Investment“A person who can make 10 million yen” is a “person who will have 100 million yen”

6286 min

“A person who can make 10 million yen” is a “person who will have 100 million yen”

  • 40-Somethings Who Are Able to Make 10 Million Yen in Assets

Looking at the average savings of Japanese people, it seems that people in their 40s can make assets of 10 million yen.

However, even for people in the same decade of life, their 40s, there is a great difference between a person who has 10 million yen at the age of 40 and a person who has 10 million yen at the age of 49.

For a person who was able to make 10 million yen at the age of 40

If he or she had 10 million yen at the age of 40, it is possible to increase that 10 million yen to 60 million yen in 25 years after retirement (compound interest 7.2%).

If it were possible to invest 50,000 yen per month for retirement over 25 years, it would be no problem to have 100 million yen instead of 60 million yen.

That’s how long-term compounding management opens up possibilities.

In the case of a person who can make 10 million yen at 49 years old
On the other hand, a person who reaches 10 million yen at 49 years old can do the same thing, but it is not 60 million yen that can be obtained at 65 years old; it is only 31 million yen. About half of the former.

Furthermore, to make 100 million yen by the age of 65, it is necessary to invest 200,000 yen every month. Just nine years’ difference will actually increase the burden four times.

Therefore, no one is saying that “100 million yen is possible because 10 million yen was made.” For those who can jump from 10 million yen to 100 million yen, there are actually some strong points.

They are known as “The Three P’s.”

The Three Ps of people who can make 100 million yen
◇ Plan
Those who can steadily increase money have a plan. We have a simple numerical plan such as “How many years to increase the current assets? What is the required rate of return for that?”

Without it, people are greedy to increase as much as they can, or they can be terrified of losing it even if they increase once, or they can’t move their money because of their uneasiness.

There is no need for a strong will or a clear mind. However, it is important to believe in a plan that works.

◇ Process
People who have a sense of stability to increase money have processes that do not fail.

The process is the investment process of “setting goals → creating plans → collecting information → careful actions → verifying results → reviewing plans.” Since it can be repeated consciously, good results are repeated.

People who have just searched for products and brands can happily make money sometimes, but cannot repeat it in the long run. They have no principles and there is no reproducibility.

◇ Policy
”Policy” is an investment plan of action. For example, your own standards, such as investing only in physical assets, not buying and selling in the short term, not making intensive investments alone, or not investing in an asset without knowing the probability.

People who have their own policies do not seem to get involved in worthless, made-up stories or fall for scams. Those without policies are addicted to high-risk speculation, depending on the magnitude of the return.

Ask your expert to learn what plans, processes and standards you should have. Even if you chase a flashy stock or security trading name that promises you the chance to make money, you will not be rewarded.

Original author: Kunihiro Kitagawa