interesting article related to Japanese retail investor behavior
Some excerpts:
The phrase refers to people who, driven by anxiety about the future, prioritize NISA investing to such an extent that they cut back too heavily on everyday living expenses and end up struggling financially.
A company employee in his 20s said he uses NISA and currently invests about 30,000 yen a month, which amounts to roughly 20% of his salary.
The breakdown of people investing in NISA was 39.7% for those earning less than 3 million yen, 27.7% for those earning between 3 million yen and less than 5 million yen, and 67.4% in total for those with annual incomes below 5 million yen.
https://share.newsai.space/share/3b83ab71-e0ba-59f0-a7c3-84e2f10228dc/young-people-fall-into-nisa-poverty
21 Comments
Cool that they have money to put into Nisa.
>Katayama said she was somewhat shocked by the term, adding that it is extremely important for people to receive proper and objective financial education and life-planning guidance.
?? So Finance Minister of Japan wants young people to be lavish and spend all their money so they don’t have savings for their future?
My family invests ¥80,000 per month into NISA and ¥20,000 into U.S. and Japanese blue-chip stocks, for a total of ¥100,000 per month, which accounts for about one-fifth of our monthly income.
everything is fine while mkt are going up
Let me guess, there will be a slew of documents teaching people how to invest within their means.
Must everything be spelt out in bold letters?
People in their 20s making ~200,000 yen a month shouldn’t be saving or investing to begin with.
> 30,000 yen a month, which amounts to 20% of his salary
Ouch.
10-15% would be fine too, but nothing wrong with building a nest egg. Many young Japanese people live with their parents too so 30% may be feasible in some cases.
Bro, it’s not a problem, many do it because they like it, leave us be and gtfo maybe raise the limit, thank you
Is NISA a good thing to do?
I think it’s shit but also commendable. Not like me that put it all in the Hookers&Blow index and YOLO stocks.
I was investing 30man into nisa (10 for tsumitate and 20 for nisa) monthly last year and 5 man in a different stock account to buy some gold silver fund. Well I went too far with it and now I’m struggling. Especially when stock market is stagnant and I don’t wanna sell them cheap.
Literally downvoted for related personal experience.
“You should save for your future!”
“No, not like that!”
Old fucks will find literally anything to criticize younger generations.
Afaik NISA has monthly and yearly limits, which do not change by age and so. When I started iDeco too my natural incentive was also to start as early as possible and max out because you lose tax otherwise. So in some sense, it seems to me that this is a policy design problem, as basically who have more disposable income for saving have more tax advantage. In Japan, because of the seniority based payment, it makes total sense to 我慢 this period, as you will be only contribute the max tax-free amount even when you would have twice the disposable income.
Am I just misunderstanding, or are these numbers yet another case of AI doing something really stupid?
>The breakdown of people investing in NISA was 39.7% for those earning less than 3 million yen, 27.7% for those earning between 3 million yen and less than 5 million yen, and 67.4% in total for those with annual incomes below 5 million yen.
It looks like the AI somehow saw that 39.7% people earning less than 3M invested in NISA, than at the next level up, 27.7% invested, and somehow concluded that the sum of these two *percentages*, 67.4 “%”, was the proportion of all people in these two groups that invested in NISA.
That kind of innumeracy is normally stamped out at the junior high school level.
That said, yes, of course younger people and working-class people are going to save and invest as much as they can, because in the past 10-15 years the government has shown that they don’t care at all about them and are content to let the top 10-20% pull away from everyone else.
> 30,000
> 20% of his salary.
Found the problem
Perhaps they are working for a large company in company dorms with cheap cafeterias round the clock.
I know someone who worked for JR with a very meager starting salary, but they had little expenses.
Isn’t this just a variation on the FIRE investment strategy popular in the West? Live like a pauper/ save/invest when young, retire early and live off dividends/investment later?
NISA貧乏 was just a twitter meme that these journalists picked up. Good to highlight the deeper issues of uncertain pensions for the young workers but this framing just paints them as stupid to the older generations.
I hear a lot of people saying invest in NISA and then I talk to some of my teachers from academia and a lot of them have this stance of like “you could reassure yourself with investments, but it’s likely that we will be soon approaching a time where we will not be able to rely on these big companies to save us from anything. Rather we will need to save ourselves from them” and I’m kinda leaning that way. Especially as an American that’s fed up with the way money moves.
Part of us (family with kids) wants to start putting money into NISA, but at the same time we’ve been perfectly content putting bits money aside for ourselves as an emergency fund and then taking small trips and living in the present. We’ve been having the time of our life with the baby, and honestly I can’t imagine just tunnelling on throwing money at some companies. It may be a little ignorant but idk I sure feel happy with my life at the moment so I suppose that’s a W?
I have always heard the breakdown like this: 50% needs, 30% wants, 20% saving (but once your emergency fund is filled, switch to investing).
So him putting 20% of his income should be okay…