00494 December 7, 2024

Number: 00494

Published: 2024-12-07

Pages: 32

Source filename: 00494 2024年12月7日簡報資料 .pdf

Original file: Open file

Previous presentation: 00493 November 30, 2024
Next presentation: 00495 December 21, 2024

Document Text

We will pause for one week next week (2024-12-14)

The next clubhouse will be broadcast on time on 2024, 12 and 21

Over the long run, the market only rises

Clubhouse: relaxed conversations about investing, CLEC Investment and Financial Management Channel, December 7, 2024

Market volatility has nothing to do with me!

Market volatility has nothing to do with me!
International affairs have nothing to do with me!
Market analysis has nothing to do with me!
Financial statements have nothing to do with me!
Economic conditions have nothing to do with me!
None of it has anything to do with me!
Ignore the noise and turbulence of the market!

Disclaimer

Since July 2023, we have begun the process of canceling the company registration and nonprofit organization procedures for "CLEC Education Academy" and have changed all names to "CLEC Investment and Financial Management Channel," formerly "CLEC Investment and Financial Management Education Academy." We may still use CLEC. Please remember that unless it is James Chen himself, it has nothing to do with us; do not be deceived.

Our videos and related content are for educational purposes only and are not for profit. We do not operate any discussion groups or communities. If someone invites you to join one, please beware of scams.

For more than twenty years, we have been committed to volunteer teaching and have never profited from it. Do not trust any paid investment advice. Although ads may appear on YouTube videos, that is outside our control and we do not profit from them.

All information we provide is only a sharing of personal experience. It is not advice from a professional investment advisor (Certified Financial Advisor/Planner). Investment decisions should be based on your own research and should not rely solely on video content.

Investing is risky and may lead to significant losses. If you cannot tolerate a short-term loss of more than 10% or a decline of more than 20% over several years, we recommend that you do not invest. Pay attention to your own cash-flow safety and fully understand our investment philosophy before taking action. Invest prudently; all decisions are your own responsibility.

My pinned comment in the YouTube comments area provides handout downloads and related links.

New friends, please watch the following videos on our channel first.

Investing blindly without learning is dangerous

Watch our videos and ask specific questions, including:
The video number and the timestamp where the question came up.
Asking questions after watching the video is the most effective way to learn.

CLEC has no discussion groups, and we have not authorized anyone to act on our behalf

We cannot know the membership or purpose of any group, and such groups can easily be infiltrated by people with bad intentions.

Do not rely entirely on financial consultants, including Charles Schwab financial consultants. They can help with account opening, but we do not recommend fully adopting the ETFs or other financial products they suggest.
Over the long term, the Nasdaq 100 index fund and the S&P 500 index fund have been among the best-performing investments. Outside of these, individual stocks, funds, and financial products usually do not help investment success and should be avoided.

United States: We recommend buying QQQ, or QQQM for smaller accounts. Cash can be placed in money market fund SWVXX or short-term Treasury bill ETFs BIL and SGOV.
Taiwan investors: We recommend Fubon NASDAQ 00662. Cash can be invested in CTBC U.S. Government 0-1 Year Bond ETF Fund (00864B.TW).
China investors: We recommend 513100/513300/160213/159941/161130/159660.
Hong Kong investors: You can choose HKD 3086, USD 9086, ETF 2834 (HKD), or 9834 (USD).
Canada investors: We recommend converting to U.S. dollars and buying QQQ directly, or investing in Canadian-dollar products QQC.TO/ETF (HXQ.TO).
Australia investors: We recommend buying NDQ.
United Kingdom investors: We recommend the U.S.-dollar-denominated iShares VII Public Limited Company - iShares NASDAQ 100 UCITS ETF (CNDX.L). In Europe, we recommend EQQQ and CSPX.L.
Brazil: The recently launched Nasdaq index fund is NASD11.
Japan investors: You can choose 2568/1545/2631.
Malaysia and Singapore investors: You can purchase U.S. QQQ through a Phillip Securities POEMS Cash Plus trading account.
South Korea: The recommended QQQ ETFs are 368590.KS/133690.KS/367380.KS.

