NISA or Tsumitate Nisa? Help me choose

[Bushiman]

I get the feeling you might benefit from reading a book about investing before getting started.

Millionaire Teacher is a good one: https://amzn.to/39BzpXm
as is The Simple Path to Wealth: https://amzn.to/3Pv5OPT
and Just Keep Buying: https://amzn.to/3PpFB5z

Just one of those should be enough.

Thank you very much the suggestion, will definitely look into those

I remember reading If You Can - How Millennials Can Get Rich Slowly
It's free. Short. To the point. And it certainly gave me an idea about what I should be doing when I had no idea.

It is written for an American, but substitute things like the 401k/IRA for iDeCo/NISA, and A U.S. total stock market index fund/An International total stock market index fund/A U.S. total bond market index fund for the eMAXIS Slim Global Equity (All Country) fund & the eMAXIS Slim Advanced Government Bond Index and you should be fine...

[al3x_jp]

I remember reading If You Can - How Millennials Can Get Rich Slowly
It's free. Short. To the point. And it certainly gave me an idea about what I should be doing when I had no idea.

It is written for an American, but substitute things like the 401k/IRA for iDeCo/NISA, and A U.S. total stock market index fund/An International total stock market index fund/A U.S. total bond market index fund for the eMAXIS Slim Global Equity (All Country) fund & the eMAXIS Slim Advanced Government Bond Index and you should be fine...

I will have a look! Thanks for the link!

[Haystack]

I remember reading If You Can - How Millennials Can Get Rich Slowly
It's free. Short. To the point. And it certainly gave me an idea about what I should be doing when I had no idea.

It is written for an American, but substitute things like the 401k/IRA for iDeCo/NISA, and A U.S. total stock market index fund/An International total stock market index fund/A U.S. total bond market index fund for the eMAXIS Slim Global Equity (All Country) fund & the eMAXIS Slim Advanced Government Bond Index and you should be fine...

I will have a look! Thanks for the link!

Just a quick note that bonds to not translate 1 to 1.

Us Treasuries are an almost risk free investment for Americans, but they present risk to Japanese investors when currency fluctuations are considered.

Not really a big issue for equities, but definitely one for lower yield products like bond funds.

[goran]

Just a quick note that bonds to not translate 1 to 1.

Us Treasuries are an almost risk free investment for Americans, but they present risk to Japanese investors when currency fluctuations are considered.

Not really a big issue for equities, but definitely one for lower yield products like bond funds.

any recommendations for Japanese bonds?
or bond funds?
or may be even All Country bonds?

[Haystack]

Just a quick note that bonds to not translate 1 to 1.

Us Treasuries are an almost risk free investment for Americans, but they present risk to Japanese investors when currency fluctuations are considered.

Not really a big issue for equities, but definitely one for lower yield products like bond funds.

any recommendations for Japanese bonds?
or bond funds?
or may be even All Country bonds?

Certainly, Bushiman recommendation was good, but we just need to think of Bonds differently. American investing literature will make them seem like a sure thing, as they assume you are investing in USD, or that you can buy I-bonds/EE-bonds.

Emaxis Slim Advanced Government Bonds /ｅＭＡＸＩＳ Ｓｌｉｍ 先進国債券インデックス

Rakuten Total Bond Index 楽天・全世界債券インデックス（為替ヘッジ）ファンド (HEDGED)

...............................

Some ETF options - https://www.blackrock.com/jp/individua ... ducts-list

1482
iShares Core 7-10 Year US Treasury Bond JPY (HEDGED)ETF
Quarterly

1656
iShares Core 7-10 Year US Treasury Bond ETF
Quarterly

...............................

[Dee.Geo]

NISA route: Invest 1.2M in a NISA in 2022 and 2023, 1.22 in a New NISA for the 2024-2026 (the system changes in 2024), roll your expiring NISA into the New NISA for 2027 and 2028, then roll your expiring 5 years of New NISA into a Tsumitate NISA for 2029-2033. The rest of the years (2034-2042) same as the Tsumitate route below.

Tsumitate route: Tsumitate every month from 2022 to 2042.

Thanks for the reply in the other section. That clarified an important confusion. However, that starts a new doubt Thought this is a better place to ask as you have laid out an example.
If I can rollover any amount of my expired (right word?) NISA into a new one after 5 years, why would I choose TNISA in 2029 (above example)? What am I missing to understand?

Let me bring up 2 examples here:
Case 1: 2022 - 2027 1.2m depreciated to 1m
Solution: rollover to 2027 NISA
Case 2: 2022 - 2027 1.2m went up to 1.5m
Next step: rollover 1.2m to 2027 NISA

Do these cases make sense?

[zeroshiki]

NISA route: Invest 1.2M in a NISA in 2022 and 2023, 1.22 in a New NISA for the 2024-2026 (the system changes in 2024), roll your expiring NISA into the New NISA for 2027 and 2028, then roll your expiring 5 years of New NISA into a Tsumitate NISA for 2029-2033. The rest of the years (2034-2042) same as the Tsumitate route below.

Tsumitate route: Tsumitate every month from 2022 to 2042.

Thanks for the reply in the other section. That clarified an important confusion. However, that starts a new doubt Thought this is a better place to ask as you have laid out an example.
If I can rollover any amount of my expired (right word?) NISA into a new one after 5 years, why would I choose TNISA in 2029 (above example)? What am I missing to understand?

Let me bring up 2 examples here:
Case 1: 2022 - 2027 1.2m depreciated to 1m
Solution: rollover to 2027 NISA
Case 2: 2022 - 2027 1.2m went up to 1.5m
Next step: rollover 1.2m to 2027 NISA

Do these cases make sense?

adamu gave that example because we're guaranteed New NISA only until 2028. We don't know what the government will do after that. Its perfectly plausible they decide that 1.2M isn't realistic for normal everyday Taro's and will want to funnel everyone into TNISA with the more manageable 400k limit.

[goran]

any recommendations for Japanese bonds?
or bond funds?
or may be even All Country bonds?

Certainly, Bushiman recommendation was good, but we just need to think of Bonds differently. American investing literature will make them seem like a sure thing, as they assume you are investing in USD, or that you can buy I-bonds/EE-bonds.

Emaxis Slim Advanced Government Bonds /ｅＭＡＸＩＳ Ｓｌｉｍ 先進国債券インデックス

Rakuten Total Bond Index 楽天・全世界債券インデックス（為替ヘッジ）ファンド (HEDGED)

...............................

Some ETF options - https://www.blackrock.com/jp/individua ... ducts-list

1482
iShares Core 7-10 Year US Treasury Bond JPY (HEDGED)ETF
Quarterly

1656
iShares Core 7-10 Year US Treasury Bond ETF
Quarterly

...............................

Thank you. I'll look into these and starting putting some amount into bonds as well. (just for my own sanity's sake)

[MBK]

I have a question regarding NISA investment.

I have set up Tsumitate NISA for myself and invest it in eMaxi Slim.

We still do have some funds available so I made a seperate NISA account for my wife.

My question is whether it makes sense to invest via NISA into index funds or better to look into more active options of investment?

[zeroshiki]

Is there a reason you don't want to do mutual funds for your wife as well?

If you want to have "play" money, you can just do it in a taxable account to get it out of your system.