monex tokutei

[Tsumitate Wrestler]

It's just wrong to say it is impossible to beat a passive index - of course there are ways to do so. I don't recommend them and I don't try to do so myself but I am honest enough to say there are ways to do it and some people do - it's not impossible, just very difficult.

As for selecting individual funds, sectors or stocks long term underperformance with this approach is basically statistically guaranteed.

That's what I said.

[Tsumitate Wrestler]

I have small amounts of physical gold, cryptocurrency, narrower focus ETFs, meme stocks, individual Japanese stocks, etc but don't tend to mention that in public. They are a tiny % of our net worth and probably an unwise thing to do with my money

At least as far as the gold goes I think you are on to something

Gold is not much of a sin.

The biggest issue in Japan are the huge fees associated with many of the funds and plans. Storage fees I guess? Some of them have the option of physical delivery at any time.

There's also quite a few investors that are index diehards, but still have 100 shares of Aeon for that sweet stockholder discount card.

[Deep Blue]

It's just wrong to say it is impossible to beat a passive index - of course there are ways to do so. I don't recommend them and I don't try to do so myself but I am honest enough to say there are ways to do it and some people do - it's not impossible, just very difficult.

As for selecting individual funds, sectors or stocks long term underperformance with this approach is basically statistically guaranteed.

That's what I said.

And it’s completely wrong.

[RetireJapan]

And it’s completely wrong.

Not sure what you are basing that statement on. Close to 100% of professional fund managers underperform the index over the long term, so I'm not sure why the broader universe of amateur investors would do better.

[Deep Blue]

And it’s completely wrong.

Not sure what you are basing that statement on. Close to 100% of professional fund managers underperform the index over the long term, so I'm not sure why the broader universe of amateur investors would do better.

Most amateur investors wlll underperform. Not all. I don't know if it's 66%, 90% ot 99% who will underperform. But a non-zero number won't, and hence it isn't impossible as was stated earlier. My wild arse guess is 1 in 20 will outperform, just because some investors will choose an S&P500 tracker as recommended by many including the sage of Omaha. That one choice alone, which isn't unreasonable or uncommon would have outperformed the eMaxi's world tracker.

Do you understand now?

[adamu]

I think this is a semantic argument over the phrase "statistically guaranteed". I don't think anyone disagrees on the actual points, just on this phrasing.

Also, can we rename the thread?

[RetireJapan]

Most amateur investors wlll underperform. Not all. I don't know if it's 66%, 90% ot 99% who will underperform. But a non-zero number won't, and hence it isn't impossible as was stated earlier. My wild arse guess is 1 in 20 will outperform, just because some investors will choose an S&P500 tracker as recommended by many including the sage of Omaha. That one choice alone, which isn't unreasonable or uncommon would have outperformed the eMaxi's world tracker.

Do you understand now?

Okay, we were obviously talking past each other. I wouldn't call choosing the S&P500 vs an all-world fund beating a passive index -they are both broad based passive indexes.

[ToushiTime]

So for English speakers, investing at a non-Japanese broker has much to recommend it. It’s not just for Americans living here imho.

Maybe. I think it's a bit niche though. Hassle to transfer money, much more complex tax reporting, exchange rates, no access to NISA/iDeCo.

Unless someone can't use Japanese at all, or plans to leave Japan in the short to medium term, or wants to do more active investing, I don't see much appeal.

Many Japanese brokers are moving to English support. Fire up MooMoo, 100% English support.

Tradestation with Monex is offered in English for US stocks, along with DRIP.

Also, I think with a basic level of Japanese, and browser translation, trading is pretty simple on Rakuten, Monex and SBi.

Using an American brokerage as a non-American is pretty niche. Circling back the wagons, not-for-a-novice. Most people I know that do it are trying to play the options market, there is limited access in Japan.

If I had the time, I'd consider getting US ETFs on FirstTrade for the fractional share DRIP and deal with the additional tax hassle, assuming the Daiwa claims are true about "a possible difference of around 0.1%-0.9% pt per annum in after-tax performance" versus mutual funds in many cases.

0.5ppt extra per year compounding is not nothing even if just for part of your portfolio.

MooMoo has a good interface, including multi-lingual support. It was founded in California and is regulated by the FSA here (of course) but I hesitate to put my hard-earned savings with a Chinese-owned firm.

[ToushiTime]

If you want to invest in US stocks and ETFs, you need to do kakutei shinkoku to take advantage of foreign tax credits. This is so regardless of whether you're at a Japanese broker or at a US online broker.

But don't you also have to keep a record of, declare, and pay the capital gains yourself when you sell, if using a foreign brokerage? That's not an issue with the Japanese brokerage, I think.

Another potential hurdle: the Japanese brokerages let you download the transaction and tax records in Japanese, including the annual trading report.

Does having these, rather than the documents from Firstrade, make things easier when filing?

I ask, as I've never attempted to claim back foreign tax. US stocks and US-listed ETFs make up no more than 10% of my portfolio but I ought to try to claim when I get around to it.

[bryanc]

yes- i was thinking it might be too much for short term and not worth the risk..

IMO do it.

The difference seems to be between investing now, and investing next year.

It’s more a detail that you would sell from your taxable account around year end and buy back in nisa in 2025 and if you make any profits this year you’d have to pay 20% of those profits in tax (since you say you’ve set your account to automatically deduct tax), but the remaining 80% of the profits would be money you wouldn’t otherwise have. If you lose money you don’t pay tax of course.

Who knows whether there are profits to be had in the last 3 months of the year but I’m guessing there will be with the US election passing by (so long as there isn’t an extreme outcome), but in 3 months you probably won’t be making or losing much either way.

One suggestion I have seen from Asakura Tomoya-san (former Morningstar Japan guy) is to put such extra cash into a foreign country developed bond fund until ready to pile it into NISA, which I have done personally without regret, but there is a bit of currency risk involved there, if the yen were to strengthen between now and when you want to go into nisa. A little less risky than stock funds but then stocks are probably going to go up.

stupid question incoming: these will be from my taxable account but does this go into my tokutei?or just standard acct?

Tokutei and standard are both taxable account types, but you say

> (have this set so dont have to calculate,declare taxes etc)

which sounds like your tokutei account.
(In which case if you did make any profits on a sale you’d have tax deducted then)

reason for asking is if i try to put the money into the all country emax etc it comes up with the 特定as an option but not for the ETFs..
presume there is a simple explanation i am missing

That seems odd. I have the option to choose either NISA or Taxable account when placing orders for US ETFs in my Monex account…

thanks for this-i went ahead and did it but stuck with the emaxis slim-all country and s+P.. couldnt get the etfs to work,also looked a bit riskier so didnt go for it... may try again later if i come into funds!