Investment options...

[genki]

This is probably a very basic question, so I apologize in advance. Basically, I live in Japan, likely to retire in Japan. I had a number of RSUs from my time working in America. I've sold some RSUs, which are now cash in the American trading account (also paid the appropriate taxes for the gains on the sale). However, now I have a question. I can either transfer funds to Japan, and reinvest them here, or I could (theoretically) reinvest them via my American trading account (ex. index funds). The question I have is whether that option makes sense, long term? I'll be paying taxes on the gains each time I sell/reinvest in the American trading account. Is it much better financially to transfer the funds to Japan and use Japanese retirement vehicles, or are the investment options via the American trading account worth keeping funds in there? Would there be any issues with using the American account to shift funds between investments?

Also, please let me know if there are any specifics that impact the advice. I think the most relevant one is that I'm a Japanese citizen, and so would have access to whatever Japanese retirement options exist (not that I've really set up anything yet).

[RetireJapan]

Also, please let me know if there are any specifics that impact the advice. I think the most relevant one is that I'm a Japanese citizen, and so would have access to whatever Japanese retirement options exist (not that I've really set up anything yet).

All residents of Japan have access to NISA (the main tax-advantaged account) and iDeCo as long as they are paying into nenkin.

One key question is whether you also have US citizenship or a green card (or otherwise need to submit a tax return to the IRS).

[genki]

All residents of Japan have access to NISA (the main tax-advantaged account) and iDeCo as long as they are paying into nenkin.

One key question is whether you also have US citizenship or a green card (or otherwise need to submit a tax return to the IRS).

Are there upper limits to NISA and iDeCo? At what point are those options capped?

I don’t have any tax relationship with the US (thankfully), no US citizenship or green card.

[RetireJapan]

Are there upper limits to NISA and iDeCo? At what point are those options capped?

Recommend checking out the relevant pages on the RJ site for basic info.
iDeCo: https://www.retirejapan.com/ideco-j401k/
NISA: https://www.retirejapan.com/nisa/

Also the wiki: https://retirewiki.jp/wiki/Main_Page

[captainspoke]

You've worked in america, and you still have a US trading account...

The first question is: are you a US citizen? (Also, if you were a green card holder there, I think the same thing applies, and I'm not sure how that status follows you around--eg, some people give it up, some try to keep it for if they go back. If you are not US but still have a valid green card, then you'll be filing US taxes, and PFICs will still be something to avoid.)

Anyway, if you are, then Nisa and Ideco will almost be "no-no" stuff--the funds available in them are PFICs, and the only way around that is to buy stocks (Ideco, and even some of those that are holding companies are still PFICs).

If you aren't US or a green card holder, then the advice here will apply.

[adamu]

I think you missed the OP's reply confirming no US citizenship, green card, or US tax relationship.

[captainspoke]

I think you missed the OP's reply confirming no US citizenship, green card, or US tax relationship.

Sorry, everyone... My bad.

[genki]

Thanks to everyone that's responded so far!

So from what I can tell from the provided links, both iDeCo and NISA are capped at relatively low amounts. Let's assume that I'm already maxing those out with regular income.

Really, the question I have is, assuming that I can already max out standard retirement vehicles, if I also have potential cash in a trading account based in America, would it be advantageous to re-invest money into index funds through that trading account, versus transferring that money to Japan and investing it within Japan (not sure exactly what system would exist for this here, some kind of investment account that allows for index fund investment in Japan?)

Basic idea would be (likely somewhat staggered over time, but assuming that we'll slowly try to diversify these funds as opposed to leaving them in a single stock):
* sell X stocks in american trading account
* pay associated gains taxes in Japan
* decision point:
* either reinvest the cash within the american trading account (then get taxed again on gains whenever we eventually cash out for real), OR
* transfer the cash to Japan, and invest the funds within japan somehow (investment account, real estate, etc), assume I'd also again get taxed on capital gains when cashing out

I think my assumption right now is that there's a chance that keeping the money in the american investment account would give me better opportunities to grow my funds, due to access to "better" index funds, but I'm not actually sure if that's really a thing?

[zeroshiki]

Its always better to invest in the currency of whatever the source of the money you will be using to invest off of on.
If you're making yen, the investing in Japanese securities make more sense than taking foreign exchange hits both ways just to invest in the US.

I don't believe there's "better" index funds if you subscribe to the safe method of investing that's being advocated on this site since they'd all be tracking the same indices.

[Established]

I don't believe there's "better" index funds if you subscribe to the safe method of investing that's being advocated on this site since they'd all be tracking the same indices.

I agree with your first points.

However, there is much much more choice of funds with American/International brokers.

Example: Funds like Ticker: VOTE (Engine #1) allow you to invest in an S&P500 fund at only .05% and still have an ESG stance in your portfolio.

You also have far more access to treasury and other fixed-income funds. The Japanese market has limited options.