CLEC Investment & Wealth Database00005 Special Topic April 4, 2024 rev 4.0
00005 Topic April 4, 2024 rev 4.0
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00005 Special Discussion on Asset Allocation Summary CLEC Investment and Financial Management Channel April 4, 2024
Market fluctuations have nothing to do with me!
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Market fluctuations have nothing to do with me!
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The international situation has nothing to do with me!
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Market analysis has nothing to do with me!
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Financial statements have nothing to do with me!
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The economic situation has nothing to do with me! peace of mind
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None of this has anything to do with me!
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Ignore the ups and downs of the market!
Disclaimer
Our videos and related content are for educational purposes only and not for profit. We do not have any discussion groups or societies, if someone invites you to join, please be careful of scammers.
We have been committed to voluntary teaching for nearly two decades and have never profited from it. Do not trust any paid investment advice. Although ads may appear on YouTube videos, these are beyond our control and we do not make any money from them.
All the information we provide is only a sharing of personal experience and is not a recommendation from a professional investment advisor (Certified Financial Advisor or/Planner). Investment decisions should be based on personal research and should not rely solely on video content.
Investment risks are high and may result in significant losses. If you cannot bear a loss of more than 10% in the short term or a decline of more than 20% within a few years, it is recommended not to invest. Please pay attention to the safety of your own cash flow and fully understand our investment philosophy before acting. Investments need to be prudent and all decisions must be made at your own responsibility.
There is my pinned message in the YouTube message area, which provides handout downloads and related link information.
New friends please watch the following videos on our channel first
Blind investment without learning is dangerous
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Watch our videos and ask specific questions, including:
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The video number and the time when the problem occurred.
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Asking questions after watching the video is the most effective way to learn.
CLEC does not have a discussion group, we do not authorize anyone to do anything
- We have no way of knowing the composition and purpose of any group, and it is easy for people to infiltrate it.
The investments we recommend are mainly Nasdaq 100 Index Fund QQQ and local ETFs issued by various countries.
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Do not rely solely on the advice of financial advisors, including Charles Schwab financial consultant. They can assist in opening an account, but it is not recommended to fully adopt the ETFs or other financial products they propose.
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Over the long term, the Nasdaq 100 Index Fund and the S&P 500 Index Fund are the best-performing investments. Other than this, individual stocks, funds, and financial products are usually not conducive to investment success and should be avoided.
We recommend investing 100% in Nasdaq 100 Index Fund
In the United States: It is recommended to buy QQQ or QQQM if you have small funds. If you have cash, you can invest in money market SWVXX or short-term T-bill ETFs BIL and SGOV.
Taiwan investors: Recommend Fubon NASDAQ 00662, and invest cash in China Trust US Government 0-1 Year Bond ETF Fund 〈00864B.TW〉.
Chinese investors: It is recommended to invest in 513100/513300/160213/159941/161130/159660.
Hong Kong investors: You can choose HKD 3086, USD 9086, ETF 2834 (HKD)/9834 (USD).
Canadian investors: It is recommended to exchange U.S. dollars to buy QQQ directly, or invest in Canadian dollars QQC.TO/ETF HXQ.TO.
Australian investors: Recommended to buy NDQ.
British investors: It is recommended to invest in iShares VII Public Limited Company - iShares NASDAQ 100 UCITS ETF (CNDX.L) priced in US dollars; in Europe, EQQQ and CSPX.L are recommended.
Brazil: The recently launched Nasdaq index fund is NASD11.
Japanese investors: You can choose 2568/1545/2631.
Malaysian and Singaporean citizens: You can purchase U.S. QQQ through the Phillip Securities poems cas h plus trading account.
South Korea: The recommended QQQ ETFs are 368590.KS/133690.KS/367380.KS.
Starting from 2018, we have kept all videos on YouTube for everyone to learn about investing in chronological order
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The content of the video reflects the market conditions and correct investment decisions at the time, but as time changes, some strategies may no longer be applicable. These are valuable learning resources.
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Viewers should consider the content of the video in light of the market conditions at that time, and develop their own thinking and judgment abilities.
