There is no question that inflation is here and will affect
the average Japanese living in Japan
in a more pronounced way than ever before in history says Richard Cayne
who had lived in Japan
for over 15 years in the 90s right up to 2010.
Richard Cayne Meyer said “During my time in Japan what was
100Yen in 1995 was 100 Yen in 2010. This
is far from “normal” in that having first hand experience seeing the prices of
goods and services move upwards over the years Internationally as compared to
back in my home city of Montreal Canada over the same period I felt as though nothing
changed in Japan as the prices in Japanese Yen never seemed to move up much at
all. A very big shock is coming to most
Japanese now that the Yen is finally weakening and inflation is coming online.
Japanese may not deal with this so well as few are prepared
for inflation and what it means for to them and their purchasing power. Most Japanese do not understand inflation or
why there is need to get their money working for them and why it is so
important to try and keep up with or outpace inflation”. Richard Cayne at Meyer International Ltd therefore
strongly suggests that growing ones money is an extremely important part of
financial planning since inflation erodes the value of your hard earned
savings.
Richard Cayne Meyer states “It will probably take a few more
years of inflation where the average Japanese realize they have lost between
15-25% purchasing power of their currency by keeping it in a low yielding bank
or post office account. By then many
financial companies with get on the bandwagon with campaigns showing how it
makes sense to invest their money into something that can keep pace with or
outpace inflation. Of course that is
exactly what Minister Abe wants and Richard Cayne is sure he will get his
way. Until then most Japanese will still
resist the idea of investing as they view it to be risky, however after a few
years of loosing their purchasing value of their hard earned savings they will
start to change”. Already it is
happening and the poverty line in Japan is being tested by low income
earners. This is a trend that will continue
for some time says Richard Cayne.
As Richard Cayne Meyer was in Tokyo Japan over a long time
period of time he truly understands how pronounced and unbelievable inflation
will be to Japanese over the coming years.
Particularly with seniors and Japan being a world leader in aging populations
who typically do not invest at all and keep their funds in cash or cash like financial
accounts. Yet they rely not only on
income but the need to preserve the spending power of their wealth and there is
only one way to do that which is to invest in income producing and inflating
assets such as in real estate and stock markets. Richard’s suggestion is that Japanese need to
start investing sooner rather than later.
Richard Cayne has been involved in wealth management in Asia for over 19 years and has assisted many High Net worth Japanese families create innovative international tax and wealth management planning solutions. The public company of which he is CEO can be seen at www.asiawealthgroup.com or stock exchange link http://www.isdx.com/Asia Wealth Group
