I. Main Topic#
This session revolves around investment and life planning. The core ideas are: be optimistic about investment and keep learning, ignoring short-term market fluctuations; young people should focus on asset appreciation, with Nasdaq 100 index funds being the top choice; utilize leverage and allocate assets reasonably; retirees should plan carefully and avoid excessive debt; and one should stay optimistic and confident, avoid material comparisons, and pursue true freedom.
II. Presentation Content#
Investment Philosophy and Market Analysis#
- Market Fluctuations and Investment Mentality: The market is always fluctuating. Don’t let short-term fluctuations affect your investment decisions. Stay optimistic.
- Currency Devaluation and Asset Appreciation: Money depreciates; only assets like stocks can preserve and increase in value. Currency devaluation is more severe in emerging countries, so it is advised to convert currency into assets. Taiwan’s low wages and currency devaluation are related to the government’s subsidy policies.
- Worker Mindset vs. Capitalist Mindset: Workers exchange labor for depreciating currency, while capitalists exchange currency for appreciating assets. Learn to invest and become a capitalist, exchanging “trash” (depreciating currency) for assets.
- Global Market Linkage: Global markets are highly interconnected, and diversifying investments into other regions has limited effectiveness. Focusing on the US stock market is recommended.
Asset Allocation Strategies#
- Nasdaq 100 Index Funds: The preferred choice for young people. Long-term investment can yield substantial returns. Global codes for purchasing Nasdaq 100 index funds were provided, and investing based on market conditions is recommended.
- The Importance of Cash: Cash reserves are crucial. 00864B and money market funds (like SWVXX, VOXX) are safeguards and should not be replaced with high-dividend products like SPHD, as principal safety is paramount.
- Smart Rebalancing: Suitable for those who use leveraged funds, are not retired, and have income.
- Risks of Real Estate Investment: Housing prices in the Bay Area are high, putting great pressure on young people to buy houses, which can easily lead to financial difficulties. Renting is recommended to maintain flexibility.
- Borrowing and Investment: Loans, mortgages, and car loans should be repaid with stable cash flow, not relying on stock market returns.
- Retirement Planning: Retirees should be cautious about borrowing and make plans based on the size of their retirement funds. If retirement funds are 50 times the annual expenses, two options are available: 1. Keep the mortgage and car loan, using 2% of the retirement fund annually to cover all expenses; 2. Pay off the mortgage and car loan, invest 80% of the remaining funds in 00662, 20% in 00864B, and use 2% of the total funds annually for living expenses.
- Asset Allocation Case Study: A case study with 45 million Taiwan dollars illustrated asset allocation strategies when withdrawals are not needed. An 80/20 allocation or a combination of leveraged funds (60% 00662, 20% 00670L, 20% 00864B) is recommended. For those with stable income and no need to withdraw from investments, 100% investment in QQQ can be considered.
Other Matters#
- Class Suspension Notice: Class is suspended on November 9th and resumes on November 16th. After daylight saving time ends, the class time will be changed to 6:00 AM Pacific Time and 10:00 PM Taiwan time.
- Stay Optimistic: Maintain an optimistic mindset; the market will reward you. Like, subscribe, and leave comments on various platforms to benefit more people.
- Contact Information: Two email addresses were provided for contact.
III. Q&A Session#
Brian:#
- Sharing 1: Read “Investing is Asset Allocation, What You Don’t Know,” agreeing with the importance of accumulating the first pot of gold early; learning investment allows for more focus on work and personal improvement, spending time each day learning new skills and increasing self-worth. Investment enables people to be more motivated to improve their professional skills rather than “lying flat.”
- Sharing 2: Individuals can improve their earning potential through learning, even if their investment assets are reduced to zero, they can still rely on professional skills to make a comeback.
- Question 1: What should I do if the Beta value is very low when the asset value plummets in the Excel sheet?
- James’s Reply: The sheet is designed for acceleration during market rises and deceleration during falls. A low Beta value is normal and a reflection of risk control; no adjustment is needed.
- Question 2: Even knowing that investment should be mindless, I still worry when the Beta value drops. How should I cope?
- James’s Reply: Deceleration during declines is the purpose of the investment strategy. Don’t worry, stick to the plan, just like autopilot.
LU:#
- Question 1: What is the impact of Trump’s potential return to office on Bitcoin?
- James’s Reply: The US has abandoned the gold standard and will not adopt a Bitcoin standard. Bitcoin is similar to gold and has an anti-inflationary function, but its future development is limited.
- Question 2: Can QQQ break through its previous high?
- James’s Reply: It definitely can. The current market is bullish; there’s no need to worry.
Wendy:#
- Sharing 1: Learned James’s investment philosophy and successfully recouped the income lost during unemployment. Started reading recommended books such as “The Richest Man in Babylon” and “The Most Important Thing.”
- No Questions
Peter:#
- Sharing 1: Agrees with James’s philosophy and has increased the investment proportion of QQQ, but some individual stocks have not been completely sold due to tax reasons.
- Question 1: Advantages and disadvantages of converting 401K to Roth 401K?
- James’s Reply: Just put new contributions into Roth 401K; don’t convert existing funds. Convert at retirement.
- Question 2: How to use HSA and 529 accounts? Is there any problem with using a credit card to pay medical bills from an HSA?
