Simple Q&A - NISA

[Bubblegun]

Thanks for everyones advice.And I know some people prefer LSI or DCA, but I was thinking, as people actually debate which is better, for 99% of working people the DCA every month is their own version of LSI. But Instead of saving up for one year, they have to drop it in ASAP which is ironically every month, is their version of LSI.

[TokyoBoglehead]

Thanks for everyones advice.And I know some people prefer LSI or DCA, but I was thinking, as people actually debate which is better, for 99% of working people the DCA every month is their now version of LSI. But Instead of saving up for one year, they have to drop it in ASAP which is ironically every month, and is their version of LSI.

Monthly paycheck investing is definitely LSI. I think a lot of confusion is everyone has a slightly different definition.

Daily Tsumitate however would be a hybrid approach. DCAing a lump sum, monthly.

[RetireJapan]

The DCA vs LSI argument is talking about what to do with a larger lump sum.

It has nothing to do with investing regularly from a paycheck (you don't have much of a choice with that one).

So savings, an inheritance, a lottery win, a bonus, etc.

[TokyoBoglehead]

The DCA vs LSI argument is talking about what to do with a larger lump sum.

It has nothing to do with investing regularly from a paycheck (you don't have much of a choice with that one).

So savings, an inheritance, a lottery win, a bonus, etc.

No, the terms are often used (or misused) to talk about investing styles. For example, the rise of tsumitate/defined contribution plans led to them as being characterized as DCA when they are actually LSA.

You may have a working definition, but it's important to remember this is not necessary universal. So it always helps to clarify.

[Bubblegun]

[quote=RetireJapan post_id=26565 time=<a href="tel:1666494880">1666494880</a> user_id=2]
The DCA vs LSI argument is talking about what to do with a larger lump sum.

It has nothing to do with investing regularly from a paycheck (you don't have much of a choice with that one).

So savings, an inheritance, a lottery win, a bonus, etc.

No, the terms are often used (or misused) to talk about investing styles. For example, the rise of tsumitate/defined contribution plans led to them as being characterized as DCA when they are actually LSA.

You may have a working definition, but it's important to remember this is not necessary universal. So it always helps to clarify.
[/quote]

I have to agree. There is an assumption that it must be a large sum of money. There are defined amounts for DCA and for them coming into extras money is their version of LSI. Could be a lot, could be a much smaller amount.
I suppose how we anchor the value of a lump sum is dependant on each persons earnings/ savings and the amount they have.
20,000,or 50,000 “extra” in a wage packet may not be lump to someone pulling in a million a month But that same money “this month” is their lump sum in their eyes.especially for self employed or Uber delivery guy whose pay fluctuates. Our definition and someone else’s definition of a lump sum are probably anchored in each individuals mind.

Mind over Money gives good examples of this.

[RetireJapan]

So it always helps to clarify.

That is a really good point.

For me, the only reason to think about lump sum versus installments (or DCA) is when considering what to do with a certain amount of money.

If the amount is something I can afford to do monthly, it is not worth thinking about so it just gets invested immediately.

If the amount is larger and out of the ordinary, it may be worth considering what one would be more comfortable doing.

I received a retirement bonus this year (https://www.retirejapan.com/blog/dude-w ... nday-read/) and decided to invest it gradually, as I wanted to have some cash for unexpected expenses due to retirement and suspected that markets would fall in the short term.

Of course I completely failed to predict the weak yen/strong dollar thing

[goran]

In regular NISA, I have put in recurring orders to invest 100,000 each month to fully use the 1.2m allowed investment amount in 12 months. (Rakuten Securities)
But I separately added another 100,000 to it in the Summer (in addition to monthly recurring amount), so I am already at 1.2m for this year.

If I do not change my recurring order setting in my rakuten account, what do you think will happen?
Will it make the extra 100,000 purchase in my Tokutei account? Will it send me a warning or something?

[zeroshiki]

In regular NISA, I have put in recurring orders to invest 100,000 each month to fully use the 1.2m allowed investment amount in 12 months. (Rakuten Securities)
But I separately added another 100,000 to it in the Summer (in addition to monthly recurring amount), so I am already at 1.2m for this year.

If I do not change my recurring order setting in my rakuten account, what do you think will happen?
Will it make the extra 100,000 purchase in my Tokutei account? Will it send me a warning or something?

Your NISA order will fail and not get purchased. I did this exact thing last year.

[goran]

In regular NISA, I have put in recurring orders to invest 100,000 each month to fully use the 1.2m allowed investment amount in 12 months. (Rakuten Securities)
But I separately added another 100,000 to it in the Summer (in addition to monthly recurring amount), so I am already at 1.2m for this year.

If I do not change my recurring order setting in my rakuten account, what do you think will happen?
Will it make the extra 100,000 purchase in my Tokutei account? Will it send me a warning or something?

Your NISA order will fail and not get purchased. I did this exact thing last year.

Thanks for the response. I will add some in my tokutei compartment later in the year then!

[HeavyMetal]

Am I right to understand that if I have NISA, and leave Japan - the ONLY choice I have is to sell all NISA assets?
No way to transfer them to another account to keep (like ordinary Monex - IB Japan, or any)?
Selling might be ok if I had gains, but if I had losses - keeping assets would have more sense in some cases, also NISA does not have to care about cap. gain tax in case of loss so they should be ok about transfer? But not sure if that's possible in any way.