Still waiting to make big money and retire? Crypto world researcher: Sell as soon as the floating profit is enough, the opportunity always exists

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If you have unrealized profits that can change your life, please listen to me: you need to sell it. This is not just a suggestion, but a lesson I learned from painful experience. In the early days of my career, I hesitated whether to take profits and regretted every moment of indecision. Nominal wealth may change as we embark on our trading journey, but the basic principles remain the same.

One thing I gradually understand is that when you sell at a life-changing moment, you will gain a benefit that cannot be evaluated with money: permanently improving your life and the lives of those around you. Imagine clicking 'sell' and immediately improving your living situation. It's wonderful! If you have such an opportunity, I strongly suggest you seize it.

I know how tempting it is to wait for the best selling time: believing that if you persist for a while longer, you can make more profits. But the truth is: the best timing is just an illusion. The most successful traders I know didn't achieve their success by perfectly timing every peak; they achieved it by consistently making profits and maintaining liquidity. They understood early on that cashing out is a necessary condition for survival in this game.

One of my most open-minded cognition is that there are always opportunities. This mentality helps alleviate the fear of missing out that traders often feel when considering selling. Yes, abandoning a well-performing position may be unsettling, but please remember that holding it out of FOMO will cost you more in the long run.

I often think about what it means to achieve 'escape velocity': that your financial situation allows you to take planned risks without endangering your livelihood stability. Once you reach that level, then you can truly start playing the game and go all out.

How much money is enough for retirement?

As someone who has been considering retirement, I often wonder: how much money is enough? Although the media often touts astronomical figures, I believe that for many of us, $1 to $2 million may be the best option. Here's why, let's first look at this issue from a TradFi perspective.

In 2022, the average retirement account balance for individuals aged 65 and above is only $232,710. So, suddenly having 1-2 million dollars is not a small amount, isn't it? In fact, only about 3.2% of retirees have savings exceeding $1 million.

Okay, I got it. It's unlikely that you, who is reading this article, are over 65 years old and you want to retire before the age of 65. I was shocked when I first heard that Americans think they need $1.46 million to retire comfortably. But then I realized something crucial: this number is an average. Everyone's needs may be very different.

Let's consider the 4% rule, which is a common retirement plan guideline. If you have saved $2 million, you can withdraw $80,000 per year. For many people, this is enough to live a comfortable life. Your retirement needs largely depend on the lifestyle you desire. Do you plan to travel the world or are you satisfied with simpler pleasures? According to the Bureau of Labor Statistics, the average annual expenditure for individuals aged 65 and above in 2021 is $52,141. Savings of $1-2 million can easily cover this expense.

The choice of retirement location will greatly affect your wealth usage. A $1 million retirement fund may feel tight in New York City, but it can provide a luxurious life in small towns or abroad.

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Psychological factors

Knowing that you have $1-2 million in savings can alleviate a lot of financial pressure and allow you to truly enjoy retirement.

Ultimately, whether 1-2 million dollars is enough to retire depends on your individual circumstances. For many of us, this is not just enough money, it's more than we could have dreamed of. The key is to start saving early, live within your means, and focus on the things that truly bring you happiness in life. Remember, retirement is not just about money, it's also about creating a life you love, whether you have millions of dollars in the bank or not.

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I understand what Fiskantes said above. Once you have deposited the life-changing money into a bank or invested in real estate, you can easily participate in the market.

What do I mean by relaxation? Well, I'm not saying it's easier to make money, I'm saying your mindset is more relaxed. You can make better decisions calmly, just let the trades come to you. And even if you lose, you won't lose everything at least, because you already have protection.

As Fiskantes said, "The real fun starts here." In this sense, this cycle is more interesting to me. If everything goes back to zero, at least I still have a safe reliance. That being said, some people work more efficiently under greater pressure, but I don't think that's the case for most people.

[Disclaimer] There are risks in the market, and investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific situation. Investment based on this is at your own risk.

This article is authorized for reprint from: "Foresight News"

Original Author: Route 2 FI

This article was first published in 'Crypto City': 'Still waiting to make big money and retire? Cryptocurrency researcher: Sell when you have enough floating profit, opportunities are always there'.