New NISA strategy -GO!

[sutebayashi]

Let me know if I am grossly over-looking something, or if something doesn't make sense at all.

Seems pretty sensible to me. There are a couple of aspects - one; selling taxable accounts assets to have cash to invest in NISA, and two; what assets to invest in.

If you sell your taxable account S&P funds and the META you’ll probably be looking at paying some tax, but in the taxable account that’s probably going to happen sooner or later, so it makes sense from my perspective to sell out, pay some tax on the profits and then reinvest in the tax free NISA, rather than be liable to pay more tax on further profits as well.

Not a lot of money but you might want to hang on to that developed market REIT fund and try to sell at break even or better, but then if you want to change your asset allocation to all global stocks why not.

The asset allocation you want to choose is not so much a NISA question, but going with all country stock funds is not a bad option, if you are happy with that.

[goran]

Let me know if I am grossly over-looking something, or if something doesn't make sense at all.

Not a lot of money but you might want to hang on to that developed market REIT fund and try to sell at break even or better, but then if you want to change your asset allocation to all global stocks why not.

The asset allocation you want to choose is not so much a NISA question, but going with all country stock funds is not a bad option, if you are happy with that.

Yes, psychologically it would hurt a little to exit in a negative position, however small that negative might be. But I would definitely want to change the asset allocation from REIT fund. I think I will think about it again sometime next year.

I am unable to see anything beyond all country stock fund at the moment. (I am in my early 30's, if that matters)
So, I am unsure what other options I should be considering.

[beanhead]

Yes, psychologically it would hurt a little to exit in a negative position, however small that negative might be. But I would definitely want to change the asset allocation from REIT fund. I think I will think about it again sometime next year.

You could just consider it a small price to pay for learning a good lesson.
I am sure that statistically selling it, taking the loss and buying the equity fund in the tax-advantaged account will work out better.
But if you are prepared to keep it for another 4 or 5 years, who knows what will happen.
It is not such a huge amount of money, so hopefully by the time you need it, it will be just a rounding error.

have made similar mistakes, by the way. I thought I would be clever and buy some high-risk, high-return 'sexy' funds.
Me and Mrs Head went for some of these: https://emaxis.jp/lp/neo/index.html
Not to be recommended! I sold mine at a loss. The good lady still has hers. She doesn't want to sell at a loss, even though this drags down the overall returns of her portfolio.

[sutebayashi]

I would not saying having the developed market REIT fund is a mistake, it’s just unfortunate timing probably that it is in the negative. I have about 5% of my Monex account in the same fund, and it’s a winner for me but I guess because of a better average price, as I have been doing the tsumitate thing for some time.

I think the most important question is whether one wants to have a part of one’s portfolio in that asset class Going forward. (Myindex.jp plug here for playing with portfolio allocations)

Taking the loss by selling it (and rebuying in NISA) would have the slight benefit of offsetting tax due on the profitable sales.

[goran]

Yes, psychologically it would hurt a little to exit in a negative position, however small that negative might be. But I would definitely want to change the asset allocation from REIT fund. I think I will think about it again sometime next year.

have made similar mistakes, by the way. I thought I would be clever and buy some high-risk, high-return 'sexy' funds.
Me and Mrs Head went for some of these: https://emaxis.jp/lp/neo/index.html

META was this for me. Luckily, for now I am in the positive. But never doing that again.

[goran]

I have about 5% of my Monex account in the same fund, and it’s a winner for me but I guess because of a better average price, as I have been doing the tsumitate thing for some time.

I think the most important question is whether one wants to have a part of one’s portfolio in that asset class Going forward. (Myindex.jp plug here for playing with portfolio allocations)

I think age is a big factor in making this decision, correct?

[sutebayashi]

I think age is a big factor in making this decision, correct?

Hadn’t thought about age as a factor here. I’m mid-fourties, and have been buying this type of developed market REIT fund for around 8 years. I tend to go for a bit of diversification, rather than full-on risk in equities only, just me.

[goran]

I think age is a big factor in making this decision, correct?

Hadn’t thought about age as a factor here. I’m mid-fourties, and have been buying this type of developed market REIT fund for around 8 years. I tend to go for a bit of diversification, rather than full-on risk in equities only, just me.

I'm in my early/mid-30's. I also think about gradually moving my portfolio into non-stock low-risk/low-return funds as I get into the next decade of my life. Probably from my late-30's. Let's see.

Once again, thank you for your insights!