Milestone Thread

[adamu]

I think a great milestone is a consistent increase in your savings rate.

Mine has been 50% of post-tax income now for the past 9 years. A few slip ups on the way but mostly doing pretty well. Ironically although I'm now earning the most I ever have, it's also tough to keep it up due to lifestyle creep caused by expensive apartment, hobbies, and relationship.

[northSaver]

For me the next milestone is 1 oku net worth. Should hit it within a year or two. Unfortunately it will include my primary residence, which is about 20% of it (land price only). After that I guess the next milestone will be 1 oku just investments.

[Bubblegun]

I have no milestone to aim for at the moment. But just to fill this year's allocation up. I know I can't so am wondering if I should cash in the money from the taxable accounts and move that amount to the NISA.

I am considering this from next year with the larger NISA amounts. I will do as much as I can tsumitate, and also sell taxable funds to try and fill up the NISA for 2024 and beyond.

I am probably going to do it too. The question is, should cash in while it's on the rise, and then pop it into the NISA or wait for a dip, sell and then put it in the NISA? or maybe it doesn't matter.One way or another, we have to pay tax on the profits.

Oooh opted for 3d? Do do you treat the J-Nisa as part of your own portfolio as it can be sold before the kids turn 18?

LOL. Yep, 3D. Yes, We do consider it as part of our portfolio. Whether we use it for the kids or not depends on how things turn out in the future.I wonder does anyone else do this? When we do eventually visit the spirit in the sky, they will get it all. Although I would prefer to lock it away until they hit "responsible age"...about 50 LOL.

[TokyoBoglehead]

I have no milestone to aim for at the moment. But just to fill this year's allocation up. I know I can't so am wondering if I should cash in the money from the taxable accounts and move that amount to the NISA.

I am considering this from next year with the larger NISA amounts. I will do as much as I can tsumitate, and also sell taxable funds to try and fill up the NISA for 2024 and beyond.

I am probably going to do it too. The question is, should cash in while it's on the rise, and then pop it into the NISA or wait for a dip, sell and then put it in the NISA? or maybe it doesn't matter.One way or another, we have to pay tax on the profits.

Oooh opted for 3d? Do do you treat the J-Nisa as part of your own portfolio as it can be sold before the kids turn 18?

LOL. Yep, 3D. Yes, We do consider it as part of our portfolio. Whether we use it for the kids or not depends on how things turn out in the future.I wonder does anyone else do this? When we do eventually visit the spirit in the sky, they will get it all. Although I would prefer to lock it away until they hit "responsible age"...about 50 LOL.

I hear you. But be warned. When they turn 18 your login and password are invalidated and a new login and password is insued in your childs name, and mailed to the newly minted adult.

Now you could intercept this mail, but it's legally theirs at this point, and I believe the funds can only be transferred to an account registered in their name.

[beanhead]

I am probably going to do it too. The question is, should cash in while it's on the rise, and then pop it into the NISA or wait for a dip, sell and then put it in the NISA? or maybe it doesn't matter.One way or another, we have to pay tax on the profits.

Existing regular NISA users may face the same timing challenge as they get near the end of their 5-year period. As there is no rollover, the assets get placed in the taxable account at the end of 5 years.
If they are growing rapidly it could make sense, in some scenarios, to sell before the 5 years are up to lock in those gains.

I wish they had been able to include some sort of rollover provision

[TokyoBoglehead]

I am probably going to do it too. The question is, should cash in while it's on the rise, and then pop it into the NISA or wait for a dip, sell and then put it in the NISA? or maybe it doesn't matter.One way or another, we have to pay tax on the profits.

Existing regular NISA users may face the same timing challenge as they get near the end of their 5-year period. As there is no rollover, the assets get placed in the taxable account at the end of 5 years.
If they are growing rapidly it could make sense, in some scenarios, to sell before the 5 years are up to lock in those gains.

I wish they had been able to include some sort of rollover provision

We should make a strategy planning or poll thread about this topic.

I'm very curious to learn what approach everyone is considering, the data seems to argue strongly a for lump sum sale and rebuy in January.

