Rakuten advice (first time Ideco)

[EmaxisSlim Cultist]

Other than the fact that you're overloading on Developed countries (the next big thing might come out of developing countries/China) the Tawara No Load funds are actually pretty good because they have a LONG history (much longer than eMaxis or Rakuten or SBI) so if you're at all concerned about stability, you know they're good for it.

That is true, but the Rakuten fund invests in Vanguard VT. A more established and much larger fund.

[Inakappe]

As you can rebalance at anytime, I see no reason to be in bonds unless you are close to retiring.

Yes, food for thought. Ideally I'd have a taxable account to get some bonds but at the moment I have my hands full with ideco, Nisa and my daughter's Junior Nisa. Funny though, I started out with 30% bonds in my ideco (my age minus 10) and I have been slowly lowering it year after year as I've read more financial books and read up on this forum At 42, I guess I've got time to recover if/when the next crash occurs., especially with the retirement age increasing every year!

[Inakappe]

Other than the fact that you're overloading on Developed countries (the next big thing might come out of developing countries/China) the Tawara No Load funds are actually pretty good because they have a LONG history (much longer than eMaxis or Rakuten or SBI) so if you're at all concerned about stability, you know they're good for it.

Good idea, I will see what Rakuten is offering for developed countries.
I didn't realise that Tawara No Load had been around for so long. Agree, that is reassuring.
Thanks again.

[badwithmoney]

Hello, firstly thank you all for sharing your information and tips. I got my way through the Rakuten iDECO process with the various forms and certificates received by mail. I am reading and reading and as the username suggests, I am not very financially literate. I have tried to understand as best I can.

I am Australian, 41 and contributing the maximum 23,000. I want to set and forget.

70% to 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）） (Rakuten Vanguard)
30% to たわらノーロード 先進国株式 (Tawara developing countries)

Does this seem OK ? Are there any glaring issues with this distribution?

Thanks

[TBS]

Hello...

Welcome, well done on getting your iDECO paperwork done.

70% to 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）） (Rakuten Vanguard)
30% to たわらノーロード 先進国株式 (Tawara developing countries)

On thing stands out that may just be a typo, but the second fund is developed countries rather than developing. This may affect things depending on what kind of play you were thinking?

[badwithmoney]

Hello...

Welcome, well done on getting your iDECO paperwork done.

70% to 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）） (Rakuten Vanguard)
30% to たわらノーロード 先進国株式 (Tawara developing countries)

On thing stands out that may just be a typo, but the second fund is developed countries rather than developing. This may affect things depending on what kind of play you were thinking?

Hey thank you for your reply and for pointing that out. I saw here that Developing is a good bet but my language skills let me down! Now that I am getting it set up and playing in the system I have a bit more of an understanding of what I read here, but "play" is a very generous description of my strategy. Right now I am just trying to get set up - maybe best to get financial planning assistance. Thanks again!

[adamu]

70% to 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）） (Rakuten Vanguard)
30% to たわらノーロード 先進国株式 (Tawara developing countries)

70% US and 30% Developing (assuming that's what you meant) works, but it's a bit weird to exclude Japan and all the other developed countries.

Might be simpler to just go for the all-in-one 楽天・全世界株式インデックス・ファンド（楽天・バンガード・ファンド（全世界株式））

That's the Rakuten Whole World Index fund listed here: https://retirewiki.jp/wiki/Japanese_global_index_funds

[AussiePete]

Sorry for reviving an old post (yet again), but I have finally received the JIS&T letters in the mail and have finished setting up my Rakuten Ideco.

Based on the various comments above, people seem to be down on the Rakuten All World index fund due to the tax and management fee reasons. Is this alternative a reasonable approach?

The Rakuten fund has a fee of 0.199%. If my understanding is correct, it is holding the Vanguard Total World Stock ETF (VT), which consists of 90% developed countries (?? I assume this is what "North America", "Pacific" and "Europe" refers to) and 10% emerging markets.
https://investor.vanguard.com/investmen ... mance-fees

If I have 90% in the Tawara no-load developed countries index (0.1099% fee) and 10% in the Nikko emerging equity fund (0.3740% fee), doesn't this result in basically the same balance as VT but for a fee of approx. 0.136%?

Apart from the uncertainty about possible returns, I suppose there is something else wrong with this approach. Does anyone have any comments?
How about the tax issue?

[beanhead]

If I have 90% in the Tawara no-load developed countries index (0.1099% fee) and 10% in the Nikko emerging equity fund (0.3740% fee), doesn't this result in basically the same balance as VT but for a fee of approx. 0.136%?

Apart from the uncertainty about possible returns, I suppose there is something else wrong with this approach. Does anyone have any comments?
How about the tax issue?

For what it is worth, I do this myself with Rakuten.
It will require some work to try and keep the ratios of developed to developing accurate, I suppose. Just choosing VT would mean any adjustments would be done automatically.
I agree that the fees for the Tawara fund in particular are attractive.

On the tax issue, I am not sure. It does not seem to be such a big problem to me. Either the Vanguard fund or this mix of funds seem like decent, fairly low-cost choices.

[nanaya]

The current ideco lineup for rakuten sucks as we're missing the entire cheaper emaxis slim lineup and stuck with 0.099% fee tawara for the developed world fund and rakuten's own 0.199% whole world fund (I currently have 90%/10% setup for both)

I wonder if it's worth the effort moving out somewhere else (probably not?)