bye bye NISA?

[RetireJapan]

https://www.yomiuri.co.jp/economy/20191 ... 50024/amp/

Hints of a silver lining in this?

We can hope! Depends on what the political climate is like next year I guess.

[OwenM]

https://headlines.yahoo.co.jp/hl?a=2019 ... hi-bus_all

Nice one!

[StockBeard]

Thanks for the link OwenM.

So, a month ago the news were about how NISA would definitely not be extended, and now what I can understand is that it's actually going to be extended in some shape or form? Can someone with a better grasp of Japanese dumb it down for me?

[TelecInvestor]

Thanks for the link OwenM.

So, a month ago the news were about how NISA would definitely not be extended, and now what I can understand is that it's actually going to be extended in some shape or form? Can someone with a better grasp of Japanese dumb it down for me?

They are looking to keep the scheme even after 2024 but also to add some sort of "line-up product" that will focus on low risk trusts, since they are "concerned" that people have been using this scheme mostly for short-term trading. Someone feel free to correct me or add additional info

[KyushuWoozy]

That is just NISA and not the Tsumitate Nisa. I am sure the discussion here is not over yet.

Can I ask the difference between NISA and Tsumitate NISA? I was just starting to look into this when I saw this thread. I'm maxed out on iDecCo and now looking for somewhere else to hold low-cost index funds low maintenance long-term (let's say 10 years plus). Is Tsumitate NISA suitable?

[RetireJapan]

Can I ask the difference between NISA and Tsumitate NISA? I was just starting to look into this when I saw this thread. I'm maxed out on iDecCo and now looking for somewhere else to hold low-cost index funds low maintenance long-term (let's say 10 years plus). Is Tsumitate NISA suitable?

Extremely suitable.

NISA <-> Tsumitate NISA
buy pretty much anything <-> only buy mutual funds
5 years tax free <-> 20 years tax free
1.2m a year <-> 400,000 a year
pay in anytime <-> pay in a fixed monthly amount (that you decide)

Both: sell at any time but can't reuse allowance

[OwenM]

https://www.nikkei.com/article/DGXMZO53 ... 1C1MM8000/

Is the gist of this that the current system will continue to 2028 before merging to a combination of general and tsumitate nisa? One for a better speaker to confirm.

[mule96]

Summary:

•There will be a new Nisa beside the current tsumitate Nisa.
•The new Nisa is in place from 2023 to 2028 (so after the current one is ending)
•You can Invest up to 122万円 a year and its tax free for 5 years like the current.
•Out of this 122万円JPY, 20万円 can only be invested into non-risky investments = funds, and will be similar to the current tsumitate Nisa.
•The rest can be invested into stocks as now, but the government is looking into excluding certain risky investment products.
•The current tsumitate Nisa gets prolonged for 5 years until 2042. Taxfree for 20 years like now stays the same.
•The Junior Nisa doesn’t get renewed after 2023, despite that there are 300,000 accounts.

One reason because that is listed despite previous plans to stop it, is that they fear there are less investments into startups. Interesting.

I wonder why the tsumitate nisa still has an end date , it would make more sense to make this permanent and avoid those repeating discussions. I think in the future we will even see more encouragement into private retire investment.

[KyushuWoozy]

Extremely suitable.

Thanks Ben. Using this forum has got me a full Uk pension (previously I had zero entitlement) and maxed out on iDecCo. Looks like NISA next on the list. My time here is probably the most valuable 5 minutes of my day.

[RetireJapan]

Thanks Ben. Using this forum has got me a full Uk pension (previously I had zero entitlement) and maxed out on iDecCo. Looks like NISA next on the list. My time here is probably the most valuable 5 minutes of my day.

That is fantastic, and of course the reason this website exists. Please pay it forward by educating others