Buying the dip, speculating

[Jackson]

good to know, thanks. I was ready to buy at the lowest, but wanted to make sure I understood the mechanics correctly.

[Jackson]

Looks good.
Is a taxable account much of a paperwork hassle? And how much tax is taken off?

[ChapInTokyo]

Looks good.
Is a taxable account much of a paperwork hassle? And how much tax is taken off?

If you buy in the 特定口座 taxable account (ie. not the 一般口座), there is no hassle since the tax is withheld at source by the broker. The tax rate on capital gains is 20% income tax + 0.315% special tax for reconstruction from the 2011 earthquake and tsunami which makes a total of 20.315% on your gains. So taking your example of a 50,000 yen upside, you'd pay approximately 10,000 yen of that whereas if you used your NISA growth account to do the same thing, you'd pocket the whole 50,000 yen.

There's also a 20.3% tax on dividends too (10% US withholding tax + 10.3% Japanese withholding tax). Details on Rakuten site here.

[Hanimal]

If you buy in the 特定口座 taxable account (ie. not the 一般口座), there is no hassle since the tax is withheld at source by the broker. The tax rate on capital gains is 20% income tax + 0.315% special tax for reconstruction from the 2011 earthquake and tsunami which makes a total of 20.315% on your gains. So taking your example of a 50,000 yen upside, you'd pay approximately 10,000 yen of that whereas if you used your NISA growth account to do the same thing, you'd pocket the whole 50,000 yen.

There's also a 20.3% tax on dividends too (10% US withholding tax + 10.3% Japanese withholding tax). Details on Rakuten site here.

Also, a savvy investor would have a range of investments to mitigate paying taxes. If they sell something which has gained in value so is liable to tax, they would have something else to sell which has lost value. In that scenario there would be zero CGT to pay.

[Tsumitate Wrestler]

If you buy in the 特定口座 taxable account (ie. not the 一般口座), there is no hassle since the tax is withheld at source by the broker. The tax rate on capital gains is 20% income tax + 0.315% special tax for reconstruction from the 2011 earthquake and tsunami which makes a total of 20.315% on your gains. So taking your example of a 50,000 yen upside, you'd pay approximately 10,000 yen of that whereas if you used your NISA growth account to do the same thing, you'd pocket the whole 50,000 yen.

There's also a 20.3% tax on dividends too (10% US withholding tax + 10.3% Japanese withholding tax). Details on Rakuten site here.

Also, a savvy investor would have a range of investments to mitigate paying taxes. If they sell something which has gained in value so is liable to tax, they would have something else to sell which has lost value. In that scenario there would be zero CGT to pay.

And here I was thinking the savvy investor was the one who didn't buy a losing stock, because they just bought the whole market, and they do not have to deal with the scenario in the first place.

[sutebayashi]

I am not saavy, but I try to maximize my after-tax profits these days.

In the past I did try to minimize or at least delay my tax payments, but it did cost money to do so and so now I try to make more money instead.

(With FX trading you can go both long and short at the same time, and then realize a loss on one half at the end of the year, and after the clock to ticks over, take profit on the other half. But you lose the spread on the positions to the broker and there is no guarantee that the rate would move in a meaningful way before the year end, either. Maybe there is a trick to it that I didn't get.)

[Jackson]

Looks good.
Is a taxable account much of a paperwork hassle? And how much tax is taken off?

If you buy in the 特定口座 taxable account (ie. not the 一般口座), there is no hassle since the tax is withheld at source by the broker. The tax rate on capital gains is 20% income tax + 0.315% special tax for reconstruction from the 2011 earthquake and tsunami which makes a total of 20.315% on your gains. So taking your example of a 50,000 yen upside, you'd pay approximately 10,000 yen of that whereas if you used your NISA growth account to do the same thing, you'd pocket the whole 50,000 yen.

There's also a 20.3% tax on dividends too (10% US withholding tax + 10.3% Japanese withholding tax). Details on Rakuten site here.

This is helpful. So I can simultaneously use multiple types of tax accounts from the Rakuten UI, all under the same login?
Also, I’m not from the US, so I’d not pay that %10?

[sutebayashi]

You'll pay the 10% to the US, because it is withheld there before it hits your account.

[Jackson]

You can buy ETFs in the growth frame of the Nisa. Simply go to the ETF. From the ETfs page during the buy process, you can select the framework. Along with other purchase options.

Use the superscreener to see what ETFs are allowed.
https://www.rakuten-sec.co.jp/web/info/ ... 17-01.html

Is that ETF I originally linked the only one which meets all the criteria I outlined?

No. The 1655 iShares S&P500 米国株ETF that @tsumitatewrestler linked previously is also available in Rakuten’s NISA 成長投資枠 and is more popular than the Maxis 米国株SP500 ETF that you linked in your OP. I think that 1655 has significantly higher per day trade volume than 2558 so might be preferable for you.

https://www.rakuten-sec.co.jp/web/marke ... sa/#skip03

Pity though that the dip is no longer as significant as it was immediately after Trump’s ‘Liberation Day’ announcement. I think if you’d taken a position then, you’d definitely have made a bit of pocket money.

But as they say, past performance is no guarantee of future results!

These both, I will pay the price on the screen when buy/sell? This includes night, holidays etc?

[ChapInTokyo]

Is that ETF I originally linked the only one which meets all the criteria I outlined?

No. The 1655 iShares S&P500 米国株ETF that @tsumitatewrestler linked previously is also available in Rakuten’s NISA 成長投資枠 and is more popular than the Maxis 米国株SP500 ETF that you linked in your OP. I think that 1655 has significantly higher per day trade volume than 2558 so might be preferable for you.

https://www.rakuten-sec.co.jp/web/marke ... sa/#skip03

Pity though that the dip is no longer as significant as it was immediately after Trump’s ‘Liberation Day’ announcement. I think if you’d taken a position then, you’d definitely have made a bit of pocket money.

But as they say, past performance is no guarantee of future results!

These both, I will pay the price on the screen when buy/sell? This includes night, holidays etc?

With stocks and ETFs you pay the price on the screen but you will only be able to trade when the market is open (Tokyo Stock Exchange for stocks and ETFs trading there, or the New York Stock exchange for stocks and ETFs like VOO or VTI trading in America).