Simple Q&A - NISA

[MBK]

A small question in regards to NISA yearly allowance.

It`s my first year of NISA, so I wanted to check whether I will be able to use the yearly allowance of 1,200,000 JPY immediately from 1st January? Or does it take some time for the allowance to "reset"?

Yes, in theory. Bear in mind that markets will be closed on Jan 1st, though.
Mutual funds (eMaxis Slim etc) take a few days to process orders so if you are buying funds it may be Jan 5th or 6th or something before you can actually buy the funds.
A few days does not make much difference, of course, most of the time.

Thank you for confirmation. Makes sense. I was just curious if I will be able to set up the purchase with NISA allowance already at the start of the year.

[beanhead]

Thank you for confirmation. Makes sense. I was just curious if I will be able to set up the purchase with NISA allowance already at the start of the year.

Yes, exactly. You can place the orders.

[TokyoBoglehead]

Thank you for confirmation. Makes sense. I was just curious if I will be able to set up the purchase with NISA allowance already at the start of the year.

Yes, exactly. You can place the orders.

Actually, you can order starting tomorrow for spot purchases with a General Account. https://www.rakuten-sec.co.jp/web/info ... ml#skip06

[styxomaniac]

Hello,

I just started a few weeks ago so I am very new to NISA or stock market investing in general. Is there anything else I need to do or everything is already set and I just leave it and check once in a while?

[TokyoBoglehead]

Hello,

I just started a few weeks ago so I am very new to NISA or stock market investing in general. Is there anything else I need to do or everything is already set and I just leave it and check once in a while?

Looks good!

[styxomaniac]

Thanks!
I really wish SBI has a NISA My Account page that breakdown everything including your deposits(investments) and how much they are currently valued, how they are doing etc. more like a quick glance dashboard.

[northSaver]

Sorry if this has been asked already, but can you change from Tsumitate NISA to Regular NISA halfway through the year? And if so, will the Tsumitate account funds built so far enter the Regular account tax-free?

It's just we seem to have too much spare yen at the moment doing nothing. Adding an extra 200 man (120 x 2 minus contributions so far) to NISA might be a good idea, despite the risk of it being worth less five years from now.

[RetireJapan]

Sorry if this has been asked already, but can you change from Tsumitate NISA to Regular NISA halfway through the year? And if so, will the Tsumitate account funds built so far enter the Regular account tax-free?

It's just we seem to have too much spare yen at the moment doing nothing. Adding an extra 200 man (120 x 2 minus contributions so far) to NISA might be a good idea, despite the risk of it being worth less five years from now.

Nope. You can only change types mid-year if you haven't used it at all yet.

You'll have to wait for the New NISA (7.2m yen a year for the two of you).

[adamu]

are there funds automatically reinvesting rather than paying out dividends ?

Yes, this is the solution.

https://retirewiki.jp/wiki/Japanese_global_index_funds

All of these funds reinvest internally and can be purchased in exact yen denominations.

[TokyoBoglehead]

Great, thanks!
Not easy to find the info.
For all other funds I’ll then just set it to not reinvest for the old NISA - and not make the same mistake again for the new one!!

Wondering what will happen with the old NISA, as the reinvestment for the ones I bought already won’t work starting next year. Maybe these will go into the taxable one for the next 5 years…let’s see let’s see

Yes, no rollovers.

Any expiring NISAs will be dropped into a taxable account and their/your cost basis reset to the current price on that day.

This change makes tsumitate a better option for most in retrospect.