Since 2018, we have kept all videos on YouTube so everyone can learn investing in chronological order

The videos reflect the market conditions and appropriate investment decisions at the time. As time changes, some strategies may no longer apply. They remain valuable learning resources.
Viewers should interpret each video in the context of the market conditions at that time, and develop their own thinking and judgment.
Our early investment recommendations included certain individual stocks and regular funds. Although they were good choices at the time, suitable investments must also account for personal risk tolerance and investment strategy.

Investors are always extremely optimistic!

Investors always face the sunshine!

The market will ultimately rise!

Investing requires patience!

Wealth is worth waiting for!

Subscribe, comment, like, forward, and share on Apple Podcasts. Remember to leave a five-star subscription so you can receive real-time market updates.

The market will keep rising forever; it only rises and never falls

We will pause for one week next week (2024-12-14)

The next clubhouse will be broadcast on time on 2024, 12 and 21

@toshio0617

In Taiwan, if I have a house but no loan, I will take out a financial mortgage before I retire while I have income (only the interest will be paid, and the interest will be calculated as much as I use it, and the interest can continue to accrue without having to pay a dime, so there is no cash flow problem).
A quota of about five years for living expenses, for example, spend one hundred a year and get a quota of five million. It can be used for five years, which is enough to survive short-term short positions. 100% of the funds are invested in 00662. Every 2-3 years, when the history is high, sell a little 00662 to pay off the revolving loan (00662 and debt rebalancing). You can recalculate and spend five years. If you encounter a ten-year short position and the five-year quota is used up, you can increase the loan and the stocks can also be pledged.
Many Taiwanese people have traditional families. They have houses but no loans, which is a pity. The concept of owning a house is deeply rooted and cannot be changed, so make good use of the house, apply for a financial mortgage, release the liquidity of the house, increase the flexibility of funds, and sell stocks without paying taxes, rebalance regularly, and control the loan-to-value ratio. If you know how to apply for a loan, your house will be your emergency reserve fund. If you don't know how to get a loan, you will really have to sell your house if you are short of money. If you don't have a pension, you will not be able to afford three meals a day, and you will be poor and only have your house.
I have some ideas. Please ask the teacher to correct them to see if there are any omissions. Thank you.

For example, maintaining an 80%:20% ratio between part of the borrowed cash and investments is a good approach

@clec168 This method is indeed very good. You just apply for a financial-type housing loan, and the interest will be recorded as much as you use it. You can treat the amount of these financial-type housing loans as cash, so that your own funds can be fully invested in the market, increasing the rate of return and increasing the funds available for life.
For example, if the ratio of partial borrowed cash to investment can be maintained at 80%:20%, this is a good way.
For example, if you have 40 million retirement funds and invest 00662, if you use 2% a year, you can only spend NT$800,000 a year. And if you have a financial management mortgage with a limit of 10,000,000, it is exactly 80%:20%. In this way, your assets will reach 50,000,000. At 2% per year, you will have 1,000,000 to spend in a year. This is an important difference.
The current regulations of the Bank of Taiwan are that the age of the mortgage borrower + the loan period must not exceed 90. Exceeds will require special review by the head office. , this may need attention. Otherwise, this method is indeed a very good and flexible tool for people who hold properties without loans.

@toshio0617 @

@clec168 Thanks to the teacher, because the first application will look at the income, and there is no need to renew the contract after the next five years, so I said to apply before retirement. Each bank is different, including whether the limit can be 10 million at a time, and how long the cycle will expire.
My current revolving financial management mortgage loan from the Bank of Taiwan is up to NT$5 million/seven years. The official website of the Bank of Taiwan currently states that the maximum housing price is 70%/five years. Given that current housing prices in Taiwan are more than 25 times the national average annual income, it should not be a problem to dig out 10 years of living expenses.
For example: if the five-year revolving limit of RMB 5 million is used up, if the revolving limit cannot be increased, you can use a general mortgage loan to repay the revolving amount. The monthly payment required for a general mortgage loan will be deducted from the revolving amount. There is no need to spend any money, just clear the limit and continue to live your life.

