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09Oct, 2024

Factoring in inflation in your FIRE portfolio returns

The S&P 500 has historically delivered an average annual return of about 10%, making it a popular choice for long-term investors. However, those pursuing financial independence and early retirement (FIRE) often turn to low-cost, broad-market ETFs like Vanguard’s Total Stock Market ETF (VTI) to maximize returns and diversification. While nominal returns may look attractive, it’s important to account for inflation—often around 2-3%—which reduces real returns to closer to 7%. Using CPI data helps investors calculate their real returns, providing a clearer view of actual wealth growth. Additionally, understanding the impact of taxes on investment gains, especially in different states, is crucial for accurate financial planning.

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Bitcoin will never be too expensive to protect your savings against inflation
26Jun, 2024

Bitcoin will never be too expensive to protect your savings against inflation

In this article, we will explain why Bitcoin will never be too expensive to protect your savings against inflation. But before doing so, we need to understand the fundamentals of what inflation is and how it affects your savings or, more specifically, your buying power. We’ll also analyze how it has evolved over the last 100 years and compare that to the evolution of wages.

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23Nov, 2022

Bitcoin yearly returns since 2010

Since bitcoin’s inception in 2010, the asset has seen significant yearly returns. In the bitcoin’s first year of existence, it saw a 9,900% return on investment and continued to post impressive results for the subsequent years. But there have also been very negative years with the first in 2014 closing at a 58% drop. How does 2022 compares?

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16Oct, 2022

Could Bitcoin become the investment asset of the future?

The world economy is in a state of crisis. As a result, many investors are looking for an alternative place to invest their money into more traditional assets like gold.

Some are also turning to Bitcoin and other digital currencies as a hedge against inflation, even though the performance of these digital assets does not seem to correlate very well with this intention due to the fact that it trends in an almost parallel pattern to the stock market (up when its good and down when its not good). So will this new asset class (Bitcoin) ever carve out its own path and become the investors’ choice hedge against inflation in a turbulent market, or is it doomed to stay where it is, which is seemingly a more risky digital extention of the stock market ?

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