Strategy for the 2025 NISA

[Tsumitate Wrestler]

Watz Harris's running mate is reported to have no investments and doesn't own his home despite his decent salary. The mind boggles that he could have been on the top table deciding people's financial futures.

I guess he is a potential client for Ben's investment workshop thing.

He should have some free time now too

Can you source this? I am seeing retirement accounts as well as pension(s)/DBP(s)
But Walz does have a few retirement savings accounts.

He reported having between $100,000 and $250,000 in a 2030 target date retirement fund, up to $15,000 in a Vanguard midcap index fund and up to $15,000 in a State Street short term investment fund.
[/quote]

https://edition.cnn.com/2024/09/06/busi ... ndex.html

[nanaya]

I suppose if you have emergency savings and can live without it for a few days, can just buy nisa and sell taxable at the same time...

that should minimize the risk of market movement during the swap.

(I myself don't care enough and probably will just sell, wait, pray, and buy the whole growth allocation for the year)

[Swimmer]

Watz Harris's running mate is reported to have no investments and doesn't own his home despite his decent salary. The mind boggles that he could have been on the top table deciding people's financial futures.

I guess he is a potential client for Ben's investment workshop thing.

He should have some free time now too

Can you source this? I am seeing retirement accounts as well as pension(s)/DBP(s)
But Walz does have a few retirement savings accounts.

He reported having between $100,000 and $250,000 in a 2030 target date retirement fund, up to $15,000 in a Vanguard midcap index fund and up to $15,000 in a State Street short term investment fund.

https://edition.cnn.com/2024/09/06/busi ... ndex.html
[/quote]

Sources vary. But the one you quote indicates that his assets including pensions are less than a years salary for him - quoted as $210,287 in your article. Not very impressive for someone in their 50's.

[Bubblegun]

Well, if anything has come out of this month, it's a clear mandate, and I think we might see another good year for the S&P500. I expect Santa will come to the S&P this December, and they'll break the 6000 mark. So, I guess the strategy now is to keep putting money down. I certainly think the doom and gloom of the 3% a year for the next decade is a bit too dark.

I have a question though.
Can we have two different NISA accounts? one for the Tsukidate monthly amount? and one for the long term larger amount account? Or must they be with the same company? EG Both with Rakuten. or can i have the Tsumetate with Rakuten and the long term amount with Seison?

[Moneymatters]

I have a question though.
Can we have two different NISA accounts? one for the Tsukidate monthly amount? and one for the long term larger amount account? Or must they be with the same company? EG Both with Rakuten. or can i have the Tsumetate with Rakuten and the long term amount with Seison?

no.no.no.yes.no.

[TokyoSophia]

I'm in the fortunate position to get a healthy dividend income in dollars from the growth part of my NISA, so my new plan for 2025 is to use those dollars to make an automatic monthly contribution to an ETF (I only recently realized that you could do this) and then use the rest of my growth allowance for the year to buy individual stocks/funds in January, if I can find some at a decent price. So, that will be part lump sum at the beginning of the year and part drip.

[adamu]

I'm in the fortunate position to get a healthy dividend income in dollars from the growth part of my NISA

It's not that fortunate, because you'll be paying US capital gains tax on those dividends. Outside of a NISA you can use that to offset your Japanese taxes with the foreign dividend deduction, but inside a NISA it's a sunk cost, as there is no Japanese tax to offset it against.

[Tsumitate Wrestler]

I'm in the fortunate position to get a healthy dividend income in dollars from the growth part of my NISA

It's not that fortunate, because you'll be paying US capital gains tax on those dividends. Outside of a NISA you can use that to offset your Japanese taxes with the foreign dividend deduction, but inside a NISA it's a sunk cost, as there is no Japanese tax to offset it against.

You want your Nisa to accumulate, like an expanding balloon. You don't want it to leak out dividends.

[Bubblegun]

I have a question though.
Can we have two different NISA accounts? one for the Tsumitate monthly amount? and one for the long-term larger amount account? Or must they be with the same company? EG Both with Rakuten. or can I have the Tsumitate with Rakuten and the long-term amount with Seison?

no.no.no.yes.no.

Thanks for that. You confirmed my original thought.

[ChapInTokyo]

I guess people are already thinking about Nisa 2025. Any change in strategy for the new allocations?

I’ve decided to do my market timing stuff in my taxable accounts and to keep my NISA account on a set it and forget “believe that the market is generally efficient” strategy.

In practice, I bought 18M yen worth of “楽天・インデックス・バランス・ファンド（均等型）” in my taxable account and am buying the same thing on a DCA basis over in my NISA account, the thinking being that I’ll sell off tranches of the fund from my taxable account every year as my NISA quota gets filled up.

So for 2025, it’s steady as she goes for me in the NISA!