Rebalancing new NISA

[Shiy60]

Hi everyone,

I have read some thoughts that some people plan to max-out the new NISA as quickly as possible (5 years or maybe a bit longer). For those of you who are not using an all-inclusive fund such as ‘All-world’, and may have 2-3-4-5 etc. investment trusts, how do you plan to rebalance once the NISA quota has been reached?

For instance:
1. Max out the monthly quota for 5 years straight, where do you plan to rebalance?
2. After the full NISA quota is reached (5 years for example). For the following years, how do you plan to rebalance?

[sutebayashi]

I view NISA as part of my overall portfolio, so also include DC, iDeCo, taxable account assets.

If I need to rebalance, I aim to not sell equities in my NISA accounts, since it is not so easy to re-use (not even possible up until now).
I do use “switching” in my DC, iDeCo.
I typically only sell down overweight assets in my taxable account, when I have no better option.

The other way to go, if you have extra money, is don’t sell anything down - invest more money in, and use the new money to bring up those asset classes that are too low.

Another way is to modify your tsumitate settings for a time to bring the portfolio into your preferred balance.

NISA from next year will be more amenable to rebalancing though… but yes, once it’s maxed out, with equities, I don’t think I will sell from it until the day I want the money.

[Tkydon]

Hi everyone,

I have read some thoughts that some people plan to max-out the new NISA as quickly as possible (5 years or maybe a bit longer). For those of you who are not using an all-inclusive fund such as ‘All-world’, and may have 2-3-4-5 etc. investment trusts, how do you plan to rebalance once the NISA quota has been reached?

For instance:
1. Max out the monthly quota for 5 years straight, where do you plan to rebalance?
2. After the full NISA quota is reached (5 years for example). For the following years, how do you plan to rebalance?

If you pay in to New NISA as quickly as possible (Y2.4M Per year into Growth and Y1.2M per year into Tsumitate), and quicky max out your Lifetime Allowance of Y18M, then,
if you want to rebalance,
when you sell the units you bought (hopefully for a profit), you will receive the sale proceeds tax free, and
you will receive a credit back to your lifetime allowance of the Purchase Price you actually paid for those sold assets when you bought them,
so you can go and reinvest back up to the same lifetime limit of Y18M in subsequent years (assuming you have no available allowance in the actual year in which you sold).

[Bubblegun]

If you pay in to New NISA as quickly as possible (Y2.4M Per year into Growth and Y1.2M per year into Tsumitate), and quicky max out your Lifetime Allowance of Y18M, then,

According to this site, we can use both types of NISA accounts.
https://investmentjapan.jp/japans-basic ... 20%20years.
At the moment, I have the Tsumetate. So I was wondering if anyone knows whether or not Rakuten et al will set up the other account, so we can put in eg 3 million in one January. Or is this going to be a seamless account that will automatically rebalance between the Tsumetate and the growth account?

[Tkydon]

If you pay in to New NISA as quickly as possible (Y2.4M Per year into Growth and Y1.2M per year into Tsumitate), and quicky max out your Lifetime Allowance of Y18M, then,

According to this site, we can use both types of NISA accounts.
https://investmentjapan.jp/japans-basic ... 20%20years.
At the moment, I have the Tsumetate. So I was wondering if anyone knows whether or not Rakuten et al will set up the other account, so we can put in eg 3 million in one January. Or is this going to be a seamless account that will automatically rebalance between the Tsumetate and the growth account?

I don't know the answer to the question, but,

If you pay in lump sum to growth portion, you can pay in anytime once the account is set up.
For the Tsumitate Portion, you will have to set up a monthly Tsumitate of some amount, and so long as you have additional capacity, you will be able to make a Bonus payment into the Tsumitate to top it up, I assume as soon as, and whenever you like...