RetireJapan

Tsumitate Wrestler wrote: ↑Wed Oct 02, 2024 4:45 am

RetireJapan wrote: ↑Wed Oct 02, 2024 3:46 am

bryanc wrote: ↑Wed Oct 02, 2024 3:28 am I know zero about other asset classes

Sounds like you need to either read a couple of books, or you don't need to buy other asset classes.

Maybe start here: https://amzn.to/4dxzruR

For most people, recommending they read a few books and report back can be a bit dismissive.

I would say do not bother with asset classes. Buy the entire market. “Just buy the haystack”

https://wealthie.works/just-buy-the-hay ... hat-works/

Your preference in haystack may vary. S&P500/CRSP US Total Market Index/MSCI ACWI/FTSE ALL CAP/Kokusai.

These haystacks or "indexes" are tracked and closely followed by different mutual funds and ETFs in Japan and abroad.

All those are fine choices. I would go with the MSCI ACWI via Emaxis Slim All Country

If you actually read the thread, you can see that OP is investing into all-country and similar funds.

They are asking which other asset classes they should invest in (asset classes other than stocks, presumably). My point was that before doing something like that it would be better to have an understanding of asset classes and how they fit together. Just taking blind suggestions from a forum is probably not a good way to make investment decisions.

(and if it is too hard or too much trouble, OP's current approach is probably fine)

RetireJapan wrote: ↑Wed Oct 02, 2024 5:26 am They are asking which other asset classes they should invest in (asset classes other than stocks, presumably). My point was that before doing something like that it would be better to have an understanding of asset classes and how they fit together. Just taking blind suggestions from a forum is probably not a good way to make investment decisions.

(and if it is too hard or too much trouble, OP's current approach is probably fine)

Agreed. At the very least bryanc should have an understanding of how portfolio diversification affects risk and return. A simple way to do this is to head over to myindex.jp and play around with different allocations of asset classes to see how the portfolios performed (risk vs return) over the last 5 / 10 / 20 / 30 years. The goal is to get lower risk (volatility) without sacrificing too much total return. If you don't care about risk and won't need the money for a good number of years then 100% stocks is the way to go.

I've just noticed that the thread title is "tsumitate nisa". If you're talking about the Tsumitate portion only (100k / month) then you will be restricted mostly to stock index mutual funds, and a few balanced funds which contain stocks and bonds. But the Growth portion (200k / month) will allow to you buy almost anything.

So that's my advice. Don't change anything unless you have an understanding of how it might affect future results!