Bull run profits: A wise choice made to improve quality of life and sustain investments.

If your investments have accumulated unrealized profits sufficient to change your life, I suggest you seriously consider cashing them out. This is not just advice; it is a valuable lesson I learned from personal experience. Early in my career, I often hesitated about whether to lock in profits, and this hesitation left me regretting every time. While our nominal wealth may fluctuate throughout the trading journey, the fundamental principles remain unchanged.

I gradually realized that when the profits are enough to change your life, choosing to cash out will give you a benefit that cannot be measured in money: a permanent enhancement of the quality of life for you and those around you. Just imagine, being able to improve your living conditions instantly by simply clicking the "Sell" button, how wonderful that would be! If you have such an opportunity, I strongly recommend that you seize it.

I am fully aware of how tempting it is to wait for the perfect selling opportunity: always believing that if you hold on a little longer, you can gain more profit. However, the truth is that the best timing is often just an illusion. The most successful traders I know did not achieve their success by perfectly timing every peak moment, but by consistently making profits and maintaining liquidity. They understood early on that cashing out profits is a necessary condition for survival in this game.

One of my most open-minded realizations is that opportunities are always abundant. This mindset helps alleviate the fear of missing out that traders often have when considering selling. Indeed, giving up a well-performing position may feel regrettable, but keep in mind: holding on out of fear of missing an opportunity may cost you more in the long run.

I often think about what it means to reach "escape velocity": that is, your financial situation allows you to undertake planned risks without jeopardizing your life stability. Once you reach that level, you can start to really play the game and go all in.

Retirement Fund Requirements

As someone who has been considering retirement, I often ponder: how much is enough? Although the media often exaggerates the amount needed, I believe that for most of us, a range of $1 million to $2 million may be the most appropriate. Let's first analyze this issue from a traditional financial perspective.

In 2022, the average retirement account balance for individuals aged 65 and older was only $232,710. Therefore, suddenly having savings of $1 to $2 million is not a small amount, is it? In fact, only about 3.2% of retirees have savings exceeding $1 million.

I understand that you reading this article may not be 65 years old yet, and you hope to retire before reaching 65. When I first heard that Americans believe they need $1.46 million to retire comfortably, I was very surprised. But then I realized a key point: this number is just an average. Everyone's needs can vary greatly.

Let's consider the 4% rule, which is a commonly used guideline for retirement planning. If you have $2 million in savings, you can withdraw $80,000 per year. For many people, this is enough to maintain a comfortable lifestyle. Your retirement needs largely depend on the lifestyle you want. Are you planning to travel the world, or are you content with simpler pleasures in life? According to the Bureau of Labor Statistics, the average annual expenditure for individuals aged 65 and older was $52,141 in 2021. Savings of $1 million to $2 million can easily cover this expense.

Choosing a place to live after retirement can greatly affect your wealth utilization efficiency. A retirement fund of 1 million dollars may feel tight in New York City, but it could provide a luxurious lifestyle in a small town or abroad.

The Importance of Psychological Factors

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

Ultimately, whether 1-2 million dollars is enough for retirement depends on your personal situation. For many of us, this is not just enough money, but even more than we dreamed of. The key is to start saving early, live within your means, and focus on the things that truly bring joy to your life. Remember, retirement is not just about money, but about creating the lifestyle you love, regardless of whether you have millions of dollars in your bank account.

I completely understand the perspective of a seasoned investor. Once you have deposited enough life-changing funds into the bank or invested in stable assets like real estate, you can participate in the market with a more relaxed mindset.

What do I mean by easy? It doesn't mean making money becomes easier, but rather that your mindset will be more relaxed. You can calmly make wiser decisions, focusing only on the most valuable trading opportunities. Moreover, even if you encounter losses, you won't lose everything, because you have already built a solid financial foundation.

As that investor said: "The real fun starts here." From this perspective, this investment cycle is more attractive to me. Even if all investments go to zero, at least I have a safe backup. Of course, some people work more efficiently under greater pressure, but I believe this is not the case for most people.