Advice on maxing out NISA

[tokyojo]

Hello,

I have been following and reading here for a long time, and I have received SO much useful information from here on several topics, including when I bought a house a few years ago. However, this is my first posting, but I decided to do that because I know I will probably get great advice on my maybe simple question.

My question is about my new NISA. I am planning on maxing out my NISA in the next 5 years (this year + the subsequent 4 years). Then I will just leave it to be for about 10+ years. This year, I have put everything into Emaxis Slim All Country based on the advice here. To be honest, I don't know much about stock market investing (and don't really wish to learn much ), but I wanted to get some opinions on what you would suggest I invest in with this plan. Do you think it's wise to have it all in Emaxis Slim All Country? Or would it be smarter to divide it between several funds? I am basically just looking into that money growing somewhat before I need to use it in the future. Any advice would be great appreciated!

Just as background, I am European and have been focusing on real estate investments in Europe until now which have provided me a decent one bucket safety net for retirement. I have been maxing out my IDeco for several years with the very minimal contributions I can make as a PMAC member. My pension will not be great, but should be decent after paying PMAC for 38 years at a decent salary by the time I retire in 10+ years.

Thanks for any guidance you can provide!

[RetireJapan]

Hello,

I have been following and reading here for a long time, and I have received SO much useful information from here on several topics, including when I bought a house a few years ago. However, this is my first posting, but I decided to do that because I know I will probably get great advice on my maybe simple question.

My question is about my new NISA. I am planning on maxing out my NISA in the next 5 years (this year + the subsequent 4 years). Then I will just leave it to be for about 10+ years. This year, I have put everything into Emaxis Slim All Country based on the advice here. To be honest, I don't know much about stock market investing (and don't really wish to learn much ), but I wanted to get some opinions on what you would suggest I invest in with this plan. Do you think it's wise to have it all in Emaxis Slim All Country? Or would it be smarter to divide it between several funds? I am basically just looking into that money growing somewhat before I need to use it in the future. Any advice would be great appreciated!

Just as background, I am European and have been focusing on real estate investments in Europe until now which have provided me a decent one bucket safety net for retirement. I have been maxing out my IDeco for several years with the very minimal contributions I can make as a PMAC member. My pension will not be great, but should be decent after paying PMAC for 38 years at a decent salary by the time I retire in 10+ years.

Thanks for any guidance you can provide!

Welcome! You'll be pleased to know your iDeCo allowance will be going up to 20,000 yen later this year. Finally.

As for diversifying the eMaxis Slim fund by buying different funds: as long as the funds have the same investments in them there is not much reason to buy more of them. Owning 4 world stock funds is functionally the same as just owning one, but more hassle.

On the other hand, you can buy different asset funds like bond funds, REIT (real estate) funds, commodity funds, etc.

I don't bother and just buy one world stock fund and one bond fund, but depending on your goals and level of interest you may want to explore this.

It sounds like you are already diversified by owning real estate and having a strong pension (which acts a bit like a bond), so keeping your stock market investments simple might work for you.

Anyone else?

[adamu]

Do you think it's wise to have it all in Emaxis Slim All Country?

Yep.

[tokyojo]

Thank you very much for the reassuring responses! I will stick to this simple strategy for stocks which is what I was hoping would suffice for my purposes. I am also glad to hear about the increase in IDeco contributions; I trust that I can find all the information here when the time comes as to how to make this change for myself. I hope it won't involve tons of paperwork. Thanks again!

[david]

Welcome! You'll be pleased to know your iDeCo allowance will be going up to 20,000 yen later this year. Finally.

Sorry to hijack the thread here but are IDECO limits changing for any other types of contributor? I am lucky to have a company DECO so im capped at 20,000 yen but would love to contribute more.

[RetireJapan]

Welcome! You'll be pleased to know your iDeCo allowance will be going up to 20,000 yen later this year. Finally.

Sorry to hijack the thread here but are IDECO limits changing for any other types of contributor? I am lucky to have a company DECO so im capped at 20,000 yen but would love to contribute more.

No, just the poor kyosai/public servants, who have been capped at a risible 12,000 yen a month since they became eligible.

Would like to see contribution limits go up for everyone though.

[david]

Welcome! You'll be pleased to know your iDeCo allowance will be going up to 20,000 yen later this year. Finally.

Sorry to hijack the thread here but are IDECO limits changing for any other types of contributor? I am lucky to have a company DECO so im capped at 20,000 yen but would love to contribute more.

No, just the poor kyosai/public servants, who have been capped at a risible 12,000 yen a month since they became eligible.

Would like to see contribution limits go up for everyone though.

Thanks for the follow up, I assume any increase would be pretty big news around these parts so I will keep my eyes peeled.

[Max]

Risible is the word. Even at 20k the annual max will be just 1/15th of the Nisa max (240k vs 3,600k).

[RetireJapan]

Risible is the word. Even at 20k the annual max will be just 1/15th of the Nisa max (240k vs 3,600k).

Sure, but you can do both, and iDeCo lowers your income taxes.

[Max]

Of course, I'm not saying iDeCo is bad, just that it's a shame the contribution limits aren't very high, even if you have self-employed status.