Japan’s “savings myth” collapses!
More than 40 years ago, there was a time when the interest rate on fixed savings at post offices exceeded 11%.
With compound interest calculation, the principal will more than double after 10 years.
Dr. Einstein said, “Compound interest asset management is the greatest invention of mankind.”
(It’s an episode that is often asked, but was it really Einstein’s statement?
In fact, it seems that the truth of it is unknown).
My grandparents, as well as those in their 80s and older, are the generation that earned money from it.
At that time, the price of goods continued to rise, but the profits were obtained from deposits and savings that exceeded them.
But how?
By the time I entered the workforce, the interest on my deposits and savings had already begun to plummet, and in a few years,
It was close to zero. What an unfairness!!
But we don’t move cash from savings accounts, which are no longer just safes.
There was none.
It was because we witnessed a major stock market crash when the bubble burst and because of the deflation that followed
There was a comment in the newspaper.
30 years ago, one dress suit cost 5~60,000 yen, but now the market price is 2~30,000 yen at most.
Previously, while assets did not increase easily, prices also fell considerably.
The value of your assets will increase relatively, and if you save steadily, you will be safe and defensive.
You entered, didn’t you?
Thus, from the era of high interest rates to the era of deflation after the bubble, many people in the Japan
Savings are input as a “success experience” that surpasses investment, and there is a sense that “bad investment is a source of injury”
It was completely ingrained.
Today, however, we are not in deflation but have turned to inflation.
As you may have felt, utilities, food, and everything else necessary for life are rapidly changing
It’s starting to rise.
In other words, contrary to the era of deflation, the value of money saved will decline.
Nothing but that.
I calculated whether it would be okay if I had 20 million yen separate from my pension as a fund to retreat easily after retirement.
Even if we are making preparations, if prices continue to soar at this rate, we hope that in 5 or 10 years, there will be 30 million yen.
They may not be able to sustain their lives.
Despite this, people in Japan have not been able to get out of the trend of “overemphasis on deposits and savings.”
Recently, I have seen many articles in economic magazines that say that I feel a sense of crisis.
The government is also trying to induce the public to shift to asset building through active management.
(Although it can be said that it was lost a little late), “investment is wakaranai, abunai, kowai” and most
People are hips.
No wonder.
Apart from those who like to study economics, other people have knowledge of asset management and risk correctly.
Until now, I have not been given the opportunity to acquire comprehensive judgment skills and “financial literacy” to understand.
They came and didn’t even know they needed it.
In the United States, emphasis has been placed on “financial education” from a relatively early stage, but cashless has progressed.
Credit card troubles have increased and become a social problem, and subprime about 15 years ago
Partly due to the loan problem and the lessons learned from the Lehman shock, efforts to raise the “financial literacy” of the people
It seems to have accelerated.
As a national system, “individual retirement account” and “corporate defined contribution pension plan” have been in place for 50 years.
Therefore, it is thought that these lowered the threshold for taking on the challenge of investing.
The successful investment in stocks in companies that were doing well became a “success experience” for the American people.
Today, stocks and bonds account for more than 50% of the personal assets of American citizens, and cash deposits are
It is said that it is only about 10%.
It’s the exact opposite of Japan.
Thus, the difference between Japan who stick to savings and Americans who actively build assets is clearly visible.
Yes.
The amount of assets per person is 2.5 times that of Japan!
Well, there is no denying that there is a wage gap.
You don’t have to compete with the Americans, but at least you have the money you have on hand to prevent your assets from dwindling.
I believe that we have come to an era where we have to raise our own children.
That said, suddenly full-fledged stock investment is scary, isn’t it?
There are various forms of investment, some of which are relatively safe, so I hope you can choose wisely.
By Admin|2023-03-17|2023,News Release|