I hope using a revolving mortgage and investing in 00662 will be better for asset rebalancing

Last but not least, it seems feasible to move from a loan to a revolving mortgage (financial mortgage), but it seems to increase the monthly expenses. Your revolving mortgage funds will be consumed faster than normal retirement expenses, which may be a risk.
I hope it is better to use revolving mortgage loans and investment 00662 for asset rebalancing.

I think it is better to buy a house, it doesn’t matter, everyone gets what they need, there is no need to argue about life and death here, everyone has his own life, and everyone lives his own life.

But if you pledge stocks to borrow money to live, your assets will never have to be sold. No matter how old you are, even if you are over 90, the financial industry will still let you pledge stocks to borrow money and you will never have to pay it back.
For a real estate loan, you must repay the principal within 30 years. If you keep repaying the loan, the leverage will decrease. To refinance, the age of the mortgage borrower + the length of the loan must not exceed 90. In the end no bank will lend you money.
And having a mortgage without income is a very high-risk financial behavior. Your retirement cash flow will be cut off, and you will have to sell your house in the end. You will not be able to live a luxurious life as a wealthy person by relying on rent. Buying a house is only a matter for ordinary poor people.
I think it is better to buy a house. It doesn't matter. Everyone gets what they need. There is no need to argue about life and death here. Everyone has his own life and everyone lives his own life.
The second edition on November 27, 2023, recalculates the difference in fate after 30 years between buying a house per month and renting a house.
https://drive.google.com/file/d/1Blm3ICU7Lf6LTZvT1qJx_Xb3JVNilv7h/view?usp=drivesdk

The highest annualized return on a house will not exceed 7%. Living off rental income is how poor people do it

A house worth $5,000,000. Now I borrow money to pay the rent. The rent is $15,000 with 5% interest. I will never have to pay it back. I have rented it for 40 years. Even if the bank wants to settle the account with me after forty years, I will only owe the bank 22,000,000. But I have 5,000,000 in cash and I will not buy a house. If I put the annual return on index investment at 14%, it will be one billion in 40 years. Owning Appetite stock assets and owing others 22,000,000 is really just a fraction.
Of course, some people will say what to do if you don’t have 5,000,000. The simple thing is to make it easier for the rich to make money after you become rich. So when you have money, don’t buy a house. It would be better to rent a house. When you end up with billions, are you still afraid of not having a house to live in? When you can afford it, you don’t want to buy it.
If a young person buys a house, he will remain a house slave for the rest of his life and will never be rich. There is no way to use our "index financial operation. The annualized rate of return on assets will always be compound interest with a high rate of return of more than 14%. Borrowing money to live your life will never reduce your assets."
The highest annualized return on a house will not exceed 7%. Living on rent is a poor thing.
@ExceptionNoWay Don’t forget your real estate taxes and maintenance fees. Taxes will always be inevitable. When the house becomes an inheritance, your children will have to pay real estate taxes using the market value, not your money. There are between three and four hundred thousand dollars in property taxes to be paid a year.
Assume that a house is worth 50,000,000 and the property tax is 1.2%. If your child inherits a house, he will have to pay a house tax of more than 600,000 US dollars every year. The more houses there are, the bigger the head.

