investment dilemma!

[bryanc]

quick question-maybe not enough detail for people but i have been paying into a 20yr acct which comes due next year.july. i can redeem now for loss of 3.4%(when bonuses etc considered) .it is worth 117000$...im presuming its better to take out now and invest in something else than wait another yr for the 3.4% increase? obviously can invest in nisa but amount is too large for just that..any other options/ideas?or just leave in for the 3.4%?
thanks

[TokyoWart]

US dollars have lots of safe investment options at 4-5% or more so I would not keep money in an account to capture a 3.4% return over a year (or to avoid that amount of penalty).

[bryanc]

thanks-but i would have to pay 20% tax on the returns..so was wondering

[TokyoWart]

thanks-but i would have to pay 20% tax on the returns..so was wondering

Yes, but you eventually plan to leave this underperforming investment anyway and will have to pay the tax then so it would not enter into my consideration of what to do.

[sutebayashi]

It sounds like you’d be taking a loss if you get your money out now, and then do something more productive with it for a year - if that’s the case then you’d pay no tax for getting the money out at a loss.

And remember, even though you do have to pay about 20% tax on any gains you realize (in taxable accounts), you do get to keep the other 80% plus your principal!

[Bubblegun]

quick question-maybe not enough detail for people but i have been paying into a 20yr acct which comes due next year.july. i can redeem now for loss of 3.4%(when bonuses etc considered) .it is worth 117000$...im presuming its better to take out now and invest in something else than wait another yr for the 3.4% increase? obviously can invest in nisa but amount is too large for just that..any other options/ideas?or just leave in for the 3.4%?
thanks

Well, I am sure you would lose out if you had to pay 20% tax. I would keep it in dollars, take the bonus,(that's guaranteed) and fill up the long-term NISA portion next year.(fi your going to bring it over here) I was in the same situation last year. If I withdrew the money early I would have lost out on the terminal bonus. It worked out great. I got the bonus and brought chunks of cash over last year. Filled the 2023 NISA, and FILLED the 2024 new Long term portion of the NISA. With the yen weakening, it was pretty good. Also when you convert the dollars into yen that might be good.Although we don't know where things will be next year in currency terms.

[bryanc]

thats the main problem... in a yr from now if the yen recovers even slightly this will have a huge impact..thinking may be safer to take out now..

[sutebayashi]

I saw Toru Sasaki on tv earlier this week now predicting 170 by the year end, and 200 by the end of next year, unless policy changes are made. Impossible to k ow what will happen though. That’s money.

[RetireJapan]

I saw Toru Sasaki on tv earlier this week now predicting 170 by the year end, and 200 by the end of next year, unless policy changes are made. Impossible to k ow what will happen though. That’s money.

Net worth goes up, purchasing power goes down.

Not sure how to feel about that

[beanhead]

Net worth goes up, purchasing power goes down.

Not sure how to feel about that

Within Japan you can control what you spend to a certain extent to ease the pain.

Travel overseas though? It really hits home. I had to go to Europe for work and for the money I spent myself I just had to stop thinking about the prices, otherwise I wouldn't have been able to do anything.
I did pay 600yen for 1 bottle of water once, which I can't remember doing in Japan.