Junior NISA alternative

[AlexanderLamas]

Hello RetireJapan forum!

Greetings!

In regards to Junior NISA, which is now ended.
And yes, I missed out.

What are the alternatives to replace the Junior NISA investment account?
Have the government released, or have plans to release anything like it again near future?

Also, does anyone know if we have in Japan custodial account to invest under the kids name?
If so, which institutions have that?

Thank you very much in advance!

Best regards,
Alex

[sutebayashi]

Yes you can open accounts in your kids name and invest via them.

Unlike with nisa, when you or the kid sells, they may have to pay tax on it.

People really hate paying tax on investments, but I think investing is still worth it, as opposed to losing 2% a year through inflation and doing nothing.

Major net brokers all support kid accounts I believe.

There is nothing concrete from the FSA yet about a revised Junior nisa program.

[AlexanderLamas]

Hi @ sutebayashi-san!

Thank you very much for your reply.
Much appreciated.

I'm starting to search around for those institutions.
The only problem for me is because of my Japanese skills.
It's not so good yet. It's working progress though.

Do you have any suggestions?

Thanks in advance.

[Tsumitate Wrestler]

Yes you can open accounts in your kids name and invest via them.

Unlike with nisa, when you or the kid sells, they may have to pay tax on it.

People really hate paying tax on investments, but I think investing is still worth it, as opposed to losing 2% a year through inflation and doing nothing.

Major net brokers all support kid accounts I believe.

There is nothing concrete from the FSA yet about a revised Junior nisa program.

Taxable investing for kids is only advantageous if it is the "kids" money, and not the parents. The main use case in Japan is grandparents gifting under the 1.1 million threshold yearly to avoid inheritance tax down the road. The account would be then used to invest the "child" money.*

Otherwise, a parent is better off using their tax-advantaged accounts, or taxable accounts.

(This is general, there are special cases etc).
*The FSA has been cagey about this use case, etc. Some of the tax-heads on japanfinance are wary.

[Spa06Jc]

Are there any other suggestions for children accounts for investing? I am keen to set something up I can pay a regular amount into for my daughter, so that as she grows up I can use it teach her about the benefits of long-term steady investing as well as handing it over to her. Appreciate that from a tax perspective, its better to max the parents' tax-free allocations, but that won't provide the 'skin-in-the-game' for my daughter to learn how her money grows and increases over her lifetime.

[sutebayashi]

Are there any other suggestions for children accounts for investing?

Monex is where my kids have their securities accounts but you can probably get them set up with the same broker as you use.

I agree with you. My 11 year old expressed interest in investing this year so he got set up with monthly tsumitate investments with his otoshidama and he’ll be reviewing his results in future. (I didn’t show him his old jnisa balance yet but that will be a nice surprise for him one day)

[beanhead]

Are there any other suggestions for children accounts for investing?

Monex is where my kids have their securities accounts but you can probably get them set up with the same broker as you use.

Rakuten would work too. JP Bank set up in the child's name is probably easiest to set up the regular transfers to the brokerage account.

[Tsumitate Wrestler]

Are there any other suggestions for children accounts for investing?

Monex is where my kids have their securities accounts but you can probably get them set up with the same broker as you use.

Rakuten would work too. JP Bank set up in the child's name is probably easiest to set up the regular transfers to the brokerage account.

I can confirm this Rakuten+Yucho was pretty painless. (Registered during the J-Nisa days though).