As of February 20, 2025, XRP has a market capitalization of approximately $155.93 billion, making it the third-largest cryptocurrency by market capitalization. There have been several opinions about Ripple’s long-term potential and how high it could go. One popular question could also be how many Ripple tokens one would need to retire.
Popular YouTube channel “My Financial Friend,” with over 300,000 subscribers, shared an insightful analysis of XRP retirement strategies. In their video titled “How Much XRP You Need To Retire! (HINT It’s Less Than You Think),” the content creator offers a detailed perspective on using XRP tokensfor retirement planning.
My Financial Friend acknowledges the deep division within the cryptocurrency community regarding XRP. He identifies three distinct groups, fervent believers convinced of XRP bright future, critics who dismiss it as questionable due to insider selling concerns, and pragmatic investors who simply view it as a profit opportunity, regardless of the underlying technology.
Understanding XRP Price Potential
While acknowledging that precise XRP price predictions are impossible, My Financial Friend created a spreadsheet analyzing various scenarios for retirement planning. His analysis spans potential prices from $2 to an ambitious $50 over the next two bull runs, approximately eight years.
He points to several bullish factors, including Donald Trump’s apparent support for Ripple, the company’s executive meetings with the former president, and XRP potential inclusion in crypto reserves. The creator also emphasizes Ripple position as a major cryptocurrency company, the development of their stablecoin RLUSD, and ongoing bank trials for cross-border payments.
Planning Retirement Funds With Ripple
My Financial Friend warns his viewers about the unique challenges of retiring on cryptocurrency due to extreme market volatility.
He explains that during bear markets, many alternative cryptocurrencies can lose 80-90% of their value, potentially turning millions into mere hundreds of thousands. This volatility, he stresses, makes timing profit-taking crucial for any retirement strategy.
In his analysis, My Financial Friend breaks down different retirement approaches and their XRP requirements.
He explains that a Coasting FIRE strategy, which involves accumulating XRP for eight years before letting it compound at 8% annually for 25 years, would need about 36,000 XRP if the token reaches $10.
For traditional retirement plans aiming for $100,000 annual income, he calculates a requirement of approximately 250,000 XRP at the same price point.
Those seeking a more luxurious retirement with $250,000 yearly income would need 625,000 XRP.
Read Also: Does Ripple (XRP) Have Any Advantage Over Bitcoin in the Crypto Market?
Smart Investment Strategies
The YouTuber strongly advises against putting all retirement savings into XRP. He maintains that Bitcoin remains a more conservative choice for long-term crypto holdings. His recommended balanced approach suggests making XRP about 10% of an investment portfolio. For instance, he explains that someone targeting 10,000 XRP over eight years might only need to acquire 1,250 XRP today.
The Path Forward
While providing these detailed calculations, My Financial Friend emphasizes that personal financial goals vary significantly. He advocates for dollar-cost averaging and portfolio diversification as crucial strategies.
Using recent market movements as an example, he points out that the same amount of XRP that cost $267,000 at current prices could have been purchased for just $62,500 when XRP traded around $0.50 a few weeks ago. This observation leads to his advice about entering positions during market fear rather than euphoria.
The creator concludes with an apt analogy, just as training for a six-minute mile represents a stepping stone rather than a life-changing achievement, reaching specific XRP holding targets should be viewed as part of a broader financial journey rather than a guaranteed path to retirement success.
