Advice on maxing out NISA

[beanhead]

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.

A few years ago the government was thinking about revising NISA and asked the major brokers to reach out to their customers. We all got sent a survey, asking for our opinions on some proposed changes.
A few months later, changes were enacted, which included the increased limits and end of the time limits for the tax-free period for NISA. These improvements were what many had been suggesting/requesting.

So it is not completely unheard of for us lowly consumers to be consulted. And positive changes may come to iDeCo too. But don't hold your breath.

[Max]

Let's hope so. If the current 144k per year hadn't been raised I probably wouldn't bother with iDeCo. The tax reduction would be minimal, barely worth the palaver involved it setting it up, to my mind.

[Wales4rugbyWC23]

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.

A few years ago the government was thinking about revising NISA and asked the major brokers to reach out to their customers. We all got sent a survey, asking for our opinions on some proposed changes.
A few months later, changes were enacted, which included the increased limits and end of the time limits for the tax-free period for NISA. These improvements were what many had been suggesting/requesting.

So it is not completely unheard of for us lowly consumers to be consulted. And positive changes may come to iDeCo too. But don't hold your breath.

The ideoco allowance does seem rather modest, especially on an international comparison. In the UK, for example you can put away 60,000 pounds annually in pension investments. Although there are a few other pension allowances that you can use in Japan, which could increase your pension provision and give you a lower taxable income.

[adamu]

The tax reduction would be minimal, barely worth the palaver involved it setting it up, to my mind.

55.945% at the most, so if you pay ¥68k/mo, up to about ¥456k/year.

[trajan]

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.

Which bond fund do you invest in? How does it perform compared to the eMaxis?

[RetireJapan]

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.

Which bond fund do you invest in? How does it perform compared to the eMaxis?

Just the eMaxis Slim Developed Country Bond fund

[trajan]

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.

Which bond fund do you invest in? How does it perform compared to the eMaxis?

Just the eMaxis Slim Developed Country Bond fund

Thanks. Consider you "thumbed up".

What's the rationale for this single diversification? Returns? Safety? Stability?

[trajan]

Found this. So, none of that unless I understand nothing, which happens more often than I'd like.

https://emaxis.am.mufg.jp/fund/252648.html

[RetireJapan]

Thanks. Consider you "thumbed up".

What's the rationale for this single diversification? Returns? Safety? Stability?

Laziness mainly

I think my main approach going forward is going to be mostly global stocks with a big cash position to balance it out.

[trajan]

Thanks. Consider you "thumbed up".

What's the rationale for this single diversification? Returns? Safety? Stability?

Laziness mainly

I think my main approach going forward is going to be mostly global stocks with a big cash position to balance it out.

Forgive my ignorance but, what do you mean by "a big cash position"?