Shin NISA 新NISA from 2024

[Moneymatters]

https://www.daiwa.jp/sodatte/lesson/s0274/

Apologies if this info is already on the forum somewhere.
It's Daiwa so I'm gonna trust the source. And I've only glanced at it so far apologies in advance for mistakes.

It seems that from 2024 the General NISA (一般NISA) term is extended to 2028 but in the New NISA brand.
Meaning all eligible 一般NISA investments could roll-over to 2028.
In fact you could start a general NISA in 2021 and have 8 years of tax free investment for that first year's purchases.

Starting from 2024, I think. And seemingly without irony, as an effort to support the 人生100 target, there is a frankly head spinning 2万 increase of the annual allowance bringing it to 122万 per year.

20万 of which can be invested in "safe" 安定 Tsumitate NISA products. (This is １階）
102万 on any product currently available via NISA.(This is 2階）

This differentiation is so the １階 part can be rolled over to a Tsumitate NISA.

Although I'm not exactly sure what that means for the 2階 portion in 2029.
Probably you have to sell or convert to a taxable account or maybe 新新NISA will be out by then!
But frankly that's far enough away for me not to lose sleep over. Could get hit by a bus tomorrow. Albeit unlikely as I'm working from home.

I'm sure the answer is in the link. Maybe in the roll-over chart half way down.
I tried to crack that code but it just lead me to dark thoughts so I'm going take a break and open a bottle of wine.
Then drink it. "All by myself" as Eric Carman once sang so beautifully.

[RetireJapan]

Tried to write about it here: https://www.retirejapan.com/blog/nisa-changes/
and here: https://www.retirejapan.com/blog/new-ni ... ion-rules/

I think they have decided to phase out ordinary NISA. However, I wish they had made the roll-overable part 40万 instead of 20万!

[fools_gold]

Nice and simple I see.

[Moneymatters]

Tried to write about it here: https://www.retirejapan.com/blog/nisa-changes/
and here: https://www.retirejapan.com/blog/new-ni ... ion-rules/

I think they have decided to phase out ordinary NISA. However, I wish they had made the roll-overable part 40万 instead of 20万!

Thanks! I should have known to check the blog.

So in 2029 what do you think will happen to people that are maxed out in general NISA accounts?

[Kanto]

Tried to write about it here: https://www.retirejapan.com/blog/nisa-changes/
and here: https://www.retirejapan.com/blog/new-ni ... ion-rules/

I think they have decided to phase out ordinary NISA. However, I wish they had made the roll-overable part 40万 instead of 20万!

Thanks! I should have known to check the blog.

So in 2029 what do you think will happen to people that are maxed out in general NISA accounts?

It is pure conjecture, but my assumption is that...

1. The Tsumitate portion will be transformed into a Tsumitate Nisa.

2. The other portion will be transferred to a taxable account.

...

The regular NISA suffers from bad PR. I assume it will be sunsetted.

[Moneymatters]

Tried to write about it here: https://www.retirejapan.com/blog/nisa-changes/
and here: https://www.retirejapan.com/blog/new-ni ... ion-rules/

I think they have decided to phase out ordinary NISA. However, I wish they had made the roll-overable part 40万 instead of 20万!

Thanks! I should have known to check the blog.

So in 2029 what do you think will happen to people that are maxed out in general NISA accounts?

It is pure conjecture, but my assumption is that...

1. The Tsumitate portion will be transformed into a Tsumitate Nisa.

2. The other portion will be transferred to a taxable account.

...

The regular NISA suffers from bad PR. I assume it will be sunsetted.

Thanks. That does seem most logical. I'll trot on under that assumption.

[mighty58]

The regular NISA suffers from bad PR.

Just out of curiosity, what is the bad PR about NISA?

[Kanto]

The regular NISA suffers from bad PR.

Just out of curiosity, what is the bad PR about NISA?

The big concern in Japan when it comes to savings is if retirees are able to make up the "nenkin gap".

iDeco and Tsumitate NISA focus on mutual funds and encourage passive, very long term savings. They are generally "safe". The amounts you can contribute align with typically Japanese household savings.

The traditional NISA however does not encourage passive investing, but rather active stock picking. It also allows for yearly contributions that are far above what the average Japanese household can contribute (2.4 million) for a couple. It is seen by some as a way for the "rich to get richer", specifically the older generations.

More criticism here:
https://ja.wikipedia.org/wiki/%E5%B0%91 ... 9%E5%88%A4

[RetireJapan]

I wish they had actually copied the UK ISA system instead of just taking the name

In the UK there is an annual contribution limit, then whatever is in the account is tax free forever. This would make NISA much less confusing, and more useful.

[Kanto]

I wish they had actually copied the UK ISA system instead of just taking the name

In the UK there is an annual contribution limit, then whatever is in the account is tax free forever. This would make NISA much less confusing, and more useful.

Or even better the Canadian TFSA and RRSP system!