@shurouchen9946

The teacher’s wisdom requires people who have experienced “a lot of ups and downs” of difficulties and pain to feel the wisdom of Teacher James and regard him as a treasure. Because there are many “demons” in this world, there are always a bunch of people trying to “paint the pie” with you, asking you to “do whatever you want” or “don’t do anything”, but they all use others as the “bottom”.
Either be smarter than others (high financial sensitivity, or "be a smart fool"), save money every month, buy EQＱQ, put a little cash (for 2-3 years) on you, and you'll have !
I personally reached the age of 55. Ever since I came into contact with Mr. James’ videos, I started to make a lot of money and have “settled down and settled down” ever since! Thank you so much, Teacher James!
James: I am really happy to hear your sharing. The phrase "start making big money" is really exciting. You will make more money and feel that the money is really full. It depends on whether you want to reach out and take it. Remember to use the washbasin.
Artificial intelligence promotes the growth of human beings. If my prediction is correct, it will be long for at least 20 years, or even 30 years.
Watch our video number 00488 this week. At the beginning, I said that artificial intelligence is not a bubble and will bring great wealth. Go read what the president of TSMC said. .
If you have money, just buy or sell. Waiting on the sidelines will only get higher as you wait. You can only close your eyes and buy at the market price the next day when the market opens. There is no other better way.
At the Berkshire General Meeting of Shareholders in May 2008, the well-known American juvenile writer Timothy. Timothy Ferriss asked "Stock God" Warren Buffett: "If you are just a 30-year-old loser now, you don't have any savings assets, can't invest all day long, and can only rely on a full-time job to make a living. What should you do? How do you make your first pot of gold?"
"Stock God" Warren Buffett replied: "I will invest all my money in low-cost index funds (index ETFs) and work hard." And we know that Buffett also bet against fund managers in 2008 and has won early.

If you can invest another 35,000 each year, you will have 5 million in ten years

You currently have $1.5 million in assets available for investment. You spend 100,000 a year, and I’ll take the middle value of your social security benefit, which is 40,000. You need to prepare a pension of 60,000 US dollars a year. If you multiply 60,000 US dollars by 50, you will have a pension of US$3 million.
If you can invest another 35,000 every year, you will have 5 million in ten years.
If you only need more than 3 million yuan for retirement, and you invest 35,000 yuan a year now, you will have more than 3 million yuan in five years, and you can retire.
Your asset allocation before retirement is 70% QQQ 20% QLD 10% cash. Smart rebalancing every year.
https://docs.google.com/file/d/1T882J-WuW-p5EzUgZN_IET_8aNtOsgwS/edit?usp=docslist_api&filetype=msword
In a traditional retirement account, cash is placed in a traditional IRA and QLD is placed in a tax-free account.
After you retire, you should quickly convert your IRA to ROTH.
Asset allocation after retirement: 80% QQQ 20% money market, rebalanced every year. 80% versus 20%.
Our life cannot be lived in vain. We must have experienced it, thought about it, summarized the results, and put them into the database before we have lived it. Otherwise, we will have experienced it in vain.
No matter how big or small things happened in the past 60 years, as long as I have experienced them, I must have thought about them. The final summary process and conclusion are placed in my database. Whether it is my own affairs, other people's affairs, or social affairs, I have been thinking about it. After thinking about everything, I will definitely have a summary and systematic summary in my database. This increases my database and enriches my life.
So my life database is the bits and pieces I have accumulated over the past 60 years, ranging from why life is happening here to small things such as sweeping, cleaning, cooking and planting. This is a once-in-a-lifetime experience for us, we must think and learn, and not let time pass by in ignorance.
Only when we have thought about every bit of life can we really exist and live this life. A life without thinking does not exist. If you don’t remember your past experiences at all, then your life will be in vain.

You need to be able to survive major market declines and have enough cash as a safe backstop

If you are worried that the market will fluctuate and fall, your psychological quality will not be able to withstand a 45% drop in the market in 2022, and you cannot invest.
You need to be able to weather a market downturn and have enough cash as a safe backing.
Generally, we recommend working people (this also depends on whether your job is stable), and if you are an industrialist whose income is not very stable, you need a life reserve of one or two years or 20% in cash. See which one you choose more.

