If retired people rush into unfamiliar investment products because they are worried about the shrinkage of their assets, they may fall into a greater financial crisis. (Diagram, Reuters)
[Financial Channel/Comprehensive Report] Many people believe that as long as they have a stable annuity and a considerable pension after retirement, they can enjoy their old age in peace. However, in the face of the continued rise in prices in recent years, if retired people rush to invest in unfamiliar investment products because they are worried about the shrinkage of their assets, they may fall into a greater financial crisis. A couple of retired Japanese civil servants received a total of about 50 million yen (about NT$10 million) in retirement pay when they retired. The couple also had an annuity income of about 400,000 yen (about NT$80,000) every month, but due to I believed in the investment case introduced by many of my old colleagues. I first invested 15 million yen (approximately NT$3 million), and then added an additional 5 million yen (approximately NT$1 million). Eventually, I faced the dilemma of being unable to recover the principal.
Japanese media reported that the couple were 74-year-old Shigeru Sasaki (pseudonym) and his 72-year-old wife Keiko (pseudonym). They used to be local civil servants and worked until retirement. When they retire, the couple will receive a total retirement pension of about 50 million yen. The current monthly annuity income is about 400,000 yen, and the actual income after deducting related expenses is about 340,000 yen (about NT$34,000).
Please read on...
Since they still have relatively sufficient income and assets after retirement, their lifestyles have not changed significantly. The couple eats out twice a month, each maintains and replaces a car, and does not reduce the pocket money and congratulatory money given to the grandson. Mr. Shigeru likes to play golf, and his wife loves gardening. Both of them are willing to continue to spend money on their hobbies and live a prosperous life. The monthly living expenses are about 300,000 to 400,000 yen (about NT$60,000 to NT$80,000), and sometimes they even need to use their savings.
However, what really makes Mr. Mao start to feel uneasy is the rising prices in recent years. He said that in the past two or three years, his lifestyle has hardly changed, but his expenses have become higher and higher, so he has begun to worry about "if inflation continues, whether the money will be enough."
At this time, a former colleague whom he had known for many years as a civil servant introduced him to an investment opportunity.
The other party said that funds can be invested in multiple undertakings and then receive partial profits on a regular basis, and emphasized that the investment targets are future-oriented. The other party also tried to persuade me by saying, "Money won't grow if you put it in the bank," and "With such a scale of assets, you should invest some of it."
Although Mr. Mao was not completely unsuspecting, because the introducer was a former colleague who had known him for many years, he ultimately lowered his vigilance. He said that if a stranger called to promote investment, he would definitely refuse, but because the other person was a former colleague and he had always trusted him, he made a different judgment.
The couple finally invested 15 million yen in one lump sum from their retirement funds. At the beginning, the investment did pay distributions according to the agreed time, which made Mr. Mao even more convinced that his decision was correct, and even thought "this is much better than putting money in the bank."
But that's where the problem lies. The couple regarded "receiving the first distribution" as proof of investment safety, but did not further confirm whether the business was actually running smoothly, where the distribution came from, and when the invested funds would be returned if the contract was terminated midway.
Mr. Mao was even embarrassed to ask too many details because of his deep relationship with the introducer. He said frankly: "I think it is rude to doubt the other person." Later, he invested an additional 5 million yen, bringing the total investment of the couple to 20 million yen (approximately NT$4 million).
However, after a few years, delays in accounting began to occur. After the couple asked the business owner, the other party explained that it was just a "temporary fund adjustment" and said that "it will improve next month." Although Mr. Mao began to feel uneasy, he did not withdraw his capital immediately because once he tried to withdraw the funds, it would be equivalent to admitting that his original investment judgment might be wrong.
Finally, allotments were completely stopped. After the investment problem broke out, the couple not only faced the problem of being unable to recover the principal of 20 million yen, but the original savings also gradually decreased because they continued to be used to meet living expenses. According to the current development, the crisis that deposits may bottom out is beginning to approach.
The couple also tried to negotiate with the introducer and the business operator to return the funds, but both parties had different opinions on the content of the contract, so they could not get all the money back immediately. Faced with an uncertain future, couples have to re-examine their family income and expenditures and future life plans.
The report pointed out that even if you have a relatively sufficient pension, it does not mean that you will be able to sit back and relax in your later years. In the face of inflation and rising living costs, if you are anxious and believe in the recommendations of acquaintances and invest in investment products that you do not understand, you may put your assets that are sufficient to support your retirement life at risk.
Grasp the economic pulse with one hand. Click here to subscribe to Free Finance Youtube Channel
