Help for beginner, mid 30s (MONEX account opened)

[chrispe]

Hi everybody! An investment rookie here. Nice to meet you all.

I was wondering if someone could give me their opinion on my investment plan.
After finish reading a few books about investment, including the The RetireJapan Guide to NISA, and getting more into investment, I have decided to take it more seriously and I opened an account in MONEX. The NISA application is still in process (I had some problems with my name in katakana, as some others here have experienced), but at least I already could open my taxable account, so ready to start.
According to the advice of JL Collins, I was planning to put most of my portfolio on Vanguard ETF, but considering I am not an US citizen and according to my understanding due tax issues (triple taxation for US ETFs) is not as recommended as other options such as the highly mentioned eMAXIS Slim funds, I had to give up and find alternatives. And while I am waiting for the application of my NISA account, I would like to start as soon as possible.
My situation is the following:
- Mid 30’s, no kids, Japanese girlfriend, not married yet
- Emergency fund of around 6 months of expenses
- Non-US citizen
- Working visa, planning to stay in Japan at least 5 years from now on (but who knows?)
- Available capital: 100,000 yen per month (for the NISA account in order to consume the annual limit of 1.2M yen), plus another ~100,000 yen and the bi annual bonus to use in my taxable account.

I would like to dedicate time to improve my capital allocation skills, but unfortunately I do not have too much free time, so I was thinking to put some capital on index funds and check only every once in a while. So, I was thinking to allocate my funds in something like this (mid level of risk, compensated with some bonds options):

ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー）50%
ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国債券インデックス 15% (I may transfer a little from this to 全世界株式, still thinking)
ｅＭＡＸＩＳ　Ｓｌｉｍ　国内債券インデックス 10%
ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国株式インデックス 25%

What do you think about this portfolio?
Your opinion is highly appreciated!
Thank you guys!

[captainspoke]

Tho personally (and at your age) I'd skip the bond funds and go full on equities, it looks like you've been reading/following what goes on here, and have a good handle on things.

So congrats and happy holidays!

[RetireJapan]

ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー）50%
ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国債券インデックス 15% (I may transfer a little from this to 全世界株式, still thinking)
ｅＭＡＸＩＳ　Ｓｌｉｍ　国内債券インデックス 10%
ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国株式インデックス 25%
What do you think about this portfolio?
Your opinion is highly appreciated!
Thank you guys!

Welcome to the forum. Your portfolio looks fine. One thing is that the all-country fund already contains developed country stocks, so by buying them again separately you are overweighting them. You could probably do the same thing with just three funds (or two if you cut one of the bond funds).

The main thing is not to overthink this, just get started (maybe with a smaller amount of money until you feel more comfortable?) and then continue investing for the rest of your life.

[Kanto]

Hi everybody! An investment rookie here. Nice to meet you all.

I was wondering if someone could give me their opinion on my investment plan.
After finish reading a few books about investment, including the The RetireJapan Guide to NISA, and getting more into investment, I have decided to take it more seriously and I opened an account in MONEX. The NISA application is still in process (I had some problems with my name in katakana, as some others here have experienced), but at least I already could open my taxable account, so ready to start.
According to the advice of JL Collins, I was planning to put most of my portfolio on Vanguard ETF, but considering I am not an US citizen and according to my understanding due tax issues (triple taxation for US ETFs) is not as recommended as other options such as the highly mentioned eMAXIS Slim funds, I had to give up and find alternatives. And while I am waiting for the application of my NISA account, I would like to start as soon as possible.
My situation is the following:
- Mid 30’s, no kids, Japanese girlfriend, not married yet
- Emergency fund of around 6 months of expenses
- Non-US citizen
- Working visa, planning to stay in Japan at least 5 years from now on (but who knows?)
- Available capital: 100,000 yen per month (for the NISA account in order to consume the annual limit of 1.2M yen), plus another ~100,000 yen and the bi annual bonus to use in my taxable account.

