New NISA Tsumitate - minimum monthly?

[Seasider4374]

Hi, can anyone tell me the minimum monthly amount that can be invested in the Tsumitate Portion? I'm planning to set up the minimum amount, but make a bonus payment to max this year's allowance, probably next year too, but don't want to commit myself to the max amount for future years just yet...

And where (on Rakuten) do I set this limit? Is it somewhere in the NISA tab? Or if I just create a recurring buy order into my Tsumitate of 10,000 (say) monthly, then that's it - monthly limit of 10,000 becomes set?

[Seasider4374]

Further to above reading through this thread (regarding SBI) https://www.retirejapan.com/forum/viewt ... 792#p36792 it seems I can set 1 or 2 bonus dates a year when setting a recurring buy, but that I need to set a bonus buy amount at the same time? Ideally I want my bonus commitment to be 0yen, but with the ability to increase this if spare funds are available in any given year, before this bonus amount getting reset to 0yen again.

[adamu]

I think you'd have to cancel the existing order, and make a new one including the bonus payments, adjusting the monthly payments down if necessary.

Alternatively, leave the Tsumitate alone and just make a one-off purchase in the Growth portion.

[Seasider4374]

Thanks Adamu. Does anyone know if there is a yearly limit to how many times orders can be cancelled/recreated into a Tsumitate NiSA?

[sutebayashi]

Thanks Adamu. Does anyone know if there is a yearly limit to how many times orders can be cancelled/recreated into a Tsumitate NiSA?

I believe the limit is how much time you are prepared to spend cancelling and recreating your orders

The only limit that I have ever seen mentioned is the annual allowance maximum.

It might be possible to fiddle with it and actual have it only ever execute bonus orders (then cancel before the tsumitate day), but, the question would be why bother?

If you don’t use the tsumitate allowance fully in this year, no big deal, you’ll be able to use it in a future year instead. Legacy nisa was a use-it-or-lose-it proposition, but Nisa today is not like that.

The annual limits are just a maximum, there is no obligation to max them out. Maxing them out is more a strategy for those who already have accumulated a goodly amount of assets already, or are able to invest enough money to do so. But I think of it as a limit, rather than an objective to meet.

[Seasider4374]

Thanks,

I believe the limit is how much time you are prepared to spend cancelling and recreating your orders

Which doesn't seem such a pain - if only once, or twice a year.

It might be possible to fiddle with it and actual have it only ever execute bonus orders (then cancel before the tsumitate day), but, the question would be why bother?

I think I'm in agreement - I want to set up a minimal 10,000yen per month payment, and if any given year allows, top up the remaining (or portion of my remaining) 1,080,000 Tsumitate allowance.

The annual limits are just a maximum, there is no obligation to max them out

Of course, but I'm in a maybe pseudo state of "goodly amount", hoping to compound interest as much as possible, as soon as possible. I could safely top the next two years of both growth and investment out, but being freelance, and knowledgeable of income "issues" during Covid years, don't want to over extend as who knows what the future may hold.

I'm in Japan for life and so my strategy (under consideration) is to;
(i) - pay full iDeCo amount monthly for the yearly tax savings, and growth
(ii) - pay a minimal Tsumitate NiSA monthly to keep as a placeholder account
(iii) - max out as much as possible payments into a Growth portion NiSA
(iv) - (if funds allow) completely max out any years' Growth portion NiSA
(v) - (if funds still allow) top up through bonus month(s) my Tsumitate portion
(vi) - (IF funds even further still allow) invest in taxable

Have I made any glaring errors regarding this plan?

[Tsumitate Wrestler]

Thanks,

I believe the limit is how much time you are prepared to spend cancelling and recreating your orders

Which doesn't seem such a pain - if only once, or twice a year.

It might be possible to fiddle with it and actual have it only ever execute bonus orders (then cancel before the tsumitate day), but, the question would be why bother?

I think I'm in agreement - I want to set up a minimal 10,000yen per month payment, and if any given year allows, top up the remaining (or portion of my remaining) 1,080,000 Tsumitate allowance.

The annual limits are just a maximum, there is no obligation to max them out

Of course, but I'm in a maybe pseudo state of "goodly amount", hoping to compound interest as much as possible, as soon as possible. I could safely top the next two years of both growth and investment out, but being freelance, and knowledgeable of income "issues" during Covid years, don't want to over extend as who knows what the future may hold.

I'm in Japan for life and so my strategy (under consideration) is to;
(i) - pay full iDeCo amount monthly for the yearly tax savings, and growth
(ii) - pay a minimal Tsumitate NiSA monthly to keep as a placeholder account
(iii) - max out as much as possible payments into a Growth portion NiSA
(iv) - (if funds allow) completely max out any years' Growth portion NiSA
(v) - (if funds still allow) top up through bonus month(s) my Tsumitate portion
(vi) - (IF funds even further still allow) invest in taxable

Have I made any glaring errors regarding this plan?

Generally, the basics would be...

1. Do you have 3-6 months of living expenses saved in cash savings?
2. 5-10 man in physical cash in your earthquake bag? (Small bills, some coins).
3. Do you have a spouse?->You will want term insurance unless your mortgage covers you. (Relatively cheap).
4. Do you have kids? -> "Cycle insurance" covers them for accidents on/off the bike. (Very Cheap)
5. Renter? -> Do you have renters insurance

Lifers -> Pension Payments w/fuka -> iDeco(s) -> Nisa(s) ->Taxable

[sutebayashi]

No glaring errors I think, but I personally favour a more consistent tsumitate pace, over lump summing.

Some data suggests upfront lump summing can give better results, but I think tsumitate consistency takes stress out of it - one is less likely to feel bummed during a big drawdown. There is non-monetary value in that, and that might translate into monetary value should your decisions be effected by stress.

If you go in slower and steady, should your income circumstances change, you won’t have pre-committed as much.

Still, you can always sell nisa holdings if a need arises, and get back in in subsequent years.

[adamu]

I could safely top the next two years of both growth and investment out, but being freelance, and knowledgeable of income "issues" during Covid years, don't want to over extend as who knows what the future may hold.

I'm in Japan for life and so my strategy (under consideration) is to;
(i) - pay full iDeCo amount monthly for the yearly tax savings, and growth
(ii) - pay a minimal Tsumitate NiSA monthly to keep as a placeholder account
(iii) - max out as much as possible payments into a Growth portion NiSA
(iv) - (if funds allow) completely max out any years' Growth portion NiSA
(v) - (if funds still allow) top up through bonus month(s) my Tsumitate portion
(vi) - (IF funds even further still allow) invest in taxable

I know you are trying to account for an unstable income, but considering you anticipate being able to max the growth portion I think it would be much simpler to:

1) Commit to maxing out the Tsumitate portion with the maximum monthly payments
2) Put any extra in the Growth portion

This also has the benefit of maxing out the Tsumitate portion ASAP, as you need to put ¥6m in there eventually to make the most of the lifetime allowance.

[mcpaullibra]

Thanks a lot guys, I'm getting lots of info in these forums.
Couldn't find the YouTube video explanation, but I thought the limit with Rakuten cash was 100k and 50k with Rakuten card. Tried that but could only setup 50k.

My NISA account refused to be linked to my Rakuten card (something about the names not matching. Despite both being based on my driving license data. Typical Japanese website BS) and I don't have any other funding options outside the Rakuten card and cash.

Any advice on how to proceed? Still waiting for approval of my IDeco application and I will need to fund that too. Thanks again.