Tsumitate NISA question

[sytyue]

I am interested in the new tsumitate NISA account with SBI. I know nothing about stocks though. I am interested in putting my money towards some long term investments but I was also wondering if it's possible to put the annual limit into my tsumitate NISA account without investing anything and leaving it in there until I know what I should do?

Thanks

[adamu]

I don't think so. I'm not familiar with the Tsumitate, but the normal NISA doesn't consider something as part of the NISA until you actually make a purchase. It doesn't hold cash, only securities.

If you want to do some research, it doesn't hurt to at least apply for the account now, and you can put the money aside in a savings account in the mean time.

[RetireJapan]

iDeCo works like that (you can keep your contributions in cash) but I think adamu is right.

I would recommend low-cost passive index funds that invest in the world economy. You can find some ideas in the NISA board on this forum or ask a question

[sytyue]

Thanks for the replies. I was hoping that the tsumitate NISA account would be a kind of retirement fund account for me. I guess that would still work by investing in some low interest funds and just leaving it for the next 20 years. I'm always afraid of ending up with less money than I put in when it comes to investing. Still very new to it.

[RetireJapan]

Are you eligible for iDeCo? That is a better option for long-term investing for retirement, as it also reduces your income taxes. Check out the page on the site for details.

[sytyue]

I have opened my iDeco account about a year ago. The market is looking pretty bad lately so my iDeco investments have been suffering for the past few months.

I have some extra cash in my regular savings account which was why I was thinking of putting it in a tsumitate NISA account which would go towards my retirement (though that will probably be a good 25 years later) Is treating a tsumitate NISA account as something that will contribute into my retirement fund a bad idea?

[adamu]

Just pointing out the last post has also been posted and answered to here viewtopic.php?f=4&t=428

[sytyue]

Thanks!