00567 Wealth is a Talent: QQQ Will Eventually Reach One Thousand, Ten Thousand, or Even One Million!

I. Theme of the Session

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The core theme of this session is “Wealth is a Talent,” emphasizing that through the right investment mindset and discipline, everyone has the potential to achieve tremendous wealth growth. Teacher James firmly believes that the key to successful investing lies in simplifying strategies and holding steadfastly. Using QQQ as an example, he foresees its astonishing potential to reach one thousand, ten thousand, or even one million dollars in the future. He encourages investors to build strong mental energy and believe in the long-term generosity of the market, thereby achieving financial freedom and spiritual abundance.

II. Briefing Content

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Core Investment Discipline and Mindset

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• Investment Principle: Buy at the market price immediately when you have money, then go to sleep and never sell, no matter what. Don’t try to time the market, buy in batches, or wait for a dip, because the market is unpredictable, and we should admit our ignorance about it.
• Handling Insurance: Insurance is a poor-quality asset and should be terminated immediately. Don’t consider reducing coverage or taking out a loan against it, as this will harm your principal and long-term returns. Insurance agents are often compared to the “mules” of a fraud ring; you should go directly to the insurance company’s counter to handle the cancellation.
• Investment Target: Focus on investing in QQQ. Stop agonizing over whether to switch to other ETFs like VGT or VOO; the course has repeatedly explained why QQQ is the best choice.
• Forbidden Questions: Do not ask about individual stocks, when to buy, when to sell, whether to rebalance (doing it once at the end or beginning of the year is enough), whether the market will rise or fall, or if it’s a bubble. In investing, knowing less is better than knowing more.

Risk Management and Cash Reserves

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• Risk Awareness: How much cash to keep depends on your personal assessment of risk. You need to consider all possible risks, such as unemployment, home destruction (fire, earthquake), serious illness in the family, a major stock market crash, and a credit crunch, and assume they will all happen simultaneously.
• Cash Reserves for Working Professionals: You need to calculate how long it would take to find a new job if you become unemployed and all other risks occur at the same time, and what your total living expenses would be during that period. This amount is the cash you need to reserve.
• Cash Reserves for Retirees: You need to have 15 years of living expenses saved. This is because after a market peak, it might take 15 years for the market to recover. This ensures you don’t have to sell assets at a low point during a market downturn.
• Those Retiring Within Ten Years: If you have N years until retirement (N<15), you should now have (15-N) years of cash reserves and add one year’s worth of cash each year thereafter. This ensures you have 15 years of living expenses by the time you retire. For example, if you are 10 years from retirement, you should have 5 years of cash now and add 1 year’s worth annually.

Wealth is a Talent

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• Life Philosophy: The underlying logic of life should be simple, convenient, and effective. Mentally, you should adopt an attitude of “it doesn’t matter, anything is fine, it’s okay,” not being troubled by trivial matters or tied down by yourself.
• The Value of Credibility: “A person without credibility is good for nothing.” Credibility is priceless; losing it means losing everything. Those who don’t haggle over small things often end up gaining more.
• Wealth is a Talent: Firmly believe that you will become wealthy. This is the most important mental energy. The channel’s goal is to eliminate poverty and give everyone a chance to get rich.
• The Future of QQQ: The price of QQQ will eventually reach $1,000, $10,000, and you might even see it hit $1 million in your lifetime. Wealth accumulation takes time; investing is a marathon of endurance. Buffett’s success is due to him living long enough and holding long enough.
• The AI Era: Artificial intelligence will completely change the world, and human lifespans may be greatly extended. In a future of longevity and wealth, investment plans need a much longer-term perspective.

III. Q&A Session

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Catherine

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• Sharing:
  1. Recommended a Taiwanese documentary “The Island of the Gods,” which beautifully documents Taiwan’s sacred trees. She encouraged everyone to support local films.
  • Teacher James’s Comment: Recommends visiting the “Sacred Trees Garden” at Mingchi or Cilan, which requires a reservation and has guided tours. He suggests booking the 11 AM tour that includes a boxed lunch, as eating it in the forest is a great experience. It’s better to go sooner rather than later, as many pristine landscapes have changed with development.

Argan

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• Question: Since we believe 00662 will rise forever, why not just leverage up with the 2x leveraged 00670L? Currently, 00670L has a 45% profit. Should I sell it and switch to 00662?
  • Teacher James’s Reply: A 2x leveraged product has the risk of going to zero. If the market drops by 85%, it might not recover for 30 years, and you might never see it break even in your lifetime. As for when to sell, don’t rebalance just because the market has gone up. Rebalancing should be done once a year, at the end or beginning of the year. It’s a passive strategy that completely ignores market fluctuations.