- James’s Reply: HSA, 529, and college fund accounts are not recommended because they lead to a loss of control over the funds. Using your own funds or loans is recommended.
- Question 3: Are there any suggestions for increasing income and saving money besides a full-time job?
- James’s Reply: Excessive saving is not recommended. Plan for retirement funds first, and the remaining money can be freely used and enjoyed.
Yi Jie (First Sister):#
- Sharing 1: Previously followed the advice of online influencers and invested in US stocks and treasury bonds, currently converting to QQQ. Has a modest salary and one child.
- Question 1: Can the 20% cash in the 80/20 allocation be replaced with Fubon 50 2X leverage?
- James’s Reply: QQQ 2X leverage (00670L) is recommended. He explained the use of leveraged funds.
- Question 2: Is it feasible to regularly invest equal amounts in QQQ and 2X leverage?
- James’s Reply: Feasible, but pay attention to cash reserves. A Beta of 1.1 or 1.2 allocation is recommended, adjusting according to market conditions.
- Question 3: Can a child’s Lunar New Year money be all-in on 2X leverage?
- James’s Reply: If you can guarantee continuous regular investment for more than 30 years, it’s worth considering, but be aware of the risks and be able to withstand significant asset shrinkage. In the long run, the returns can be substantial, but psychological barriers must be overcome.
- Question 4: Are the views of online influencers recommending treasury bonds correct? Are treasury bonds more valuable during a market crash?
- James’s Reply: Incorrect. During market downturns, bond declines can be even greater.
IAM:#
- Sharing 1: Reflecting on the value of money, learning gratitude, and paying attention to community articles, realizing that spending money is spending one’s life energy.
- Sharing 2: Made 100 pages of notes and calculated the return on an 80,000 loan invested for 40 years; the result was shocking.
- Question 1: Why are people not accustomed to borrowing for investment? Confused about the phenomenon of young people being afraid to borrow for investment but willing to use installment plans for consumption.
- James’s Reply: This is due to cultural influences. Change your mindset and recognize that good debt can help accumulate wealth. Shared personal experiences and spending philosophy, emphasizing the freedom of spending after becoming wealthy.
YJ Yuanlin:#
- Sharing 1: Investing boosts confidence, enabling focus on work and hobbies.
- Question 1: In a down year, can TQQ replace QLD in smart rebalancing?
- James’s Reply: Both are possible, but pay attention to risk control and avoid excessive pursuit of high risk. TQQ has greater volatility and requires a stronger psychological capacity.
T:#
- Question 1: What are your thoughts on Elon Musk supporting Trump?
- James’s Reply: Politicians’ decisions are the result of weighing pros and cons. Elon Musk’s support for Trump stems from personal interests and positions, such as opposing certain liberal policies. Entrepreneurs also have to choose between different political forces.
Yi Ni:#
- Question 1: How to invest and use Canadian education fund accounts?
- James’s Reply: It’s recommended to thoroughly research the specific rules of the account and consider methods like pledged loans to avoid locking up funds. Inquired about whether it’s possible to withdraw all funds and the limitations, suggesting consulting with professionals.
Meng:#
- Sharing 1: In the high-tech era, privacy and freedom are difficult to have both.
Peter:#
- Sharing 1: It can be difficult for beginners to invest in QQQ, etc. It’s suggested to start by buying one share and gradually build confidence. James’s explanations are very patient and benefit everyone.
- Question 1: How to strengthen mental and psychological well-being? James’s experience sharing on meditation and hypnosis.
- James’s Reply: Recommended Rachel’s hypnosis channel and shared personal methods of using hypnosis and positive psychological suggestions. Suggested listening to hypnotic audios every night before sleep.
IV. Key Takeaways#
Rise faster, fall slower. – James
This is one of James’s core investment philosophies. Through smart rebalancing strategies, increase investment during market rises to accelerate profits, and reduce investment during market downturns to mitigate losses.
Money is the least valuable thing when it has no value. – James
This reflects James’s unique view on wealth. When wealth accumulates to a certain extent, the value of money itself is no longer important; what matters more is pursuing freedom and happiness.
If you want freedom, and you want privacy, you will not have freedom. In the future world, if you want privacy, you will not have freedom. – James
This shows James’s insight into future social trends. In the high-tech era, one needs to make trade-offs between privacy and freedom.
The more daring one is to borrow money, the broader their perspective. – YJ Yuanlin
YJ Yuanlin’s sharing led to James’s views on borrowing: good debt can help wealth growth.
If you want freedom, you cannot care. – James
Echoing the topic of Elon Musk supporting Trump and the entrepreneurial spirit, true freedom is not caring about external opinions and focusing on one’s goals.
If you don’t use ChatGPT now, you are outdated and will be eliminated. – James
James advocates for new technologies and maintains an open attitude towards learning new things.
V. Summary#
This session covered various aspects of investment philosophy, asset allocation, lifestyle, and how to cope with market fluctuations. James answered the audience’s questions with easy-to-understand language and rich examples, sharing his life experiences and insights, and encouraging everyone to stay optimistic, continue learning, and pursue true freedom and happiness.
Disclaimer: This article is for personal learning notes only and does not constitute any investment advice.