Opening a tsumitate NISA account - is now a good time?

[Viralriver]

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Thanks for the reply.

Actually, I'm more concerned about where to start - before even choosing what to invest in. A guide which could help me navigate the website, if it exists, would be absolutely amazing.

Things I'm unsure about:

1. The process for sending my money to Rakuten.
2. The process for investing in general (I assume I somehow choose a portion of my funds, so that every month when I put in more money, it takes the proportion I set and buys it like that).
3. My account was set up 1-2 weeks ago. Still in November. I'm on tsumitate. Should I be putting in 33,333 JPY this month and next (400k/12) or do I treat this month and next as 1 whole year (i.e. put in 200k now and 200k next month)? I have 5M in my account, so am happy to dump what I need to.
4. When should my monthly payments be made?
5. Although my capital gains etc are tax-free, do I get any income tax benefits from this (I assume not)?
6. Do I need to declare anything on tax-withholding statements (I actually just submitted this to my employer last week), or separate tax-forms?

These are off the top of my head! I undoubtedly have many more questions, hence if a NISA-for dummies guide does exist, it would be extremely helpful. My Japanese is decent, but half the terms are new to me even in English so it doesn't help having that additional barrier .

Thanks so much

[Kanto]

.

Thanks for the reply.

Actually, I'm more concerned about where to start - before even choosing what to invest in. A guide which could help me navigate the website, if it exists, would be absolutely amazing.

Things I'm unsure about:

1. The process for sending my money to Rakuten.
2. The process for investing in general (I assume I somehow choose a portion of my funds, so that every month when I put in more money, it takes the proportion I set and buys it like that).
3. My account was set up 1-2 weeks ago. Still in November. I'm on tsumitate. Should I be putting in 33,333 JPY this month and next (400k/12) or do I treat this month and next as 1 whole year (i.e. put in 200k now and 200k next month)? I have 5M in my account, so am happy to dump what I need to.
4. When should my monthly payments be made?
5. Although my capital gains etc are tax-free, do I get any income tax benefits from this (I assume not)?
6. Do I need to declare anything on tax-withholding statements (I actually just submitted this to my employer last week), or separate tax-forms?

These are off the top of my head! I undoubtedly have many more questions, hence if a NISA-for dummies guide does exist, it would be extremely helpful. My Japanese is decent, but half the terms are new to me even in English so it doesn't help having that additional barrier .

Thanks so much

If you that novice I would encourage you to start with a bit of reading.

https://www.amazon.co.jp/-/en/Andrew-Ha ... 735&sr=8-1

1. Depends on your bank. Many can transfer money instantly online. Look at the option in Rakuten. It explains it in detail

2. If you have 6 months saving already in cash, and you are not saving for a large purchase, then invest with every paycheck. As much as you feel comfortable.

3. You have until December to fill your 40 man allotment! Do that ASAP. Use the bonus feature.

4.Payments? Did you not set up your NISA to draw from your bank account? If not I would have the money in there 2 weeks before the withdrawal date. They send you an email with instructions. Have a look.

5. No, it is all handled by Rakuten if you selected the right sort of tax-reporting account. If not, you need to do it yourself every year.

6. See above

[Viralriver]

Thanks again for the answers.

Very good to know about having to pay the 400k by end of December. I spent a few hours looking through my account today to try and get a feel for the website, and have linked my bank account so I can transfer funds when I'm ready.

It seems like I can set up regular (every day/ every month) purchases on different funds for a set amount. I think in general I would want to allocate 33,333 JPY per month, but of course this year is different as you say as I want to pay 400k straight away. You mentioned the bonus thing to do this, but I couldn't find much info on this on the website. If you know how I can purchase 400k now and for it to be allocated to my NISA, and not general trading then I would be grateful if you could tell me!

Also, although I received a couple of emails telling me my account was ready for trading, on my account page it says 開設済（税務署審査中）- see attachment. So I'm assuming I can make my 400k payment now, but I run the risk that my account doesn't get accepted for NISA and then I'll be subject to taxation... which would suck. I'm hoping this process can be approved quickly, but of course I have no idea how long it will take. If it does take into the new year, does that mean I'd have lost out on 400k of potential funds I can allocate tax-free (20 yr -> 19yrs) if I don't take the risk and allocate it now?

Thanks again, you've been extremely helpful!

[Kanto]

I am fairly certain you need to wait for the account to be fully opened and approved by the tax office before you can utilize it. I am no expert though.

Fingers crossed that this happens soon.

It seems Adamu has a better understanding of the situation.

[adamu]

although I received a couple of emails telling me my account was ready for trading, on my account page it says 開設済（税務署審査中）

It says that you can start trading, but in the event that the tax office doesn't approve your account, the NISA will be converted to a standard account. So it looks like you can invest the 400k in your NISA and hope for the best. In the best case, it'll all be fine. In the worst case, they'll be taxable investments (which will require you to submit a tax return the year you sell them). You could always wait a few more weeks just to be sure, if you'd rather not gamble.

[Viralriver]

Thanks, yeah this is what I thought. I'll wait and then dump 400k on new year's Eve or something if need be

[Kanto]

Thanks, yeah this is what I thought. I'll wait and then dump 400k on new year's Eve or something if need be

I would not wait that long...

https://www.rakuten-sec.co.jp/web/info/ ... 6-01.html

2021 Orders start Mid December 2020. I believe they stop accepting 2020 orders sometime before?

[Viralriver]

Got it! And I just received an email a few minutes ago saying:

NISA・つみたてNISA口座を申込みいただき、ありがとうございました。
税務署審査が完了いたしました。
引続きNISA・つみたてNISA口座をご利用ください。

So looks like I'm all cleared which is nice. Now to dump money and do stuff : ) . Seeing as I won't be doing a recurring payment this year, is there an easy option to just transfer 400k into my account and choose my funds etc to buy, or do I need to go through with the recurring option (somehow)?

[fools_gold]

Thanks, yeah this is what I thought. I'll wait and then dump 400k on new year's Eve or something if need be

I would not wait that long...

https://www.rakuten-sec.co.jp/web/info/ ... 6-01.html

2021 Orders start Mid December 2020. I believe they stop accepting 2020 orders sometime before?

Basically for investment trusts your order has to be delivered in 2020 for this year's NISA allowance and in 2021 for next year's allowance. The time taken for delivery depends on the particular fund. So, for example if the order takes 6 business days to be delivered you'd need to get the order in before the close on December 23rd. Orders after that would go into next year's NISA. Like you say, it's best to get the order in early to be on the safe side.