> and take advantage of long term compounding.
Yeah that is what I mean, what happens when the stock market drops 75% over 25 years? Not much compounding happening. https://finance.yahoo.com/quote/%5EN225?p=%5EN225
Yeah that is what I mean, what happens when the stock market drops 75% over 25 years? Not much compounding happening. https://finance.yahoo.com/quote/%5EN225?p=%5EN225
A quick check here, https://www.portfoliovisualizer.com/backtest-portfolio, with JPXN between 2002-2021 investing a static amount monthly and reinvesting dividends suggests you would have doubled your money over the period.
Bad compared to US growth to be sure. You're right that Japan is a great example of how this strategy doesn't work as well for people locked in to stagnating economies.
Retirement always was and will continue to be a risk that depends both on how much you've saved and how well the economy will continue to function and grow once you're no longer working. Like all things in life, nothing is certain.
that's why you don't invest in a single region. A globally diversified portfolio (which, to be fair, is more difficult to achieve for people in some nations that's not the west) is what's required to get the market returns.
You, on the other hand, are not including inflation...