Wise Choices During a Bull Run: Improving Life While Continuing to Invest

Taking action to realize partial profits when obtaining substantial unrealized gains in the cryptocurrency market is a wise move. This is not just a suggestion, but a valuable lesson drawn from personal experience. Early in my career, I missed many profit opportunities due to hesitation, and I still feel regret to this day. Although market fluctuations can affect our nominal wealth, the fundamental principles remain unchanged.

I gradually realized that selling at the right moment can bring benefits that are beyond monetary measurement: permanently improving the quality of life for oneself and loved ones. Just imagine how exhilarating it is to instantly elevate your standard of living by simply clicking the "Sell" button. If you have such an opportunity, I strongly recommend that you seize it.

Many people tend to wait for the best selling opportunity, hoping to gain higher profits by holding on a little longer. However, in reality, the so-called "best time" is often just an illusion. Observing successful traders, one can find that their achievements do not come from perfectly timing every market peak, but rather from consistently making profits and maintaining liquidity. They have long understood that cashing out profits is the key to long-term survival in this market.

One of my most important realizations is that opportunities are endless. This mindset helps alleviate the common fear of missing out that arises when considering selling. While it may feel reluctant to give up a well-performing position, remember that holding on out of fear of missing an opportunity could lead to greater losses in the long run.

Reaching "escape velocity" means that your financial situation is sufficient to support the planned risks without affecting the stability of your life. Once you reach this level, you can truly start to go all out in the market and enjoy the fun of investing.

Considerations for Retirement Funding

As someone who has been paying attention to retirement planning for a long time, I often think: how much money do I really need to retire comfortably? Although the media often emphasizes a astronomical figure, in reality, for many people, 1 million to 2 million dollars might be sufficient. Let’s analyze this issue from a traditional finance perspective.

According to statistics, the average retirement account balance for people aged 65 and older in 2022 was only $232,710. In contrast, suddenly having $1-2 million in retirement funds is no small amount. In fact, only about 3.2% of retirees have savings exceeding $1 million.

For those who hope to retire before the age of 65, this topic may be even more intriguing. 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, and everyone's actual needs may vary significantly.

Let's consider the widely known 4% withdrawal rule. If you have $2 million in savings, according to this rule, you can withdraw $80,000 each year. 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 do you prefer a simpler and more modest life? According to the Bureau of Labor Statistics, the average annual expenditure for people aged 65 and older was $52,141 in 2021. Savings of $1 million to $2 million can easily cover this level of expenditure.

The choice of residence after retirement has a significant impact on your wealth usage. One million dollars may seem tight in New York City, but it could offer quite a luxurious lifestyle in a small town or 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 the pleasures of retirement.

Ultimately, whether 1 to 2 million dollars is enough for retirement depends on the individual's specific circumstances. For many, this is not only sufficient but even exceeds initial expectations. The key is to start saving early, live within one's means, and focus on things that truly bring happiness. Remember, retirement is not just about money; it's about creating a lifestyle you love, regardless of whether there are millions of dollars in the bank account.

Once you deposit enough life-changing funds into a bank or invest in stable assets like real estate, you can participate in the market with a more relaxed mindset.

The "ease" mentioned here does not mean that making money becomes easier, but rather that your mindset will be more relaxed. You can calmly make wiser decisions and only trade at the best times. Even in the face of losses, you will not lose everything because you have already established a secure financial foundation.

As one investor said: "The real fun starts here." From this perspective, the current market cycle is more attractive to me. Even if the worst happens, I still have a reliable backer. Of course, some people perform better under pressure, but for most, a relaxed mindset allows for better decision-making.