Steemit IRA: Retirement on the Blockchain

Let's face it, the real value of Steem, and the Steemit blockchain is still a few years away. It is difficult to work day in and day out in a volatile market like digital currencies and keep a 2-5 year plan in focus (let alone a 2-5 month plan).

Yet, once you become part of this community I think you'll agree you aren't going anywhere anytime soon. I believe it would be helpful to look at our efforts here as an IRA, and begin investing as such.

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What if you could build a nest egg from blogging 10 hours a week on Steemit?

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Fair warning, there are going to be a lot of numbers in this post. We are going to calculate what you could save over a 5 year period by earning $25 per post, posting 5 articles a week, and following 2 simple rules. The rules are as follows:

• Rule #1: Reinvest 50% of the Steem Dollars you receive from your posts.

• Rule # 2: Always remember Rule #1.

Some of you are reinvesting 100% of the Steem Dollars you receive from your posts, and that is great. Other folks are cashing out those Steem Dollars to pay for items in their home, and that is good too.

Our example assumes that we will use half of the Steem Dollars from our post rewards for pertinent needs in our home, and the other half we reinvest in our Steemit nest egg.

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We will start with a 1000 Steem Power account for easy math and relatability. The year by year example below shows the growth of your Steem Power as you dollar cost average with the rising price of Steem. Our target price for Steem in 5 years is $100.

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Year End Growth of Steemit Account

Steemit 2017: 1 SBD = 0.5 Steem
Steem price: $5
Steem Power: 2125

Steemit 2018: 1 SBD = 0.1 Steem
Steem price: $10
Steem Power: 2575

Steemit 2019: 1 SBD = 0.04 Steem
Steem price: $25
Steem Power: 2755

Steemit 2020: 1 SBD = 0.02 Steem
Steem price: $50
Steem Power: 2845

Steemit 2021: 1 SBD = 0.01 Steem
Steem price: $100
Steem Power: 2890

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The bottom line is that reinvesting half of your Steem Dollars and not powering down over the next 5 years could be worth $289,000 to you.

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Here's the thing, Steem could go to zero and all this is for not. However, how many other things do we risk 10 hours a week on for a much smaller return or none at all?

One more thing, the calculations I did were not including the curation rewards from a 1000 Steem Power account. You could look at that as a dividend compounding for you over the next couple of years. Currently, a fairly active curator at 1000 Steem Power is averaging 168 Steem Power a year. You want to do the math?

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Thank you for visiting. me for more great content.

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Image Sources: 1-2-3