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Our early investment recommendations included certain individual stocks and general funds. Although they were good investment choices at the time, suitable investment targets also need to consider personal risk tolerance and investment strategies.
Investors are always extremely optimistic!
Investors always welcome the sunshine!
The market will eventually rise!
Investment requires patience!
Wealth is worth waiting for!
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The market will always continue to rise, it will only rise and never fall.
The market can never be predicted!
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The best asset allocation of any asset allocation in the worst market will also fall by 80%, leaving only 20% of net assets.
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Any asset allocation will lose 88% of its assets in the worst market, leaving only 12%.
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Investors who have little investment experience or have never experienced a market decline and cannot accept a loss of more than 80% of their assets must be cautious before investing.
Risk warning: all asset allocation must pass the following three tests to be a safe asset allocation.
Interest rates rise to the sky, Stock prices fall to zero, You still have more than ten years of funds to get away with!
Risk reminder must be reported every week
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Investment risk management
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https://youtube.com/playlist?list=PLiskER8xug1dxX1-UVDicxBW2FfEicJis&si=6OG14EDn4riNvS2T
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Stock pledge loan
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https://youtube.com/playlist?list=PLiskER8xug1fnokKkXsrHAUaxNOp9XqAd&si=mJjsXJzlNT2sq6Me
Notes for investors in Taiwan This reminds us of the risks encountered in the practical operation of pledged borrowing and repayment in Taiwan. During the decline process, if the pledge expires in one and a half years, when the amount of the pledge is greater than 60% of the pledged assets, the securities firm will require the asset to be increased to 1.67 times of the pledged amount before the contract can be renewed. Otherwise, you have to sell the shares and repay part of the money until the proportion is met, and then the contract can be renewed.
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Pledgers in Taiwan are reminded to ensure that the pledged loan amount is less than 60% of the pledged assets before renewing the contract. This is not just a matter of maintenance rate. This restricts Taiwan's pledge operation, which makes it very difficult and the risk is quite high.
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The market is beyond our control, so investors in Taiwan must simulate and choose an asset allocation plan that can maintain a rate of over 167%. This is especially true before renewing the contract, but it is very difficult to control. We have no income after retirement and we have to borrow money from assets to spend money. It is relatively difficult to maintain a maintenance rate of 167% forever, because market fluctuations are beyond our control.
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Therefore, Taiwanese investors must be very conservative with their pledges, or they must have a fund bank (such as credit loans or house fixed assets that can be mortgaged to raise huge emergency funds in a short period of time.) They must have the ability to top up the deposit in an emergency.
(50%) Simulates the asset allocation of different investors rev 3.0 (In rising years, the part earned by leveraged funds is transferred to cash 50% 20240405b
It is recommended that our asset allocation can maintain a rate slightly higher than 167% under the worst market conditions, which is relatively safe.
(50%) Simulate the asset allocation of different investors rev 3.0 (In rising years, the portion earned by leveraged funds is transferred to cash 50% 20240405b
Situation 2 minimum maintenance rate 175%
The minimum maintenance rate of condition three is 185%
(30%) Simulate the asset allocation of different investors rev 3.0 (In rising years, the portion earned by leveraged funds is transferred to cash 30% 20240405b
The minimum maintenance rate of condition three is 175%
All of the above can maintain a maintenance rate above 167% in the worst market conditions.
Taiwan’s dividends will have some tax issues that need to be considered.
Teacher: I have recently been thinking about 80% QQQ and 20% 0056 after retirement. (The interest distribution of 0056 can fully cover my one-year expenses). Keep the cash for 2 years. Don’t use it for the pledged account. Use it as a reservoir for adjustment or emergency dispatch) I don’t know if it is feasible. Thank you, teacher.
If the 20% 0056 dividend can meet your expenses. The remaining 80% can be used in situation four (5.8 times) or situation five (5.82 times), and the return may be higher.
Taiwanese investment friends (American investment friends who have no pledges can also consider this method) if 2% of your assets can originally provide your annual expenses, then you can also use 50% of 0056 (SPHD) dividends to meet your expenses. The return for the other 50% may be higher if the situation is one of four (5.8 times) or one of five (5.82 times). (This method is not suitable for American investors. Because in addition to tax on dividends, the capital gains tax is also very high, so American investors need to consider tax issues.)
