ChapInTokyo wrote: ↑Tue May 28, 2024 11:14 am
So sad to hear that you're going back to the UK! Thanks for all your kind advice... no idea how best to take your nest egg back intact though... maybe the best way to maintain the yen value rather than lock in the weak yen value into pounds would be to buy iShares MSCI Japan ETF (EWJ) at an online broker which is accessible from both Japan and the UK? You'd expose yourself to market risk with an equity ETF of course, but because the underlying stocks would be denominated in yen I think that the yen value would appreciate along with the normalization of the exchange rate after the US and UK starts cutting rates and Japan starts raising them?
No no no no. You are locking in the weak yen when you purchase this ETF.
Surely not. If the yen strengthens by say 10% against the dollar, the value of the basket of Japanese stocks comprising the ETF will automatically increase by 10% in dollar terms. Now if you'd bought a S&P500 ETF with the same money, then you'd be locking in the weak yen.
I didn't spot you were recommending MSCI Japan rather than MSCI World. But, if the yen appreciates by 10%, I would fully expect MSCI Japan to fall given the majority of index consituents derive the majority of their sales overseas.
I don't have any experience with this, but couldn't you take it as a 2 step procedure...make a trip to England, and open the yen account. Return to Japan and finish up all of your paperwork, including sending your money. A friend did this, moving back to Ireland (I'm not sure what bank he opened the yen account with, but he did it when it was 130 yen, which has changed over the past few years. I think that he has to pay a yearly fee for this account). Since you have an address in the UK, hopefully it would be easy to accomplish...)
No no no no. You are locking in the weak yen when you purchase this ETF.
Surely not. If the yen strengthens by say 10% against the dollar, the value of the basket of Japanese stocks comprising the ETF will automatically increase by 10% in dollar terms. Now if you'd bought a S&P500 ETF with the same money, then you'd be locking in the weak yen.
I didn't spot you were recommending MSCI Japan rather than MSCI World. But, if the yen appreciates by 10%, I would fully expect MSCI Japan to fall given the majority of index consituents derive the majority of their sales overseas.
As I noted, buying equities means that you will be exposing yourself to market risk. Sad but true. But who knows how the MSCI Japan index will react to a strengthening yen? It's true that large Japanese corporation serve a global market, as do large US or European corporations. But the trend has been for companies to build products closer to customers and so the correlation between the dollar-yen rate and Japanese corporate profits has broken down according to the FT:
Why Japanese corporates are less reliant on dollar-yen rate for profits
Exchange rates have become less important as companies build products closer to customers https://www.ft.com/content/2285516e-ac5 ... bc64303f4a
adamtokyo wrote: ↑Tue May 28, 2024 11:03 am
I've looked at using Wise but I can only hold ¥1,000,000 (£5000) which is not big enough for my life savings.
Another option would be to open an IB account here (Interactive Brokers), put everything in that, and then have them transfer your account to their UK branch/operations. (Not sure how fast that would happen.)
I just googled, and IB also serves UK. US persons used to use their US operations for US brokerage services, and their exchange rates have always been described as excellent.
adamtokyo wrote: ↑Tue May 28, 2024 10:51 am
Does anyone have any ideas how I can get round this or alternative ideas to getting my nest egg back home.
Is it in cash, or invested? If invested, what in? I'm asking because you mentioned life savings and last time we saw you was 4 years ago asking about NISA.
Nancy wrote: ↑Tue May 28, 2024 10:52 pm
I don't have any experience with this, but couldn't you take it as a 2 step procedure...make a trip to England, and open the yen account. Return to Japan and finish up all of your paperwork, including sending your money. A friend did this, moving back to Ireland (I'm not sure what bank he opened the yen account with, but he did it when it was 130 yen, which has changed over the past few years. I think that he has to pay a yearly fee for this account). Since you have an address in the UK, hopefully it would be easy to accomplish...)
Hey Nancy, I just came back and leaving in next 2 months. I'd rather avoid another costly trip if possible. I guess this could be a last resort option. Thanks!
adamtokyo wrote: ↑Tue May 28, 2024 10:51 am
Does anyone have any ideas how I can get round this or alternative ideas to getting my nest egg back home.
I don't know the rules about this so please take it with a pinch of salt, but this answer on the IBSJ FAQ page looks slightly promising:
Q: I will be moving abroad. Can I maintain my account overseas?
A: Accounts held with Interactive Brokers Securities Japan, Inc. are for Japanese residents and cannot be used overseas. Please apply for a new account at your overseas address after you have moved. After opening an account, you will be able to transfer your positions manually. Please submit a request via Help > Secure Message Center from Client Portal.
So if you have time to open an account at IBSJ before you leave:
1. Open an IBSJ account.
2. Deposit your yen there (you don't have to buy anything with it).
3. Open an IB UK account after you have moved.
4. Transfer the yen from IBSJ to IBUK (you don't have to convert it to GBP).
5. Close the IBSJ account.
Sounds too good to be true?
This sounds good. I'll check with my current bank (Rakuten) to see if they are willing to keep my account open for a few months after I move. If they are I can do what the FAQ item in your comment above says.
Failing that I can look into opening a IB account and do as you mentioned. Will look into this more. Thanks northSave.
One last idea, could you get a Yen cashier's check and transfer the money this way? (close your account, put the money in a cashier's check, and then deposit it once you get to the UK? (I did this in the US, with a US dollar cashier's check, and it worked out well in Japan. It did take a month to clear the check, and there was some expense involved, but it was all painless if you have the time.
Well unsurprisingly Rakuten are about as useful as a chocolate teapot.
We apologize, but Rakuten Bank accounts are only available to those who reside in Japan.
Therefore, when a customer with a Rakuten Bank account becomes a non-resident,
Your account has been cancelled. We kindly ask for your understanding.
They failed to acknowledge how they would close the account when my lifes savings are stuck in there. I'll have to call their call center to follow through but I've almost given up on this route.
Nancy wrote: ↑Thu May 30, 2024 7:09 am
One last idea, could you get a Yen cashier's check and transfer the money this way? (close your account, put the money in a cashier's check, and then deposit it once you get to the UK? (I did this in the US, with a US dollar cashier's check, and it worked out well in Japan. It did take a month to clear the check, and there was some expense involved, but it was all painless if you have the time.
Interesting. I've never done this before. I'll look into this more.
