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The First Step To My Retirement Funds

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@erikah
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Yesterday I wrote a post about planning to set up my own retirement fund in crypto.

Today I'd like to explain what's wrong with the existing system and then I'll let you know what's the fist step I did to secure some funds.

The Obsolete System

At the time of writing, contribution to the retirement fund is mandatory in my country, if you're an employee or a business owner. There's a certain percentage you have to pay each month and if you neglect payment, there are penalties.

You have to contribute at least for 18 years, in order to get a pension. There's an age limit after which you can ask for a pension, it's 63 for women and 65 for men. There are special circumstances, when you can ask for pension earlier, but that's not important at this point.

What's important is that your contribution goes to the government's budget and you have no control over it. You can't get it back ever. When you retire, you're paid a monthly amount, which depends on how much the law says. The amount is calculated based on possibilities and has nothing to do with the value of contribution over the years.

If you die before you can retire, you get nothing as those funds are not yours anymore, your family is not entitled to get the benefits either. If you live a few months after you retire, you get a few payments and that's it. The government is happy for saving money. Your contribution is not invested, so storing value is out of the question.

Maybe I'm the problem here, but I fail to see the benefits of such system.

This is why I'm working on setting up my own retirement funds in crypto. Yesterday I wrote a post about it and today I made the first step.

The First Step

My plan is to secure some BTC and ETH every month. This means getting these funds to a safe place and keep it there till the time comes. Crypto is for long term anyway.

The first option would be to transfer it to my cold storage, but I have to consider the fees as well, so for now I have chosen a different plan.

Since this is a long term plan, I decided to lock some stake on Binance and earn more. There's a Locked Staking option, with 30, 60, 90 days options. The APY is not a lot, but compared to interest paid by banks it is indeed a lot. Plus keeping it in a cold storage brings you nothing, not to mention the transfer fee. Which one is safer? Well, it depends, both can be safe and risky as well, depends on how safe you can keep your password and seed.

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After the locking period is over or way before that, I'm going to consider my next step. My ultimate goal is to keep my crypto on my cold wallet, but first I need to accumulate enough to be worth paying the transfer fee. Every penny counts.

This is just the beginning, I'm sure in time I will find the best system.

Posted Using LeoFinance Beta