NISA change proposals

[adamu]

QUESTION:
If they remove the time limit on both general/new NISA and tsumitate NISA then why have both systems.

Is it just because tsumitate steers people towards regular investing and "safer" investment products?

It seems like there's not much point in speculating right now when the only info we have is vague proposals subject to change. However, as you pointed out with no time limit, the main difference between Regular and Tsumitate becomes that Regular has a higher annual allowance and more flexible investment choices, or in other words there is no benefit to Tsumitate, unless less choice is a benefit. Will be interesting to see how things evolve.

Just because something doesn't make sense doesn't mean it won't happen, though. The Fukuoka City Subway's all line pass is cheaper than a pass between two designated stations, for example, but that designated pass still exists*. Maybe we can follow similar logic on a national scale for investment accounts.

*happy to be proven wrong. This has been driving me crazy for years.

[OwenM]

Interesting comment in this interview suggesting that it will be recommended that participation in both general NISA and tsumitate NISA be made possible. This would bring that total to 300万円 for each year. Yes, yes, I know it’s just speculation but things are pointing in the right direction.


「三つ目は、NISAを使って投資できる上限額の引き上げだ。現行制度は一般NISA
が年120万円、つみたてNISAが年40万円（いずれかの選択制）だが、一般NISAは年240万円、つみたてNISAは年60万円（併用可、合計300万円）への引き上げを要望している。英国の非課税投資制度『ISA（アイサ）』を参考にした」

https://media.rakuten-sec.net/articles/-/38630

[RetireJapan]

This would bring that total to 300万円 for each year.

Mwah-hah-HAHAHAAAAAAAA

[robster]

Has there been any further information published on this matter?

I recently took the steps to rollover my 2018 regular NISA, meaning my allowance for 2023 is already filled, if I understand the system correctly.
And since I have also maxxed out NISA contributions (both for me and all family members) for all the years from 2019-2022, unless these proposed changes are implemented, I would have no other vehicle for tax-exempt investing moving forward, other than the paltry 23,000/mo of Ideco. Am I reading the situation correctly?

[sutebayashi]

I saw some twittering about the LDP tax folks cooking something up in recent days, but the final announcement should come circa December. (Something about a “総合NISA“ I think it was)

The tweet was critical because the whole shebang is just getting too complicated and all the brokers are going to have to suck up more cost of implementing changes to support what the LDP decides.

Personally I am fully NISAed out except for the kids J-NISAs and it’s full steam ahead with taxable accounts. I can live with (one day) paying 20% capital gains on the profits, so NISA tax free is just a bonus, whatever they do with it.

[Tkydon]

https://market-news-insights-jpx.com/in ... cle002417/

[zeroshiki]

Original Japanese version here: https://www.nikkei.com/article/DGXZQOCD ... 2A8000000/ (I don't have a NIkkei subscription sadly)

That article is saying "New NISA" in 2024 will be withdrawn and a new "General NISA" that takes over both of them will be used with the idea being that they want to shuffle people more towards Tsumitate than Normal (so MFs instead of stocks) and also to allow the NISA limits to be rolled over to subsequent years if you were unable to use it (this would be amazing). Also talk about making NISA permanent.

All of this sound great for us who do use MFs to invest and have long term goals.

[goran]

Original Japanese version here: https://www.nikkei.com/article/DGXZQOCD ... 2A8000000/ (I don't have a NIkkei subscription sadly)

That article is saying "New NISA" in 2024 will be withdrawn and a new "General NISA" that takes over both of them will be used with the idea being that they want to shuffle people more towards Tsumitate than Normal (so MFs instead of stocks) and also to allow the NISA limits to be rolled over to subsequent years if you were unable to use it (this would be amazing). Also talk about making NISA permanent.

All of this sound great for us who do use MFs to invest and have long term goals.

Hopefully, the limit is increased for Tsumitate NISA if they are pushing us towards it; at least 1.2 million, same as current normal NISA.

[sutebayashi]

A sucky thing about the current NISA is that one cannot rebalance, because it consumes more of one’s tax free amount to sell down the winners and buy up the losers.
“Switching” in the iDeCo avoids this problem.

I used to save a bit of my annual allowance for the purpose of rebalancing at the end of the year, but now I use my iDeCo and DC plan accounts only to the extent possible, and rebalance more in my taxable accounts. It’s a bit of a hassle, and I could spend the time going and spending money or something more useful for the economy!

Simplifying all these schemes would be a fine thing.

[adamu]

I used to save a bit of my annual allowance for the purpose of rebalancing at the end of the year

If you are still accumulating, you can "rebalance" by directing where you put the new funds, removing the need to sell any holdings.