RetireJapan

Tony wrote: ↑Thu Oct 17, 2019 10:33 pm Lol, it wasn't passed because it could be seen as "favouritism of the rich". What a joke.

NISAs haven’t been the success the powers that be hoped for. The take-up rate is low. I’m sure a lot of people with NISAs just put in low amounts like 100,000 yen and forget about it.

With the low margins and low investment rates I don’t see how financial institutions can make a profit from them considering the overheads from setting up and running accounts. At least with Tsumitate NISAs investors are likely to invest more over time.

RetireJapan wrote: ↑Sat Oct 19, 2019 2:53 pm Junior NISA currently due to run until 2023: https://www.fsa.go.jp/policy/nisa2/abou ... index.html

That is the last year that can currently be funded, although there is a chance it will be extended or replaced with something similar.

Thanks for that. I hope the regular NISA also gets replaced with something similar.

I dunno, I'm no expert, but it seems strange to me—the government is stating that people need to save for retirement, but at the same time they aren't providing a whole lot to encourage people to actually do that. It would be great if they increased the tsumetate limit.

Just to clarify, though: I just read this in the comments to the latest blog post:

RetireJapan wrote: NISA has always had an expiration date: it is a ten-year program due to run until 2023 (2023 will be the last year you can open an account). Junior NISA is on the same timetable.
…
Tsumitate NISA is currently due to run until 2037.

…So, am I right in thinking that the article linked on the first page of this thread is saying that the decision to discontinue the NISA will be announced in 2020—not that 2020 is the last year that it will be run? And that, like the Jr. NISA, the regular NISA will also continue until 2023?

Sybil wrote: ↑Sun Oct 20, 2019 11:53 pm
NISAs haven’t been the success the powers that be hoped for. The take-up rate is low. I’m sure a lot of people with NISAs just put in low amounts like 100,000 yen and forget about it.

With the low margins and low investment rates I don’t see how financial institutions can make a profit from them considering the overheads from setting up and running accounts. At least with Tsumitate NISAs investors are likely to invest more over time.

They may not have been as successful as was hoped, but it was financial institutions that wanted NISA made permanent, and it was the politicians who decided to stop the bill ... unless financial institutions requested it be made permanent and then went and secretly lobbied for it to get killed, but that's getting into conspiracy theory territory.

So... I have literally just opened a NISA account with rakuten, have money ready to put in and buy some index fund.
Should I hold off? Go ahead? Use an alternative? If so what?

Kaard wrote: ↑Wed Oct 23, 2019 3:27 am So... I have literally just opened a NISA account with rakuten, have money ready to put in and buy some index fund.
Should I hold off? Go ahead? Use an alternative? If so what?

This year's ordinary NISA will be tax free until the end of 2023.
Next year's will be tax free until the end of 2024.
The year after until the end of 2025.

Existing acccounts will not be affected, it's just that currently after 2023 we won't be able to open new accounts and will be left with tsumitate NISA or taxable accounts for investing.

left with tsumitate NISA or taxable accounts for investing.

Are kids allowed to have a "regular" taxable brokerage account? What happens to my kids investments once they go out of Junior NISA?

RetireJapan wrote: ↑Wed Oct 23, 2019 3:38 am

Kaard wrote: ↑Wed Oct 23, 2019 3:27 am So... I have literally just opened a NISA account with rakuten, have money ready to put in and buy some index fund.
Should I hold off? Go ahead? Use an alternative? If so what?

This year's ordinary NISA will be tax free until the end of 2023.
Next year's will be tax free until the end of 2024.
The year after until the end of 2025.

Existing acccounts will not be affected, it's just that currently after 2023 we won't be able to open new accounts and will be left with tsumitate NISA or taxable accounts for investing.

Thank you, that helps!

StockBeard wrote: ↑Wed Oct 23, 2019 9:10 am Are kids allowed to have a "regular" taxable brokerage account? What happens to my kids investments once they go out of Junior NISA?

My granddaughter's Junior NISA with Rakuten has a normal taxable account alongside the NISA.

Are kids allowed to have a "regular" taxable brokerage account? What happens to my kids investments once they go out of Junior NISA?

Keep in mind that in the case of both a regular brokerage account and Junior NISA that once the child turns 20 they are in full control of the account and can potentially do anything they want with the money.

https://www.yomiuri.co.jp/economy/20191 ... 50024/amp/

Hints of a silver lining in this?