Why should we learn to sell coins to improve our lives in the bull market?

Author: Route 2 FI

Compiled by: Luffy, Foresight News

If you have life-changing unrealized profits, hear me out: You need to sell it. This isn’t just a suggestion, it’s a lesson I learned the hard way. Early in my career, I was always hesitant to take profits, and I regretted every time I hesitated. Nominal wealth may continue to change along with our trading journey, but the basic principles remain the same.

One thing I’ve come to understand is that by selling when it’s life-changing, you’ll reap a benefit that can’t be measured in monetary terms: permanently improving your life and the lives of those around you. Imagine clicking "Sell" and being able to instantly improve your life situation. This is wonderful! If you have such an opportunity, I highly recommend you take it.

I know how tempting it is to wait for the perfect time to sell: believing that if you just hang on a little longer, you'll make more profit. But the truth is: the best time is just a fantasy. The most successful traders I know didn’t get where they are by timing every peak perfectly; they got there by consistently taking profits and maintaining liquidity. They figured out early on that selling for cash was necessary to survive in the game.

One of my most optimistic insights is that there are always opportunities. This mindset helps alleviate the fear of missing out that traders often feel when considering selling. Yes, it can be uncomfortable to let go of a well-performing position, but remember: 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 calculated risks without jeopardizing the stability of your life. Once you get to that level, that's when you can start actually playing the game and giving it your all.

How much money does it take to retire?

As someone who has been thinking about retirement, I often wonder: How much is enough? While the media often touts the astronomical sums this would require, I believe that for many of us, $1 million to $2 million may be the sweet spot. Here’s why, let’s first look at this from a TradFi perspective.

In 2022, the average retirement account balance for someone age 65 or older was just $232,710. So, suddenly having $1-2 million isn't a lot, is it? In fact, only about 3.2% of retirees have more than $1 million in savings.

Okay, I get it, it's unlikely that you're over 65 and want to retire before 65 when you're reading this. 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 can be very different.

Let's consider the 4% rule, a common retirement planning guideline. If you save $2 million, you can withdraw $80,000 per year. For many people, this is enough to live a comfortable life. Your retirement needs depend largely on the lifestyle you want. Are you planning to travel the world, or settle for simpler pleasures? The Bureau of Labor Statistics reports that the average annual expenditure for those 65 and older in 2021 was $52,141. This can easily be covered by $1-2 million in savings.

Where you choose to live in retirement can greatly affect how you use your wealth. A $1 million pension may feel tight in New York City, but it can provide a luxurious life in a small town or abroad.

psychological factors

Knowing you have $1 million to $2 million saved can relieve a lot of financial stress and allow you to truly enjoy your retirement.

Ultimately, whether $1 million-$2 million is enough for retirement depends on your personal situation. For many of us, that's not just enough money, it's more than we ever 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 isn't just about money, it's also about creating a life you love, whether you have millions of dollars in the bank or not.

I understand what Fiskantes said above. Once you've put life-changing money in the bank or invested in real estate, etc., you can easily participate in the market.

What do I mean by relaxed? Well, I'm not saying it's easier to make money, I'm saying your mind is more relaxed. You can make better decisions with ease and just let the deals come to you. And, even if you lose, at least you won’t lose everything because you’re already covered.

As Fiskantes says: "This is where the real fun starts." In that sense, this cycle is more interesting to me. If everything goes to zero, then at least I have someone safe to fall back on. That being said, some people are more productive in more stressful situations, but I don't think that's the case for most people.