leagacy nisa maturing this yr-bad timing!

[bryanc]

have 2 nisas(wife and I) started in 2021 expiring this yr-getting worried about the tanking stockmarket-presume there is nothing that can be done ?

[Tsumitate Wrestler]

have 2 nisas(wife and I) started in 2021 expiring this yr-getting worried about the tanking stockmarket-presume there is nothing that can be done ?

Stick with the plan. If you need the cash, there is nothing lost by taking it out once it has hit 0 cost basis.

If you don't plow it into the New Nisa or taxable.

If you have butterflies DCA is the answer.

[bryanc]

on a practical point what actually happens to the money when the nisa matures-does it just sit somewhere -or moved into a separate acct?

[zeroshiki]

on a practical point what actually happens to the money when the nisa matures-does it just sit somewhere -or moved into a separate acct?

It moves to the Tokutei account with the purchase value being what it is on the day it got moved (hopefully that means it appreciated a lot)

[adamu]

This is one of the known caveats of the NISA.

When the tax free period is over, the price as the end of the period is considered the purchase price for the purposes of calculating future capital gains. This is normally a benefit, but if the asset value is lower than the purchase price at the end of the tax free period, any future gains will be calculated from the lower value.

The worst case is you end up paying tax when you eventually sell without actually making any money*, but if you sell early to try to avoid it, you could lock in a loss and/or miss out on a recovery.

Also it's only April, too early to be making assumptions about what stock prices will be at the end of the year.

*If this actually happened on a scale that it affected most account holders, I suspect they might change the rules to forgive the tax.

[bryanc]

thanks-so i have to sell before the term period ends?
i started in 2021-presume this just runs til end dec 2026-cant see it written anywhere..
sorry bout the newbie questions

[sutebayashi]

My 2021 legacy nisa holdings are still looking pretty good.

That was back during the coronavirus lockdown days - I'm not a fan of the tariffs but I don't think things are anywhere near as bad!

[beanhead]

thanks-so i have to sell before the term period ends?
i started in 2021-presume this just runs til end dec 2026-cant see it written anywhere..
sorry bout the newbie questions

It is 5 calendar years. Not 5 years from when you started it. So 2021,2022,2023,2024,2025.
It ends at the end of 2025.

You can sell before the period ends.
Or you can do nothing and it will automatically be moved to your tokutei account, at the new 'purchase' price as of the end of Dec 2025.

[Hanimal]

*If this actually happened on a scale that it affected most account holders, I suspect they might change the rules to forgive the tax.

Japan isn't a banana republic. The government isn't going to suddenly change the tax rules because some investors were unlucky with their timing. I don't believe anyone else in Japan would expect that to happen. Nor would any serious investor think it would be a good idea.

[beanhead]

My 2021 legacy nisa holdings are still looking pretty good.

This.
They are of course down compared to a few months ago, but mine are also up a decent amount since purchase in early 2021.

Between now and December, who knows what will happen. Anyone worried that the gains will go down to 0 could sell now, or hedge their bets and sell half, I suppose.

New NISA is of course much better than 'old', but the loss of the rollover for these legacy years is annoying. Over 10 years including the rollover I was always confident that we would make a bit of money.