My Revised Long-Term Investment Plan - Reexamining Risks and Costs

The long-term investment plan has been revised.

　One is that the main product was changed from Nissay Nasdaq100 Asset Management to a total stock market ETF. The reason for this is that I learned while studying books called masterpieces, but I can't underestimate the costs and risks. Investment trusts are inevitably expensive compared to ETFs, and when compared with the above products, ETFs are overwhelmingly cheap at about 7 times 0.2% and 0.03%. I don't know what will happen with exchange in the future, and the SBI Bank/Securities I use has no exchange fees, so I thought there was no problem. Also, it must be said that Nasdaq 100 is high in terms of risk indicators, and its high return was very attractive, and we adopted it as a priority in the original plan, but I learned that what should be prioritized is risk rather than return, so the route was changed as soon as possible. Also, there is a great sense of security that VTI can make diversified investments in most stocks across the US. I realized that a plan not to lose when it comes to long-term investments is the most important. Also, I was at a loss about VOO, but I chose VTI, which is low in price and easy to buy.

　Second, EDV, a US ultra-long-term treasury bond ETF, was incorporated into the main investment. The reason is the low correlation with the stock market. I held it for a short period of time, but even so, there was an inverse correlation with the stock exchange rate, and I was able to feel the effects, so I upgraded it to the main investment target in order to maintain mental stability and grip strength in long-term investments.

　Third, healthcare and general consumer sector ETFs were selected as secondary investment products, but they were decided to abolish them in order to efficiently invest small amounts of money. It is determined that diversification is effective in the main investment destination.

　In a rough image, it feels like they hold one-third each of the Japan Stock Index, the US Stock Index, and US bonds, and steadily advance the main investment while waiting for the price increase of virtual currency and gold to be cashed separately to increase deposit power.　

　Below is a revised long-term investment plan that takes into account the above changes.

1. Investment pillar We will accumulate 300,000 yen every month from Reiwa 6/2 until the NISA quota of 18 million yen is filled, and we will continue to reserve as much as possible even after reaching the target amount

2. Main investment products

(1) .SBI-iShares TOPIX Asset Management

Trust remuneration of about 0.1133%

(2) .Vanguard Total Stock Market ETF VTI

Expense rate 0.03%

(3) .Vanguard Ultra Long Term US Bond ETF EDV

Expense rate 0.06%

3. Main Investment Policies (monthly)

(1) .Accumulated NISA Account

TOPIX 100,000 yen (credit card payment on the 1st of every month)

(2). Specific account (I used up this year's growth investment quota due to lack of knowledge, so I will use a Tsumitate NISA account starting next year)

　VTI equivalent to approximately 100,000 yen (set up a regular reserve for each unit on the 3rd, 13th, and 23rd of every month)　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 　　　　　

　EDV equivalent to approximately 100,000 yen (purchased manually once a month)

4. Current assets

(1). Old Reserve NISA

　Holds approximately 2.5 million yen worth of S&P 500, etc., and is scheduled to be sold 20 years after the start of accumulation

(2) .gold

　I own 1000g, but I sell it as needed and invest in the main product

(3) .Cryptocurrency

　We currently hold approximately 6 million yen worth of approximately 30 coin brands that are expected to have future potential, and after the value has increased by 5 times or more, we exchange 300,000 yen worth every month to continue investing in the above investment targets

5. Reasons for choosing investment targets

(1) .TOPIX Index Investment Trust

　By avoiding foreign taxes and exchange risk and investing in the Tokyo Stock Exchange as a whole, stable index investment that excludes arbitrary human judgment is possible, and it is ideal as a long-term investment target. Furthermore, the correlation with price movements of US stocks is relatively not high in the stock index, and the reason why Nikkei 225 was excluded is that it is not a market capitalization weighted average, and stock exchanges based on human judgment are carried out regularly

(2) .Total Stock Market ETF

　As of now, there is no country with economic power to replace the US, and total stock market ETFs that can be invested in the entire US stock market are ideal as targets for diversified investment, and they have an excellent balance between low risk, low cost, and large returns

(3). American Ultra Long Term Government Bond ETF

　The return on long-term government bonds is relatively low but stable, and since it is inversely correlated with price movements in the stock market, it is ideal as a risk hedge against 6 (1) (2)

(4) .gold

　It is a traditional safe asset, and prices continue to rise strongly regardless of the rise in stock prices, and value continues to improve

(5) .virtual currency

　It seems that the value of virtual currency will improve in the future, but we will pay close attention to the future potential and market trends of each coin, set loss cuts and profit determination lines, perform management that is not carried away by emotions, and proceed with conversion to other investment targets by exchanging money in a timely and appropriate manner while considering the tax system

(6). Securing cash

　Always secure a fixed amount of cash to prepare for unforeseen situations and obvious perfect places to shop

6. Investment attitude

(1). Utilize past successful experiences

　As a bad investor, keep in mind that the only thing I have barely achieved success with is long-term investment with a fixed amount reserve

(2). Acquire and update correct knowledge through books, etc.

　Always read books about investments, notice mistakes in your plans and points that need to be changed, and continue to invest correctly while updating your financial literacy in order to build an optimal portfolio

(3). Elimination of emotional investment

　Implement fixed savings regardless of market trends, and eliminate elements where emotions work as much as possible

(4). Elimination of timing investments

　It is true that even professionals lose to index indicators when it comes to long-term investments, let alone that I, as an amateur, try to set the timing is the height of foolishness

7. Inheritance to children

　Since lifetime gifts of up to 1.1 million yen per year are tax-free, an 18-year-old child is gifted 1.1 million yen per year to that child's securities account, educates financial literacy through long-term diversified investment through index investment, and establishes an awareness of investment. Thus, it is possible to leave large assets to children while completely avoiding tax burdens, which is actually reasonable