RetireJapan

TokyoBoglehead wrote: ↑Tue Sep 12, 2023 9:17 pm

nanaya wrote: ↑Tue Sep 12, 2023 3:46 pm I'm wondering, given these steps:

1. put in 100000
2. it grows to 150000
3. take out 50000

how much of the limit will I get back? 25000? how is it calculated? is it by number of stocks multiplied by original purchase price?

what if the purchases span over several months/years? is it by average? or based on original purchase price? in that case, in what order?

The limit is a contribution amount. The value of the current holdings are irrelevant.

TokyoBoglehead wrote: ↑Wed Sep 13, 2023 3:16 am

Roger Van Zant wrote: ↑Wed Sep 13, 2023 2:37 am

I could use up 100,000 yen's worth, sell it, and still have 300,000 yen left to use.
So selling and reinvesting is not an issue, as long as I don't max out the 400,000 yen limit.

What are people talking about with regard to the 新NISA? What's the difference?

Example 1 - Classic Regular Nisa -> 1,2000,000 year. Lifetime total - > 6,000,000.

A. If your Nisa account had 6,000,000 yen total, (5 years' worth of investment) And you sold 3,000,000 yen. That is it. No more space for you. You "used it up".

The only possible way your Nisa can grow now is through your investment increasing in value. No more contributions.

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Example 2 - New Nisa -> 3,6000,000 year. Lifetime total - > 18,000,000.

B. You have 18,000,000 yen. A full Regular Nisa. You sell 5,000,000 yen to put a downpayment on a house in 2030.

In 2031 you can put 3,200,000 yen into your account
In 2032 you can put 1,800,000 yen into your account

TokyoBoglehead wrote: ↑Wed Sep 13, 2023 3:16 am

Roger Van Zant wrote: ↑Wed Sep 13, 2023 2:37 am

I could use up 100,000 yen's worth, sell it, and still have 300,000 yen left to use.
So selling and reinvesting is not an issue, as long as I don't max out the 400,000 yen limit.

What are people talking about with regard to the 新NISA? What's the difference?

Example 1 - Classic Regular Nisa -> 1,2000,000 year. Lifetime total - > 6,000,000.

A. If your Nisa account had 6,000,000 yen total, (5 years' worth of investment) And you sold 3,000,000 yen. That is it. No more space for you. You "used it up".

The only possible way your Nisa can grow now is through your investment increasing in value. No more contributions.

------------------------------------------------------------------------------------

Example 2 - New Nisa -> 3,6000,000 year. Lifetime total - > 18,000,000.

B. You have 18,000,000 yen. A full Regular Nisa. You sell 5,000,000 yen to put a downpayment on a house in 2030.

In 2031 you can put 3,200,000 yen into your account
In 2032 you can put 1,800,000 yen into your account

nanaya wrote: ↑Wed Sep 13, 2023 3:37 am

TokyoBoglehead wrote: ↑Tue Sep 12, 2023 9:17 pm

nanaya wrote: ↑Tue Sep 12, 2023 3:46 pm I'm wondering, given these steps:

1. put in 100000
2. it grows to 150000
3. take out 50000

how much of the limit will I get back? 25000? how is it calculated? is it by number of stocks multiplied by original purchase price?

what if the purchases span over several months/years? is it by average? or based on original purchase price? in that case, in what order?

The limit is a contribution amount. The value of the current holdings are irrelevant.

yes but how much of the contribution is taken out when I sell part of it? I'm pretty sure I won't get full 50000 limit back in my example above? ...or will I?

I hope this can make the question a bit clearer:

1. put in 100000 (contributed 100000 / (18M-100k) remains)
2. it grows to 150000 (contributed 100000 / (18M-100k) remains)
3. take out 50000 (contributed 100000 / (18M-100k) remains)
4. wait a year (contributed how much? 50000? 66667? 100000? / (18M-???) remains)

Roger Van Zant wrote: ↑Wed Sep 13, 2023 4:55 am

TokyoBoglehead wrote: ↑Wed Sep 13, 2023 3:16 am

Roger Van Zant wrote: ↑Wed Sep 13, 2023 2:37 am

I could use up 100,000 yen's worth, sell it, and still have 300,000 yen left to use.
So selling and reinvesting is not an issue, as long as I don't max out the 400,000 yen limit.

What are people talking about with regard to the 新NISA? What's the difference?

