A Redditor witnessed a significant increase in net worth from $1 million to over $4 million largely due to a single stock investment. At 33, he faces choices regarding retirement and maintaining a balance between risk and growth. Financial strategies such as the 4% withdrawal rule suggest he could withdraw substantial funds annually. However, with aspirations for personal growth and hobbies, he may opt to remain invested rather than retire immediately. Diversification is emphasized to mitigate investment risks even if certain stocks perform well.
Putting all of your eggs in one basket is risky for any investor. Although Reddit stock has outperformed the S&P 500 over the past year, there is no guarantee that this trend will continue.
The first question the Redditor should consider is how much he will spend each month in retirement. If the Redditor follows the 4% withdrawal rule, he can withdraw $160,000 per year.
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