Leaving Japan in 3 Years... Cash in NISA or wait?

[Tomthumb16]

Hi Everyone,

My wife and I recently made the tough decision to move home to Canada in 3 years after 20 great years in Japan.

My question is what should I do with NISA?
1: Can I keep managing it but not add any more funds like IDECO when I leave? I am pretty sure I have to cash it out when I leave...
2: Is there any short term investments in Japan that are worth looking into?

3: I know most people dislike this question, (cos it’s not wise to try and time the market, no one knows what’s around the corner etc.etc,) but having said that my 2018 NISA is now up 40%. I’m serious tempted to change it in cash now. Any suggestions welcome!

Thanks.

[tokyolights]

Can't comment on if it's necessary to liquidate NISA or not (until now I assumed it works the same as IDECO, can leave it there but cannot add funds).

If you do have to liquidate though, 3 years sounds like too many potentially missed gains. I do think that the main sentiment here will be to "hold as long as possible" and not make any decisions based on current market status.

If I was in your shoes though, maybe I'd wait until like one or half a year before departure, and if it's still at all time highs, sell and get the peace of mind.

[RetireJapan]

My wife and I recently made the tough decision to move home to Canada in 3 years after 20 great years in Japan.

My question is what should I do with NISA?
1: Can I keep managing it but not add any more funds like IDECO when I leave? I am pretty sure I have to cash it out when I leave...
2: Is there any short term investments in Japan that are worth looking into?

3: I know most people dislike this question, (cos it’s not wise to try and time the market, no one knows what’s around the corner etc.etc,) but having said that my 2018 NISA is now up 40%. I’m serious tempted to change it in cash now. Any suggestions welcome!

If you leave Japan I believe you will have to close any broker accounts, including NISA, sell the contents, and move that money with you.

[beanhead]

3: I know most people dislike this question, (cos it’s not wise to try and time the market, no one knows what’s around the corner etc.etc,) but having said that my 2018 NISA is now up 40%. I’m serious tempted to change it in cash now. Any suggestions welcome!

Thanks.

Having to close the accounts at a set date in the future does create the risk of that timing being in a market fall or crash, obviously.
Gradually selling things off over the next 3 years seems like a sensible way to handle it.
You may lose some potential market gains, but you reduce that risk of locking in a loss as well.

[RetireJapan]

Might be good to sell things and then buy the equivalent in Interactive Brokers (assuming you still want them).

[Tomthumb16]

[quote=tokyolights post_id=19573 time=1637569391 user_id=2592]
Can't comment on if it's necessary to liquidate NISA or not (until now I assumed it works the same as IDECO, can leave it there but cannot add funds).
I looked into a bit more and pretty sure IDECO can be left open, but NISA must be closed before leaving.

[Tomthumb16]

3: I know most people dislike this question, (cos it’s not wise to try and time the market, no one knows what’s around the corner etc.etc,) but having said that my 2018 NISA is now up 40%. I’m serious tempted to change it in cash now. Any suggestions welcome!

Thanks.

Having to close the accounts at a set date in the future does create the risk of that timing being in a market fall or crash, obviously.
Gradually selling things off over the next 3 years seems like a sensible way to handle it.
You may lose some potential market gains, but you reduce that risk of locking in a loss as well.

That sounds like a good plan.
Thanks