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NISA貧乏に陥る若者達… 給料は殆どニーサ、老後に備える。私は違和感を覚えたんだ

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Are you aware of the recent phenomenon dubbed 'NISA Poverty'? Young people, keen to save for retirement, are reportedly dedicating most of their salaries to NISA investments, leaving them with little for daily expenses. The author of this article expresses unease about this trend, which has sparked a heated online debate, with opinions divided between those questioning such aggressive investment and those understanding the underlying anxiety about the future.

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NISA (Nippon Individual Savings Account)

NISA is an abbreviation for the 'Small-Amount Investment Tax Exemption Program,' a system introduced by the Japanese government to promote asset building. Its major benefit is that profits (capital gains and dividends) from investments in stocks, investment trusts, etc., are tax-exempt within a certain limit. From 2024, the 'New NISA' system has been significantly expanded, increasing the lifetime tax-exempt investment limit from the conventional 1.2 million yen (General NISA) or 8 million yen (Tsumitate NISA, over 20 years) to 18 million yen. The annual investment limit has also greatly increased to 3.6 million yen (1.2 million yen for the Tsumitate Investment Framework and 2.4 million yen for the Growth Investment Framework). The purpose of this system is to accelerate the shift from 'saving to investing,' aiming to increase household assets in Japan, which are difficult to grow through savings alone. However, with the expanded tax-exempt limits, there are cases, especially among younger generations, where individuals attempt to maximize this large framework by making excessive investments without regard for their own income or living situation. For example, without sufficient emergency funds, many are dedicating most of their salaries to investment, increasing the risk of falling into a situation called 'NISA Poverty,' where they cannot cope with sudden expenses. While NISA is a very effective tool for asset building when used wisely, overzealously trying to fill the tax-exempt framework without considering personal financial circumstances and risk tolerance can lead to financial ruin.

Tsumitate NISA

Tsumitate NISA was a type of the conventional NISA system introduced in 2018. It was specifically designed to support long-term, cumulative, and diversified small-amount investments, offering tax exemption on profits from investments up to 400,000 yen annually (until 2023) for a maximum of 20 years. Investment targets were limited to investment trusts that met government-specified requirements, had low fees, and were suitable for diversified investment, making it relatively easy for investment beginners to start. Due to its accessibility, the number of users, especially among young people, surged, playing a crucial role in the 'shift from saving to investing.' However, with the New NISA system from 2024, the elements of Tsumitate NISA have been expanded into a 'Tsumitate Investment Framework' of 1.2 million yen annually, and combined with the 'Growth Investment Framework,' tax-exempt investments of up to 3.6 million yen annually and 18 million yen over a lifetime are now possible. While this significant expansion of the framework provides an opportunity for even more people to engage in asset building, it is also contributing to the emergence of young people falling into 'NISA Poverty,' as highlighted in the article. By setting unreasonably high monthly savings amounts from their salaries, sacrificing living expenses and emergency preparedness for investment, they may appear to be saving in the short term, but they risk their lives becoming unmanageable in the event of unexpected expenses or income reduction. The philosophy of Tsumitate NISA is long-term asset building, and it is considered crucial to continue 'within a manageable range.'

Emergency Fund

An Emergency Fund refers to money that should be kept readily accessible for unforeseen circumstances. Specifically, it means funds necessary to sustain daily life in case of illness or injury preventing work, loss of income due to layoffs, or unexpected large expenses (e.g., appliance breakdown, car repair, celebratory/funeral expenses). It is generally recommended to prepare 3 months to 1 year's worth of living expenses as a guideline, with at least 6 months' worth considered safe. This fund should ideally be secured in highly liquid and low-risk products like ordinary savings accounts or MMFs (Money Management Funds). While investment is a very effective means to grow future assets, allocating the majority of one's salary or savings to investments like NISA without sufficient emergency funds carries significant risk. If living expenses become insufficient during a period when invested assets have significantly declined, and one is forced to sell, unrealized losses would be realized, ultimately leading to a reduction in assets. Young people falling into 'NISA Poverty,' as highlighted in the article, are likely to be heavily investing without adequately securing, or even dipping into, their emergency funds. For sound asset building, it is crucial to first secure this emergency fund firmly, and then, only with 'surplus funds,' allocate them to investments according to one's risk tolerance.

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