This top page is to transmit the proof that I am still alive and enjoying retired life, mainly to my relatives, friends and former students. A story or an event is selected from daily life and my thoughts and experience are introduced.
From Daily Life - 91: Asset management
Asset management is often thought of as something reserved for the wealthy,
but it's also a major concern for every retiree. When you retire from all
work and your only income becomes your pension, your first concern is whether
you have enough savings to cover expenses that your pension won't cover.
In 2000, the Financial Services Agency caused a stir when it announced
an estimate that "Elderly married couples will be short approximately
20 million Yen over the next 30 years of retirement." While much criticism
followed, this was the first time a specific figure had been presented
by the government. It revealed the reality that 70% of elderly households
have savings that fall short of this amount.
I retired in 2011, and fortunately, my savings at the time exceeded that amount. The question was how to maintain it. There are a wide range of options, from cash in a safe to bank deposits or investment. Because I had been not interested in asset management, I kept everything in the bank.
After I retired, I started receiving frequent calls from my bank. In this
era of ultra-low interest rates, interest on fixed-term deposits isn't
even a pittance. I was advised to consider investing in investment trusts
and other investment strategies. For seven years until 2017, I followed
the bank's recommendations and invested in a total of seven mutual funds.
Some produced profits, others losses. Gradually, I grew tired of being
swayed by the occasional gain or loss and began seeking a more stable investment
option. That's when my bank told me about fund wraps.
Fund wraps are a method of diversifying investments in a set ratio across
Japanese stocks, foreign stocks, Japanese bonds, foreign bonds, REITs,
etc. aiming to balance risk and return while generating profits. From aggressive
portfolios with a high proportion of stocks to stable portfolios with a
high proportion of bonds, securities firms offer several portfolios (combination
ratios) and allow investors to choose.
Since 2018, I've concentrated all of my funds, except for a modest fixed-term deposit, in balanced fund wraps, which aim for a more moderate position. Some people shy away from fund wraps because of their higher management fees compared to mutual funds, but I accept that these are fees for risk diversification.
Eight years have passed since then. I only occasionally checked the market
capitalization, and my investments were completely hands-off, just as I
had hoped. While there were several downturns during that time, including
the COVID-19 pandemic, market capitalization grew beyond expectations,
riding on the momentum of a global stock market boom.
The graph above shows the trends in the Nikkei Stock Average and the Dow
Jones Industrial Average since the beginning of this century. They look
surprisingly similar. Since overcoming the 2008 Lehman Shock crash, stock
prices have generally continued to rise. The past eight years have been
particularly strong, with average stock prices in both Japan and the U.S.
increasing 2.5-fold. Investors in stocks have likely enjoyed significant
returns. While stocks account for roughly half of my balanced fund, I still
benefited from a 1.7-fold increase in my total investment. This translates
to an annual interest rate of 7.0%, far superior to bank deposit rates.
Over the same eight-year period, Japan's consumer price index has risen
1.13-fold.
How do you manage your retirement savings? It's all a matter of personal responsibility, and each individual is unique. I hope you would read my own case as an example. I have summarized the experiences I gained so far as follows:
If you are looking for a safe and secure investment, start with the determination
to continue for 10 years. The energy overflowing around the world striving
for economic growth, will surely meet your expectations, regardless of
the occasional economic ups and downs.
→ Past Top Pages
"From Daily Life"
1: Tracing family roots
2: The second last car
3: August 15. my memorial day
4: Battlefield rations
5: Begginer at the gym
6: Fuji View Hotel
7: Lesson in Hiragana writing by brush
8: Moving from old to new smartphone
9: Living alone in my second year
10: Welcomed by cherry blossom
11: Eden of peach blossom
12: Tama River Walk
13: Chichibu Pilgrimage
14: Bonds with local community
15: About my homepage
16: Annual report of athletic gym
17: Pilgrimage to Mt. Tsukuba
18: Reunion of alumni and classmates
19: Braking by left foot
20: Battlefield rations in the sequel
21: Granddaughter has come!