Other investments are not as good as 513100. Returning to real estate will only make things worse

You should invest 100% of what you can invest in 513100 now. Rather than just investing 1%, are you kidding me? You only invest 1% because you don't pay enough attention to it. Your financial intelligence really needs to be strengthened.
No other investment is as good as 513100. You return to real estate only to get worse.
The property can be sold even if it is cut in half to stop the bleeding. If your property was really bought in a bad area or in a bad area, it doesn't matter if you can't sell it. As long as you don't continue to invest money, you will make a profit. You still have to pay money, and if you can't sell it, you give it away. Stop the bleeding!
Manage your finances first and manage your debts first. You need to make up for the previous pitfalls, and completely cut off and clear out all the things you need to pay for every month.
Withdraw the assets that can be withdrawn and cut off all items that require expenditure.
After that, put 513100 of possible investment funds.
Keep working to earn living expenses, and you will start to sprout, grow, and bear fruit again.

CLEC Investment and Financial Management Education Academy 00451, "2024" 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 is wonderful and joyful when the market rises every day

We have a pinned comment in the YouTube comments area where you can download handouts and find other related links.

Number: 00494

Published: 2024-12-07

Pages: 32

Source filename: 00494 2024年12月7日簡報資料 .pdf

Original file: Open file

Previous presentation: 00493 November 30, 2024
Next presentation: 00495 December 21, 2024

Document Text

We will pause for one week next week (2024-12-14)

The next clubhouse will be broadcast on time on 2024, 12 and 21

Over the long run, the market only rises

Clubhouse: relaxed conversations about investing, CLEC Investment and Financial Management Channel, December 7, 2024

Market volatility has nothing to do with me!

Market volatility has nothing to do with me!
International affairs have nothing to do with me!
Market analysis has nothing to do with me!
Financial statements have nothing to do with me!
Economic conditions have nothing to do with me!
None of it has anything to do with me!
Ignore the noise and turbulence of the market!

Disclaimer

My pinned comment in the YouTube comments area provides handout downloads and related links.

New friends, please watch the following videos on our channel first.

Investing blindly without learning is dangerous

Watch our videos and ask specific questions, including:
The video number and the timestamp where the question came up.
Asking questions after watching the video is the most effective way to learn.

CLEC has no discussion groups, and we have not authorized anyone to act on our behalf

We cannot know the membership or purpose of any group, and such groups can easily be infiltrated by people with bad intentions.

Do not rely entirely on financial consultants, including Charles Schwab financial consultants. They can help with account opening, but we do not recommend fully adopting the ETFs or other financial products they suggest.
Over the long term, the Nasdaq 100 index fund and the S&P 500 index fund have been among the best-performing investments. Outside of these, individual stocks, funds, and financial products usually do not help investment success and should be avoided.

United States: We recommend buying QQQ, or QQQM for smaller accounts. Cash can be placed in money market fund SWVXX or short-term Treasury bill ETFs BIL and SGOV.
Taiwan investors: We recommend Fubon NASDAQ 00662. Cash can be invested in CTBC U.S. Government 0-1 Year Bond ETF Fund (00864B.TW).
China investors: We recommend 513100/513300/160213/159941/161130/159660.
Hong Kong investors: You can choose HKD 3086, USD 9086, ETF 2834 (HKD), or 9834 (USD).
Canada investors: We recommend converting to U.S. dollars and buying QQQ directly, or investing in Canadian-dollar products QQC.TO/ETF (HXQ.TO).
Australia investors: We recommend buying NDQ.
United Kingdom investors: We recommend the U.S.-dollar-denominated iShares VII Public Limited Company - iShares NASDAQ 100 UCITS ETF (CNDX.L). In Europe, we recommend EQQQ and CSPX.L.
Brazil: The recently launched Nasdaq index fund is NASD11.
Japan investors: You can choose 2568/1545/2631.
Malaysia and Singapore investors: You can purchase U.S. QQQ through a Phillip Securities POEMS Cash Plus trading account.
South Korea: The recommended QQQ ETFs are 368590.KS/133690.KS/367380.KS.

Since 2018, we have kept all videos on YouTube so everyone can learn investing in chronological order

The videos reflect the market conditions and appropriate investment decisions at the time. As time changes, some strategies may no longer apply. They remain valuable learning resources.
Viewers should interpret each video in the context of the market conditions at that time, and develop their own thinking and judgment.
Our early investment recommendations included certain individual stocks and regular funds. Although they were good choices at the time, suitable investments must also account for personal risk tolerance and investment strategy.