[Bubblegun]

I am considering this from next year with the larger NISA amounts. I will do as much as I can tsumitate, and also sell taxable funds to try and fill up the NISA for 2024 and beyond.

I am probably going to do it too. The question is, should cash in while it's on the rise, and then pop it into the NISA or wait for a dip, sell and then put it in the NISA? or maybe it doesn't matter.One way or another, we have to pay tax on the profits.

Oooh opted for 3d? Do do you treat the J-Nisa as part of your own portfolio as it can be sold before the kids turn 18?

LOL. Yep, 3D. Yes, We do consider it as part of our portfolio. Whether we use it for the kids or not depends on how things turn out in the future.I wonder does anyone else do this? When we do eventually visit the spirit in the sky, they will get it all. Although I would prefer to lock it away until they hit "responsible age"...about 50 LOL.

I hear you. But be warned. When they turn 18 your login and password are invalidated and a new login and password is insued in your childs name, and mailed to the newly minted adult.

Now you could intercept this mail, but it's legally theirs at this point, and I believe the funds can only be transferred to an account registered in their name.

Thats absolutely true!

[Bubblegun]

I am probably going to do it too. The question is, should cash in while it's on the rise, and then pop it into the NISA or wait for a dip, sell and then put it in the NISA? or maybe it doesn't matter.One way or another, we have to pay tax on the profits.

Existing regular NISA users may face the same timing challenge as they get near the end of their 5-year period. As there is no rollover, the assets get placed in the taxable account at the end of 5 years.
If they are growing rapidly it could make sense, in some scenarios, to sell before the 5 years are up to lock in those gains.

I wish they had been able to include some sort of rollover provision

This is where things get really confusing financially.
I am assuming that any gains are locked in tax free up to the 5 year point. And any gains on that account post 5 years will be taxed. or is it if we put MORE money into it, those profits will be taxed? They seem to be as clear as mud. So basically the government are just confusing everyone.certainly creating more questions than answers. Instead of leaving everything to grow, they are creating hurdles for us to try and be tax efficient, knowing that some people will NOT BE aware of this, but it's nice for the government to take a little slice out of all those people who are being financially responsible.

[goodandbadjapan]

I am probably going to do it too. The question is, should cash in while it's on the rise, and then pop it into the NISA or wait for a dip, sell and then put it in the NISA? or maybe it doesn't matter.One way or another, we have to pay tax on the profits.

Existing regular NISA users may face the same timing challenge as they get near the end of their 5-year period. As there is no rollover, the assets get placed in the taxable account at the end of 5 years.
If they are growing rapidly it could make sense, in some scenarios, to sell before the 5 years are up to lock in those gains.

I wish they had been able to include some sort of rollover provision

This is where things get really confusing financially.
I am assuming that any gains are locked in tax free up to the 5 year point. And any gains on that account post 5 years will be taxed. or is it if we put MORE money into it, those profits will be taxed? They seem to be as clear as mud. So basically the government are just confusing everyone.certainly creating more questions than answers. Instead of leaving everything to grow, they are creating hurdles for us to try and be tax efficient, knowing that some people will NOT BE aware of this, but it's nice for the government to take a little slice out of all those people who are being financially responsible.

I think it's former - they put your holdings into a taxable account and the value of those assets will be taxed later on gains as if the value upon transfer to the taxable account was the purchase price. To allow the gains on assets purchased in the old NISA to continue to accrue and not be taxed would be akin to an everlasting NISA. And as the assets moved will no longer be in a NISA account of their own but in the general taxable account, you can't really put MORE money into that anyway. Anything you buy will just be more assets in the taxable account along with any other assets you happen to have in there (if that makes sense - I'm confusing myself!)

[TokyoWart]

I think a great milestone is a consistent increase in your savings rate.

Mine has been 50% of post-tax income now for the past 9 years. A few slip ups on the way but mostly doing pretty well. Ironically although I'm now earning the most I ever have, it's also tough to keep it up due to lifestyle creep caused by expensive apartment, hobbies, and relationship.

Nice! This (increasing or maintaining a high post-tax savings rate) is the kind of financial goal I find has been useful overtime no matter how my income and portfolio have changed.