I would like to dedicate time to improve my capital allocation skills, but unfortunately I do not have too much free time, so I was thinking to put some capital on index funds and check only every once in a while. So, I was thinking to allocate my funds in something like this (mid level of risk, compensated with some bonds options):

ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー）50%
ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国債券インデックス 15% (I may transfer a little from this to 全世界株式, still thinking)
ｅＭＡＸＩＳ　Ｓｌｉｍ　国内債券インデックス 10%
ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国株式インデックス 25%

What do you think about this portfolio?
Your opinion is highly appreciated!
Thank you guys!

Considering you are young and will be most likely selling your portfolio before you move back, do not worry about bonds.

ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー） is the whole international market. This is all you need. -> 100%


If you want to overweight Emerging or America you can do so by adding another fund.

Both ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国株式インデックス 25% and ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー) Are great choices, but there is no need to have both!

I wanted to include China so I went with All Country, my wife did not so she went with Developed Country.

[chrispe]

Thank you guys for all the kind advice!

After a careful consideration, I decided to go with ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー） at 100%, I want it to keep it as easy as possible, and I do not want to overthink it. As you said, I will start slowly until I feel comfortable and see how it goes.

I wish you a happy holidays!

[rasselbiluga]

Considering you are young and will be most likely selling your portfolio before you move back, do not worry about bonds.

ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー） is the whole international market. This is all you need. -> 100%

Kanto, I am curious. Why do you recommend ignoring bonds for young people if there is a possibility that the portfolio needs to be sold? I am in a similar situation as OP: may or may not leave Japan in a few years.

[Kanto]

Considering you are young and will be most likely selling your portfolio before you move back, do not worry about bonds.

ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー） is the whole international market. This is all you need. -> 100%

Kanto, I am curious. Why do you recommend ignoring bonds for young people if there is a possibility that the portfolio needs to be sold? I am in a similar situation as OP: may or may not leave Japan in a few years.

There are a few reasons.

1. Jack Bogle himself stated that he would not recommend someone just starting off buys into bonds immediately.

A younger investor has decades of time left in the market, it makes more sense to put their capital towards growth.

2. Have you seen government bond yields recently? It is not worth it going corporate either atm.

3. Why would you want to hold your capital in a low-yield bond fund only to sell it in a few years? You might as well keep it in cash.

[adamu]

Kanto, I am curious. Why do you recommend ignoring bonds for young people if there is a possibility that the portfolio needs to be sold? I am in a similar situation as OP: may or may not leave Japan in a few years.

It depends what your reason for selling is.

1. To reinvest elsewhere. No need to change your allocation because the funds will only be out of the market temporarily.
2. Because you need the money.

If it's for 2, then either it's an emergency and you have no choice to sell even at a loss, or you prepared in advance by using lower risk assets such as bonds.

Most retired people fall into 2. If you're just young and leaving Japan, you're probably category 1 - even if you sell at a low price, hopefully you'll also be buying back at a low price too, so your asset allocation shouldn't be affected by just the fact you are moving the investments.

[urayasujin]

Hi everybody! An investment rookie here. Nice to meet you all.

I was wondering if someone could give me their opinion on my investment plan.
After finish reading a few books about investment, including the The RetireJapan Guide to NISA, and getting more into investment, I have decided to take it more seriously and I opened an account in MONEX. The NISA application is still in process (I had some problems with my name in katakana, as some others here have experienced), but at least I already could open my taxable account, so ready to start.
According to the advice of JL Collins, I was planning to put most of my portfolio on Vanguard ETF, but considering I am not an US citizen and according to my understanding due tax issues (triple taxation for US ETFs) is not as recommended as other options such as the highly mentioned eMAXIS Slim funds, I had to give up and find alternatives. And while I am waiting for the application of my NISA account, I would like to start as soon as possible.
My situation is the following:
- Mid 30’s, no kids, Japanese girlfriend, not married yet
- Emergency fund of around 6 months of expenses
- Non-US citizen
- Working visa, planning to stay in Japan at least 5 years from now on (but who knows?)
- Available capital: 100,000 yen per month (for the NISA account in order to consume the annual limit of 1.2M yen), plus another ~100,000 yen and the bi annual bonus to use in my taxable account.