Investors are always extremely optimistic!

Investors always face the sunshine!

The market will ultimately rise!

Investing requires patience!

Wealth is worth waiting for!

Subscribe, comment, like, forward, and share on Apple Podcasts. Remember to leave a five-star subscription so you can receive real-time market updates.

The market will keep rising forever; it only rises and never falls

We will pause for one week next week (2024-12-14)

The next clubhouse will be broadcast on time on 2024, 12 and 21

@toshio0617

In Taiwan, if I have a house but no loan, I will take out a financial mortgage before I retire while I have income (only the interest will be paid, and the interest will be calculated as much as I use it, and the interest can continue to accrue without having to pay a dime, so there is no cash flow problem).
A quota of about five years for living expenses, for example, spend one hundred a year and get a quota of five million. It can be used for five years, which is enough to survive short-term short positions. 100% of the funds are invested in 00662. Every 2-3 years, when the history is high, sell a little 00662 to pay off the revolving loan (00662 and debt rebalancing). You can recalculate and spend five years. If you encounter a ten-year short position and the five-year quota is used up, you can increase the loan and the stocks can also be pledged.
Many Taiwanese people have traditional families. They have houses but no loans, which is a pity. The concept of owning a house is deeply rooted and cannot be changed, so make good use of the house, apply for a financial mortgage, release the liquidity of the house, increase the flexibility of funds, and sell stocks without paying taxes, rebalance regularly, and control the loan-to-value ratio. If you know how to apply for a loan, your house will be your emergency reserve fund. If you don't know how to get a loan, you will really have to sell your house if you are short of money. If you don't have a pension, you will not be able to afford three meals a day, and you will be poor and only have your house.
I have some ideas. Please ask the teacher to correct them to see if there are any omissions. Thank you.

For example, maintaining an 80%:20% ratio between part of the borrowed cash and investments is a good approach

@clec168 This method is indeed very good. You just apply for a financial-type housing loan, and the interest will be recorded as much as you use it. You can treat the amount of these financial-type housing loans as cash, so that your own funds can be fully invested in the market, increasing the rate of return and increasing the funds available for life.
For example, if the ratio of partial borrowed cash to investment can be maintained at 80%:20%, this is a good way.
For example, if you have 40 million retirement funds and invest 00662, if you use 2% a year, you can only spend NT$800,000 a year. And if you have a financial management mortgage with a limit of 10,000,000, it is exactly 80%:20%. In this way, your assets will reach 50,000,000. At 2% per year, you will have 1,000,000 to spend in a year. This is an important difference.
The current regulations of the Bank of Taiwan are that the age of the mortgage borrower + the loan period must not exceed 90. Exceeds will require special review by the head office. , this may need attention. Otherwise, this method is indeed a very good and flexible tool for people who hold properties without loans.

@toshio0617 @

@clec168 Thanks to the teacher, because the first application will look at the income, and there is no need to renew the contract after the next five years, so I said to apply before retirement. Each bank is different, including whether the limit can be 10 million at a time, and how long the cycle will expire.
My current revolving financial management mortgage loan from the Bank of Taiwan is up to NT$5 million/seven years. The official website of the Bank of Taiwan currently states that the maximum housing price is 70%/five years. Given that current housing prices in Taiwan are more than 25 times the national average annual income, it should not be a problem to dig out 10 years of living expenses.
For example: if the five-year revolving limit of RMB 5 million is used up, if the revolving limit cannot be increased, you can use a general mortgage loan to repay the revolving amount. The monthly payment required for a general mortgage loan will be deducted from the revolving amount. There is no need to spend any money, just clear the limit and continue to live your life.

I hope using a revolving mortgage and investing in 00662 will be better for asset rebalancing

Last but not least, it seems feasible to move from a loan to a revolving mortgage (financial mortgage), but it seems to increase the monthly expenses. Your revolving mortgage funds will be consumed faster than normal retirement expenses, which may be a risk.
I hope it is better to use revolving mortgage loans and investment 00662 for asset rebalancing.

