Hello from “Real Money Notebook in Your 50s”!
We’re already into the second week of 2026—how time flies!
The New Year buzz is settling down, and many of us are easing back into our routines.
This week, the markets kicked off the year with a strong start 📈
The S&P 500 reached a new all-time high, and the yen continued to weaken.
At the same time, there’s been a flurry of news affecting household finances—real wages, tax changes, interest rates, and more.
So, what’s happening right now? And how should we prepare for these shifts?
Let’s dive into this week’s key topics with insights tailored for building wealth in your 50s—plus a few of my own experiences along the way!
📈 S&P 500 Hits Another All-Time High!
The U.S. stock market saw the S&P 500 climb to a new record this week.
The latest U.S. jobs report showed unemployment dipping to 4.4%, signaling a resilient economy.
While this slightly dampened expectations for early Fed rate cuts, the market remained strong.
With the yen weakening, this was great news for those investing in the S&P 500 in yen.
Friday night felt electric ⚡ with rising stocks and a weaker yen—a sweet spot for foreign currency index investors!
I’ve been steadily investing in the S&P 500 and All Country World Index (ACWI), and moments like these remind me how important it is to stay the course.
Let’s keep going with that “stay in the market” mindset!
💱 Yen Weakening—A Structural Trend?
The yen continued to slide this week.
Behind the scenes: fading expectations of Fed rate cuts, the Bank of Japan’s cautious stance, and widening interest rate differentials.
Speculation about a possible lower house dissolution under the Takaichi administration and concerns over aggressive fiscal policy also fueled yen selling.
Some are even starting to see this as a sign of a long-term structural trend, influenced by demographic differences between Japan and the U.S.
While a weaker yen can hurt household budgets by raising import prices, it’s a tailwind for foreign-currency assets.
🧾 Takaichi Administration’s Fiscal Policy & Interest Rates
Concerns over the administration’s aggressive fiscal stance pushed long-term interest rates up to 2.13%—a 27-year high!
On Friday, news broke that a lower house dissolution is being considered. If the ruling party pushes forward with more fiscal stimulus, we could see rates climb even higher after the holiday weekend.
This could benefit individual government bonds, but those considering fixed-rate mortgages should stay alert.
Personally, I’ve been investing in 10-year floating-rate government bonds as part of my education fund strategy—gradually building my position over the past year in anticipation of rising rates.
As we shift into a “world with interest rates,” it’s time to rethink the low-rate mindset of the past 30 years.
For those of us in our 50s, staying attuned to interest rate trends is key to smart wealth-building.
💰 eMAXIS Slim S&P500 Surpasses ¥10 Trillion in Assets!
Great news for index investors:
The eMAXIS Slim S&P500 fund has surpassed ¥10 trillion in assets!
This low-cost, diversified U.S. equity fund is riding the wave of the new NISA system, attracting even more inflows.
When it comes to building wealth, consistency beats flash. This milestone is proof of the power of sticking with it.
📊 Real Wages Down, But Spending Up?
Real wages in November were down 2.8% year-over-year, continuing a downward trend.
Yet household spending rose 2.9%.
Is this just inflation at work—or a sign of economic recovery?
Either way, it’s a reminder to stay prepared through smart investing. Watch the news, think critically, and take action 🧠
🍺 Alcohol Tax Reform & the “Single Tax”
In October 2026, Japan’s alcohol tax reform will lower beer taxes by about ¥9, while raising taxes on happoshu and third-category beer. Even a 350ml can will show the difference.
And starting in April, the new “Child and Childcare Support Contribution” (nicknamed the “Single Tax”) will increase health insurance premiums by ¥550/month for salaried workers.
Small policy changes like these can quietly add up and impact your household budget.
Wealth-building is all about noticing these shifts and preparing accordingly.
As for me—I actually quit drinking beer six months ago! I’ve been reevaluating my life goals and priorities, and making daily choices that align with them.
Also, for salaried workers, these changes can be easy to miss since health insurance premiums are deducted directly from your paycheck.
Pension, nursing care, and employment insurance premiums are also creeping up. It’s part of the system, but staying informed is key.
✨ This Week’s Takeaway
“Stay steady. Keep going. That’s your superpower.”
When the market’s doing well, it’s easy to get excited—or anxious. But the best thing you can do is stick to your plan and keep investing.
📅 I’ll be back next week with more real money talk for your 50s in the Weekly Wealth-Building News!
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