Taiwan’s dividends will have some tax issues that need to be considered.
100% QQQ rose 2.82x during our simulation period.
Smart rebalancing and mechanical rebalancing methods
- Brainless balancing: just add up and then average. For example, cash and twice-leveraged funds were originally. Leveraged fund 20% 200,000: Cash 20% 200,000. After a year when the market fell, the amount of the leveraged fund became 150,000, and the cash became 210,000.
Brainless balancing is (15 + 21)/2 = 18, so I took 30,000 from cash to buy a twice-leveraged fund so that both sides would become 180,000.
- Smart rebalancing: when the market rises, 30% or 50% of the increase in leveraged funds will be transferred to cash. In a down year, cash is transferred to a year's living expenses (also the initial 2% of assets) to leveraged funds. For example, at the beginning, the amount of leveraged funds was 20%, 200,000: cash, 20%, 200,000. After a year, the market fell, the amount of leveraged funds became 150,000, and the amount of cash became 210,000. Transfer 20,000 in cash to a leveraged fund, turning it into 170,000 in leveraged funds and 190,000 in cash. After one year, if the amount of the leveraged fund increases, it becomes 230,000, and the cash becomes 210,000. Just convert half of the 30,000 yuan (50%) from the leveraged fund or 10,000 yuan (30%) into cash.
(50%) Simulates the asset allocation of different investors rev 4.0 (In rising years, the part earned by leveraged funds is transferred to cash 50% 20240409b
- https://docs.google.com/file/d/18GB1Y02a1rJKHJD_qoRv5tudzVUeHMgO/edit? usp=docslist_api&filetype=msexcel
Growth multiples of different asset allocations from the highest point in 2000 to March 2023
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Situation 1 Pledge borrowing 60% 20% 20% In the rising year, 50% of the profit earned by the leveraged fund will be transferred to the cash position, and the final net asset growth multiple will be 3.06 times. The ratio of net assets to original net assets is 16%
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Situation 2 Pledge borrowing 50% 25% 25% In the rising year, 50% of the profit earned by the leveraged fund will be transferred to the cash position, and the final net asset growth multiple will be 2.79 times. The ratio of net assets to original net assets is 21%
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Situation 3 Pledge borrowing 40% 30% 30% In the rising year, 50% of the money earned by the leveraged fund will be transferred to cash positions, and the final net asset growth multiple will be 2.52 times. The ratio of net assets to original net assets is 25%
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Situation 6: No pledge borrowing, no leveraged fund 80% 20% Final net asset growth multiple 1.4 times. The ratio of net assets to original net assets is 23%
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Situation 7 No pledge borrowing and no leveraged fund 80% 20% Final net asset growth multiple 0.717 times. The ratio of net assets to original net assets is 12%
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Situation 8: 12% of the borrowed money has been pledged and 24% is left in cash. Situation 1. In the rising years, 50% of the money earned by the leveraged fund is transferred to the cash position, and the final net asset growth multiple is 2.81 times. The ratio of net assets to original net assets is 19%
Situation 1～8 Comparative table of transferring 50% of the value-added part of leveraged funds to cash in rising years Situation 1～8 Table of transferring 50% of the value-added part of leveraged funds in rising years to cash
Status Unleveraged Fund Cash Position Ratio Leverage Fund Ratio Money-making Part Convert Final Assets to Minimum Net Assets Relative Cash Ratio Long Multiple Original Net Asset Ratio
Situation 1 60% 20% 20% 50% 3.06 times 16% Situation 2 50% 25% 25% 50% 2.79 times 21% Situation 3 40% 30% 30% 50% 2.52 times 25% Situation 4 40% 30% 30% Mechanical rebalancing 5.8 times 26% Situation 5 60% 20% 20% Mechanical rebalancing 5.2 times 24% Situation 6 80% 20% 0% None 1.4 times 23% Situation 7 100% No pledge None 0.72 times 12% Situation 8 deduct 2X pledged cash remaining funds deduct 2X pledged cash remaining deduct 2X pledged current fund usage status one asset fund remaining funds 50% 2.81 times 19% re-usage-configuration plus 2X pledged current usage-configuration allocation bonus
Different market conditions will have different performance tables for asset allocation.
