RetireJapan

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....J-REITs can avoid income taxes by deducting distributions from taxable income, as long as they satisfy such
conduit requirements as distributing 90% or more of the distributable income and setting the investment unit holding ratio
of the largest unitholder at 50% or less. This arrangement allows J-REIT investors to practically obtain revenue from their
investments without being subject to income taxes. Accordingly, the distribution yield of J-REITs is maintained at a level
higher than the stock dividend yield.

t. A J-REIT that meets certain requirements (called “conduit requirements”) is allowed to deduct distribution of
profits, etc. from taxable income of the investment corporation. Accordingly, it can practically avoid income taxes and eliminate double taxation of dividend tax, etc. This is also a reason why J-REITs achieve relatively high yields compared to real
estate companies, which deliver dividends after tax

https://www.jpx.co.jp/english/equities/ ... 191227.pdf

Interesting!

Hi all,
OP here, thanks very much for the advice and sorry for not being able to write back sooner - busy time of year for me.

I had a look into the UK national pension, it seems like I have paid 6 years into it in total. I'm kicking myself that I didn't keep doing it when I had the chance, but I can use my UK savings to help put money into it - it is just sitting there and basically pays for my PS games so I'm happy to use that money for something worthwhile rather than it sitting in Lloyds. I'll check some of the other posts as I'm a little confused about how many years you have to pay to get it, so I'll look into that.

One poster asked about what I do with my company pension DC.
I have only had it a few years and I have 50% in the Guaranteed Principal as I wanted to test the water before risking more, which was a good move as I learned a lot especially the effect of Corona over the market.

The 50% invested split is about 50% Reits and rest into Japanese equities and foreign equities. I was doing quite well but I put too much into Reits and so corona really made a mess of them, but they are gradually growing back up and I'm expecting decent returns over the long term unless we get another virus lol. I am thinking about moving some more of the Guaranteed Principal over to Indexes. Any thoughts on this?

On the weekend I have some free time, I'll go through all the links you guys have provided and will start dipping my toes in the water to see how things go. Thanks for the help - I'm excited and terrified at the same time haha

plat wrote: ↑Fri Dec 04, 2020 1:25 am I had a look into the UK national pension, it seems like I have paid 6 years into it in total. I'm kicking myself that I didn't keep doing it when I had the chance, but I can use my UK savings to help put money into it - it is just sitting there and basically pays for my PS games so I'm happy to use that money for something worthwhile rather than it sitting in Lloyds. I'll check some of the other posts as I'm a little confused about how many years you have to pay to get it, so I'll look into that.

10 years to get anything, 35 to get a full pension. See if they will let you backpay the years you missed -this can be a good deal as the monthly payments may have been cheaper back then and also we don't know if they will change the rules to prevent us getting this ridiculously cheap pension in the future.

RetireJapan wrote: ↑Fri Dec 04, 2020 1:27 am

plat wrote: ↑Fri Dec 04, 2020 1:25 am I had a look into the UK national pension, it seems like I have paid 6 years into it in total. I'm kicking myself that I didn't keep doing it when I had the chance, but I can use my UK savings to help put money into it - it is just sitting there and basically pays for my PS games so I'm happy to use that money for something worthwhile rather than it sitting in Lloyds. I'll check some of the other posts as I'm a little confused about how many years you have to pay to get it, so I'll look into that.

10 years to get anything, 35 to get a full pension. See if they will let you backpay the years you missed -this can be a good deal as the monthly payments may have been cheaper back then and also we don't know if they will change the rules to prevent us getting this ridiculously cheap pension in the future.

Thanks for the info- looking at the website I can pay back from 2006 at 750 a year so that means I'd have to pay 10k roughly into the system plus another 10 years to get the full pension. I hope I'm actually around to get it - my father passed away on the year he was to retire.

If you can afford it, this is probably worth it.

Pay in 10k + ten years of contributions (about 7k?) to get an annual pension of 9k. You make your money back in two years and after that it is all profit.

This is about 4x a better deal than kokumin nenkin here.

The risk is living longer than you think and ending up poor in old age. Dying early is... not your problem.

RetireJapan wrote: ↑Fri Dec 04, 2020 4:05 am Dying early is... not your problem.

Hopefully you`ll have life insurance, so it will not become someone else's problem too!

RetireJapan wrote: ↑Fri Dec 04, 2020 4:05 am If you can afford it, this is probably worth it.

Pay in 10k + ten years of contributions (about 7k?) to get an annual pension of 9k. You make your money back in two years and after that it is all profit.

This is about 4x a better deal than kokumin nenkin here.

The risk is living longer than you think and ending up poor in old age. Dying early is... not your problem.

This is what I was thinking, certainly better having the money just sit there in the UK.I pretty much have that amount saved in the UK.
When that gets paid at retirement age - is that classed as taxable income in Japan?

Kanto wrote: ↑Fri Dec 04, 2020 4:12 am

RetireJapan wrote: ↑Fri Dec 04, 2020 4:05 am Dying early is... not your problem.

Hopefully you`ll have life insurance, so it will not become someone else's problem too!

haha yeah my mrs has certainly made sure of that haha

Thanks for the suggestions everyone. I appreciate the quick replies.

I'm going to have a look at the bond fund as suggested:

"Rakuten Global Bond Index (Forex Hedge) Fund -> This is a hedged version of the Vanguard fund BNDW
楽天・全世界債券インデックス（為替ヘッジ）ファンド
https://www.rakuten-sec.co.jp/web/fund/ ... 90C000HBG4

This is a hedged fund and would offer more currency protection, though at a slighter higher cost."

I'll check in a few months later after the dust settles and we are into the new year.