Investing with uncertainty in residency

[reggie_f]

Thank you for all the information on the forum and the site. I'm very new to investing so please forgive any blunders.

I am a UK citizen in Hiroshima and my plan is to stay in Japan long term, but I do not have permanent residency and I feel that there is a risk I won't be able to stay long term. How does this affect what I invest in?

I am paying the Japanese 国民年金. I have tried to apply to pay class 2 contributions for the UK pension but I have been told I am not eligible so I'm working on paying the class 3 contributions.

I have around 10million yen in savings in regular bank accounts. I kept meaning to invest it but procrastination got the better of me! I've open up an account with Rakuten Shoken. I guess I should start paying into an iDeco next? Is it best to just start putting in the full amount?

Another, slightly more nebulous question but an important one: How do I quell my anxiety towards retirement? I tend to panic about everything going wrong and stick my head in the sand.

[RetireJapan]

I'm very new to investing so please forgive any blunders.

That's what the forum is for

Paying nenkin and UK state pension is a good start. Depending on your work situation iDeCo might be a good idea. The government is now talking about allowing foreign residents to close their accounts if they leave Japan. If that comes to pass it will be a no-brainer even for people who won't be in Japan until retirement.

NISA is also a good idea.

The best way to get started is to pick one thing and do it. Once you get that done you can pick another thing and do that.

In terms of lessening anxiety about retirement, taking action helps. You will feel empowered, you'll see progress, and you'll have a more realistic idea of what is possible.

Keep asking questions here

[Beaglehound]

I think it is natural to be anxious about retirement and funding it. We can’t know what is going to happen in the future with state pension systems, stock markets, exchange rates, inflation etc, so it’s essentially out of our control, which is an uncomfortable thought when we are talking about our ability to avoid poverty in our most vulnerable years.

Sounds like you are doing the sensible thing in making sure you have eggs in state pension systems plus investing privately. It might be sensible for you to start investing small amounts monthly rather than in a big wedge, that way any market crash would not seem so drastic. Also, though I do invest in risky assets, I personally keep a fair amount in cash, simply because my tolerance to the prospect of losing hard earned cash is pretty low. I accept this is illogical and against historical evidence that the market goes up, but I think it’s necessary to recognise my own psychology and comfort.

[beanhead]

How old are you? How many years until retirement? This may chance the advice you will receive here.

[reggie_f]

How old are you? How many years until retirement? This may chance the advice you will receive here.

I'm 30 and I don't have a planned retirement age in mind.