Chris

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• Sharing:
  1. Your cognition determines the height of your assets. As his financial literacy and cognition improved, his assets grew correspondingly. Sharing is the best way to learn; the more you share, the firmer your cognition becomes, and your assets grow exponentially.
  2. Cash is oxygen. During market volatility, having sufficient cash (like a 2-3 year emergency fund) allows you to get through it peacefully. He now understands the principle that “the more you borrow, the safer you are.”
  3. Practice and Gratitude. Last year, he borrowed money from an elder to invest. Although the elder didn’t fully understand, they lent him the money out of trust. He promised to pay interest and a filial piety allowance, and regularly reported his asset status. The market has been generous this year, and he has already earned back the principal, an amount equivalent to his total earnings from the past ten years of work. He plans to give a large red envelope to thank the elder and put their mind at ease.
  4. Change in Mindset. After his financial literacy improved, he no longer feels anything when hearing others discuss raises, job changes, etc., because the right investment philosophy can help you achieve your life goals much faster.
  • Teacher James’s Comment: Sharing is the greatest form of learning; teaching and learning promote each other. It’s important to put elders at ease. If they worry, either comply with their wishes or find a way to reassure them while you take your own actions. Financial cognition and wealth are matched; you will eventually lose any wealth that your mental energy is not strong enough to handle.

Jane

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• Question 1: In Taiwan, continuously taking out personal loans to buy 00662, is this similar to the concept of a stock pledge loan that you don’t pay back? Should I prioritize the credit limit or the interest rate? Is a 7-year personal loan from CTBC Bank at 4-5% worth taking?
  • Teacher James’s Reply: That’s incredibly cheap! Interest rates in the US are over 5.5%. With a 5% interest rate, if you borrow 10,000, the total principal and interest after 60 years will be less than 190,000. But if you invest that 10,000, it will become 43.83 million after 60 years. The debt is just a tiny fraction. If you can get the money, borrow it quickly. The larger the credit limit, the better; the longer the term, the better. The interest rate is of course important, but 4-5% is a very good deal.
• Question 2: Can I continue to take out personal loans after retirement?
  • Teacher James’s Reply: As long as you can afford the payments, you can continue to borrow. Your retirement living expenses calculation needs to include the monthly loan interest payments. Personal loans and pledge loans can be used simultaneously; they don’t conflict.

Jack

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• Question: I want to take out a Pledge Loan, but I’m very scared. I don’t know what to do.
  • Teacher James’s Reply: If you’re scared, then don’t borrow. The purpose of borrowing money is to make your life better. If borrowing money makes you worry and lose sleep, you’re just creating trouble for yourself. It defeats the purpose.

Dean

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• Sharing:
  1. Encouraged by the teacher, he quit a job he disliked over a month ago. His mind and body have recovered, and he has had time to systematically study the teacher’s videos, which made him appreciate the wisdom of the pledge loan strategy even more.
  2. This month, he completed his first-ever pledge loan (through a margin financing and securities lending method in mainland China) and used the borrowed money to pay off his credit card bill, successfully taking the first step.
• Question: He recently found an interesting and relaxed job and plans to work while investing. His salary will be invested in the Nasdaq index, and his living expenses will be covered by the pledge loan. Assuming he has 10 million in assets and a salary of 500,000, a 2% pledge loan would only allow him to borrow 200,000. Should his living expenses be limited to 200,000, or can he borrow 500,000 (matching his salary) to spend?
  • Teacher James’s Reply: You absolutely cannot borrow 500,000. The amount you can borrow from a pledge loan is always 2% of your total assets, regardless of your salary. In your example, your total assets are 10 million (stocks) + 500,000 (newly invested salary) = 10.5 million. So you can only borrow 2% of 10.5 million, which is 210,000. Exceeding this ratio carries a risk of bankruptcy.

