Bull run profits: Selling to improve life and continue investing

When you have accumulated unrealized profits that are enough to change your life, selling a portion is a wise choice. This is not just advice, but words of experience. In the early stages of my career, I missed good opportunities due to indecision, and I still feel regret to this day. Although the market is unpredictable, the fundamental principles remain unchanged.

I gradually realized that cashing out profits at the right time can bring benefits that cannot be measured in money: a permanent improvement in the quality of life for oneself and loved ones. Just think about it, how wonderful it would be to instantly enhance your standard of living with just one "sell" action! If you have such an opportunity, I strongly recommend that you seize it.

I fully understand how tempting it is to wait for the best selling opportunity: you always feel that waiting a little longer will yield more profit. However, the reality is: perfect timing only exists in fantasy. The most successful traders I know did not achieve their accomplishments by precisely capturing every peak; they succeeded through continuous profits and maintaining liquidity. They understood early on that cashing out profits is the key to long-term survival in this market.

One of my most valuable insights is that opportunities are always abundant. This mindset helps alleviate the fear of missing out that traders often experience when considering selling. Indeed, letting go of a well-performing position may feel regretful, but remember: blindly holding on out of fear of missing an opportunity may come at a higher cost in the long run.

I often think about what it means to reach "escape velocity": that is, your financial situation allows you to take on planned risks without jeopardizing the stability of your life. Once you reach this level, you can truly begin to fully immerse yourself in the market and enjoy the joy of trading.

Retirement Fund Needed: Actual Needs May Be Lower Than Imagined

As someone who has been considering retirement for a while, I often think: how much money do I really need to retire? Although the media often promotes astronomical figures, I believe that for many people, 1 million to 2 million dollars may be sufficient. Let's analyze this issue from a traditional finance perspective.

Data from 2022 shows that the average retirement account balance for individuals aged 65 and older is only $232,710. In contrast, suddenly having $1-2 million is indeed a considerable amount of wealth. In fact, only about 3.2% of retirees save over $1 million.

I understand that you reading this may not plan to wait until 65 to retire. When I first heard that Americans believe they need $1.46 million to retire comfortably, I was also surprised. But then I realized a key point: this is just an average, and everyone’s actual needs may vary significantly.

Let's consider the famous 4% withdrawal rule. Suppose you have $2 million in savings, which allows you to withdraw $80,000 each year according to this rule. For many people, this is enough to maintain a comfortable standard of living. Your actual retirement needs largely depend on your expected lifestyle. Are you planning to travel the world, or enjoy the simple pleasures of life? According to the Bureau of Labor Statistics, the average annual expenditure for individuals aged 65 and over was $52,141 in 2021. Savings of $1 million to $2 million can fully cover this level of expenses.

Choosing a place to live after retirement can greatly impact your wealth utilization efficiency. One million dollars may seem tight in New York City, but it can provide quite a luxurious lifestyle in small towns or certain areas abroad.

The Importance of Psychological Factors

Knowing that you have savings of $1,000,000 to $2,000,000 can greatly alleviate financial pressure and allow you to truly enjoy retirement life.

Overall, whether 1 to 2 million USD is sufficient for retirement depends on individual circumstances. For many, this is not only enough but even exceeds expectations. The key is to start saving early, live within your means, and focus on things that truly bring happiness. Remember, retirement is not just about money; it's about creating the life you envision, regardless of how much is in the bank.

I can relate deeply. Once you deposit funds that can significantly change your life into a bank or invest in stable assets like real estate, you can participate in the market with a more relaxed mindset.

Here, "easy" does not mean that making money becomes easier, but rather that your mindset will be more composed. You can make decisions more calmly and only choose the trading opportunities you are most confident in. Even if you encounter losses, you will not lose everything because you already have a solid backup.

As some seasoned traders say, "The real fun starts here." From this perspective, the current market cycle is more attractive to me. Even if the worst-case scenario happens, I still have safety nets in place. Of course, some people perform better under pressure, but I don't think that applies to most.