I would like to dedicate time to improve my capital allocation skills, but unfortunately I do not have too much free time, so I was thinking to put some capital on index funds and check only every once in a while. So, I was thinking to allocate my funds in something like this (mid level of risk, compensated with some bonds options):

ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー）50%
ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国債券インデックス 15% (I may transfer a little from this to 全世界株式, still thinking)
ｅＭＡＸＩＳ　Ｓｌｉｍ　国内債券インデックス 10%
ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国株式インデックス 25%

What do you think about this portfolio?
Your opinion is highly appreciated!
Thank you guys!

Considering you are young and will be most likely selling your portfolio before you move back, do not worry about bonds.

ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー） is the whole international market. This is all you need. -> 100%


If you want to overweight Emerging or America you can do so by adding another fund.

Both ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国株式インデックス 25% and ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー) Are great choices, but there is no need to have both!

I wanted to include China so I went with All Country, my wife did not so she went with Developed Country.

Hello! If the time frame is just 5yrs, is it still wise to go 100% All country? Thinking of selling after 5yrs for college tuition

[Kanto]

Hi everybody! An investment rookie here. Nice to meet you all.

I was wondering if someone could give me their opinion on my investment plan.
After finish reading a few books about investment, including the The RetireJapan Guide to NISA, and getting more into investment, I have decided to take it more seriously and I opened an account in MONEX. The NISA application is still in process (I had some problems with my name in katakana, as some others here have experienced), but at least I already could open my taxable account, so ready to start.
According to the advice of JL Collins, I was planning to put most of my portfolio on Vanguard ETF, but considering I am not an US citizen and according to my understanding due tax issues (triple taxation for US ETFs) is not as recommended as other options such as the highly mentioned eMAXIS Slim funds, I had to give up and find alternatives. And while I am waiting for the application of my NISA account, I would like to start as soon as possible.
My situation is the following:
- Mid 30’s, no kids, Japanese girlfriend, not married yet
- Emergency fund of around 6 months of expenses
- Non-US citizen
- Working visa, planning to stay in Japan at least 5 years from now on (but who knows?)
- Available capital: 100,000 yen per month (for the NISA account in order to consume the annual limit of 1.2M yen), plus another ~100,000 yen and the bi annual bonus to use in my taxable account.

I would like to dedicate time to improve my capital allocation skills, but unfortunately I do not have too much free time, so I was thinking to put some capital on index funds and check only every once in a while. So, I was thinking to allocate my funds in something like this (mid level of risk, compensated with some bonds options):

ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー）50%
ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国債券インデックス 15% (I may transfer a little from this to 全世界株式, still thinking)
ｅＭＡＸＩＳ　Ｓｌｉｍ　国内債券インデックス 10%
ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国株式インデックス 25%

What do you think about this portfolio?
Your opinion is highly appreciated!
Thank you guys!

Considering you are young and will be most likely selling your portfolio before you move back, do not worry about bonds.

ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー） is the whole international market. This is all you need. -> 100%


If you want to overweight Emerging or America you can do so by adding another fund.

Both ｅＭＡＸＩＳ　Ｓｌｉｍ　先進国株式インデックス 25% and ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー) Are great choices, but there is no need to have both!

I wanted to include China so I went with All Country, my wife did not so she went with Developed Country.

Hello! If the time frame is just 5yrs, is it still wise to go 100% All country? Thinking of selling after 5yrs for college tuition

If the stock dropped 30% in 5 years, what kind of position would you be in? Would you have other funds available? Could you wait for it to recover?

5 years is a short time horizon. 100% equities might be too risky.

You could invest a portion in bonds or go with a five year annuity.