Haoqing

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• Sharing 1: Mentioned a very wealthy person (worth hundreds of millions) who is extremely poor at heart. He collects coupons and even lines up for free food giveaways. This sparked a reflection on “inner wealth” versus “superficial wealth.”
  • Teacher James’s Comment: This is a contrast between inner poverty and superficial wealth. Inner wealth is more important than superficial wealth. If you are wealthy on the inside, you won’t take things you shouldn’t, even if you don’t have money right now. A person who is poor on the inside may eventually lose everything, even with a fortune of hundreds of millions, due to greed. We should cultivate a wealthy mindset, believing that all the money in the world is ours, and then we won’t be tempted by petty gains.
• Sharing 2: His daughter’s roommate wants to become a doctor to “make big money,” which confused him, as he believes the primary motivation for practicing medicine should be to save lives. He connected this with the case of an 80-something-year-old relative who was advised to undergo a very high-risk surgery, questioning some of the motives within the healthcare system.
  • Teacher James’s Reply: Regarding Taiwan’s healthcare, doctors don’t earn a huge amount for performing one surgery, so it’s unlikely they would operate just for money. It’s more likely based on professional judgment, but misjudgments and risks always exist. The US healthcare system is more controlled by insurance companies. For elderly relatives, any medical decision must be made with extreme caution. As for wanting to be a doctor to make money, this is a reality to some extent, as the cost of medical education is high. But we should still believe that most medical professionals have a mission to save lives.

Candy

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• Sharing: She took early retirement a few years ago to care for her 90-plus-year-old mother. She was initially worried, but by following the teacher’s investment method, her assets have grown steadily, allowing her to now focus on accompanying her mother without any worries. She is very grateful for the teacher’s guidance, which has enabled her to be with her mother when she needs it most.
  • Teacher James’s Comment: Accompanying parents as they age is a very happy but also very tough thing; it’s a form of spiritual practice. Stock investing is also a form of spiritual practice. I am very happy for you that you were able to let go of everything and be with your family at a critical time. This is very important.

Ethan

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• Sharing: 29 years old, started investing in A-shares at 22. Over 7 years, he invested 150,000 RMB and only made a profit of 20,000. After discovering CLEC last October, he gradually shifted his assets to a Nasdaq ETF. His total holdings are now 1.75 million RMB (including a 500,000 personal loan), with a profit of about 300,000.
• Question 1: His personal loan currently accounts for 28% of his total assets. His job is stable, and he has a monthly surplus. Should he continue to borrow money to increase leverage?
  • Teacher James’s Reply: As long as you can afford the payments, you can continue to borrow. If you have a monthly surplus of 3,000 yuan, you can go and take out a loan with a monthly payment of 3,000 yuan. In China, a 4.5% interest rate is very cheap.
• Question 2: The onshore Nasdaq ETF in China recently had a premium as high as 10%. Should future funds be transferred to an overseas account, or should he continue to buy in mainland China?
  • Teacher James’s Reply: Don’t worry about the premium. In the long run, the market’s gains will far exceed this small premium. Buy immediately when you have money. If you’re uncomfortable with it, you can also set up automatic investments in offshore funds, find a few different platforms and funds, and diversify to get around quota limits.

Susan

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• Question 1: Regarding the tax on a Roth Conversion, how does the IRS calculate interest? If it’s calculated daily, is it more advantageous to convert at the end of the year (because the interest accrual period is shorter)?
  • Teacher James’s Reply: Don’t overthink it. If you convert at the beginning of the year, you get to enjoy an extra year of tax-free growth, even though the tax isn’t due for over a year. If you convert at the end of the year, although the interest period is short, you have to pay the tax soon after. Personally, I never pay estimated taxes; I handle it all when I file my taxes the following April. My experience of over 20 years proves this works fine.
• Question 2: Regarding the Pledge Loan, do I have to wait until I have $2.5 million to start? I want to get a preferential mortgage rate from Merrill Edge before I retire in 2029, which requires me to deposit $1 million there. This conflicts with my plan to do a PL at Charles Schwab.
  • Teacher James’s Reply: Don’t give up a PL for a small interest rate discount on a mortgage. The PL itself can give you a huge line of credit. You can use money from the PL to apply for a mortgage, or even pay off the mortgage directly. Schwab’s rates are negotiable; the more assets you have, the better the rate. You should apply for the PL immediately. Once you do it, you’ll understand. Don’t hesitate any longer.

Henry

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• Sharing: He didn’t dare to put all his funds into the market before, but after discovering the channel, he had the courage to go all-in, and his performance this year has been excellent.
• Question 1: If I open an account with a US brokerage and get a debit card, keep less than $60,000 in the card’s account, and my family withdraws the money with this card after I pass away, can this avoid estate tax?
  • Teacher James’s Reply: Theoretically, yes, but your money will be spent. You should be thinking about how to make your money grow continuously, not how to spend it.
• Question 2: The interest rates for my mortgage refinance and personal loan are just over 2%, while the teacher says the pledge loan (PL) should be based on 2% of total assets. Does this “total assets” include the money already borrowed through the mortgage and personal loan?
  • Teacher James’s Reply: No, it does not. Your mortgage and personal loans are your personal liabilities and are completely separate from the stock pledge loan; they are two different things that don’t interfere with each other. The money you borrow through other means and invest in the stock market will increase your total stock assets, thereby increasing your PL credit limit.

