Even among people who have little sense of rising prices, interest is growing in considering asset management as a hedge against inflation, with specific strategies such as investing in stocks and holding foreign-currency assets introduced.
In recent years, more people have been planning asset management strategies with inflation in mind, and preparing for rising prices has also become a priority in Japan. The author explains strategies and principles for managing assets in an inflationary era.
One concern raised is the need to review retirement planning when people have little sense of rising prices. The article introduces a case study of someone planning for retirement on the assumption that they will be rehired after reaching the mandatory retirement age.
Principle 1 is to understand the impact of rising prices on long-term planning. It is considered necessary to understand how inflation affects long-term spending and the amount of funds required.
Principle 2 explains why stock investment is considered effective as an inflation hedge. Improved earnings at companies able to pass higher costs on through product prices may lead to the possibility of returns being passed on to investors.