Simple Q&A - NISA

[zeroshiki]

If you're using the CC for Rakuten to do NISA purchases, it actually locks in the order on the 16th each month (so November 16th) for the order on the 8th.
The purchase locked in on December 16 will be for next year.

[7-seasons.com]

Thanks.

Another odd one is that I deposited the full year but didn't invest it during 2020. So when I went to deposit another year's worth for 2021 I wasn't allowed because I didn't actually buy anything during 2020. Does that mean that I am still in year 2 of the 5 year NISA, or does it start when I invest something like this year for the first time so year 1 of 5? I figure it's the former but 日本の風に確認しなきゃ。

[zeroshiki]

Thanks.

Another odd one is that I deposited the full year but didn't invest it during 2020. So when I went to deposit another year's worth for 2021 I wasn't allowed because I didn't actually buy anything during 2020. Does that mean that I am still in year 2 of the 5 year NISA, or does it start when I invest something like this year for the first time so year 1 of 5? I figure it's the former but 日本の風に確認しなきゃ。

NISA exists in its own 5 year bubble per year. Its confusing but if you buy securities for your NISA in 2021, they're tax free until 2025 (Regular NISA). Nothing that happens before or after this (short of selling them) will matter.

You're on Year 2 of your 2020 NISA which was 0. Your 2021 NISA is still active and this is year 1.

[7-seasons.com]

Thanks.

Another odd one is that I deposited the full year but didn't invest it during 2020. So when I went to deposit another year's worth for 2021 I wasn't allowed because I didn't actually buy anything during 2020. Does that mean that I am still in year 2 of the 5 year NISA, or does it start when I invest something like this year for the first time so year 1 of 5? I figure it's the former but 日本の風に確認しなきゃ。

NISA exists in its own 5 year bubble per year. Its confusing but if you buy securities for your NISA in 2021, they're tax free until 2025 (Regular NISA). Nothing that happens before or after this (short of selling them) will matter.

You're on Year 2 of your 2020 NISA which was 0. Your 2021 NISA is still active and this is year 1.

Thank you!

[pfdsa]

Hi everyone, quick question.

Set up my Tsumitate NISA (Rakuten Securities) this year and I'm currently on my second month (4 payments of 50,000 yen for 2021). Before 2021 ends, do I have to apply again for a new Tsumitate NISA, or does it automatically renews itself?
If I do need to apply again, do I have to do it before 2021 ends, or on the beginning of 2022?

[RetireJapan]

Hi everyone, quick question.

Set up my Tsumitate NISA this year and I'm currently on my second month (4 payments of 50,000 yen for 2021). Before 2021 ends, do I have to apply again for a new Tsumitate NISA, or does it automatically renews itself?
If I do need to apply again, do I have to do it before 2021 ends, or on the beginning of 2022?

Unless you give them other instructions, your broker will automatically open a new NISA account of the same type each year.

[pfdsa]

Hi everyone, quick question.

Set up my Tsumitate NISA this year and I'm currently on my second month (4 payments of 50,000 yen for 2021). Before 2021 ends, do I have to apply again for a new Tsumitate NISA, or does it automatically renews itself?
If I do need to apply again, do I have to do it before 2021 ends, or on the beginning of 2022?

Unless you give them other instructions, your broker will automatically open a new NISA account of the same type each year.

Sorry, forgot to say that I'm using Rakuten securities.
I see, thank you.
Taking in consideration that I'm making extra contribuitions every month, I assume that they will ask me to set the monthly amount again in the new account?

[Rowan]

I randomly set up a NISA with Saison way back and paid into it what I could from then.
My current accounts are as follows.


I want to consolidate all my investments with Rakuten from next year, including a NISA in which I will buy a mixture of similar funds and some stocks.
Is the following approach correct?
I sell my 特定 account nowish, and invest that through the NISA with Rakuten in January but keep the existing 2017-2021 NISA/つみたてNISA accounts with Saison until they expire.
Then as they expire each year, I sell them and invest the funds in my Rakuten NISA.
Ideally, I would just move everything across to Rakuten in January, but my total investment with Saison is 1.89mm and therefore above the 1.2mm limit of the NISA.

[beanhead]

I randomly set up a NISA with Saison way back and paid into it what I could from then.
My current accounts are as follows.


I want to consolidate all my investments with Rakuten from next year, including a NISA in which I will buy a mixture of similar funds and some stocks.
Is the following approach correct?
I sell my 特定 account nowish, and invest that through the NISA with Rakuten in January but keep the existing 2017-2021 NISA/つみたてNISA accounts with Saison until they expire.
Then as they expire each year, I sell them and invest the funds in my Rakuten NISA.
Ideally, I would just move everything across to Rakuten in January, but my total investment with Saison is 1.89mm and therefore above the 1.2mm limit of the NISA.

Hello, and welcome.
The costs on that Saison fund are not terrible. However, it is a balanced fund, 50% equities and 50% bonds. As you probably know, the bond part is returning close to 0 right now, so the performance of this fund will be a bit, er...lukewarm. If you are 60 then this fund/asset allocation may be appropriate. If 30 or 40, it is probably too conservative.

On your approach, it seems sensible. One minor edit. Your 2017 NISA will expire this year, as it is 2017-2021.
So make sure you set up the NISA with Rakuten for 2022, then you will have 2018-2021, 4 years with Saison, and from 2022 with Rakuten.

You will of course pay a little tax on the gains in your tokutei. It is better to max out the NISA each year to reduce tax, so it is not 100% clear to me why you would have invested in the tokutei when the NISAs were not maxed out.(perhaps Saison did not have the products you wanted in the NISA?)

Hope that helps.

[Rowan]

Beanhead,

Thank you very much for the reply!
You are of course correct; I can sell the tokutei and the 2017 NISA together in January and move the funds across to the new NISA.

And yeah, don't worry too much about why the investment looks how it does; it's a combination of laziness and ignorance