In mid-June, an internationally married couple who consulted with me in May about their life plan and asset management made another request.
A life plan is made based on the current financial situation and future revenue forecasts and hopes.
However, to understand Japan’s social system is key for foreigners to make good presentation.
The social system, including Japan’s tax system, is not always fully understood by even ordinal Japanese people, so it is valuable for professional like a financial planner who has specialized knowledge of Japanese social system.
Explaining Japan’s social system to foreigners requires overcoming hurdles.
There are two.
The first is English.
The other is an understanding of foreign social systems.
In my case, I lived in Spain and the United States for several years each.
Thus, I can imagine it somehow if it was a Western social system,
In Europe and the United States, I have seen and heard some of how people live in old age.
This time, the husband is from Australia and the wife is Japanese.
She had a lot of difficulty to find a specialist who could explain the Japanese social system in English because it requires a lot of knowledge and comprehension to accurately explain to her husband.
As per the asset management, they were uninterested in it, but recent inflation prompted them to invest somehow.
Although they may not be interested at this moment, they are looking to start passive investments.
I told you the basic idea.
First, after analyzing the household budget, they should distinguish present income between current expenditures and future savings.
As for households, check the balance of financial assets once a year, and check the cash flow table estimated this time.
Think about how much of a discrepancy there is compared to the balance and what the cause could be.
Divide the couple’s entire assets into cash + bonds, stocks, and real estate, and be aware of the overall balance. If you don’t understand well, start with one-third at a time.
The couple’s style involves stable assets like cash and real estate, with minimal investments, resulting in steady but limited growth.
Next, the sum of cash and deposits + bonds and stocks as financial assets, and this is also an awareness of the overall balance.
If you don’t understand well, divide the asset into a quarter of Japan stocks, foreign stocks, Japan bonds, and foreign bonds.
For instance,
Japan bonds are 10-year floating JGBs for individuals
Foreign bonds are U.S. Treasuries or Australian government bonds
Japan Stocks is a low-cost index fund
Foreign equities are low-cost global equity index funds excluding Japan.
They should first reduce taxes and asset management fees.
To reduce costs, it is good to use NISA/iDeCo as much as possible to invest in foreign stocks.
Start with a small investment and gradually increase it as you get used to it
I gave them whole advice in English.
The interview lasted about one hour, but I prepared the above contents in Japanese and English in writing and handed them over.
I think that they understood well.
As it was a paid service, I received a fee. When they departed, the husband smiled and shook hands, while his wife bowed with a smile.
I felt happy seeing them off.