the investor and the investor has the right to withdraw anytime and sort himself out.

What do you mean by investing for him? You know it's wrong. Show him how to invest himself. It is not very difficult, don't invest for him else you take the blame when the market moves the wrong direction.

Feed from it? What do you mean by feed from it?
I will just assume that the one you're talking about wants to invest into Bitcoin for short term, then he will take the profits immediately and then that will be used for their daily lives. If that's the case then it's more of a trading then, and as a newbie, I'm not recommending it. It's good that you said that it's preferable especially for a newbie like him to invest in long-term.

That's the problem. Time isn't on his side. What's even worse is that, his children don't have a job based on what you said. Where will they get the money for investing into Bitcoin.
There's one solution that I'm thinking and that is, to extend his service as a Senior Pastor. That is, if he really wants to have some money to invest into Bitcoin. Another one is to let his children continue what the Pastor is doing which is to invest into Bitcoin, but for that to happen, they need to find a job.

Now you're a fund manager for them, eh? Just kidding, but if I'm in your shoes, I will also decline it because there's a chance that they will blame you if things go the other side especially they don't know that much with regards to Bitcoin.

So I'm right then that he wants to get his daily needs from Bitcoin. Let him trade.
Sometimes, letting them experience will make them realize that what they're thinking is wrong and it's not for them. Newbies often think too much that they don't know how hard it is to earn profit on a daily basis using Bitcoin.

If he really insists to do it then let him do it, and say to him that whatever happens to your money, I'm not the one to blame because at first place, you warned him already that it is almost impossible.

Good idea, the man should fine a sustainable investment to put his money into it and also make plans to buy Bitcoin from his accumulated profits along the way, and not invest in Bitcoin the reason is that, with the way the man sounds he has pressure on his investment and will not be able to wait for the Bitcoin holdings to appreciate in profits befor he may want them liquidated to sort out one personal issue or the other, but if he has an already operating business that could provide him a cash flow he will definitelyake a good investment choice buying and holding Bitcoin, but anything other than that with his current financial situation will be like gambling, because buying Bitcoin with the wrong mindset and expectations will only lead to frustration along the way, having a business center or a restaurant something that brings in daily incomes since retirement means that he is out of active service after serving his productive years of service.

In this matter, we can suggest him to use two type of period which is short term and long term so he can still hope to make a profit from his short term investment while he can wait for his long term investment. But that doesn't guarantee him to make a profit since Bitcoin price will not always increase in a short term. Using DCA can be done but I doubt that he can make a profit in a short term because DCA will be recommended for a long term at least that is for me. But if he is lucky enough to make a profit in a short term, he can make money from that. I agree that Bitcoin investment is a secondary thing that we do but we should have an income to fills our daily needs. Maybe he needs to search for a work to fills his daily needs and saving some money in Bitcoin for short or long term investment.