Investment method to achieve FIRE(Financial Independence, Retire Early)


My asset structure is “Cash + Japan Individual Stocks + Index Investment Trust (Advanced Market Stocks)”, but in the past I also invested in Forex, monthly distribution investment trusts, REITs, bonds, gold (gold), overseas ETFs, U.S. stocks, offshore funds, etc.

The investment history has become more than ten years, but it has become more and more simple and has become a configuration as described above.I hope that no matter what kind of investment I make, I hope that i will achieve it in as short a time as possible for those who are thinking of saving money in the future because I have reached semi-retirement in a fairly roundabout way.

The most important thing to watch out for in your investment is to reduce your assets significantly.

I was doing Forex at the time of the Lehman shock and lost 10 million assets.Now I can laugh and talk as a memory story, but at that time, I was shocked and couldn’t eat, and my memory was vague.

Losing money can do a lot of damage to asset formation, but mentally it’s pretty tough.I recognize it as a real experience, but people who have no experience should be careful because they may make a high-risk investment.

The money to invest will be the one obtained from labor, so it will be the one obtained by cutting my life.There’s nothing sad about that money in an instant.

That’s why I don’t want people to feel that sad when they see this blog.

The optimal solution of the investment method is centered on index investment.

The “optimal solution” varies from individual to individual, but I will write it as the best solution for investment that will benefit many people.Also, since my experience is reflected in a lot, it is often due to subjectivity, but it would be helpful if readers could discount it.

However, I have made quite a lot of investments, and I believe that it is not an off-the-point view because I was able to derive my own optimal solution in the midst of making a profit or failing.

Although it is mainly about index investment, there are a variety of targets such as stocks, bonds, and REITs, even if it is said that it is an index investment.From here, if you put in Japan, developed countries, emerging countries, and other countries, it will be quite a number.

Among them, I have chosen the “Stock Index in Developed Countries”.There are some things that invest in bonds and REITs, but basically we don’t think it’s necessary.

To put it simply, we do not need to talk about bonds because the exchange rate will offset profits, and REITs are small in size and are often included in stocks.

As for Japanese equities, the world’s market capitalization is less than 10%, so I feel that the advantage of investing in indices is slim.As I will explain later, it would be better to do Japanese stocks in individual stocks.

With regard to emerging market stocks, we do not think that we will grow only in emerging countries in global business development as it is today, and I do not think that it is necessary to increase the risk because it will benefit developed countries as a result.

For this reason, I believe that the center of asset management should be “the stock index in developed countries.”

For Japanese stocks, individual shares are

All of the asset structure simply be done in an index mutual fund, but it is a little too boring.Of course, the purpose is to increase the number of assets, but I think that it is human beings that it does not last without a little stimulation.

I have chosen individual stocks for Japanese stocks because I think it would be easier to continue asset management if there was a little stimulus.The main of individual stocks is preferential stocks, but there are cases where you hold stocks that seem to be good for your finances, such as when you occasionally plunge.

Investment of risk assets is OK only with Japanese individual stocks and stock index funds in developed countries.

There are many financial products to invest in, but basically there is no problem with “Japan Individual Stocks” and “Advanced Stock Index Fund”.I believe that this combination is probably the least risky and the return is reasonably high.

I don’t know what will happen in the future because it’s actually what I’m doing, but I think it’s possible to operate safely.

Increase in return requires principal increase . . . how do I increase the principal!?

What is the percentage of the overall asset?

You may have heard the term “life defense fund” when you are investing.It is money to leave in case of the money which has been restructured, has been forced to stay in the hospital for a long time, and the money is needed.

Personally, the larger the asset, the less necessary the concept of life defense funds.I also adopted this concept at the beginning of asset formation, but I am not doing it now.

If you have less than 10 million assets, you may want to adopt the concept of life defense funds.I don’t think you need it any more than that.

Based on these factors, the optimal solution for the percentage of the overall asset will be as follows.

Cash 30%

Japanese stocks 10%

Exports in developed countries 60%

Basically, I feel that if this percentage is used as a guide, there will be no serious injury.