Is the investment you chose just because really okay? | The discomfort I felt at work and what I learned from 'Money University'

Discomfort begins with a casual remark

Don't you ever feel a lingering sense of unease even though you're doing things properly?

One day, I had the opportunity to talk about corporate defined contribution pension plans at work.

At my company, there is a system where you invest a portion of your retirement money yourself to prepare for old age.

I am also using that system to grow my assets little by little.

At that time, a young member who had been with the company for about 4 or 5 years suddenly said this.

"I am doing the defined contribution pension, but I'm doing it without really understanding it well."

For some reason, that remark bothered me a little.

"The anxiety of doing something just because" was my former self

When I heard those words, I felt a little worried.

They are using the system properly. But, the state of "continuing without really understanding."

That felt a bit like looking at my former self.

At first, I also started my corporate defined contribution pension just because.

I chose something that seemed good, thinking, "It should be safe if professionals are managing it."

But at that time, I didn't really understand "what I was choosing."

That is precisely why that remark bothered me a little, I think.

*The details from that time are summarized in this article.

The "difference in how to choose" I learned at 'Money University'

After that, I had this conversation.

"What are you buying and investing in?"

Then, that person answered like this.

"I suppose it's principal-protected products and products managed by professionals."

At that moment, a lesson came back to Dad.

It was something I learned from 'Revised Edition: Money University to Obtain True Freedom'.

There are broadly two ways of thinking about investment trusts.

At first glance, active funds seem better.
But in reality, there is the fact that many active funds do not beat index funds.

And another big difference is the fees.

Active funds have high management costs, and
the longer you hold them, the more that difference gradually takes its toll.

Since learning this concept from the book,
Dad was able to review his own investments.

Just by knowing and choosing again, the future changes

Dad told that young member this:

"You're still young and can invest for the long term, so I think you should reconsider your products."

That person replied, "I see. I'll think about it."

After finishing that conversation, Dad thought for a moment.

Whether you know or not,
the future changes significantly.

Dad himself also chose active funds at first.

But after learning, he switched to index funds diversified across the world.

He didn't do anything major.

He just "knew and chose again".

However, I believe that those small differences
will grow into significant gaps over a long period of time.

To my children | Money is something you should 'understand and choose'

To you.

In the coming era, inflation may progress in Japan as well.

That is why I believe it is very important to start building assets while you are young.

But, I don't want you to rush.

Because I believe that what is important
is not 'what you choose',
but 'understanding and choosing'.

Money can make you feel anxious if you use it without knowing, but
if you know and use it, it turns into peace of mind.

And,

Even if it is a small amount,
the experience of understanding and choosing for yourself
will surely become a great strength in your life ahead.

I think there will be times when things go well, and times when they don't.

But each one of those experiences
should help nurture your 'power to choose'.

Dad is still studying, too.

So, I want to keep learning,
and pass on what I learn to you little by little.

Dad believes that your lives will be bright
and prosperous.

With a small step, the future changes

If you'd like,
please take a moment to review the products you are currently choosing.

Even just doing that will surely change the future little by little.

That was
'Is the investment you chose just because really okay? | The discomfort I felt at work and what I learned from 'Money University''
.

The end.

To you
— HondaYori Papa

* The ideas behind this article and how to approach investment and money that I learned from books are summarized on my blog, 'Papa's Book Letters'.

👉 Blog 'Papa's Book Letters'

* The article that served as the basis for these thoughts is here
👉'Revised Edition: Money University to Obtain True Freedom' Summary/Impressions | 'Wisdom on Money and Living' [Papa's Book Letters]

* This story is part of the theme of 'Living with Money'.
By reading it as a connection rather than as isolated points,
you can deepen your understanding of money so you aren't swayed by anxiety.

👉 Read articles summarizing how to approach money

👉 See the bookshelf of books for learning about money

* The 7 themes that I value are also kept on my blog.

👉 Read 'The 7 Learning Maps' that I have learned from

(Note: About tips)

I am writing these letters to preserve my current feelings and lessons so that my children can look back on them someday.

If you can empathize with these thoughts and lessons even a little,
your support through tips will give me the strength to write the next letter.

Please feel free to do so within your means.