More and more people are feeling the need to save money

In recent years, we have been hearing the term "asset management" more and more frequently. Is it due in large part to the influence of "NISA" and "iDeCo"?

Prices are rising rapidly, but salaries are not. Furthermore, with Japan's population declining, it is becoming more difficult to secure funds for retirement. As a result, the government is encouraging people to increase their savings through "self-help efforts," and is recommending "NISA" and "iDeCo," which is one of the reasons why we are hearing the term "asset management" more often. Many people are beginning to feel a strong need to save money.

So, first of all,NICHE"Please tell me about it.

"NISA" stands for the "Small Investment Tax-Free System," a national (Financial Services Agency) system for asset formation. It was launched in 2017, but what is commonly referred to as "NISA" today refers to the "New NISA," which was expanded in 2024. Changes include an increase in the annual investment limit to a maximum of 3.6 million yen (2.4 million yen for growth investments and 1.2 million yen for regular investments), and an unlimited tax-free holding period, making it easier to use. However, the unlimited tax-free holding period makes it easier to decide whether to lock in profits (or stop), so[MONEYDOCTOR PREMIER]We offer flexible proposals tailored to each customer's individual situation.

next,"iDeCo"Please tell me about it.

"iDeCo" is an "individual-type defined contribution pension" system administered by the Ministry of Health, Labor and Welfare. It is called a "pension," and its main feature is that the money saved cannot be withdrawn until age 60. "iDeCo" is a system that allows you to start preparing now for money that will go beyond your pension.

"newNISA”Have you received more inquiries from customers since then?

We receive many inquiries about "NISA" such as, "Everyone else is doing it, so maybe I should join," or "I wonder if I should join, but I don't know much about it, so please tell me." On the other hand, "iDeCo" is a system that many people join through their workplace (payroll deduction), but there are also people who want to join "iDeCo" on their own because they can receive income deductions for contributions (premiums).

First, understand how financial products work

When I hear the words "asset management" or "investment," I get the impression that it's difficult.....

The amount of money that each household will need in the future will be different, so it is difficult to generalize, but in addition to various life events, what is important is to manage and build assets in preparation for retirement.[MONEYDOCTOR PREMIER]So, we start by creating a life plan table that summarizes your future income and expenses, and calculating how much money you will need in retirement. By setting a specific goal of "how much money," it becomes easier to understand what you need to manage your assets.

How much money do you actually need in retirement?

According to the Life Insurance Cultural Center's 2022 (Reiwa 4) "Survey on Life Security," a married couple needs approximately 379,000 yen per month to live comfortably in retirement. Referring to the Ministry of Internal Affairs and Communications' "Household Income and Expenditure Survey (2022)," the current social security benefit amount for a married couple aged 65 or older and unemployed is approximately 220,000 yen per month. This means that there is a shortfall of approximately 150,000 yen each month. This should help you understand the importance of preparing for retirement.

Now40Assuming you are old,65Up to age25Over the year,NICHEHow should we think about using "" to prepare for the future?

The tax-free holding limit for NISA is 1,800 million yen. Assuming that NISA is invested up to the limit, we calculated using the Financial Services Agency's "Samitate Simulator" (target amount: 1,800 million yen / expected annual return: 5%) and found that it is possible to reach this limit with a monthly savings of approximately 30,000 yen. Utilizing systems such as NISA and iDeCo is extremely effective for long-term asset formation. However, the word "investment" can make many people feel uneasy. For this reason, we first carefully explain how financial products work and provide support to help alleviate any concerns.

Source: Financial Services Agency "Tsumitate Simulator" (https://www.fsa.go.jp/policy/nisa2/tsumitate-simulator/）

What exactly does an investment trust consist of?

In asset management, there's a simple "Rule of 72" that allows you to calculate the approximate number of years it will take for your principal to double and the required investment yield. Using this "Rule of 72," a 7% interest rate calculates that you can double your current investment in 10 years. The key to success is to use interest and time to your advantage and "make your money work for you." This is the "investment mindset." While Japan's population is declining, most countries around the world are experiencing population growth. A growing population means more goods are needed, which ultimately motivates the economy (money). While many Japanese people are particularly sensitive to falling stock prices and give up because they're scared, the key to success is to continue investing steadily and with a long-term perspective, rather than getting too excited or upset about the numbers in front of you.[MONEYDOCTOR PREMIER]is a consultation service for all your money-related needs, including asset management, inheritance, insurance, mortgages, etc. Please feel free to contact us (advance reservations required, same-day reservations possible if there is availability).