RetireJapan

Tkydon wrote: ↑Thu Nov 03, 2022 5:30 am

cocacola wrote: ↑Thu Nov 03, 2022 4:21 am

zeroshiki wrote: ↑Thu Nov 03, 2022 4:16 am You should leave your 2022 NISA in your bank and just use Monex from 2023 onwards. Transferring the 2022 NISA to Monex after you've already used it is not worth the trouble.

Oh, I thought that only one NISA account can be had, per-person... so, are you saying that I could leave my Regular NISA contribution at my current bank, then open another Regular NISA at Monex?

Only One NISA Account in any one Tax Year

Yes -- well, only one fully active NISA account per year. You can move that account to a different financial institution during the year, but you have to be aware of the effects and procedures. Once you change the institution at which you have an active account, your existing account remains valid at the previous financial institution until the five-year NISA term is up -- you're free to to sell the assets tax-free at any time -- but no additional purchases can be made through it. In addition, you can only change accounts for the current year if you do so BEFORE October 1 AND haven't made any purchases that year through your existing account; changes made after October 1 take effect the following year. Finally, there's no such thing as transferring assets from one NISA account to another, nor are rollovers of assets in existing accounts possible.

The process itself can be expected to take two or three weeks to complete because the change has to be cleared with the tax office.

See this page for details and various examples in Japanese.

ClearAsMud wrote: ↑Thu Nov 03, 2022 9:16 am
Yes -- well, only one fully active NISA account per year. You can move that account to a different financial institution during the year, but you have to be aware of the effects and procedures. Once you change the institution at which you have an active account, your existing account remains valid at the previous financial institution until the five-year NISA term is up -- you're free to to sell the assets tax-free at any time -- but no additional purchases can be made through it. In addition, you can only change accounts for the current year if you do so BEFORE October 1 AND haven't made any purchases that year through your existing account; changes made after October 1 take effect the following year. Finally, there's no such thing as transferring assets from one NISA account to another, nor are rollovers of assets in existing accounts possible.

The process itself can be expected to take two or three weeks to complete because the change has to be cleared with the tax office.

See this page for details and various examples in Japanese.

Ah, so it's getting clearer: a NISA account is held at the same institution that it was created in, for the duration of the NISA term. Another NISA account can be created at a different institution the following year. When this happens, the previous NISA is essentially "locked" from purchases, but selling assets tax-free is still possible.

For my current Regular NISA, I plan to max it out for 2022. Next year, I can start a separate NISA at a different institution. Understood.

What I am a bit confused about is the "October 1st" part of your statement: since I will be making a purchase in my current, existing NISA in November (after October 1st), will this affect the possibility of me starting another NISA at a different institution?

cocacola wrote: ↑Thu Nov 03, 2022 12:22 pm

ClearAsMud wrote: ↑Thu Nov 03, 2022 9:16 am
Yes -- well, only one fully active NISA account per year. You can move that account to a different financial institution during the year, but you have to be aware of the effects and procedures. Once you change the institution at which you have an active account, your existing account remains valid at the previous financial institution until the five-year NISA term is up -- you're free to to sell the assets tax-free at any time -- but no additional purchases can be made through it. In addition, you can only change accounts for the current year if you do so BEFORE October 1 AND haven't made any purchases that year through your existing account; changes made after October 1 take effect the following year. Finally, there's no such thing as transferring assets from one NISA account to another, nor are rollovers of assets in existing accounts possible.

The process itself can be expected to take two or three weeks to complete because the change has to be cleared with the tax office.

See this page for details and various examples in Japanese.

Ah, so it's getting clearer: a NISA account is held at the same institution that it was created in, for the duration of the NISA term. Another NISA account can be created at a different institution the following year. When this happens, the previous NISA is essentially "locked" from purchases, but selling assets tax-free is still possible.

For my current Regular NISA, I plan to max it out for 2022. Next year, I can start a separate NISA at a different institution. Understood.

What I am a bit confused about is the "October 1st" part of your statement: since I will be making a purchase in my current, existing NISA in November (after October 1st), will this affect the possibility of me starting another NISA at a different institution?

No, it means it is too late for you to switch providers this year. You have to run with the provider where you have the active account for this year.

From 1 Jan 2023, you are free to go with your existing provider, or switch to another provider for the 2023 Tax Year.

Tkydon wrote: ↑Thu Nov 03, 2022 12:57 pm No, it means it is too late for you to switch providers this year. You have to run with the provider where you have the active account for this year.

From 1 Jan 2023, you are free to go with your existing provider, or switch to another provider for the 2023 Tax Year.

Got it! Thank-you for the clarification.

Hi, experts,

I am preparing to pull the trigger on making a purchase at my bank (Sumitomo Mitsui Trust) for my Regular NISA. I've pared my choices down to a few selections. Unfortunately, the Emaxis Slim All-Country fund is not available at this bank, but I will switch my NISA to a different provider next year which does offer it. For this year, I've got it down to the following choices (which I've selected).

Since my wife will have all of her Regular NISA investments being Emaxis Slim All-Country (at a different bank), I am considering hers as a pretty low-risk, highly diversified investment. For myself, I am thinking of doing half (600,000 yen) of the S&P 500 fund (in the link), and the other half being one of the other global funds in the above list. The S&P 500 is higher risk for sure, but I am OK with 25% of our total investment having a bit of that risk.

For the global fund, I am thinking of my other half being SMT 世界経済インデックス・オープン（株式シフト型）(SMT World Economic Index Open (Equity Shift Type)) as it is showing the highest annual returns as of late (but with the highest fees of 0.605% of the three).

I know that what is said on this forum is not "investment advice", I am just posing my question to the seasoned veterans here to get a different angle on these investments.

Thank-you, always.

RetireJapan wrote: ↑Tue Nov 01, 2022 12:16 am

Tkydon wrote: ↑Mon Oct 31, 2022 4:31 pm Yen is still weak against USD, but promises to strengthen against USD by end of year.
Start of Next Year promises to be the bottom for the start of the next Bull Market.

PSA: this may happen, may not. At this point nobody knows and while it is fun to speculate I don't recommend making decisions based on this (ie just make a sensible plan to invest and carry it out regardless of what the market does or doesn't do).

Yen
21-Oct-2022 金 151.26 149.26 150.26
to
21-Dec-2022 水 132.78 130.78 131.78

-12.3%

Tkydon wrote: ↑Wed Jan 04, 2023 2:30 pm

RetireJapan wrote: ↑Tue Nov 01, 2022 12:16 am

Tkydon wrote: ↑Mon Oct 31, 2022 4:31 pm Yen is still weak against USD, but promises to strengthen against USD by end of year.
Start of Next Year promises to be the bottom for the start of the next Bull Market.

PSA: this may happen, may not. At this point nobody knows and while it is fun to speculate I don't recommend making decisions based on this (ie just make a sensible plan to invest and carry it out regardless of what the market does or doesn't do).

Yen
21-Oct-2022 金 151.26 149.26 150.26
to
21-Dec-2022 水 132.78 130.78 131.78

-12.3%

But were you confident enough on that claim to buy currency futures? I think not.