Is investing on US stocks a hassle?

[noir]

I have a Japanese friend who has had experience buying US stocks but don't recommend it due to the hassle it takes.

Need to convert yen to dollar with a fee, and then, you need to keep track for tax purpose because it can't be done automatically like Japanese stocks. And then, some more fees selling those US stocks, etc..

He says it's not worth it. Is this the case? Should I just focus on Japanese stocks? I'm buying stocks to hold for the long term (a decade or so).

[RetireJapan]

Assuming you are not a US citizen, I recommend buying index funds. This is the easiest, cheapest, and most likely to succeed method for normal people.

In Japan mutual funds have a slight edge, particularly if you buy them in iDeCo and tsumitate NISA accounts.

[noir]

Thanks, yeah, I'm a Japanese national.

Already have started T-NISA and bought some Index funds(ETF?) as well.

Want to diversify though. Sitting on about 10m yen. I've always wanted to buy US stocks but not sure if it's worth it.

[RetireJapan]

Thanks, yeah, I'm a Japanese national.

Already have started T-NISA and bought some Index funds(ETF?) as well.

Want to diversify though. Sitting on about 10m yen. I've always wanted to buy US stocks but not sure if it's worth it.

As long as you are buying global stock index funds, 60% of them will be made up of US stocks.

[zeroshiki]

Buying individual stocks (which is what I assume this question is about) is easy to do using Rakuten/SBI. They will convert to dollars for you. You might not like the exchange rate though but if the question is if its easy or not, then yes its easy. If you put them in a tokutei account, the taxes will be handled by the broker as well.

However, if your goal is diversification, unless you plan to buy hundreds of stocks, doing stock picking is actually counterproductive to that goal since you'd then have to consider your exposure to specific companies/industries and all of that jazz that most of us non-professionals don't really have the time nor knowledge to look up. So, as RJ said, buy index funds. The diversification is done for you and you're only betting on the economy as a whole and not on the fortunes of specific companies like Apple or General Electric.

[adamu]

There are a lot of US stocks, which ones do you want to buy? I'm going to answer assuming you just want to buy index funds, in which case:

He says it's not worth it. Is this the case?

Yes.

Should I just focus on Japanese stocks?

No, buy Japanese mutual funds that represent market exposure you want. The funds that represent the world are the simplest long-term investments. Options here:

https://retirewiki.jp/wiki/Japanese_global_index_funds

And if you can read Japanese, the linked Shintaro Money article is even better.

[woodrackets]

Hi, I'm brand new to RJ Forum.

I have cancer & I'm trying to get my house in order before leaving.

Currently, we have this set-up:
• Vanguard joint account w/ the J wife (because of new & unannounced rules we can no longer send money to my Shinsei Bank (i.e joint US account to indiv J account);
• Union Bank MUFG indiv account for both of us;
• Wise accounts for both of us;
*No* USA domicile (precluding opening any new US financial account); therefore,
• We move money like this: Vang > Union Bank > Wise > a J bank. It's expensive, but not too complicated.

What we want:
• A simple, straightforward way for the J wife to easily—and relatively cheaply—invest in US index funds and ETFs; and,
• Ability to link whatever that financial institution/method is to one of her J banks.

We could then move the Vang money to that new bank or financial institution.

Any tho'ts?

[RetireJapan]

Hi, I'm brand new to RJ Forum.

I have cancer & I'm trying to get my house in order before leaving.

Currently, we have this set-up:
• Vanguard joint account w/ the J wife (because of new & unannounced rules we can no longer send money to my Shinsei Bank (i.e joint US account to indiv J account);
• Union Bank MUFG indiv account for both of us;
• Wise accounts for both of us;
*No* USA domicile (precluding opening any new US financial account); therefore,
• We move money like this: Vang > Union Bank > Wise > a J bank. It's expensive, but not too complicated.

What we want:
• A simple, straightforward way for the J wife to easily—and relatively cheaply—invest in US index funds and ETFs; and,
• Ability to link whatever that financial institution/method is to one of her J banks.

We could then move the Vang money to that new bank or financial institution.

Any tho'ts?

Welcome to the forum, and I am very sorry to hear about your illness.

Is your wife also a US citizen or green card holder? If not, it might be easier for her to invest with a Japanese broker (she can invest in diversified global or US index funds, US listed shares/ETFs, etc.)

[woodrackets]

Thank you for welcoming me.

No, my J wife is not a green card holder, nor a US citizen. She does have an ITIN number (used for tax returns).

Yeah, I agree with you about going the J-route, as it is her native tongue.

it might be easier for her to invest with a Japanese broker (she can invest in diversified global or US index funds, US-listed shares/ETFs, etc.)

I agree, but that is what I'm asking. I've heard of NISA and SBI, but I don't know about them. What are my best options?

[RetireJapan]

Standard advice might be: open an account with one of the big online brokers in Japan (Rakuten, SBI, Monex). As part of that application, open iDeCo (if your wife works in Japan) and NISA accounts. Invest in mutual funds.

This free guide might be a good place to start: https://retirejapan.gumroad.com/l/kvxso?layout=profile

In Japanese, Minako Takekawa's books are good: https://amzn.to/3hEobWx