Oliver wrote: ↑Sat Jun 11, 2022 11:27 pm
Answer: At this point I will not be able to invest 1,200,000 a year so I guess I should invest in the Tsumitate NISA.
Tsumitate is a better fit then. FYI, you cannot have bonds in a T-NISA.
Consider this going forward as a goal.
Nenkin - 16,590, Tsumitate 33,333 and iDeco (5,000-68,000).
.....
Also consider taking stalk of your life insurance products. Term life insurance is the only real necessity for most people. You may be over insured and overpaying.
At 45, with probably 20 years to retirement, I would say invest only in equity products in the NISA, and also build up cash reserves or potentially buy some bond funds in a taxable account.
I have a question about that.
Does that mean that I should put all of the 33,333 yen in a TNISA eMAXISslim equity product?
If so, what is a a good equity product?
Oliver wrote: ↑Sun Jun 12, 2022 2:05 am
At 45, with probably 20 years to retirement, I would say invest only in equity products in the NISA, and also build up cash reserves or potentially buy some bond funds in a taxable account.
I have a question about that.
Does that mean that I should put all of the 33,333 yen in a TNISA eMAXISslim equity product?
If so, what is a a good equity product?
Emaxis Slim Products - Pick on of the following. All Would be sound choices.
All Country (Exposure to the entire world)
Developed Country (Exposure to the Developed world)
S&P500 (Exposure to US large Cap stocks)
CarlB wrote: ↑Mon Jun 13, 2022 9:39 am
The yen is at a 20 year low against the dollar, I'm not sure why the OP is being told to invest his money in dollar-focused investments.
Simply put, because no one knows what the future holds. Long term investing ignores the short-term fluctuation of the currency and equity markets, and looks at long term trends.
Attempts to time the market are almost always a mistake.
Someone who buys the S&P500 monthly for the next 30 odd years will almost certainly outperform an active investor, or currency trend speculator.
Because it could be a 50 year low tomorrow or a 10 year high next month. None of us know anything nor can we see the future. What we do know is that these things tend to even out in the long term so letting short-term market changes affect your investment strategy is a straight path to failure.
CarlB wrote: ↑Mon Jun 13, 2022 9:39 am
The yen is at a 20 year low against the dollar, I'm not sure why the OP is being told to invest his money in dollar-focused investments.
What alternatives do you suggest?
I bought a book by a guy who has built up a nice portfolio of Japanese dividend stocks. That is an option, but you then have single-company risk, and also single-market risk.
Itochu may be a great company, for example, and broadly diversified, but what happens if they have some kind of scandal in 5 or 10 years' time and your investment halves in value?
Aiming to retire at 60 and live for a while longer. 95% index funds (eMaxis Slim etc), 5% Japanese dividend stocks.
beanhead wrote: ↑Tue Jun 14, 2022 2:22 am
What alternatives do you suggest?
I bought a book by a guy who has built up a nice portfolio of Japanese dividend stocks. That is an option, but you then have single-company risk, and also single-market risk.
Itochu may be a great company, for example, and broadly diversified, but what happens if they have some kind of scandal in 5 or 10 years' time and your investment halves in value?
Nobody buys just one stock. If you are buying stocks you would likely have at least 10 or 20 at the very minimum.
Also, if a company's stock, who I believed in declined by 50%, I would likely buy more of that stock. There are lots of examples of stocks which decline after a 'scandal' then regain the losses less than a year later.
beanhead wrote: ↑Tue Jun 14, 2022 2:22 am
What alternatives do you suggest?
I bought a book by a guy who has built up a nice portfolio of Japanese dividend stocks. That is an option, but you then have single-company risk, and also single-market risk.
Itochu may be a great company, for example, and broadly diversified, but what happens if they have some kind of scandal in 5 or 10 years' time and your investment halves in value?
Nobody buys just one stock. If you are buying stocks you would likely have at least 10 or 20 at the very minimum.
Also, if a company's stock, who I believed in declined by 50%, I would likely buy more of that stock. There are lots of examples of stocks which decline after a 'scandal' then regain the losses less than a year later.
The problem with picking individual stocks is the vast majority of stocks are poor investments. They perform worse than one month treasury bills. The majority of stock market growth historically is driven by a very small number of 'winner' stocks. This is a seminal paper on the topic: https://www.sciencedirect.com/science/a ... 5X18301521
Summarized here and as mistake 1 in this video.
So picking individual stocks can be great if you back the right horse, but the odds of individual investors beating the market this way are extremely low.