I have to be honest with myself!!

[Hárbarðr]

So yes, been thinking hard about how to go about it.
And I see myself being able to spend a maximum of 20000yen a month saving for the future.

1: Would it be better to start with an iDeco account rather than a Nisa account?

2: with that amount in mind, how should I diversify my investment?

3: Everyone is talking about emaxis, which one to chose, if i went with it?

Thank you and sorry again for the beginner Qs.

[Kanto]

So yes, been thinking hard about how to go about it.
And I see myself being able to spend a maximum of 20000yen a month saving for the future.

1: Would it be better to start with an iDeco account rather than a Nisa account?

2: with that amount in mind, how should I diversify my investment?

3: Everyone is talking about emaxis, which one to chose, if i went with it?

Thank you and sorry again for the beginner Qs.

Step #1 Are you American? If so the rules are different.
Step #2 Do you have 3-6 months of expenses saved in cash?

1. Depends. iDeco is for retirement. It is the best deal for long-term savings. However, the money is locked away until you turn 60.
With Regular Nisa and Tsumitate Nisa this is not the case.

Saving for a home in 10 years - Nisa
Saving for retirement in 30/40 year - iDeco

2. Absolutely. With the current markets if you are younger and starting off 100% equities/stocks is fine. Worry about bonds after a few years. The bond market is not great atm.

3. S&p500 - All American top companies
Developed Country - All "1st World" major economies
All Country - The entire world economy.

3 solid options. No ones knows which will do better. More diversification is safer however.

[Hárbarðr]

Thanks for your reply.

I am not American. I have my own house here in Japan.
And the plan is long term investments for retirement. (in Japan or back home. Most likely be staying here until I'm 60, im 42 now)

I have some savings that I am thinking about putting into a NISA account for the 5year investment. But ultimately, around 20000yen a month in an iDeco account.

Also, about the emaxis funds everyone is talking about. Why is it so popular now?
Wouldn't an ETF like a vanguard or SPY, or any better established with a much longer track record be a better choice? If it is actually tracking more or less the same stocks? Or is it just because the emaxis are in JPY?

Thanks again

[Kanto]

Thanks for your reply.

I am not American. I have my own house here in Japan.
And the plan is long term investments for retirement. (in Japan or back home. Most likely be staying here until I'm 60, im 42 now)

I have some savings that I am thinking about putting into a NISA account for the 5year investment. But ultimately, around 20000yen a month in an iDeco account.

Also, about the emaxis funds everyone is talking about. Why is it so popular now?
Wouldn't an ETF like a vanguard or SPY, or any better established with a much longer track record be a better choice? If it is actually tracking more or less the same stocks? Or is it just because the emaxis are in JPY?

Thanks again

For retirement purposes maxing out iDeco is the way to go. Why? Contribution reduces your taxable income. And the funds are tax-free when you withdraw them (up to a limit).

In an iDeco you can only choose Japanese funds. If you want Emaxis slim you can go with Monex or SBI If you want Rakuten/Vanguard funds you can go with Rakuten. Check out the offerings first.

The funds track the same index and own an approximation of it just like Vanguard and Blackrock.

.....

When it comes to Nisa you have a lot more choices. Have you decided between Tsumutate and Regular?

[Hárbarðr]

I have a rakuten security, and when I searched for emaxis, many choices were available. And it looked like I could buy into them.
iDeco, yea, I think I will max it out every month. (whats the limit for tax-free with iDeco)

About NISA, not sure yet, need to read more about it.
What is the pros/cons for both NISA and Tsumitate NISA?

Thank you again so much

[Kanto]

I have a rakuten security, and when I searched for emaxis, many choices were available. And it looked like I could buy into them.
iDeco, yea, I think I will max it out every month. (whats the limit for tax-free with iDeco)

About NISA, not sure yet, need to read more about it.
What is the pros/cons for both NISA and Tsumitate NISA?

Thank you again so much

Available on Rakuten ≠ Available in Ideco
Available on Rakuten ≠ Available in Tsumitate Nisa

https://dc.rakuten-sec.co.jp/service/product/

[Hárbarðr]

So this means i can only buy these funds in an ideco account??? Is that only for rakuten or for all ideco account????

[Kanto]

So this means i can only buy these funds in an ideco account??? Is that only for rakuten or for all ideco account????

Yes, the government restricts the type and amount of funds that qualify for iDeco.

If you want Emaxis Slim with iDeco you can try Monex and SBI.

[Hárbarðr]

So other brokers have other funds which can be bought for ideco accounts??

[RetireJapan]

Each broker or bank has their own list of funds for iDeCo. You can see them and compare here: https://www.dcnenkin.jp/search/commission.php