Ideal iDeCo composition

[AreTheyTheLemmings?]

Thanks for those responses.

Do you think Japan's declining population has a bearing on the future viability of REITs?

[RetireJapan]

Thanks for those responses.

Do you think Japan's declining population has a bearing on the future viability of REITs?

It's probably worth being aware of what is inside the REIT. I can't imagine hotel REITs doing well in the short-term, but data centers might be a good bet...

[fools_gold]

Personally I would be cautious about REITs at the moment.

In America 25 Million people are getting 600 dollars a week in Benefits. -> That stops at the end of this month.

I do not pretend to understand the wide ranging effect of that. However, I strongly suspected the following might happen...

X million stop paying rent -> X landlords become overdue/default -> REIT take a hit.

I should pause and say that for the sake of these 25 million, and also their landlords to a lesser ammount, I really hope the American administration does something. I really feel for them.

I agree, but my point was that the price of REITs already seem to reflect at least some of this. They're still 25% down while the stock market has pretty much rebounded.

They may have some more to fall, they may not. I'm not too bothered about it. I'll just keep my allocation and rebalance now and again.

I hope the administration does something too. It's been a tragic waste of lives and livelihoods.

[Spa06Jc]

If I were you, I would go with Monex (not Rakuten or SBI), because they are the only security provider that offers the amazing eMaxis Slim 全世界株式オールカントリー fund in their iDeCo lineup. I signed up with SBI, just before Monex announced they would add the eMaxis Slim 全世界株式オールカントリー fund to their iDeCo products, so I am contemplating to make the switch (but not sure if it's worth the switch, as I would miss out approximately 2 months of market returns while being in the process of switching providers ><).

Just going through the paperwork that has arrived for my wife to set up her 'Select Plan' iDeCo with SBI Shoken and it seems the eMaxis Slim 全世界株式(除く日本) is available as an investment option. I was under the impression that wasn't too different to the all country fund you mention above that is Monex-only - am I wrong on that?

[Kanto]

If I were you, I would go with Monex (not Rakuten or SBI), because they are the only security provider that offers the amazing eMaxis Slim 全世界株式オールカントリー fund in their iDeCo lineup. I signed up with SBI, just before Monex announced they would add the eMaxis Slim 全世界株式オールカントリー fund to their iDeCo products, so I am contemplating to make the switch (but not sure if it's worth the switch, as I would miss out approximately 2 months of market returns while being in the process of switching providers ><).

Just going through the paperwork that has arrived for my wife to set up her 'Select Plan' iDeCo with SBI Shoken and it seems the eMaxis Slim 全世界株式(除く日本) is available as an investment option. I was under the impression that wasn't too different to the all country fund you mention above that is Monex-only - am I wrong on that?

ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（除く日本）-> https://emaxis.jp/pdf/geppou/253209/253209_202006.pdf
ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（オール・カントリー）-> https://emaxis.jp/pdf/geppou/253425/253425_202006.pdf

It seems to be basically the same, minus Japan as it states. You could just add a low cost TOPIX fund at 7% in addition to it.

The major disadvantage is you need to realocate manually every year.

[adamu]

Just going through the paperwork that has arrived for my wife to set up her 'Select Plan' iDeCo with SBI Shoken and it seems the eMaxis Slim 全世界株式(除く日本) is available as an investment option. I was under the impression that wasn't too different to the all country fund you mention above that is Monex-only - am I wrong on that?

ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（除く日本）-> https://emaxis.jp/pdf/geppou/253209/253209_202006.pdf
ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（オール・カントリー）-> https://emaxis.jp/pdf/geppou/253425/253425_202006.pdf

It seems to be basically the same, minus Japan as it states. You could just add a low cost TOPIX fund at 7% in addition to it.

The major disadvantage is you need to realocate manually every year.

Yes, you can balance that with a Japan fund. But then if you're going that far, you could also split the "World ex Japan" into "Developed Countries" and "Emerging Markets" for a 3 fund portfolio with slightly lower fees. That's what I do in my SBI iDeCo. In the NISA I just go with the all country fund for simplicity.

