Set and forget plan on SBI Select

[suntori]

Hi,

First time posting, I have received a lot of helpful information by reading all the posts/books, many thanks for your efforts.
I have decided to join IDECO plan as we are planning on retiring in Japan.

My Japanese language skills are not so great at the moment (N5 level) so I am a bit hesitant to create allocations that need me to sell/reinvest monthly. I am therefore thinking to go for a simple all-encompassing plan, albeit with slightly higher fees, at least for a few years or so.

One of my options would be therefore to get 100% of one of the two:

投資信託 複合資産 アクティブ ＳＢＩグローバル・バランス・ファンド 0.20900% 0.27990%
https://www.dcnenkin.jp/search/product. ... e=8931118A
投資信託 複合資産 パッシブ ｅＭＡＸＩＳ Ｓｌｉｍバランス（８資産均等型） 0.15400% 0.15400%
https://www.dcnenkin.jp/search/product. ... e=03312175

Alternative, I could just get the stocks options below (80/20) and then add bonds later in a few years when I am more competent in the language and can start regular re-balancing.

投資信託 外国株式（先進国） パッシブ ｅＭＡＸＩＳ Ｓｌｉｍ全世界株式（除く日本） 0.11440% 0.11440%
投資信託 国内株式 パッシブ ｅＭＡＸＩＳ Ｓｌｉｍ国内株式（ＴＯＰＩＸ） 0.15400% 0.15400%

Would be great to get some feedback from the more experienced users. Does any of the above sound like a reasonable plan?
Is there any recommendation between the ＳＢＩグローバル・バランス・ファンド and ｅＭＡＸＩＳ Ｓｌｉｍバランス（８資産均等型)?

[RetireJapan]

Welcome to the forum! Either of those could be a reasonable option, depending on your circumstances and goals.

One thing to consider is that the balanced funds tend to be overweight Japan and very conservative (contain more bonds, etc.).

Given the relatively low contribution limits to iDeCo and the favorable tax treatment, it might be worth considering just buying an equity fund in there, and then supplementing it with bonds etc. bought outside iDeCo.

You should think about your portfolio as a whole, rather than treating different accounts separately.

[adamu]

Alternative, I could just get the stocks options below (80/20) and then add bonds later in a few years when I am more competent in the language and can start regular re-balancing.

投資信託 外国株式（先進国） パッシブ ｅＭＡＸＩＳ Ｓｌｉｍ全世界株式（除く日本） 0.11440% 0.11440%
投資信託 国内株式 パッシブ ｅＭＡＸＩＳ Ｓｌｉｍ国内株式（ＴＯＰＩＸ） 0.15400% 0.15400%

Sounds good to me. 20% is quite overweight in Japan, which is currently about 7% of the global market. But having some home bias is a valid choice, too. Maybe make it 10% for simplicity?

You should think about your portfolio as a whole, rather than treating different accounts separately.

+1

[suntori]

Thank you for your advice.

I think I will go for the eMaxis options posted above (90/10) then.
I am 38, so I have time to switch a few years later to a higher percentage in bonds, either in Ideco or somewhere else.

[taneandy]

That sounds like a good plan.

Investing aggressively in equities in your iDeCo account seems like a good idea unless:
You are already quite close to retirement age
You are allowed to invest up to 68,000 per month and iDeCo will make up a large portion of your savings
You are likely to panic and sell when there is a market crash

I'm a similar age and my iDeCo account is 100% equities.
The plan is to leave it that way for at least the next decade and then reassess once I'm within about 10 years of being able to access the account.

[AustinJapan]

Saison Bank セゾン　also have a plan . It is a Vanguard World Balanced fund with 4 Vanguard Index equities and 3 Vanguard bonds. They pinch 1% of your gains yearly and take another .1% of them when you pull out. It's pretty conservative, can be put in NISA too.

[Kanto]

Saison Bank セゾン　also have a plan . It is a Vanguard World Balanced fund with 4 Vanguard Index equities and 3 Vanguard bonds. They pinch 1% of your gains yearly and take another .1% of them when you pull out. It's pretty conservative, can be put in NISA too.

That is terribly expensive.

If you really wanted Vanguard funds you could just buy the VT and BNDW wraps from Rakuten (Total Stock Market/Total Bond Market). A perfect 2 fund portfolio for only around .22% in fees.

Or you could do the same with 2 Emaxis Slim funds for less in fees. (However, Emaxis does not have the total bond market, only Advanced Government bonds).

Rebalance once a year. The savings are worth the 10 minutes it takes!

[Bubblegun]

Saison Bank セゾン　also have a plan . It is a Vanguard World Balanced fund with 4 Vanguard Index equities and 3 Vanguard bonds. They pinch 1% of your gains yearly and take another .1% of them when you pull out. It's pretty conservative, can be put in NISA too.

I actually have vanguards global fund.
It’s been pretty good. Certainly way better than some investments from a pathetic standard life active managed fund in the UK over 25 which had a return of 2% annually.( could’ve done better in a normal bank) . I could turn the air blue with their mis selling.
So I’m not gotta bitch about vanguards fund..... yet.
The important thing is to do something.
I’ve also got another vanguard fund in my IDECO.
Would like to look at an eMaxi though just to have more spread.( Incas I feel the need to %#$&@ about saison.笑笑

[fools_gold]

I actually have vanguards global fund.
It’s been pretty good. Certainly way better than some investments from a pathetic standard life active managed fund in the UK over 25 which had a return of 2% annually.( could’ve done better in a normal bank) . I could turn the air blue with their mis selling.
So I’m not gotta bitch about vanguards fund..... yet.
The important thing is to do something.
I’ve also got another vanguard fund in my IDECO.
Would like to look at an eMaxi though just to have more spread.( Incas I feel the need to %#$&@ about saison.笑笑

If you like the asset allocation of the Saison fund you can put it together yourself for about a fifth the cost. It's just 50% all country stocks, 45% (!) developed markets bonds, and 5% Japanese bonds. Over 20 to 30 years switching to cheaper funds will make a big difference to your returns.

[Kanto]

I actually have vanguards global fund.
It’s been pretty good. Certainly way better than some investments from a pathetic standard life active managed fund in the UK over 25 which had a return of 2% annually.( could’ve done better in a normal bank) . I could turn the air blue with their mis selling.
So I’m not gotta bitch about vanguards fund..... yet.
The important thing is to do something.
I’ve also got another vanguard fund in my IDECO.
Would like to look at an eMaxi though just to have more spread.( Incas I feel the need to %#$&@ about saison.笑笑

If you like the asset allocation of the Saison fund you can put it together yourself for about a fifth the cost. It's just 50% all country stocks, 45% (!) developed markets bonds, and 5% Japanese bonds. Over 20 to 30 years switching to cheaper funds will make a big difference to your returns.

Exactly.

Even if you just wanted Vanguard funds it could be done far cheaper.

(VT and BNDW wrap from Rakuten. A perfect 2 fund portfolio for only around .22% in fees.) Rebalance once a year.