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This Is What Elderly Millionaires Spend Their Cash on in Japan

Bebpo

Banned
Expensive luxury travel is a great way to spend your money. Experience the world. In comfort. I approve.

I agree with this sentiment 100%

I don't spend much money in my day to day, but when I travel I splurge and my trips are all amazing memorable rejuvenating experiences.
 

Loxley

Member
I can explain this one.

The Japanese stock market has garbage returns, so people keep their savings in cash. In countries with healthy economies that money would be invested.

House prices are also fairly low, so they have less of their total assets tied up there.

There's a difference between having a million dollars in assets and having a million dollars in liquid cash. This is talking about about the latter.


Ahh gotcha.
 
These super luxe trains makes me think of the movie snowpiercer well the first class end of the train. Geriatric wealthy on a sort of endless trip around japan but insulated from everything.

(I'd love japanese trains and would get a ticket once just for the experience).
 

elfinke

Member
Awesome initiative, one I'd like to see rolled out across other dilapidated train lines, like here in Australia.

Create tourist attractions out of having 5 star restaurant carriages and the like
 

Korey

Member
I can explain this one.

The Japanese stock market has garbage returns, so people keep their savings in cash. In countries with healthy economies that money would be invested.

House prices are also fairly low, so they have less of their total assets tied up there.

"Not investing" and "not having assets tied in houses" still doesn't explain why so many people there are millionaires. If anything it does the opposite.
 
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I was expecting this but those trains are ducking spaceships
 

E92 M3

Member
I work with someone who one time had to entertain business guests from Japan. They purchased the most luxurious option they could for a train ride between Boston and New York. They were utterly disgusted. It was the equivalent of the budget option to them.

Your post reminded me of this lol:

250
 
Not sure what city in Japan is "livable" at 2,490,000 yen annual salary.

this was several years ago, but i made about that working retail in osaka and it was fine. english teachers don't make much more.

I work with someone who one time had to entertain business guests from Japan. They purchased the most luxurious option they could for a train ride between Boston and New York. They were utterly disgusted. It was the equivalent of the budget option to them.

there are definitely japanese subways and regular railways that feel more legit than first-class train travel in the west.

but regular nozomi shinkansen is pretty much the epitome of luxury travel to me. near-infinite legroom, shop with beer and bento boxes on the platform, super fast, no-one bothers you, actual views out the window, no check-in or baggage claim, you can just show up whenever and get a ticket for a train in the next 20 mins, etc.

for like $120 one-way tokyo to osaka or kyoto (which takes a little over 2 hours), it's generally worth it when flying from narita is about $80 on an LCC.

the funny thing is that the "first class" cars on a regular shinkansen aren't that much more luxurious than the standard ones.
 

Skinpop

Member
Lots of people do. Stay away from large cities and the rent can easily be dirt cheap.

large cities aren't even that expensive. just don't live in the most central areas and you can find apartments for 30000/month yen if not less in cities like osaka.
 

tokkun

Member
"Not investing" and "not having assets tied in houses" still doesn't explain why so many people there are millionaires. If anything it does the opposite.

The definition they are using when comparing the number of millionaires in the different countries is based on liquid assets, i.e. cash. That definition will disproportionately favor countries where people keep their money in cash, and exaggerate the relative number of millionaires in a country like Japan (where people keep a lot of wealth in cash) as opposed to China (where people keep most of their wealth in real estate and stocks).

If you used a more comprehensive definition of millionaire - one that included all of a person's assets - then Japan would probably be lower on the list.
 

alt27

Member
The definition they are using when comparing the number of millionaires in the different countries is based on liquid assets, i.e. cash. That definition will disproportionately favor countries where people keep their money in cash, and exaggerate the relative number of millionaires in a country like Japan (where people keep a lot of wealth in cash) as opposed to China (where people keep most of their wealth in real estate and stocks).

If you used a more comprehensive definition of millionaire - one that included all of a person's assets - then Japan would probably be lower on the list.

Doubtful, Japan is one of (if not the no 1) the largest personal savings rate in the world. Stocks are 'liquid' assets as well as cash. And plenty of rich japanese have a portfolio of them.

Real estate - many of these elderly japanese millionarires got rich from owning and renting large amounts of apartments.

So your comparisons are weak. Japan just has much more cash on hand (to the average person) than a debt ridden place like china, where everybody is leveraged to the max.
 
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