Video Overview

The 50-year-old writer has a NT$3.5 million personal loan and previously used a 50/50 stock-and-bond approach, investing about NT$8 million in long-term U.S. government and corporate bonds. Monthly bond interest of roughly NT$40,000 helps pay loan principal and interest. The bonds now show an unrealized loss of about 15%. Meanwhile, the writer is gradually replacing 0050 with 00662 and 00670L and investing NT$60,000 each month. He asks whether to sell the bonds at a loss and adopt a 433 allocation or keep the interest income and change monthly contributions. The speaker favors selling the long-duration government bonds, using a 433, 424, or more cash-heavy 514 allocation, and potentially borrowing about 2% of assets annually against the portfolio to help cover interest or living costs. These borrowing and allocation figures are case-specific claims.

Key Takeaways

• The writer has about NT$8 million in long-term government and corporate bonds with a 15% unrealized loss, plus a NT$3.5 million personal loan.
• He is replacing 0050 with 00662 and 00670L and compares keeping bond income with selling the bonds and restructuring cash flow.
• The speaker favors selling long-term government bonds, adopting a 433, 424, or 514 mix, and using low-percentage pledged borrowing for cash flow.

Chapters

About 00:00:11 · Bond losses, personal debt, and monthly contributions

The writer details the long-term bonds, personal loan, interest income, and transition into 00662 and 00670L.

About 00:01:48 · Allocation and cash flow after selling bonds

The speaker discusses selling long-term government bonds, choosing among three allocations, and using low-percentage pledged borrowing.

Related Topics

long-term U.S. government bonds, personal loan, 00662, 00670L, 433 allocation, 424 allocation, securities-backed borrowing