Stella

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• Question: My current asset allocation is 5:2:3 (personal account:Roth:cash). Because there isn’t enough money in my Roth account, I can’t buy enough QLD to reach the 30% allocation. Should the money in my personal account be used to buy QQQ or QLD?
  • Teacher James’s Reply: Leveraged funds (QLD) must absolutely not be held in a personal account; they can only be in a Roth account. Therefore, your personal account can only buy QQQ. The 5:2:3 ratio is fine for now. As you continue to contribute to your Roth account each year, the leverage ratio will gradually increase.

Doris

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• Question: Regarding the tax on a Roth Conversion, last week the teacher suggested paying it when filing taxes next year because the Pledge Loan interest is lower. But I found that the IRS interest on underpayment is 7% compounded daily, while my PL interest is 6.5% compounded monthly. Looking at it this way, it seems more advantageous to pay the tax in advance?
  • Teacher James’s Reply: In my personal experience, the interest from the IRS doesn’t end up being that high. Also, the tax liability is spread throughout the year, not calculated on the total amount for the whole year, so the effective interest rate is much lower. For over 20 years, I’ve done Roth Conversions and always paid the tax when filing the following year, never paying estimated tax, and it’s never been a problem. You can try it once yourself and see what the final interest comes out to be. But the simplest way is to just handle it when you file your taxes.

Peter

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• Sharing: Thank you so much, teacher. After listening to your class, the seed of belief that “I am very wealthy” has been planted in my heart. This is more precious than any short-term gain. I’ve decided to sell my current house to buy one in a good school district and hope my spouse can learn with me so we can progress together.
• Question: Is there a community in mainland China similar to “Cheng Feng’s” group in Taiwan that I can join?
  • Teacher James’s Reply: No.

CJY

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• Sharing: Reporting that his account has hit an all-time high. Thank you, teacher. Looking back on his years of investing, he realizes the importance of mental energy and cognition. Although he went through agonizing periods like the big drop in 2022, he ultimately persevered. Now he can face market fluctuations calmly because he believes in the long-term development of technology and believes he holds good companies.
• Question: He is a Christian. After his wealth grew, his church friends said it was God’s grace, while he felt it was the result of his years of hard work and ability. He feels conflicted about this.
  • Teacher James’s Reply: It’s destiny plus your effort, but destiny comes first. Without destiny, your efforts would be in vain. The highest state of investing is “faith.” When you reach the level of faith, you will no longer feel any agony. The fact that you can now face fluctuations calmly means you are moving towards the level of faith. Be grateful for your destiny; it is what gave you this awakening and the ability to act.

Meta

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• Question: A TSMC executive said, “Employees shouldn’t care too much about money; they should think more about the company and shareholders,” which caused controversy. What is your evaluation of this viewpoint?
  • Teacher James’s Reply: From a capitalist’s perspective, this statement is understandable. But from an employee’s perspective, this is “corporate propaganda” and is completely wrong. Laborers should look out for their own interests. As a world-leading company, TSMC pays its employees far less than their US counterparts, which is unreasonable. We encourage everyone to become capitalists, but before that, as laborers, it is perfectly justified to fight for the compensation you deserve.

Lijuan

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• Sharing: Reporting to the teacher that the Lisa team at Charles Schwab, recommended at the beginning of the year, is very professional. Their service far exceeded expectations, they solved many problems, and she even received a new account bonus. She is very grateful for the teacher’s introduction. She also mentioned that her broker at her previous firm tried to use “security concerns” to stop her from transferring her account, but she thought it was nonsense.
  • Teacher James’s Comment: I’m glad I could help you. A professional team can provide better service and benefits. You don’t need to pay any attention to brokers who use false information to try to retain clients.