But if you pledge stocks to borrow money to live, your assets will never have to be sold. No matter how old you are, even if you are over 90, the financial industry will still let you pledge stocks to borrow money and you will never have to pay it back.
For a real estate loan, you must repay the principal within 30 years. If you keep repaying the loan, the leverage will decrease. To refinance, the age of the mortgage borrower + the length of the loan must not exceed 90. In the end no bank will lend you money.
And having a mortgage without income is a very high-risk financial behavior. Your retirement cash flow will be cut off, and you will have to sell your house in the end. You will not be able to live a luxurious life as a wealthy person by relying on rent. Buying a house is only a matter for ordinary poor people.
I think it is better to buy a house. It doesn't matter. Everyone gets what they need. There is no need to argue about life and death here. Everyone has his own life and everyone lives his own life.
The second edition on November 27, 2023, recalculates the difference in fate after 30 years between buying a house per month and renting a house.
https://drive.google.com/file/d/1Blm3ICU7Lf6LTZvT1qJx_Xb3JVNilv7h/view?usp=drivesdk

The highest annualized return on a house will not exceed 7%. Living off rental income is how poor people do it

A house worth $5,000,000. Now I borrow money to pay the rent. The rent is $15,000 with 5% interest. I will never have to pay it back. I have rented it for 40 years. Even if the bank wants to settle the account with me after forty years, I will only owe the bank 22,000,000. But I have 5,000,000 in cash and I will not buy a house. If I put the annual return on index investment at 14%, it will be one billion in 40 years. Owning Appetite stock assets and owing others 22,000,000 is really just a fraction.
Of course, some people will say what to do if you don’t have 5,000,000. The simple thing is to make it easier for the rich to make money after you become rich. So when you have money, don’t buy a house. It would be better to rent a house. When you end up with billions, are you still afraid of not having a house to live in? When you can afford it, you don’t want to buy it.
If a young person buys a house, he will remain a house slave for the rest of his life and will never be rich. There is no way to use our "index financial operation. The annualized rate of return on assets will always be compound interest with a high rate of return of more than 14%. Borrowing money to live your life will never reduce your assets."
The highest annualized return on a house will not exceed 7%. Living on rent is a poor thing.
@ExceptionNoWay Don’t forget your real estate taxes and maintenance fees. Taxes will always be inevitable. When the house becomes an inheritance, your children will have to pay real estate taxes using the market value, not your money. There are between three and four hundred thousand dollars in property taxes to be paid a year.
Assume that a house is worth 50,000,000 and the property tax is 1.2%. If your child inherits a house, he will have to pay a house tax of more than 600,000 US dollars every year. The more houses there are, the bigger the head.

@shurouchen9946

The teacher’s wisdom requires people who have experienced “a lot of ups and downs” of difficulties and pain to feel the wisdom of Teacher James and regard him as a treasure. Because there are many “demons” in this world, there are always a bunch of people trying to “paint the pie” with you, asking you to “do whatever you want” or “don’t do anything”, but they all use others as the “bottom”.
Either be smarter than others (high financial sensitivity, or "be a smart fool"), save money every month, buy EQＱQ, put a little cash (for 2-3 years) on you, and you'll have !
I personally reached the age of 55. Ever since I came into contact with Mr. James’ videos, I started to make a lot of money and have “settled down and settled down” ever since! Thank you so much, Teacher James!
James: I am really happy to hear your sharing. The phrase "start making big money" is really exciting. You will make more money and feel that the money is really full. It depends on whether you want to reach out and take it. Remember to use the washbasin.
Artificial intelligence promotes the growth of human beings. If my prediction is correct, it will be long for at least 20 years, or even 30 years.
Watch our video number 00488 this week. At the beginning, I said that artificial intelligence is not a bubble and will bring great wealth. Go read what the president of TSMC said. .
If you have money, just buy or sell. Waiting on the sidelines will only get higher as you wait. You can only close your eyes and buy at the market price the next day when the market opens. There is no other better way.
At the Berkshire General Meeting of Shareholders in May 2008, the well-known American juvenile writer Timothy. Timothy Ferriss asked "Stock God" Warren Buffett: "If you are just a 30-year-old loser now, you don't have any savings assets, can't invest all day long, and can only rely on a full-time job to make a living. What should you do? How do you make your first pot of gold?"
"Stock God" Warren Buffett replied: "I will invest all my money in low-cost index funds (index ETFs) and work hard." And we know that Buffett also bet against fund managers in 2008 and has won early.

