Are you running an American 401K?

The American version of defined contribution pensions (DC) has now become famous as the best way to raise funds that has produced millionaires, and it has become popular in Japan as a corporate defined contribution pension since around 2000. ・DC did not become popular in Japan because non-life insurance companies and securities companies did not widely promote it.

In recent years, an increasing number of large companies have introduced this system, and it is now seen as a promising part of employee welfare.

In Japan, the maximum DC contribution is 55,000 yen per month and 660,000 yen per year, but the American version of 401K has an individual maximum of $22,000 per year, and if both employer and individual contribute, it is about 70,000 yen per year. 000 dollars and a huge amount

It is a big stake.

If this stake is invested at a compound interest rate of 10% per year, in 10 years you will have built up assets worth over 100 million yen, equivalent to 170,000,000 yen.

Japan's DC still has a small upper limit on stakes, and it is not possible to create assets exceeding 100 million yen.

Isn't it thanks to this 401K that there are so many millionaires in America?

In Japan, the monthly limit is very low at 55,000 yen, but this is because the government's tax-exemption framework is severely restricted, and if the limit was set like the US 401K, there would be many millionaires in Japan. Sho! !

Since the system is a system, the tax exemption framework in Japan is severely restricted, but it is definitely better to do so than not to do so, so Japanese companies that have not yet adopted the DC system should do so as soon as possible to help their employees build assets. I would like you to work towards this goal.