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All simulations are from the high point of 2000 to March 2023. The market situation is a falling and sideways rising market.
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Different market conditions will have different performance tables for asset allocation.
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Asset allocation for the period from the highs of 2000 to simulated March 2023 will give completely different results for an uptrending market or a complete decline or a sideways market.
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Our simulation is not to verify which performance is good or which performance is poor, but to ensure that the asset allocation can survive the worst case scenario in the market.
(30%) Simulates the asset allocation of different investors rev 4.0 (In rising years, the portion earned by leveraged funds is transferred to cash 30% 20240409b
Situation 6: No pledged borrowing, no leveraged fund 80% 20% Final net asset growth multiple 1.4 times. 23%
Growth multiples of various asset allocations
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Situation 1 Pledge borrowing 60% 20% 20% In the rising year, 30% of the profit earned by the leveraged fund will be transferred to cash positions, and the final net asset growth multiple will be 4.10 times. The ratio of net assets to original net assets is 15%
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Situation 2 Pledge borrowing 50% 25% 25% In the rising year, 30% of the profit earned by the leveraged fund will be transferred to cash, and the final net asset growth multiple will be 3.87 times. The ratio of net assets to original net assets is 19%
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Situation 3 Pledge borrowing 40% 30% 30% In the rising year, 30% of the money earned by the leveraged fund will be transferred to the cash position, and the final net asset growth multiple will be 3.64 times. The ratio of net assets to original net assets is 23%
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Situation 6: No pledge borrowing, no leveraged fund 80% 20% Final net asset growth multiple 1.4 times. 23%
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Situation 7: No pledge borrowing, no leveraged fund, 100% unleveraged fund, final net asset growth multiple is 0.717 times. The ratio of net assets to original net assets is 12%
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Situation 8: 12% of the borrowed money has been pledged and 24% is left in cash. Situation 1. In the rising years, 30% of the money earned by the leveraged fund is transferred to the cash position. The final net asset growth multiple was 3.92 times. The ratio of net assets to original net assets is 18%
Situation 1~8 Table of the rising year, the value-added part of the leveraged fund is transferred to cash by 30%, the unleveraged fund cash position ratio, the profit-making part of the leveraged fund is transferred to cash, the final net assets, the net assets, the growth multiple, relative to the original ratio, the initial net asset ratio
Situation 1 60% 20% 20% 30% 4.10 times 15% Situation 2 50% 25% 25% 30% 3.87 times 19% Situation 3 40% 30% 30% 30% 3.64 times 23% Situation 4 one 40% 30% 30% Mechanical rebalancing 5.80 times 26% Status Five One 60% 20% 20% Mechanical rebalancing 5.21 times 24% Status Six None 80% 20% None 1.4 times 23% Pledge Loan Status Seven None 100% 0% 0% None 0.717 times 12% pledged borrowing status eight deduction 2X pledge deduction 2X pledged cash remaining deducted 2X pledged cash remaining balance cash remaining 30% 3.92 times 18% fund reuse one asset allocation plus fund reuse status one allocation 2X pledged cash status one allocation
- What we are talking about is that after selecting the initial strategy, invest once and let the assets navigate automatically! Unless something unexpected changes midway. For example, you suddenly need funds to buy a house to pay downpay, or you suddenly need a large amount of expenditure. It is necessary to re-configure and reset the asset allocation based on the situation eight from status one to three, with the new asset allocation as the automatic navigation.
Asset allocation comparison table for different investors rev 3.0
Funds, different retirement investment arrangements are emergency reserves
The asset allocation of an investor who has not yet retired is pledged. There is no pledge. No large sum of money is lent at the beginning. There is no pledge at all. Borrowing. Withdrawing money from investment assets. No need to withdraw money from investment assets. No need to withdraw money from investment assets. No need to withdraw money from investment assets. No need to withdraw money from investment assets. There is no need to reserve an emergency reserve fund for investment assets that have not yet been withdrawn, and there is no need to reserve an emergency reserve fund for pledges. The assets that have been lent cannot exceed the assets that have been pledged. Please refer to our documents. [Different, there is no need to reserve an emergency reserve fund. The pledge limit is the emergency reserve fund. The deposit amount is the emergency reserve fund. 20% of assets. Exceeding the pledged assets by 20%.
