Anyone had any experience with AP Advisers?

[TJKansai]

It was made pretty clear in both the literature I received prior to making an initial investment and also orally that the tax advantage was only to be had if you were no longer considered a resident of Japan for tax purposes. Thank you though for the feedback, everyone's stories are interesting to hear.

I heard this orally from a guy at Banner (at a JALT talk), but he just said being outside Japan for a year. Nothing in detail about what a "tax resident" meant.

[Kanto]

Overall up 50%, but that is over 20 years, so nothing exceptional.

I was under the impression that if my wife is out of Japan for a year or so she can sell it during that period and avoid capital gains in Japan, but perhaps I am wrong on that?

That is a pretty strong argument against this type of investment. An initial deposit in a cheap S&P500 fund in 2000 would be up 300% by now.

As for your wife and her tax status, that would depend on her residency status and home-country tax status. Suffice to say you would owe capital gains tax somewhere.

[captainspoke]

It was made pretty clear in both the literature I received prior to making an initial investment and also orally that the tax advantage was only to be had if you were no longer considered a resident of Japan for tax purposes. Thank you though for the feedback, everyone's stories are interesting to hear.

I heard this orally from a guy at Banner (at a JALT talk), but he just said being outside Japan for a year. Nothing in detail about what a "tax resident" meant.

What a hoot! --You have to leave the country so your supposedly "tax advantaged" investment will retain its supposed tax advantages?!? (and not just anywhere, but to a country that wouldn't also then tax it)

[zeroshiki]

I've read enough r/JapanFinance to know that leaving for a year and then coming back doesn't actually get you off the hook from the NTA. In fact, they might look at it in a rather negative light.

[TJKansai]

I had my doubts as to whether it would really be possible, as it sounded too good to be true. But as someone said in another post, the 5% residential tax could be saved if the capital gains were cashed in while traveling for an extended time, as long as the timing were right.

I do wonder how it works though. If you a tax resident (or citizen) of Japan and you move to another country, you generally should pay taxes in that country first, right? But what happens if you are on the road, doing a 1-2 year trip and just staying a few months in each country? I would think travelers rarely pay any capital gains taxes unless they get a resident visa, so obligations go back to Japan? However, for an American, I can see it being even more complicated.

I understand there is the "exit tax" aimed at making sure Japan collects in any case, so I guess there is no escaping it.

I had been under the impression Americans were the only ones who had to pay tax on worldwide gains even if living overseas, but admittedly I really don't know. Seems the more I learn, the more confusion arises.

[TJKansai]

That is a pretty strong argument against this type of investment. An initial deposit in a cheap S&P500 fund in 2000 would be up 300% by now.

Very true. Most of my investments are in S&P500 funds, but the AP stuff was different, so I figured to try to diversify a bit. Live and learn.

As for your wife and her tax status, that would depend on her residency status and home-country tax status. Suffice to say you would owe capital gains tax somewhere.

Basically true, though if your income is modest the US cap gains rate is 0%. Won't happen for me or my Japanese wife though.

[Wales4rugbyWC23]

They are a small firm of (UK oriented) financial advisors in central Tokyo, website here: https://www.ap-advisers.com/

Any comments or advice welcomed with open arms.

I was with them for about 10 years up until 2019. At that time everything was going through Generalli - an Italian fund manager. I think they were honest, I cashed in the fund once I got my 10 year bonus, even though I had signed a contract for 15 years. I got all my money back, the funds hadn't done very well. I had been paying for the funds in Yen and I cashed them in and got it sent back to the UK from Hong Kong at a good exchange rate 130 yen to the pound- which was my only bonus. It enabled me to put a deposit down on a flat in the UK. I stopped paying for them once I found out more about investing through Retire Japan.

They used to do a lot of sales at ETJ and JALT events. There was a guy called Nick, who persuaded me to start, it seems he has headed back to the UK and is working with the Nationwide Building Society now, it was then taken over by a guy called Clive, who seems to have disappeared and the present guy on the webpage is quite active/ admin on British Expats Facebook page. Sometimes I can see him soliciting from Facebook British expats about investments and life insurance.

On a side note, but kind of related; do not bring any of these funds that are held offshore into Japan, especially if it is a large amount you'll get the Japanese tax office asking questions and sniffing around.

Belated thanks for this. The sales at ETJ and JALT events rings true, but I have never heard of them offering Generali funds nor of "Nick" or "Clive", which surprises me as I have been to their office on a couple of occasions. Was there an admin manager called Marc?

On a separate but related note, why didn't the Generali funds do very well over the course of a decade of solidly rising markets? What was in them, I am intrigued. A lot of the European asset managers don't have very good reputations. And how were the fees?

Yes there was an admin called Marc.
Over 10 years with Generalli I really didn't see any real increase in the value of the funds.

[beanhead]

Over 10 years with Generalli I really didn't see any real increase in the value of the funds.

This may explain why:

Not for you, of course. You already know this and have cancelled your plan.

[beanhead]

On a separate but related note, why didn't the Generali funds do very well over the course of a decade of solidly rising markets? What was in them, I am intrigued. A lot of the European asset managers don't have very good reputations. And how were the fees?

Here is an overview:
https://expatmoneyexpert.com/internatio ... an-review/
One of the 'old-style' life insurance wrapper products. The main (only?) benefit of these kind of policies seems to be encouraging regular savings.

[captainspoke]

...
Here is an overview:
https://expatmoneyexpert.com/internatio ... an-review/
...

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