If you want to grow, you must be able to sleep: 433, the three iron rules of 30% pledge and cash

Video Overview

The writer can tolerate 00670L volatility and wants to move toward 433 with annual rebalancing. Personal credit has already funded 00662, and the next idea is using pledged assets for some living expenses while reinvesting freed cash. The speaker allows a gradual move toward 433 but says a personal loan plus securities-backed borrowing compounds leverage and requires greater caution. The video sets four rules: at least 30% cash and short bonds; 00670L no larger than either 00662 or cash; portfolio beta no higher than 1.0; and small, steady borrowing. Examples use NT$60,000 a year for NT$6 million and NT$30,000 a year, or about NT$2,500 a month, for NT$3 million. These are the speaker’s limits, not guarantees.

Key Takeaways

Adding pledged borrowing to an existing personal loan compounds leverage and raises the need for cash reserves.
The 433 model uses 40% 00662, 30% 00670L, and 30% 00865B with annual rebalancing.
The video requires at least 30% cash, caps 00670L below both core equity and cash, and limits beta to 1.0.
For NT$3 million, the borrowing example is NT$30,000 a year or roughly NT$2,500 a month, with collateral-call risk remaining.

Chapters

About 00:00:14 · The combined 433 and borrowing question

The combined 433 and borrowing question.

About 00:01:18 · Four risk-control rules

Four risk-control rules.

About 00:02:26 · Examples for NT$6 million and NT$3 million

Examples for NT$6 million and NT$3 million.

About 00:03:29 · Layering pledged debt on personal credit

Layering pledged debt on personal credit.

433 allocation, 00670L, Securities-backed borrowing, Investing with personal credit, Portfolio beta, Annual rebalancing

This page was prepared with AI from selected portions of the video's audio to help readers understand the main topics. It may omit secondary material or contain transcription errors; the original video remains authoritative.

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Video Overview

Key Takeaways

Adding pledged borrowing to an existing personal loan compounds leverage and raises the need for cash reserves.
The 433 model uses 40% 00662, 30% 00670L, and 30% 00865B with annual rebalancing.
The video requires at least 30% cash, caps 00670L below both core equity and cash, and limits beta to 1.0.
For NT$3 million, the borrowing example is NT$30,000 a year or roughly NT$2,500 a month, with collateral-call risk remaining.

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