SBI iDeCo funds portfolio. Anyone willing to help?

[Dan]

Actually does anyone know how often you’re allowed to rebalance iDeCo? I am not completely sure about that frequency.

[RetireJapan]

I could only find this on Rakuten, which suggests that you can change your allocation anytime?

https://ibb.co/cqZg06

[RetireJapan]

And switching just seems to be an action in your account. I can't find any mention of a limitation to it: https://dc.rakuten-sec.co.jp/flow/procedures/

[ivanpgs]

Actually does anyone know how often you’re allowed to rebalance iDeCo? I am not completely sure about that frequency.

Actually, it seems that rebalance/switching can be done once per month if you want to. The restriction iDeCo has once a year is for changing the monthly contribution, according to their official page in English:

You decide how much to pay in each month. You can start with even a small amount!

You can get started with iDeCo from as little as 5,000 yen per month. Set the monthly contribution you’re comfortable with in increments of 1,000 yen. So even if you don’t have a lot of money to spare, you can prepare for old age in an affordable way that suits your lifestyle.

Note: You are permitted to change your monthly contribution once per year.

Source: https://www.ideco-koushiki.jp/english/

[RetireJapan]

Actually, it seems that rebalance/switching can be done once per month if you want to. The restriction iDeCo has once a year is for changing the monthly contribution, according to their official page in English:
Source: https://www.ideco-koushiki.jp/english/

Wow, that must be new! Hadn't seen the English page before. Will be sharing that on the blog soon. Thanks!

[ivanpgs]

Actually, it seems that rebalance/switching can be done once per month if you want to. The restriction iDeCo has once a year is for changing the monthly contribution, according to their official page in English:
Source: https://www.ideco-koushiki.jp/english/

Wow, that must be new! Hadn't seen the English page before. Will be sharing that on the blog soon. Thanks!

You're more than welcome!

Just a question, I wrote another post about my latest fund portfolio draft in this thread around 2pm, I wonder if the post was lost in the way (hope not!) or you just get a notification for approval

[RetireJapan]

Just a question, I wrote another post about my latest fund portfolio draft in this thread around 2pm, I wonder if the post was lost in the way (hope not!) or you just get a notification for approval

You have posted enough now that your posts are no longer moderated (they will go up immediately). Not sure about your 14:00 post, I can't see it on the thread here I'm afraid...

[ivanpgs]

Well, after getting diverted a bit from the originally purpose of this post, I will come to that again.

I was thinking about some of the advices I was told in the thread and I came up with another new portfolio. I think it's much more aggressive than the first draft, which was:

Code: Select all

- 35% for ＤＣインデックスバランス（株式４０）… 0.1944 (fee)
- 15% for ＤＣニッセイ外国株式インデックス … 0.2268 (fee)
- 15% for ｉＦｒｅｅ　ＮＹダウ・インデックス … 0.2430 (fee)
- 35% for ｉＦｒｅｅ　８資産バランス … 0.2484 (fee)

The new portfolio would be like:

*** FOREIGN COUNTRIES STOCKS FUND ***

Allocation percentage: 50%.
Fund name: EXE-i 先進国株式ファンド
Fee: 0.3244

Code: Select all

- 60% of assets in the Schwab US Broad Market ETF, 
- 30% in the Vanguard FTSE Europe ETF
- 10% in the Vanguard FTSE Developed Asia Pacific (ex-Japan) UCITS ETF.

*** EMERGING COUNTRIES STOCKS FUND ***

Allocation percentage: 20%.
Fund name: EXE-i 新興国株式ファンド
Fee: 0.3904

Code: Select all

- 90% on Charles Schwab & Co., Inc. -> FTSE・エマージング・インデックス
- 10% on BlackRock.Inc. -> MSCI エマージング・マーケッツ　インベスタブル　マーケット　インデックス

*** BALANCE FUND ***

Allocation percentage: 30%.
Fund name: ＤＣインデックスバランス（株式6０）
Fee: 0.2052

Code: Select all

- 45% Japan equities
- 15% US equities
- 25% Japan bonds
- 10% US bonds
- 5% 短時資産 short time property investment???

The EXE-i funds' fees are a bit expensive compared to the ＤＣインデックスバランス one, but affordable I guess.

What do you think about this new line-up?

I just changed it to be more related to foreign stocks because I thought that the markets still are strong right now, and there's also a possibility to rebalance / switch the portfolio in the iDeCo account, so I can think to change the strategy if things get worse in future (sell to save the cash for sometime or go to bonds, etc).

[Dan]

I think it’s fine because it’s build around allocations to global equity while including some exposure to Japanese equity through the balanced fund. But I think some forum members will recommend you to select cheaper — or the cheapest — funds.

The decision regarding how much fees you’re willing to take on is a personal one. You would be able to decrease the fee level by putting in the Nissay foreign equity fund for one of the SBI EXE-i funds.

It will probably still take a week or 10 days to rebalance the portfolio because of the time it takes to process and finalise the order. Adjusting the iDeCo portfolio won’t be like buying stocks, where the order goes through right away.

短期資産 are short-term assets —> cash holdings. They would be used by the investment management company to rebalance the fund.

[Jamo]

so I can think to change the strategy if things get worse in future (sell to save the cash for sometime or go to bonds, etc).

Trying to time the market is generally difficult. By the time you realise things are getting worse you would probably take a loss by selling. Probably a better idea to stick to your starting strategy. Or if you think you know which way the market is going, increase your holdings in bonds etc. by diverting a higher percentage of your payments into them, not by selling shares.