iDeCo or NISA?

[stickman93]

Greetings, I'm a 57 year old company employee from Canada. Been working in Tokyo constantly for 25 years. Feel like I'd like to slow down maybe semi-retire. Do you think I need both an iDeCo and NISA?

[RetireJapan]

Hi Stickman

Welcome! Depending on your circumstances, iDeCo and NISA might be a good fit for you.

If you pay income tax, it might be worth opening an iDeCo account just for the tax savings. Keep the content in cash and get the money back when you reach 60 years of age.

NISA is tax-free investing, 1.2m or 0.4m a year depending on the type. Dividends are not taxed in a NISA account, which can be nice for retirees.

You can read about both of them on the main RetireJapan site:
http://www.retirejapan.info/ideco-j401k.html
http://www.retirejapan.info/nisa.html

[stickman93]

Thank you for your response. This is a great forum/site and I expect to be using it a lot in the future.
I read the Hallam book. it was very good. He raves about Vanguard. Are non-US citizens in Japan able to open one of those accounts?
thanks

[RetireJapan]

Hi stickman

Vanguard doesn't operate in Japan. You can buy US-listed Vanguard ETFs through many Japanese brokers, or through Interactive Brokers.

[stickman93]

thanks, can you recommend some Japanese and/or interactive brokers or should it all be done thru my bank?

[RetireJapan]

SBI Securities seems to have the lowest fees/largest range of products but only Japanese language interface.
Interactive Brokers is a US company (that will take Japanese residents as customers). Very cheap and English interface but not as integrated with Japanese tax reporting etc.

Otherwise Monex, Rakuten (I use them, they are okay).

I would avoid your bank, as their fees are likely to be higher / product selection worse unless you are willing to pay for having a person to talk to (the online stuff is basically just online).

[stickman93]

sounds good. many thanks