[Dabitto]

If I were you, I would go with Monex (not Rakuten or SBI), because they are the only security provider that offers the amazing eMaxis Slim 全世界株式オールカントリー fund in their iDeCo lineup. I signed up with SBI, just before Monex announced they would add the eMaxis Slim 全世界株式オールカントリー fund to their iDeCo products, so I am contemplating to make the switch (but not sure if it's worth the switch, as I would miss out approximately 2 months of market returns while being in the process of switching providers ><).

Just going through the paperwork that has arrived for my wife to set up her 'Select Plan' iDeCo with SBI Shoken and it seems the eMaxis Slim 全世界株式(除く日本) is available as an investment option. I was under the impression that wasn't too different to the all country fund you mention above that is Monex-only - am I wrong on that?

Like Kanto already said; the only difference is that the 除く日本 version does not include the 7% Japanese stock exposure. This means that this 7% is spread between the other components within the index. You'll have a little bit more exposure to American stocks and a tiny bit more to emerging market stocks. However, you're actually quite right that in terms of performance the two funds don't differ that much. The 除く日本 fund experiences a little bit more volatility than the オールカントリー fund (mainly because of the currency fluctuations, as you're holding zero yen with this fund) and has historically done a little better (this gives absolutely no guarantees for future performance!!!).

Sources:

https://tsumitate.mukam.jp/chart/index. ... 5B%5D.y=18

https://youtu.be/dGH6MW_IcZ4

As I was trying to mimic the オールカントリー fund within my SBI iDeCo account without wanting to rebalance the funds myself, I went 100% 除く日本. However, it is somewhat going against my investing philosophy to never bet in favor or against a certain market. With the 除く日本 fund you are basically betting against the Japanese stock market outperforming the world. Although a lot of people on this forum are quite bearish on the Japanese economy and her stock market, I am not one of them. This pandemic only reconfirmed to me that the future is very unpredictable and that economic performance and stock market performance are more uncorrelated than many of us may think. This is why I am betting in favor of the world as a whole doing better 30+ years down the road instead of picking certain countries or markets. If I had still the chance to be fresh in the game, I would have definitely gone with Monex and gone for オールカントリー.

And like adamu already said; if you're going with SBI and willing to rebalance yourself, it might be better to also split 除く日本 into 先進国 and 新興国. I would have probably done the same if I were not that lazy by going for a set-it-and-forget-it approach (at least until I am including bonds )

[adamu]

https://youtu.be/dGH6MW_IcZ4

That looks like a nice channel, will have to check it out. Good Japanese practice too

[Dabitto]

https://youtu.be/dGH6MW_IcZ4

That looks like a nice channel, will have to check it out. Good Japanese practice too

Yeah, I definitely recommend his channel!
I've watched most of his videos, and although he is lately repeating himself a bit because he's running out of content, he is putting a lot of research into making his vids. His message is often very clear and his content is well structured. He is also a supporter of cheap diversified passive index funds and especially of the eMaxis Slim line-up. A little side note is that he is quite bearish on the Japanese stock market and wants to diversify his currency holdings by not holding any equity in Yen (as he explains that his salary and future pension payout is all in Yen anyways). Therefore, he's putting most of his money into 除く日本. Although he admitted never being to a foreign country before, his worldview is far less biased than that of the average Japanese person/investor, which deserves a lot of credit in my opinion.

[Nohanom]

I've signed up through SBI because it was the least hassle for me. (Rakuten Securities not taking long names in their form is still baffling to me...)

ｅＭＡＸＩＳ　Ｓｌｉｍ　国内株式（ＴＯＰＩＸ）（eMAXIS Slim 国内株式(TOPIX)） - 7%
ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（除く日本）（eMAXIS Slim 全世界株式(除く日本)）- 93%

The world vs JP mix hasn't changed too much in the last few years and I wouldn't consider it a major issue to set the allocation % yourself based on FTSE / MSCI All country index. All funds have enough of a divergence from the benchmark that it would not meaningfully impact the returns.

My recommendation is to go with the provider that is the least painful for you as long as there are rock-bottom management fees funds available.