New NISA strategy -GO!

[RetireJapan]

Alright, it seems people are starting to think about the New NISA and it's juicy juicy 3.6m yen a year contribution limit. How are you planning to use it?

My provisional plan for now is to put 100,000 yen a year into the tsumitate portion for my wife and I with new money, and then either pay in the extra 2.4m each with new money (if our businesses do well) or by selling investments from our taxable accounts (if our businesses do not do well).

How about you?

The maximum you can put in in any one month is 100,000 yen?
I have 3.6m ready to invest in 2024, and want to just dump it all in in one go (in January 2024).
Not possible?

The New NISA is slightly complicated (of course, why make it simple???). It is basically a tsumitate NISA and an ordinary NISA combined. The ordinary bit is 2.4m and you can pay in whenever you want, but the tsumitate bit is 1.2m and you have to pay in installments.

[goodandbadjapan]

Alright, it seems people are starting to think about the New NISA and it's juicy juicy 3.6m yen a year contribution limit. How are you planning to use it?

My provisional plan for now is to put 100,000 yen a year into the tsumitate portion for my wife and I with new money, and then either pay in the extra 2.4m each with new money (if our businesses do well) or by selling investments from our taxable accounts (if our businesses do not do well).

How about you?

The maximum you can put in in any one month is 100,000 yen?
I have 3.6m ready to invest in 2024, and want to just dump it all in in one go (in January 2024).
Not possible?

The New NISA is slightly complicated (of course, why make it simple???). It is basically a tsumitate NISA and an ordinary NISA combined. The ordinary bit is 2.4m and you can pay in whenever you want, but the tsumitate bit is 1.2m and you have to pay in installments.

I have never done tsumitate NISA - do you know if we have to do anything extra to start the new NISA or will it just automatically be offered come the new year (as the current NISA is)? With the tsumitate portion, will we have to select a fund / funds to buy in the first month and that will then be the default and automatically purchased each month unless we change it? I, too, had been hoping just to dump 3.6 million in as early as possible.

[RetireJapan]

I have never done tsumitate NISA - do you know if we have to do anything extra to start the new NISA or will it just automatically be offered come the new year (as the current NISA is)? With the tsumitate portion, will we have to select a fund / funds to buy in the first month and that will then be the default and automatically purchased each month unless we change it? I, too, had been hoping just to dump 3.6 million in as early as possible.

It seems as though brokers will just open New NISA accounts for current NISA customers unless instructed otherwise.

For tsumitate, you would set up a monthly purchase (choose a fund, date, and amount to invest each month). This would then come off a credit card (if eligible), from your broker cash account, or deducted from a bank account.

[beanhead]

The New NISA is slightly complicated (of course, why make it simple???). It is basically a tsumitate NISA and an ordinary NISA combined. The ordinary bit is 2.4m and you can pay in whenever you want, but the tsumitate bit is 1.2m and you have to pay in installments.

Presumably the bonus feature will still be there to allow people to basically lump sum with the tsumitate if they so wish?

I personally like the DCA nature of the tsumitate. And the extra benefits from credit card usage/points make me feel warm and fuzzy inside.

[RetireJapan]

The New NISA is slightly complicated (of course, why make it simple???). It is basically a tsumitate NISA and an ordinary NISA combined. The ordinary bit is 2.4m and you can pay in whenever you want, but the tsumitate bit is 1.2m and you have to pay in installments.

Presumably the bonus feature will still be there to allow people to basically lump sum with the tsumitate if they so wish?

I personally like the DCA nature of the tsumitate. And the extra benefits from credit card usage/points make me feel warm and fuzzy inside.

You know what happens when you presume: you make a... pre? out of you and me

[TokyoBoglehead]

The New NISA is slightly complicated (of course, why make it simple???). It is basically a tsumitate NISA and an ordinary NISA combined. The ordinary bit is 2.4m and you can pay in whenever you want, but the tsumitate bit is 1.2m and you have to pay in installments.

Presumably the bonus feature will still be there to allow people to basically lump sum with the tsumitate if they so wish?

I personally like the DCA nature of the tsumitate. And the extra benefits from credit card usage/points make me feel warm and fuzzy inside.

You know what happens when you presume: you make a... pre? out of you and me

I'm pretty sure this was confirmed by the FSA in their public Q and A.

[eyeswideshut]

My 2019 normal NISA is sitting at about 2 million so once the wrapper comes off I will cash it out and reinvest the funds in the new new eternal NISA and use whatever money I have available to increase it to the full 2.4 million limit in January. For the 1.2 million tsumitate component I am a little unclear whether it has to be done via monthly investments or if I can lump sum it. If I can lump-sum in January that is what I will do. If not I will set up a monthly payment of 100,000.

As to what to buy, I think it makes most sense to use the emaxis all country fund for the entire allotment - keep things as simple as possible.

[Roger Van Zant]

Alright, it seems people are starting to think about the New NISA and it's juicy juicy 3.6m yen a year contribution limit. How are you planning to use it?

My provisional plan for now is to put 100,000 yen a year into the tsumitate portion for my wife and I with new money, and then either pay in the extra 2.4m each with new money (if our businesses do well) or by selling investments from our taxable accounts (if our businesses do not do well).

How about you?

The maximum you can put in in any one month is 100,000 yen?
I have 3.6m ready to invest in 2024, and want to just dump it all in in one go (in January 2024).
Not possible?

The New NISA is slightly complicated (of course, why make it simple???). It is basically a tsumitate NISA and an ordinary NISA combined. The ordinary bit is 2.4m and you can pay in whenever you want, but the tsumitate bit is 1.2m and you have to pay in installments.

Thanks.
Can I invest in the eMaxis Slim All Country for both the "ordinary" bit as well as the "tsumitate" bit?
Is it better to not use the same fund for both portions, or...?

[RetireJapan]

Thanks.
Can I invest in the eMaxis Slim All Country for both the "ordinary" bit as well as the "tsumitate" bit?
Is it better to not use the same fund for both portions, or...?

That's my plan!

[concerned]

Also it would be best to put only Equity in this new NISA, and put bonds in the taxable account?