22: Visit to Kobayashi Residence
23: Wake-up exercise
24: Digital photo album
25: Seven tools for brushing teeth
26: Ambulance
27: Quick report on drive monitoring
28: Hearing aid
29: Jindai Botanical Park
30: 2020, a historic year
31: Topics of eye
32: Final report on drive monitoring
33: Cognitive ability test
34: PCI to prevent heart infarction
35: Ashikaga Flower Park
36: 90 years old supported by medication
37: 3 years with Subaru
38: 45 years living in Seijo
39: Caspian Sea yogurt
40: Home Museum of Aunt Zschäbitz
41: Reunion of university classmates
42: Okutama spar tour
43: New Year's greeting card
44: Implant
45: Fuchu Forest Park
46: Grave closing
47: Walking group of local community
48: How-to books for the elderly
49: Home altar
50: Such a life
51: Knee of the elderly
52: Metropolitan Kinuta Park
53: Shirakaba Art Museum of Kiyoharu
54: Haiku; Metasequoia
55: Three years with COVID-19
56: Battlefield rations in the 6th year
57: Hearing impairment
58: Shinjuku Station
59: Haiku with photograph
60: Moving to 5G smartphone
61: History of private cars
62: Setagaya Art Museum
63: FreeCell
64: Turbo
65: Hinata Temple of Yakushi
66: Moving of home computer
67: Amakusa tour
68: Hand craft as a hobby
69: Kitami Community Square
70: Photo-Haiku 2
71: Support scam abusing Trojan Horse
72: Bedside gym
73: Metropolitan Nogawa Park
74: Family funeral
75: Sudoku (Number Place)
76: Photo-Haiku 3
77: Ohyama Afri Shrine
78: Kunisaki Peninsula tour
79: The old school system is far away
80: Cooking group of local community
81: Motor fan group of local community
82: Directories disappear!
83: Tunnel ventilation
84: Hearing aid renewal
85: Photo-Haiku 4
86: Digital records of life
87: 80 years after the ceasefire
88: Diagnosis of walking ability
89: Tracing back in time
90: Tour around castles and potteries
"Memorable Scenes"
Series 1: Parade with Doctor hat on the head
Series 2: Calligraphy in a frame
Series 3: A young man from the Orient
Series 4: Sumo-stamping
Series 5: Waiting room of Shanghai Station
Series 6: Let's Walk Festival
Series 7: Last long-distance drive
Series 8: My Car No. 3
Series 9: Ski camp
Series 10: Safari experience
Series 11: First encounter with dogwood
Series 12: Mt. Fuji
"Treasure Box of Words"
Series 1: Virtue brings profit
Series 2: Wait for a ripe moment
Series 3: Catch the symptoms
Series 4: Words are selected metaphors
Series 5: Start with two humans
Series 6: Optimism is a will, pessimism a mood
Series 7: Atop a summit, and another becomes visible
Series 8: We see only what we want to see
Series 9: Chanllenge is the privilage of the young
Series 10: Today is the first day of my life
Engineer Series 1: Who's engineer, juveniles' answer
Series 2: Corus of "We raise engineers!"
Series 3: From Nobel Prize to Gold Medal
Series 4: Professionals in three categories
Series 5: Various tasks in engineering
Series 6: Classification of EPs by IEA
Series 7: Science, technology and related professionals
Series 8: Proposal for the classification of engineers
Series 9: Revised proposal for the classification of engineers
Series 1 - 10: Whole Series including summary and remarks
Cartoon Series 1: Mechanism of viscosity
Series 2: Mechanism of loss generation
Series 3: Commuter packer and enthalpy
Series 4: Skinny grasshopper and fat pupa
Series 5: From hand-drawn picture to ready-made clip art
Series 6: Why do you learn? - 1
Series 7: Why do you learn? - 2
Series 8: Two Sciences
Series 9: Scientist and Engineer
Series 10: Science and Non-science
Series 11: Structure of human relations
Series 12: Oriental subconsciousness
Nostalgia Series 1: The first own car
Series 2: The first driver's license
Series 3: Comparison of German and Japanese Diploma
Series 4: The first air travel
Series 5: Tachometer used 60 years ago
Series 6: The three sacred calculators
Series 7: The first home computer
Series 8: Sentimental journey to Nordkapp
Series 9: Change of photograph
Series 10: Story of passport
The others
Membership of Academic/Professional Societies
Curriculum Vitae
Recent Publications
The center of gravity of recent publications has been shifting from those with the topics in fluids engineering to those in engineering education. Please refer to Publications List of the recent papers written in English.