Example 1 - Classic Regular Nisa -> 1,2000,000 year. Lifetime total - > 6,000,000.

A. If your Nisa account had 6,000,000 yen total, (5 years' worth of investment) And you sold 3,000,000 yen. That is it. No more space for you. You "used it up".

The only possible way your Nisa can grow now is through your investment increasing in value. No more contributions.

------------------------------------------------------------------------------------

Example 2 - New Nisa -> 3,6000,000 year. Lifetime total - > 18,000,000.

B. You have 18,000,000 yen. A full Regular Nisa. You sell 5,000,000 yen to put a downpayment on a house in 2030.

In 2031 you can put 3,200,000 yen into your account
In 2032 you can put 1,800,000 yen into your account

Also....from what you have written above, the 18,000,000 yen is not really a "lifetime total" at all, is it?
In your example, even though you may have reached the 18,000,000 total, all you have to do is sell a chunk, and then you can start investing again. Any time you reach 18,000,000 total, just sell some. You could thus invest way more than 18,000,000 over several decades.
This 18,000,000 should more rightly be called "The maximum balance you can hold at any one point in time", no?

TokyoBoglehead wrote: ↑Wed Sep 13, 2023 5:36 am

Roger Van Zant wrote: ↑Wed Sep 13, 2023 4:55 am

TokyoBoglehead wrote: ↑Wed Sep 13, 2023 3:16 am

Example 1 - Classic Regular Nisa -> 1,2000,000 year. Lifetime total - > 6,000,000.

A. If your Nisa account had 6,000,000 yen total, (5 years' worth of investment) And you sold 3,000,000 yen. That is it. No more space for you. You "used it up".

The only possible way your Nisa can grow now is through your investment increasing in value. No more contributions.

------------------------------------------------------------------------------------

Example 2 - New Nisa -> 3,6000,000 year. Lifetime total - > 18,000,000.

B. You have 18,000,000 yen. A full Regular Nisa. You sell 5,000,000 yen to put a downpayment on a house in 2030.

In 2031 you can put 3,200,000 yen into your account
In 2032 you can put 1,800,000 yen into your account

Also....from what you have written above, the 18,000,000 yen is not really a "lifetime total" at all, is it?
In your example, even though you may have reached the 18,000,000 total, all you have to do is sell a chunk, and then you can start investing again. Any time you reach 18,000,000 total, just sell some. You could thus invest way more than 18,000,000 over several decades.
This 18,000,000 should more rightly be called "The maximum balance you can hold at any one point in time", no?

the 32,000,000 should have been 36,000,000

______________________

18,000,000 is a lifetime contribution limit. It is not the maximum balance. The pot can grow past that, but only through dividend growth (mutual fund), or increase evaluation.

beanhead wrote: ↑Tue Sep 12, 2023 2:42 pm There is no 5-year period from 2024. It is forever/eternal/"until the end of time" NISA.

nanaya wrote: ↑Tue Sep 12, 2023 3:46 pm how much of the limit will I get back?

what if the purchases span over several months/years? is it by average? or based on original purchase price? in that case, in what order?

Roger Van Zant wrote: ↑Wed Sep 13, 2023 4:55 am This 18,000,000 should more rightly be called "The maximum balance you can hold at any one point in time", no?

TokyoBoglehead wrote: ↑Wed Sep 13, 2023 3:16 am

Roger Van Zant wrote: ↑Wed Sep 13, 2023 2:37 am

I could use up 100,000 yen's worth, sell it, and still have 300,000 yen left to use.
So selling and reinvesting is not an issue, as long as I don't max out the 400,000 yen limit.

What are people talking about with regard to the 新NISA? What's the difference?

Example 1 - Classic Regular Nisa -> 1,2000,000 year. Lifetime total Contribution Limit - > 6,000,000.

A. If your Nisa account had 6,000,000 yen total, (5 years' worth of investment) And you sold 3,000,000 yen. That is it. No more space for you. You "used it up".

The only possible way your Nisa can grow now is through your investment increasing in value. No more contributions.

------------------------------------------------------------------------------------

Example 2 - New Nisa -> 3,6000,000 year. Lifetime total Contribution Limit - > 18,000,000.

B. You have 18,000,000 yen. A full Regular Nisa. You sell 5,000,000 yen to put a downpayment on a house in 2030.

In 2031 you can put 3,600,000* yen into your account
In 2032 you can put 1,800,000 yen into your account