Starting a Junior NISA in Late 2022

[TonyKaku]

Hello! I finally managed to set up my child's J-NISA with Rakuten. (Much easier to do when you have only two names!) I'm guessing it would be wise to invest as much as I can before the end of the year (800,000?), then add to it monthly throughout 2023. Any advice on what to invest in with this initial lump sum? The yen is crazy weak ATM and warnings of an impending recession abound. Would it therefore be wise to put this year's money in a USD cash fund or short term US Treasury fund (to at least ride the rising interest rates) then switch to a global fund sometime next year? Any advice would be much appreciated.

[adamu]

It's a long term investment, no point trying to time the market. Just set it and forget it with the global fund.

[TokyoBoglehead]

It's a long term investment, no point trying to time the market. Just set it and forget it with the global fund.

Pick one of these. https://retirewiki.jp/wiki/Japanese_global_index_funds

Maxout for the two remaining years 2022/2023. Do not miss the tax-free opportunity. It is uncertain if there will be a replacement vehicle.

Continue saving in your Taxable+ Nisa (and iDeco) unless a new taxable vehicle for kids is created post 2023.

[beanhead]

then switch to a global fund sometime next year? Any advice would be much appreciated.

NISA does not allow switching.
You would have to sell something, and if you do that you lose the allocation for that amount.
So, for 2022, buy something which will grow long-term, like a balanced equity fund.

[smalldog]

If I may slightly highjack this thread…. I am keen to get junior Nisa established for a newborn and put ¥800,000 in within this year. I know time is (very) tight, and first step is a bank account.

Any tips or anecdotes as to which bank would be the best bet for rapid bank account establishment for a 0.1 year old?

It’s probably not going to happen in time, but I want to try my best.

[beanhead]

If I may slightly highjack this thread…. I am keen to get junior Nisa established for a newborn and put ¥800,000 in within this year. I know time is (very) tight, and first step is a bank account.

Any tips or anecdotes as to which bank would be the best bet for rapid bank account establishment for a 0.1 year old?

It’s probably not going to happen in time, but I want to try my best.

Yucho? And if your wife is Japanese, see if she can do it for you. That could speed up the process.

[TokyoBoglehead]

If I may slightly highjack this thread…. I am keen to get junior Nisa established for a newborn and put ¥800,000 in within this year. I know time is (very) tight, and first step is a bank account.

Any tips or anecdotes as to which bank would be the best bet for rapid bank account establishment for a 0.1 year old?

It’s probably not going to happen in time, but I want to try my best.

Yucho? And if your wife is Japanese, see if she can do it for you. That could speed up the process.

Seconded. Make sure you have your birth record (Koseki or similar). In an out in 30 minutes. Make sure to get the guide to setting up online banking as well. You will need a one-time-pass FOB or one-time-pass app currently.

I used Rakuten for the J-Nisa. No issues at all, but my child only has a FIRST NAME/LAST NAME, and both their names are Japanese.

[sutebayashi]

If I may slightly highjack this thread…. I am keen to get junior Nisa established for a newborn and put ¥800,000 in within this year. I know time is (very) tight, and first step is a bank account.

Any tips or anecdotes as to which bank would be the best bet for rapid bank account establishment for a 0.1 year old?

It’s probably not going to happen in time, but I want to try my best.

Don’t remember why or how long it took, but my kids all have Sony Bank accounts. I feed their Monex accounts from there.