Chapter 62 [Wealth is a gift, happiness is a human right! 】

Source: https://www.facebook.com/100063294665283/posts/698827452237071/

[James’ Origin and Today] Chapter 62 - Wealth is a gift, happiness is a human right (09/05/2023)

Buffett's way of getting rich is simply investing in US index funds, which is still the easiest way to implement and achieve financial freedom smoothly.

There are hundreds of ways to invest. Investing in US index funds is the easiest and most successful way that has been proven (although the process is not easy). There are different investment methods in the market. If the return can exceed the long-term return of U.S. index investment and has been proven successful for 20 to 30 years, of course it can.

Investing in index will make you rich in the long run. Such a simple investment method has nothing to do with income, gender, age, occupation, and there is no need to start your own business (not everyone is a high-paid engineer, nor is everyone suitable for starting a business, but everyone is suitable for index investing). Work is a hobby, investment can make you truly rich.

Buy US Index [ETF] SPY, QQQ and hold it for the long term, never sell! You will be rich if you do this!

When you retire in the future, if you need money, sell as much as you need. If you don’t need the money, don’t sell! There is no need to do anything.

A young man who invests NT$6,000 (US$200) every month and regularly buys Nasdaq Index Fund 00662 (US QQQ) in Taiwan for 40 years will have NT$30 million (US$1 million). Even more, if you deduct NT$12,000 (US$400) every month, you will have NT$60 million or more in retirement. If you invest NT$20,000 (US$700) every month, you will have hundreds of millions in retirement. You don’t need to know too much or do anything to become a rich man!

Investing is simple, buy the index and never sell, you will be rich!

Retirement expenses determine how much money you need to retire.

General recommendations Annual expenses X 33 (times)

For example, if you spend NT$50,000 per month, you will spend NT$600,000 a year. Six hundred thousand times 33 = $19.8 million

So prepare $19.8 million to invest in the American index SPY and QQQ. The annualized return is 10%. The long-term annualized growth can be $1.98 million a year. If you spend $600,000, the principal will continue to accumulate. You can’t spend it all in a lifetime or from generation to generation. [Wealth] means [money] can never be spent.

Many people bought a house when they were young. Although house prices are now rising, the index investment in general securities accounts is insufficient, and the retirement cash flow is insufficient. The United States has to pay high real estate taxes every year, and almost half of the social security benefits have to be paid in real estate taxes. They have high-priced owner-occupied houses, but insufficient cash flow to live in retirement.

If you are approaching retirement age in the United States. But if your cash flow is insufficient, you can consider selling your house and investing the funds in U.S. index funds. You can first return to Taiwan to lower your living expenses (you can enter Taiwan without a visa for six months if you have a U.S. passport). After a few years, your investment funds will gradually increase to enough assets to live in the United States. (If you are worried about the short-term stock market decline, there is really no better way. You can do as much as you care.).

The most indispensable thing in the world is the pessimistic and terrifying remarks that scare investors to death (there are different opinions in the market. Many people believe that the market is not bullish yet, and the market will plummet. Such remarks were often made at the bottom of the market in the past, etc. It has been proven for a long time that such pessimism will only hinder the freedom of wealth for most people). It makes investors feel fearful and incompetent, as if they have to listen to professionals to make money. Buffett has proven this wrong.

In the investment world, those who drive a Mercedes take investment advice from those who take the bus. In the end, those who drive a Mercedes can only take the bus, and those who take the bus switch to a Mercedes.

Investment Rule No. 1: Don’t listen to investment advice that requires you to pay. Because people who live on your money have proven themselves that they cannot make money on investment, and they cannot support themselves by investing on their own. Believing that their investment advice can help you make money is a waste of time.

Buffett is a successful investor and does not charge you fees. He recommends only buying index funds instead of listening to investment advice that relies on charging you fees and membership fees or investment advice from other investment teachers who cannot retire themselves.

[Wealth is a talent, happiness is a human right! 】