If you can invest another 35,000 each year, you will have 5 million in ten years

You currently have $1.5 million in assets available for investment. You spend 100,000 a year, and I’ll take the middle value of your social security benefit, which is 40,000. You need to prepare a pension of 60,000 US dollars a year. If you multiply 60,000 US dollars by 50, you will have a pension of US$3 million.
If you can invest another 35,000 every year, you will have 5 million in ten years.
If you only need more than 3 million yuan for retirement, and you invest 35,000 yuan a year now, you will have more than 3 million yuan in five years, and you can retire.
Your asset allocation before retirement is 70% QQQ 20% QLD 10% cash. Smart rebalancing every year.
https://docs.google.com/file/d/1T882J-WuW-p5EzUgZN_IET_8aNtOsgwS/edit?usp=docslist_api&filetype=msword
In a traditional retirement account, cash is placed in a traditional IRA and QLD is placed in a tax-free account.
After you retire, you should quickly convert your IRA to ROTH.
Asset allocation after retirement: 80% QQQ 20% money market, rebalanced every year. 80% versus 20%.
Our life cannot be lived in vain. We must have experienced it, thought about it, summarized the results, and put them into the database before we have lived it. Otherwise, we will have experienced it in vain.
No matter how big or small things happened in the past 60 years, as long as I have experienced them, I must have thought about them. The final summary process and conclusion are placed in my database. Whether it is my own affairs, other people's affairs, or social affairs, I have been thinking about it. After thinking about everything, I will definitely have a summary and systematic summary in my database. This increases my database and enriches my life.
So my life database is the bits and pieces I have accumulated over the past 60 years, ranging from why life is happening here to small things such as sweeping, cleaning, cooking and planting. This is a once-in-a-lifetime experience for us, we must think and learn, and not let time pass by in ignorance.
Only when we have thought about every bit of life can we really exist and live this life. A life without thinking does not exist. If you don’t remember your past experiences at all, then your life will be in vain.

You need to be able to survive major market declines and have enough cash as a safe backstop

If you are worried that the market will fluctuate and fall, your psychological quality will not be able to withstand a 45% drop in the market in 2022, and you cannot invest.
You need to be able to weather a market downturn and have enough cash as a safe backing.
Generally, we recommend working people (this also depends on whether your job is stable), and if you are an industrialist whose income is not very stable, you need a life reserve of one or two years or 20% in cash. See which one you choose more.

Other investments are not as good as 513100. Returning to real estate will only make things worse

You should invest 100% of what you can invest in 513100 now. Rather than just investing 1%, are you kidding me? You only invest 1% because you don't pay enough attention to it. Your financial intelligence really needs to be strengthened.
No other investment is as good as 513100. You return to real estate only to get worse.
The property can be sold even if it is cut in half to stop the bleeding. If your property was really bought in a bad area or in a bad area, it doesn't matter if you can't sell it. As long as you don't continue to invest money, you will make a profit. You still have to pay money, and if you can't sell it, you give it away. Stop the bleeding!
Manage your finances first and manage your debts first. You need to make up for the previous pitfalls, and completely cut off and clear out all the things you need to pay for every month.
Withdraw the assets that can be withdrawn and cut off all items that require expenditure.
After that, put 513100 of possible investment funds.
Keep working to earn living expenses, and you will start to sprout, grow, and bear fruit again.

It is wonderful and joyful when the market rises every day

We have a pinned comment in the YouTube comments area where you can download handouts and find other related links.

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00494 December 7, 2024

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