Feng

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• Sharing: Following the teacher’s advice from last week, he communicated with his mother by treating her as a “guest” and successfully resolved their disagreement over investments. Through patient explanation, he helped his mother understand that her sense of money scarcity originated from her family of origin and encouraged her to love herself and enjoy her wealth with peace of mind. His mother also sent a text message to thank him, saying she would let go of her worries about money. From this, he realized that spiritual abundance is the foundation of all things, and the importance of maintaining his “true self” across different social roles.
  • Teacher James’s Comment: Mental energy is the most important thing. You must believe that you will be very wealthy, that all the money in the world is yours. The employees of 100 companies are all working for you. You are not playing any role; you are just yourself. You should treat everyone the same, “as if they were your own.” Your mother’s investments are her own issue; putting her at ease is the most important thing, not necessarily pursuing high returns.

C.H.

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• Sharing: He is currently in a hospice ward with his mother. He wanted to share that stress and mood have a huge impact on health; his mother’s cancer was caused by this. He also wanted to remind everyone to be extremely careful when accompanying family members in the hospital. He had just discovered that the IV bag a nurse was giving his mother had someone else’s name on it, which was very dangerous.
  • Teacher James’s Comment: Accompanying parents is a happy but difficult task. Stress is indeed a killer of health; learn to use deep breathing to relieve it. Cancer is now more like a chronic disease, and surviving cancer for five years is already a great achievement. Thank you for your reminder; hospital errors can indeed happen, and companions must be extra vigilant.

IV. Highlighted Quotes

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Wealth is a talent. You can definitely be very rich. The last thing you need to worry about is money. – Teacher James

Background: The teacher encourages everyone to build a strong inner belief that they are destined to be wealthy. This mental energy is the first step toward achieving financial freedom.

Investing is not a competition of returns; it’s a marathon of endurance. If you can live to be 150, you will be Buffett. – Teacher James

Background: When explaining the importance of long-term holding, the teacher uses Buffett as an example, pointing out that time and compounding are the keys to investment success, not short-term timing or trading.

Your cognition determines the height of your assets. – Chris

Background: Student Chris shares his insight that improving financial literacy and cognition is a prerequisite for asset growth. When you understand the laws of wealth, money will naturally come to you.

A person without credibility is good for nothing. If you lose your credibility, you lose everything. – Teacher James

Background: When discussing life philosophy, the teacher emphasizes the extreme importance of credibility, considering it the foundation of a person’s standing and far more important than money.

If your mental energy is not enough, you can’t handle the material energy. If your money exceeds your cognition, you will usually give it all back. – Teacher James

Background: Commenting on a student’s sharing, the teacher explains why many lottery winners end up bankrupt: their mental state and wealth cognition cannot handle the sudden huge fortune.

The employees of 100 companies are my laborers. Jensen Huang is my employee; he makes money for me. – Feng

Background: Student Feng, in his sharing, adapts the teacher’s viewpoint to vividly describe the “capitalist mindset” of a shareholder: all employees of listed companies are creating value for the shareholders.

Don’t mistake the market’s rise for your own ability. That would be a huge misunderstanding. – Teacher James

Background: The teacher reminds everyone to remain humble and recognize that wealth growth is mainly due to destiny and the market’s generosity, not personal ability. This mindset helps one go further on the investment journey.

If borrowing money makes you lose sleep, why would you do it? You’re just creating trouble for yourself. – Teacher James

Background: Answering a student’s question about being afraid to borrow, the teacher emphasizes that the ultimate goal of investing and financial management is a better life. Any financial decision that causes fear and anxiety should be avoided.

You are not playing any role; you are just yourself. – Teacher James

Background: Responding to a student’s sharing about “role-playing,” the teacher offers a deeper perspective: one should return to their true self and treat all people and matters with a sincere and consistent attitude, rather than switching between different roles.

The stages of investment are: Hearing, Knowing, Understanding, Believing, Executing, Persevering, Enduring, and Faith. – Teacher James

Background: The teacher summarizes the process of elevating one’s investment mindset, pointing out that only by reaching the state of “Faith” can one achieve true inner peace, remain unaffected by market fluctuations, and ultimately attain success.

V. Summary

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In this gathering, Teacher James once again reinforced his core investment philosophy: to face the complex financial world with an extremely simple strategy (buy QQQ whenever you have money, and never sell) and an extremely strong belief (wealth is a talent, the market will eventually far exceed imagination). From investment discipline, risk management, and cash reserves to life philosophy, the teacher provided clear and firm guidance. The Q&A session was rich in content, covering various real-world issues such as leverage, pledge loans, taxes, family communication, and healthcare. The teacher’s responses not only offered solutions but also conveyed a broad-minded and confident attitude toward life. The core of the entire session is that true wealth begins with inner abundance and cognitive enhancement. When one’s mental energy is strong enough, the arrival of material wealth is simply a natural consequence.