Rephrasing "From Savings to Investment"

The new NISA account starts next year. It stands for Nippon Individual Savings Account. It is being expanded to a tax-free investment limit of 18 million yen, which is such a large amount that it hardly feels like a "small" investment.

Among the policies provided by the government, it is, as far as I know, a godsend of a wonderful system. I truly believe from the bottom of my heart that every citizen should take advantage of it.

Conversely, the gap between the rich and the poor will likely become stark between those who use this system and those who do not.

Currently, there are 17 million NISA accounts, meaning one in seven citizens has one. While that has increased significantly, I feel like it is still only a small number. I hope this number of accounts will increase significantly with the new NISA next year.

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Now, the phrase "from savings to investment" has come to be heard frequently.

If you are swayed by this phrase without thinking much about it, it is worth reconsidering being swept away by the atmosphere that you must invest.

I am in full support of investing as a result, but since you are taking an action that involves risk, I want you to take action only after thinking about what investing actually is.

In the first place, when it comes to investing, let's clarify: "What are you investing for?"

There is no doubt that the background to this new system is a message from the government wanting each individual citizen to save for their own retirement, based on the premise that it will become difficult for the government to maintain social security in the future.

However, everyone agrees with taking advantage of that to increase personal financial assets, right?

That is precisely why I think individuals should think carefully about "What are you investing for?"

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Q: "What are you investing for?" Q: "What will you use that money for?" Q: "How much money do you need?" Q: "By when do you need that money?"

Life planning that can answer these questions concretely and clearly is necessary.

Otherwise, your: - risk tolerance for investing, - choice of products, and - investment period will change.

You might say, "Don't be so rigid!"

But if you remain ignorant and seek financial advice from someone like a financial planner, you will be easily deceived.

And, absolutely, at a bank,
please do not open a NISA account.

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Let's try to visualize things as concretely as possible.

For example,

Instead of saying 'I want to travel abroad,' say specifically, 'I will take my family on a trip to Hawaii twice a year.' Instead of saying 'I want to increase my money,' say specifically, 'I will save 5 million yen for college tuition five years from now.'

If you are just making small talk, there is no problem with speaking about your hopes vaguely. However, when moving forward with a financial plan related to your life plan, in order to achieve your goals, you must always quantify and clearly state the dates, amounts, and purposes of use.

Vague goals implicitly include the idea that it is okay if they are not achieved even before you start executing them. You should consider that you are keeping your target values vague because you do not want to feel guilty about failing to achieve them.

If you truly want to build assets,
・Did you achieve it?
・Did you fail to achieve it?
Concrete target figures that allow for a clear judgment are essential.

It is not about having others judge you,
but simply about taking the goals you planned yourself,
executing them yourself,
and judging them yourself.

Since you are not being tracked by others,
you do not need to feel any guilt.

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The true meaning of the government's slogan 'From Savings to Investment' in the title is 'From a government-managed future to an individually-managed future.'

Japan's social security is very excellent.
Though, taxes are high because of it.

Even if you have trouble living,
even if you get sick,
even if a family member unfortunately passes away,
or even if you lack funds for your life in old age,

social security is a system where the government helps you.
Do you know how it is managed?
It will likely be gradually worsened from here on out.

When that happens, the Japanese people will probably complain to the government.

Instead of that,
did you make an effort for your own future?

Complaining won't help, will it?
It is a system decided by the lawmakers chosen by the honest vote you cast.
The citizens who chose them also bear responsibility, don't they?

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Title payoff.

The politicians' true feelings are,
"Please take care of yourself on your own."

If you rephrase this line, it becomes
"From savings to investment."