Hello,
I am very happy this is the place for questions from a dummy because thats how I feel. I have some basic questions.
I signed up for IDECO with SBI a year ago and set it up so that it takes money out of my account once a year. I really don't have much right now so I started with just 7000yen a month. I literally forgot about it and didn't do anything about it until a year later. When I finally logged on I noticed that they had automatically put the money in a fund : Principal Guaranteed あおぞらＤＣ定期（１年）（あおぞらDC定期(1年)）
In Ideco, can I sell that and put the money in other things or do I have to keep what was already deposited and just change the share allocation from now on?
If I change the share allocation without selling a stock or bond, what happens to the stock or bond?
I understand about stocks/bond ratios etc. My question is , if I am doing 60% stocks -how many different kinds of stocks is recommended? For example, is 4 different kinds of stocks -2 Japanese and 2 international too many? I guess I am wondering at what point it becomes too many. I hope you understand what I mean.
Questions from a Newbie
-
RetireJapan
- Site Admin
- Posts: 4752
- Joined: Wed Aug 02, 2017 6:57 am
- Location: Sendai
- Contact:
Re: Questions from a Newbie
Hi Denise
Good questions.
1. iDeCo accounts automatically put your funds into cash funds unless you specify otherwise.
2. You can change the funds you already have.
3. You can change your allocation going forward.
4. You probably don't need to buy multiple stock funds -one international and maybe one Japanese is good enough for a lot of people. Some funds include the entire world, so you would only need one of those.
You can see all the available funds on this site (I find it easier to read than the broker sites): https://www.dcnenkin.jp/search/commission.php
Anyone else?
Good questions.
1. iDeCo accounts automatically put your funds into cash funds unless you specify otherwise.
2. You can change the funds you already have.
3. You can change your allocation going forward.
4. You probably don't need to buy multiple stock funds -one international and maybe one Japanese is good enough for a lot of people. Some funds include the entire world, so you would only need one of those.
You can see all the available funds on this site (I find it easier to read than the broker sites): https://www.dcnenkin.jp/search/commission.php
Anyone else?
English teacher and writer. RetireJapan founder. Avid reader.
eMaxis Slim Shady
eMaxis Slim Shady
Re: Questions from a Newbie
I'm in a somewhat similar situation and the simpler the better especially for ideco.
For my partner I set up her account with 80% stocks 20% bonds (she felt 100% was too risky so we settled for 80 for the next 10-15 years and will slowly decrease that portion of stocks)
We have only 3 funds, 65% international stocks, 15% Japanese stocks and 20% international bonds.
Outside of ideco, NISA for instance or a taxable account, from my understanding once you have a sizeable investment you can have more funds that would be more specific (small cap/medium cap/large cap etc...) And that's like several millions of yen, which I do not have at the moment. But until then keep it simple I would say.
For my partner I set up her account with 80% stocks 20% bonds (she felt 100% was too risky so we settled for 80 for the next 10-15 years and will slowly decrease that portion of stocks)
We have only 3 funds, 65% international stocks, 15% Japanese stocks and 20% international bonds.
Outside of ideco, NISA for instance or a taxable account, from my understanding once you have a sizeable investment you can have more funds that would be more specific (small cap/medium cap/large cap etc...) And that's like several millions of yen, which I do not have at the moment. But until then keep it simple I would say.