Individual investors in their 40s and older will make a safe investment even if the Great Depression comes
When the Great Depression occurred in 1929, the S & P 500's declining rate was 89%.
Perhaps the most troublesome person in the world depression is about 60 years old, since it was young, it keeps investing funds on index investment trusts or growing individual stocks with zero dividends, and after 60 years sell assets built by funding little by little People who tried to live on their own desperately while doing.
It took about 25 years to go back to the original level by 89% lower stock price.
When the asset of the 60-year old comes back, she is 85 years old.
As of 1929, the average life expectancy was also lower than now, so unfortunately there were few people who could regain losses while living.
A lucky type individual investor when the world depression comes
Such individual investors are opportunities if the stock price falls by 89% as the world depression comes.
1, Even if the Great Depression comes, there is a steady regular income without losing the job, and you can continue to buy a stock that crashed.
2, Even if it takes 25 years until the stock price that collapsed 89% in the Great Depression, it will be possible to continue to hold companies that continue to pay dividends for 25 years, you can reinvest dividends after securing living expenses.
Types of individual investors who are having trouble when the Great Depression comes
Such individual investors are pinch when the stock price has fallen by 89% as the world depression came.
1, There is little cash holding possibilities to buy up stocks that crashed.
2, a businessman of the type such as investor and company worker, made an employment salary investment fund, but lost his job and can not continue investment.
3,Even if I lost it, I could not live without selling the stock that collapsed by 89%.
4, Dividend stopped, it became impossible to purchase stocks that crashed.
Conclusion: What is the condition of individual investors who are okay with the Great Depression?
1, There is cash holding.
2, You can live 25 years without selling the stock that crashed.
3. Even if the world depression continues for 25 years, we have individual shares of companies that can continuously pay dividends.
4. You can continue to buy up stocks that have crashed without losing your job even during the Great Depression.
5，Even after 25 years, it is under 60 years old. There are young people under the age of 35 that can continue working even if labor income disappears for 25 years.
Individual investors who possess all these five will surely be able to overcome any global depression.
Furthermore, we can continue to live only by dividends during the crash period, and furthermore if we can reinvest some of the dividends it is quite a fierce investor.
President Trump is born, Britain departs from the EU. Japan is also changing at a tremendous speed.
I will assume that unexpected things that have never been experienced in my life will occur, and I want to prepare for it steadily.
There is no grief if it is prepared.
Early retirement by Buffett system investment
Masaru Komedawara JAPAN
Work-life balance and money-life balance is achieved in the stock dividend.
Happy family in unearned income.