Portfollio I'd like to optimise

[sogun771]

Hello to all

This is my real first topic since I have created my account and firstly would like to thanks RetireJapan and the community which do a great job helping foreigner in Japan regarding their investment and strategy.

To be brief, It's been already 2 years I started the Journey of investment and thanks to RetireJapan and his blog, to know about Ideco and Nisa.

This is the topic I would like to talk.

During these two years I experiment a few things regarding investment and up to now this is my portfolio:

I use a robot adviser wealthnavi for which I invested for 2 years in the ETF strategy.
I maximize the IDECO and Tsumitate Nisa and mainly invest in Mutual fund mainly in Developed market and US

Both IDECO and tsumitate nisa are from Rakuten Securities.

The allocation is as follow:

楽天・全米株式インデックス・ファンド（楽天・バンガード・ファンド（全米株式））IDECO / Nisa / Specific
eMAXIS Slim 米国株式(S&P500) --> NISA / Specific
eMAXIS Slim 先進国株式インデックス --> NISA

My profile is a guy from his early 30s, working for a Japanese company

I understand that my strategy is pretty risky. but since I'm looking for a very long term plan for which I'm considering starting stacking for the retirement I don't care about potential variation lose and put almost everything in the same basket for now (Mainly US and Developed Country except Japan) at least until I reach 40 and I start thinking to reduce gradually my risk by buying bonds or other less risky investment until I reach the retirement (I fix a target to 60, but If I can do that earlier, this is the best).

I would like to ask for advise about if my strategy can be optimize since I'm really a beginner even though I learn everyday and like it very much

have already started to close my wealthnavi account since I was using it at first because I didn't know anything about investment. but the 1% per year is too much to really appreciate something you can do yourself for 9x cheaper on average. and I'm planning to reallocate the amount and take the Emaxis slim all country to leverage potential loss which could occur with my actual portfolio.

my question is if I take Emaxis all country, I will have what I can call duplicate with at least the emaxis slim developed index. Or do you advise me to just stick to the developed index ?

Thank you

[Kanto]

1. I vote for you ditching the Robo-advisor and copying the investment plan you have in you NISA/iDeco in your taxable account.

2. Worry about bonds later. Add 5% a decade maybe if you are feeling conservative?

3. Are you going to go total world market? If so just buy the Rakuten VT wrap, or Emaxis Slim All Country in all accounts.

4. Are you going to overweight the united states? It would probably be easiest to go Rakuten VT wrap, and Emaxis Slim All Country, and of the VTI/VOO trackers to suit your balance.

I understand the argument between 100% US vs the world market; it is hard to ignore Bogle and Buffet. I myself went world market.

But, I do not see a strong argument for Developed countries + US overweight Ex Emerging markets. At that point, you might as well buy the entire world marketwith an FTSE ALL CAPS or MSCI ACWI tracker.
....

[mighty58]

The word "optimize" depends on what you're trying to optimize for. Optimize for growth? To reduce risk? Diversify (even) more? Reduce fees?

For what it's worth, I think your asset allocation isn't at all "risky". There is risk, sure, but you want that, otherwise your money will not grow. And your eggs are certainly not "in the same basket" ... you may indeed be in one or two funds in the broad sense, but remember these are index funds, which are, by design, very diversified. In other words, you are already taking the least risky path in equity investing, so viewing your portfolio as too risky, especially at your age and with your long-term goals, is probably too conservative an approach. I would just stick with what you have and plow more money in.

[adamu]

question is if I take Emaxis all country, I will have what I can call duplicate with at least the emaxis slim developed index. Or do you advise me to just stick to the developed index ?