Funds, different retirement investment arrangements are emergency reserves.
! 】Asset Allocation Reference Number 00005 Asset Allocation Reference Number 00005 No need to reserve an emergency reserve fund, and the pledge amount does not require an emergency reserve fund Asset Allocation Reference Number 00005 Special Topic Video Situation 1 ~ Situation 3. The title video states one to eight. Degree is the emergency reserve fund. , the pledge amount is different emergency funds, different retirement investment pieces are in status one to status eight. Status 7 cannot be used because there is a reserve fund. Arrange! .docx Case 7: Because there is a risk that the market will fall to zero, you can lend out 2% of your assets every year. There is a risk that the market will fall to zero. Asset allocation reference number 00005 topic https://docs.google.com.
Live life. Videos can only be used in condition eight. Asset allocation reference number /file/d/1xeJ LBxGD_iGOZ asset allocation reference number 00005 Special 00005 special video can only be used TNtuT5kkG78KVyfgDoy/Excess monthly salary can be reinvested in the topic video status one to status eight. You can borrow 2% every year to live on. Situation 8. edit? usp=docslist_api&fi market. Salary balances can be reinvested into the market letype=msword.
, it can be made into Beta 1.1 at the beginning, and the excess monthly salary can be reinvested in the market. field. Then put it into the market. There is no pledge, you need to withdraw money from the asset, and you cannot use leverage.
Please refer to No pledge, withdraw money from investment assets
The asset allocation of a retired investor is pledged. There is no pledge. No large sum of money is lent at the beginning. A large sum of money is lent at the beginning without any pledge. Borrowing. Withdrawing money from investment assets without withdrawing money from investment assets. Withdrawing money from investment assets without withdrawing money from investment assets. Withdrawing money from investment assets without withdrawing money from investment assets. There is no need to reserve an emergency reserve fund after withdrawing money from investment assets. There is no need to reserve an emergency reserve fund for pledges. The assets that have been lent cannot exceed the assets that have been pledged. Please refer to our documents. [There is no need to reserve an emergency reserve fund. The following asset limit is the emergency reserve fund. The deposit amount is the emergency reserve fund. 20% of assets. Exceeding the pledged assets by 20%. Funds, the cash position allocated in different retirement investment arrangements is the emergency reserve fund! 】.
Asset allocation reference number 00005 Asset allocation reference number 00005 No need to reserve an emergency reserve fund, and the pledge amount does not need to reserve an emergency reserve fund Question video Situation 1 ~ Situation 3. The title video states one to eight. Degree is the emergency reserve fund. , the pledge amount is emergency different funds, different retirement investment asset allocation reference number 00005 special topic shadow situation 7 cannot be used because there is a reserve fund. arrange! .docx piece status one to status eight. It is not possible to borrow 2% every year to survive the risk of the market falling to zero. Asset Allocation Reference No. 00005 Special Topic https://docs.google.com Situation 7, because there is a risk of the market falling to zero. Videos can only be used in condition eight. Asset allocation reference number /file/d/1xeJ LBxGD_iGOZ .
00005 feature videos can only be used TNtuT5kkG78KVyfgDoy/if 2% funds are not enough to get by. You can borrow 2% every year to live on. Situation 8 edit? usp=docslist_api&fi cannot be pledged. Please refer to unpledged letype=msword.
, the field for withdrawing money from investment assets is set if 2% of the funds is not enough to live. No discussion. Can be pledged. There is no pledge, you need to withdraw money from the asset, and you cannot use leverage.
Please refer to No pledge, withdraw money from investment assets.
CLEC Investment and Financial Management Education College 00451 "2024" The First Investment Class: An Investment Life Lecture Worth 100 Million Yuan December 29, 2023 CLEC Investment and Financial Management Channel https://youtu.be/4FMjmyBpTzw
It’s wonderful and happy when the market rises every day
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