How to make a LARGE PURCHASE on the new NISA

[Bubblegun]

So the new NISA is about to start. We would like to transfer a rather large amount into all our family NISAs. Adult kids, me and the wife.

We could withdrawn eg about 9 million yen, from all our taxable accounts, but we dont want this hanging around in the bank accounts, or the taxable funds if it can all be better invested into tax free accounts for everybody.

Do we have to

A) increase our monthly payments.
B) make a single LARGE SPOT purchase.eg 2 million yen then DCA
C) some other cunning plan.

Preferably i would like to make one single large payment, then continue topping the rest up as per DCA.

Thank you in advance.

[adamu]

You can do a one-off 2.4M purchase per account (not yet though, next year. Or maybe the last week in December if the clearing date is 2024).
The other 1.2M needs to be tsumitatied.

A bit of overlap with this thread: https://www.retirejapan.com/forum/viewtopic.php?t=2998

[eyeswideshut]

tsumitatied.

I dispute this verbification of tsumitate. I think it should be tsumitatsued .

[Bubblegun]

tsumitatied.

I dispute this verbification of tsumitate. I think it should be tsumitatsued .

Well so long as we are not tsumitaSCREWED....I'm ok.

Sorry if there was any over lap in threads. I just wanted to make sure in a simple one of that WE CAN MAKE THAT ONE BIG PURCHASE.

[Tkydon]

You can,

But, you should be aware that each person can only receive Gifts Tax Free to a total of Y1.1M per year, so if you transferred Y2.4M to a NISA for your spouse or child in one year, they would be liable for Gift Tax on Y1.3M at 10%, so Y130,000 Gift Tax.

If you want to avoid Gift Tax, you should limit Gifts to less than Y1.1M per year.

If it is already their money, then Gift Tax doesn't apply.

If you gift Y1.1M before the end of Dec for 2023, you can then gift another Y1.1M in Jan for 2024...

[sutebayashi]

To max the whole thing out asap, I was thinking to
- sell 2.4 million out of taxable tokutei account and flip it into NISA for the growth part, and
- for the tsumitate part (I have never done tsumitate NISA before, but if possible) set up tsumitate with the minimum monthly investment amount (100 yen?), but add bonus months in January and February with large amounts to get the tsumitate portion money in as fast as possible.

On the other hand… selling taxable tokutei account holdings /will/ incur taxes… so perhaps I will try to be a little more clever, and wait for a 10% correction / 20% bear market in stocks, and then migrate 1.2 or 2.4 million yen’s worth over to NISA. (Not trying to time the market - only seeking to time the migration from taxable to tax free, to minimize taxes…)

Even for the tsumitate side, I am going to do monthly tsumitate anyway even without NISA, so maybe I will just go with NISA tsumitate for that… and thus defer paying taxes on taxable account positions there too…

(Going off topic, but one thing that I would like to be able to do, is an “inverse tsumitate” or torikuzushi I suppose - rather than buy 100K yen of something each month, I’d like to be able to set up a sell 100K yen order, so as to be able to automate the migration into taxable for the tsumitate part. But I don’t think my Monex has this type of feature. Or maybe it’s there but I’ve never had a desire for it?)

[Bubblegun]

You can,

But, you should be aware that each person can only receive Gifts Tax Free to a total of Y1.1M per year, so if you transferred Y2.4M to a NISA for your spouse or child in one year, they would be liable for Gift Tax on Y1.3M at 10%, so Y130,000 Gift Tax.

If you want to avoid Gift Tax, you should limit Gifts to less than Y1.1M per year.

If it is already their money, then Gift Tax doesn't apply.

If you gift Y1.1M before the end of Dec for 2023, you can then gift another Y1.1M in Jan for 2024...

Thanks for that.Something i never thought of and need to consider. putting some in this year, and then some in January. Yes. Although they could be a few weeks a part they would basically be in two separate years. 2023 and 2024. The junior NISA only has another 400,000 available this year so I will do this this week. Just to fill it up. pitty they didn't keep it running for the kids.

What about if one child is 19...can they still contribute to their NISA? (old JNISA) Even though they are under 20, or did the old gods in the Bank of Japan not think about just letting things run? OR DID THEY? If I can't then there isn't much i can do.

Excellent tax efficiency advice. I'll keep that in mind.