Cashed-out

The term 'cashed-out' describes the act of liquidating one's investments, savings, or assets, typically to obtain a sum of money or to transition to a new financial state. This often signifies a strategic decision, such as retiring, starting a new venture, or realizing profits from an investment. The process can involve selling stocks, bonds, property, or other holdings, resulting in a significant amount of readily available cash. A 'cashed-out' individual is no longer reliant on the ongoing performance of their investments, but instead has control over the realized funds for their desired purposes, though they also no longer benefit from any potential future appreciation of those assets.

Cashed-out meaning with examples

• After years of building his tech company, John decided to cash-out, selling his shares and retiring early. He wanted to spend more time with his family and travel the world. He sold all his holdings, and his cashed-out status meant he could finally pursue his dreams and move on from the day-to-day operations. The transaction brought him considerable financial freedom.
• Faced with rising healthcare costs and a desire for a simpler life, Maria chose to cash-out her real estate portfolio. The move allowed her to pay off debts and relocate to a smaller town with a lower cost of living. Her cash-out represented a strategic shift to prioritize financial stability and a more manageable lifestyle after many years of managing multiple properties.
• The stock market boom gave many investors the opportunity to cash-out, taking profits before any potential downturn. Successful investors could capitalize on the increasing value of their shares by selling high. Cashing-out at the peak was a risk-mitigation strategy, allowing investors to secure substantial gains and protect their capital from future market volatility.
• Before a major economic downturn, the prudent financial advisor urged his clients to cash-out some of their volatile investments to protect them from significant losses. This strategy aimed at preserving wealth by converting risky assets into more stable cash reserves. This action provided a cushion against market instability.
• Upon inheriting a family business, Sarah decided to cash-out, as the daily operations were not compatible with her aspirations. This allowed her to use the money to start her own art studio. By selling the business, she could pursue her passions while also providing for her own financial security and future pursuits.