New NISA strategy -GO!

[TokyoBoglehead]

developed country bond fund

Debt ceiling

Indeed, due to currency risk this seems like a strange choice.

[Gulliver]

OK, math is not my forte, so forgive me if this doesn’t make any sense.

If you had say 110,000 or more Yen to invest every month wouldn’t you want to fill up your Growth quota first? ¥2.4 million compounded over five years in a bull market would yield more than ¥1.2 million compounded over five years, right? Or is the total value of Growth and Regular accounts lumped together when they calculate total return?

[sutebayashi]

developed country bond fund

Debt ceiling

Indeed, due to currency risk this seems like a strange choice.

We each pick our poison. The yen is hardly the cleanest of the dirty shirts these days.

If one is just going to turn around and invest the money overseas next year anyway, I don’t see that it matters.

[TokyoBoglehead]

Debt ceiling

Indeed, due to currency risk this seems like a strange choice.

We each pick our poison. The yen is hardly the cleanest of the dirty shirts these days.

If one is just going to turn around and invest the money overseas next year anyway, I don’t see that it matters.

Fair enough, an ETF would probably be more suitable then, as opposed to a fund.

[adamu]

OK, math is not my forte, so forgive me if this doesn’t make any sense.

If you had say 110,000 or more Yen to invest every month wouldn’t you want to fill up your Growth quota first? ¥2.4 million compounded over five years in a bull market would yield more than ¥1.2 million compounded over five years, right? Or is the total value of Growth and Regular accounts lumped together when they calculate total return?

They are lumped together into the ¥3.6M annual allowance, so it doesn't matter.

The Regular quota has restrictions on what you can buy and how you buy it, and you eventually need at least ¥6M of it if you want to use the full lifetime allowance. If you are buying eligible mutual funds, it makes sense to use up the Regular quota first to fill up the more restricted ¥6M, but if you're only ever buying approved mutual funds, it doesn't really matter. It's not clear how this will work in practice yet; it may be automatic.

[JimNasium]

I’m curious, for the people with better minds than me about these kind of things, are there any situations where selling off your taxable index funds to switch them to the new NISA would be the wrong move?

[TokyoBoglehead]

I’m curious, for the people with better minds than me about these kind of things, are there any situations where selling off your taxable index funds to switch them to the new NISA would be the wrong move?

The risk is being out of the market during the buying and selling phase. That could take 5-10 whole market days with global mutual funds. Missing a hot week in the market can actually have major consequences.

https://fmpwa.com/the-cost-of-missing-t ... ck-market/

So to minimize this you can simple sell over time and rebuy slowly.

So instead of selling 3.6 million in January. You could sell, and rebuy 1.2 in January. Then again in February and March.

[beanhead]

Debt ceiling

Indeed, due to currency risk this seems like a strange choice.

We each pick our poison. The yen is hardly the cleanest of the dirty shirts these days.

If one is just going to turn around and invest the money overseas next year anyway, I don’t see that it matters.

Exactly. I just see this as a cash-like option for a few months, to be honest. Returns are very good at the moment.
If, because of FX movements, I make close to nothing or even lose money, the amounts are small enough to handle.

[Gulliver]

…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.

Wait, what? Investing with a credit card?

Is it just me, or does seem like a horrible idea for nation that already has big gambling addiction problem?

This brings up so many questions- leveraging, using foreign currency, family credit accounts, to name a few.

[TokyoBoglehead]

…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.

Wait, what? Investing with a credit card?

Is it just me, or does seem like a horrible idea for nation that already has big gambling addiction problem?

This brings up so many questions- leveraging, using foreign currency, family credit accounts, to name a few.

It's limited to 5 万 a month, approved mutual funds only, select credit cards. Etc.

Also tsumitate style (Nisa or non) only.