Like Kanto said, if you're aiming for a Global portolio, going with 楽天・全世界株式インデックス・ファンド for simplify is probably your best option.
https://www.rakuten-sec.co.jp/web/fund/ ... 90C000FHC4

If you wanted eMaxis Slim All Country, you could go for that instead in your NISA / Tokutei account, but Rakuten don't provide it in the iDeCo.
https://www.rakuten-sec.co.jp/web/fund/ ... 90C000H1T1

Check out this for a comparison of the two: https://retirewiki.jp/wiki/Japanese_global_index_funds

[sogun771]

Thank you everyone for your nice reply

I'll try to answer per order:

2. Worry about bonds later. Add 5% a decade maybe if you are feeling conservative?

You're right and it's not like I'm already in the age of thinking about it.

3. Are you going to go total world market? If so just buy the Rakuten VT wrap, or Emaxis Slim All Country in all accounts.

4. Are you going to overweight the united states? It would probably be easiest to go Rakuten VT wrap, and Emaxis Slim All Country, and of the VTI/VOO trackers to suit your balance.

I'm thinking just to stay with the Rakuten VT Wrap which make more sense to me as I already started with that and I'm not that agile when we talk about rebalancing for now (but indeed I should potentially try to play with it since now I understand how robot adviser works regarding this operation), if base on the comment the Rakuten VT Wrap is already good enough. got already the VTI/VOO tracking in place since I was using Wealthnavi for the ETF (Basically just got a tracking on all the 7 ETF they use).

The word "optimize" depends on what you're trying to optimize for. Optimize for growth? To reduce risk? Diversify (even) more? Reduce fees?

It's a mix of Reduce fees and growth. I just withdraw wealthnavy today which should allow me to reduce fees. and Have reallocate that amount in the thee assets in my portfollio with more 50% in the Rakuten Wrap VT which basically take what I was doing with wealthnavy. even with these 3 asset i'm still 3x cheaper than WN in term of cost.

you may indeed be in one or two funds in the broad sense, but remember these are index funds, which are, by design, very diversified. In other words, you are already taking the least risky path in equity investing, so viewing your portfolio as too risky, especially at your age and with your long-term goals, is probably too conservative an approach. I would just stick with what you have and plow more money in.

Perfect, you reassure me in my strategy and portfolio it was a good start. I

Thank you Adamu as well for your information and nice to see there's a page in the wiki part. I understand the difference now.

For now I will stick for my initial plan and just keep the 3 asset I have right now since I'm satisfied with the return it had provide in about 2 years

In future I might try reallocation and maybe goes for just Rakuten VT wrap and Emaxis All country depending on all the market evolve.

Again thank you for your thee replies.

[adamu]

Just to be clear, the VT wrap is the Rakuten global fund I listed in my previous post.

The one you have in your portfolio is a wrapper of VTI, Vanguard's US fund. So you have two US funds and a developed market fund (which is mostly US...). That means you have no emerging market exposure, and a strong US bias.

[beanhead]

Like Kanto said, if you're aiming for a Global portolio, going with 楽天・全米株式インデックス・ファンド for simplify is probably your best option.
https://www.rakuten-sec.co.jp/web/fund/ ... 90C000FHD2

This is the S&P one, isn't it? 全米

楽天・全世界株式インデックス・ファンド is the Global fund.

I really wish they would do something with the naming of these things, just for our community!

[adamu]

This is the S&P one, isn't it? 全米

楽天・全世界株式インデックス・ファンド is the Global fund.

I really wish they would do something with the naming of these things, just for our community!

Ugh, you're right. Zenbei is not Zensekai. I got it wrong even when correcting someone else. I've corrected the original post. The difference of two kanji in an otherwise identical long string of kanji and katakana makes it an easy mistake to make.

Probably need to come up with a nmemonic involving senbei (全米) and Radwimps (全全全世)

[Kanto]

This is the S&P one, isn't it? 全米

楽天・全世界株式インデックス・ファンド is the Global fund.

I really wish they would do something with the naming of these things, just for our community!

Ugh, you're right.

I know right? "ｅＭＡＸＩＳ Ｓｌｉｍ 先進国債券インデックス", wait is that the bond or equity fund? One kanji difference...