Invest more in NISA or iDeCo?

[Roger Van Zant]

I can't decide whether to invest more in my iDeCo, or more in my tsumitate NISA.

I buy into the ｅＭＡＸＩＳ　Ｓｌｉｍ　全世界株式（オール・カントリー）through both of them. Only this fund, nothing else.

I can afford 30,000 per month.

Should I put 20,000 into the above fund through my NISA, and 10,000 through my iDeCo? Or the other way around?

Does it matter all that much, since I am buying into the same fund anyways?

Thanks.

[OkiBum]

What is the maximum you can invest through Ideco? I'd say max out Ideco and the remaining into NISA.

Reason: Ideco also gives you a tax break which is technically profit as well!

[Kanto]

If you plan to retire in Japan and you will not need the money before you retire, iDeco is 100% the right choice.

Tax-fee going in, tax-free coming out.

[Roger Van Zant]

If you plan to retire in Japan and you will not need the money before you retire, iDeco is 100% the right choice.

Tax-fee going in, tax-free coming out.

Thanks.

Okay, I will see how much I am allowed to put into my iDeCo each month (I already pay into a company DB scheme which will probably limit how much I can pay in).
I'll max out the iDeCo each month, and then put anything else into the つみたてNISA.

Cheers.

[Roger Van Zant]

So, am I reading this correctly?

Currently I pay ￥10,000 each month into a "確定給付企業年金" offered by my company. (I believe this is called a DB pension)
My company doesn't have any other pension schemes. I am a full-time, regular employee.

Of course, I also pay monthly into the national "厚生年金基金" as obligated by law.

According, to the above information and this chart, I will only be able to pay a maximum of ￥12,000 monthly into my iDeCo?

https://www.ideco-koushiki.jp/guide/pdf ... ership.pdf

Seems quite low. I'm 42 now. Let's say I work until 67. 25 years x 12,000 per month = ￥3,600,000 upon retirement. I thought it would be more....

Also, what does "拠出限度額なし" mean exactly? "No limit"? So there is, or there isn't a monthly limit? Kinda confused.

[Bushiman]

Let's say I work until 67. 25 years x 12,000 per month = ￥3,600,000 upon retirement. I thought it would be more....

Hello Roger...
Looks like you haven't factored in the compounding interest of the investment...
Starting at ¥0 and putting ¥12,000 a month for 25years at a conservative 4% return would net you around ¥6,000,000... Not bad at all for minimal effort...
If, due to your employment situation, you are only allowed to invest ¥12,000 max a month into your iDeCo, it's still better than nothing as like others have mentioned, it's tax free in and out... Any surplus you have left over can go into your NISA...

[Roger Van Zant]

Let's say I work until 67. 25 years x 12,000 per month = ￥3,600,000 upon retirement. I thought it would be more....

Hello Roger...
Looks like you haven't factored in the compounding interest of the investment...
Starting at ¥0 and putting ¥12,000 a month for 25years at a conservative 4% return would net you around ¥6,000,000... Not bad at all for minimal effort...
If, due to your employment situation, you are only allowed to invest ¥12,000 max a month into your iDeCo, it's still better than nothing as like others have mentioned, it's tax free in and out... Any surplus you have left over can go into your NISA...

I'm a dumbass lol
Thank you. 4% would be nice.

[adamu]

According, to the above information and this chart, I will only be able to pay a maximum of ￥12,000 monthly into my iDeCo?

It's pretty complicated and you can make guesses, but the best way to find out for sure is to get the form that calculates how much you can contribute and ask your employer to fill it out.

[Roger Van Zant]

According, to the above information and this chart, I will only be able to pay a maximum of ￥12,000 monthly into my iDeCo?

It's pretty complicated and you can make guesses, but the best way to find out for sure is to get the form that calculates how much you can contribute and ask your employer to fill it out.

So I just got a call from my company's HR department.
Because I pay into my company's 確定給付企業年金 every month, the maximum I can pay into my iDeCo each month is ￥12,000.
Apparently, 企業型確定拠出年金 and 確定給付企業年金 are the same thing.
I was hoping I would be able to pay in ￥23,000 per month, but oh well....
This might be useful information for anyone in a similar situation to me.

My company's HR department has been known to screw things up in the past, so just to check, I did a Google search, and found this:
https://www.psrn.jp/topics/detail.php?i ... F%E3%80%82

Seems they were spot on in this instance.