Keep it Simple


Making an investment plan is one of the less important things you have to do.

Figuring out your values (or what motivates you), living within your means, earning and saving as much as possible, and automating your finances are all more important than what you do with your savings.

Once you have some money saved up for an emergency fund (2-6 months of living expenses is a good buffer) you can start thinking about investing.

There are a lot of options, but to avoid paralysis through choice I would start with something like a balanced portfolio of stock index funds (for growth over time) and bonds (for stability).

Andrew Hallam goes into the details of this strategy in his book Millionaire Teacher, or JCollins has a great series of posts about the stock market here.

If you are eligible for a J401k account I would definitely look into that. If you are not eligible or have extra money to invest check out NISA accounts.

The key is to keep things simple and not overthink your strategy. Once you have a plan, keep to it and over the next several decades your finances will get steadily more robust.

What do you do to invest?

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5 Responses

  1. I have a J401K from my former employer in Japan, which is currently “frozen” as I don’t live there anymore. I’ll try to see if can revive it when I get back. I’ve been looking into NISA accounts for a while without realizing that the J401K might be a better thing. I need to understand how much they charge, though.

    1. Hi SB
      I think the J401k is vastly superior to NISA provided you are going to stay here until you are 60.
      You might have to open a new personal J401k -but I’m not sure if non-workers are eligible if they are paying into the pension system. Something to look into!

  2. We have a Roth IRA/standard investing account in the US in my name and a NISA here in her name. Still thinking about a junior NISA for junior.
    Being American, a NISA is still taxable for me (by the US).

  3. I am American and I currently have a NISA. Would a J401K NOT be considered taxable by the USA?
    Can I have a NISA and a J401K at the same time? Or is there such a thing as a rollover into J401K?

    1. Hi RK
      I’m afraid the only thing I really know about the IRS is that I’m glad I don’t really have to deal with them 😉
      I do have an American friend who says that the US government doesn’t consider either NISA nor the J401k as tax-exempt. I would recommend doing your own research before investing too much in either account.
      You can have both NISA and J401k, provided you are eligible for J401k: they are very different in scope and purpose.
      I don’t know of any rollover options.
      Hope that helps!