How should a college student invest in their future?

[Sophia]

Most students are going to be applying to avoid paying their pension (免状) so won't be able to use iDeCo until they are paying nenkin in full.

Are you saying I can't use iDeco until I pay pension taxes?

[RetireJapan]

The iDeCo account was created as a way for people to supplement their nenkin. The thinking is probably, 'if you can't afford to pay nenkin in full you shouldn't be able to afford to pay into iDeCo'

Also, if you happen to have US citizenship as well that would make it difficult for you to invest in Japan. If not, no problem.

If you won't be living here in the future, non-residents generally have to close their bank and investment accounts when they leave (unless they are going abroad temporarily to study or on a work posting).

[Sophia]

The iDeCo account was created as a way for people to supplement their nenkin. The thinking is probably, 'if you can't afford to pay nenkin in full you shouldn't be able to afford to pay into iDeCo'

Also, if you happen to have US citizenship as well that would make it difficult for you to invest in Japan. If not, no problem.

If you won't be living here in the future, non-residents generally have to close their bank and investment accounts when they leave (unless they are going abroad temporarily to study or on a work posting).

Ah I see. I am a japanese citizen so I guess I won't have to close my bank and investment accounts. Another thing I am wondering is if its better to start with NISA or just buy index funds without using NISA. Or is it better If I do both?

[N00bster]

The iDeCo account was created as a way for people to supplement their nenkin. The thinking is probably, 'if you can't afford to pay nenkin in full you shouldn't be able to afford to pay into iDeCo'

Also, if you happen to have US citizenship as well that would make it difficult for you to invest in Japan. If not, no problem.

If you won't be living here in the future, non-residents generally have to close their bank and investment accounts when they leave (unless they are going abroad temporarily to study or on a work posting).

Ah I see. I am a japanese citizen so I guess I won't have to close my bank and investment accounts. Another thing I am wondering is if its better to start with NISA or just buy index funds without using NISA. Or is it better If I do both?

NISA accounts and regular accounts allow you to buy exactly the same things. The difference is just that NISA is not taxed for 5 years. I don't see any reason for not using it, unless maybe you want to practice buying and selling in small quantities or you are planning on holding your assets for less than 5 years?

[RetireJapan]

Ah I see. I am a japanese citizen so I guess I won't have to close my bank and investment accounts. Another thing I am wondering is if its better to start with NISA or just buy index funds without using NISA. Or is it better If I do both?

Not sure about that. I think if you leave the country you would have to close your accounts, but you'd have to consult with the financial institution in question. They tend to check by sending you letters, so if you have an address you can use that might allow you to circumvent the rules.

There is pretty much no downside* to using NISA, so I would do that first.

*there is a potential downside if the value of your investments falls, but it is not massively likely...