RetireJapan

eyeswideshut wrote: ↑Fri May 05, 2023 2:45 pm My 2019 normal NISA is sitting at about 2 million so once the wrapper comes off I will cash it out and reinvest the funds in the new new eternal NISA and use whatever money I have available to increase it to the full 2.4 million limit in January.

I'm in exactly the same boat.
Wouldn't you want to sell 'before' the old 5yr NISA wrapper comes off i.e. in December to lock in all those gains tax-free? If you wait till those investments have been moved to your taxable account and then sell, you'll be liable for tax on any increase in value from January 1st, no?

Bushiman wrote: ↑Mon May 08, 2023 12:08 am

eyeswideshut wrote: ↑Fri May 05, 2023 2:45 pm My 2019 normal NISA is sitting at about 2 million so once the wrapper comes off I will cash it out and reinvest the funds in the new new eternal NISA and use whatever money I have available to increase it to the full 2.4 million limit in January.

I'm in exactly the same boat.
Wouldn't you want to sell 'before' the old 5yr NISA wrapper comes off i.e. in December to lock in all those gains tax-free? If you wait till those investments have been moved to your taxable account and then sell, you'll be liable for tax on any increase in value from January 1st, no?

It goes both ways. If you sell early and the market gains between when you sell and the end of the year, you lose out on the tax free gains.

This is why I think selling existing investments is a distraction. It's going to encourage you to do market timing, expose you to risk of being out of the market, and distract from the much simpler, more important, and beneficial habit of regular saving.

adamu wrote: ↑Mon May 08, 2023 12:55 am This is why I think selling existing investments is a distraction. It's going to encourage you to do market timing, expose you to risk of being out of the market, and distract from the much simpler, more important, and beneficial habit of regular saving.

I think it’s individual specific, I haven’t found myself being tempted to time the market when moving things around.

(Maybe that is because I have my speculative activities on the side to keep me amused.)

I am by and large planning to sell legacy NISA 2019, plus taxable in late December and buy new NISA on the same day. I might stagger it over a few days if I have a liquidity shortage

sutebayashi wrote: ↑Mon May 08, 2023 2:57 am

adamu wrote: ↑Mon May 08, 2023 12:55 am This is why I think selling existing investments is a distraction. It's going to encourage you to do market timing, expose you to risk of being out of the market, and distract from the much simpler, more important, and beneficial habit of regular saving.

I think it’s individual specific, I haven’t found myself being tempted to time the market when moving things around.

(Maybe that is because I have my speculative activities on the side to keep me amused.)

I am by and large planning to sell legacy NISA 2019, plus taxable in late December and buy new NISA on the same day. I might stagger it over a few days if I have a liquidity shortage

Everyone is different. Maxing out the New NISA asap will be my goal. Preferably before I get a mortgage.

TokyoBoglehead wrote: ↑Mon May 08, 2023 5:18 am Everyone is different. Maxing out the New NISA asap will be my goal. Preferably before I get a mortgage.

Fortunately I have got my mortgage already, so one less complication to think about.
I got mine in 2015, and somehow came up with a nice down payment, together with my spouse. At the time I had just gotten started with NISA so kept that there as “future retirement funds”. (I must have had cash sitting in the bank like a dummy, but perhaps that was a reasonable idea if I had earmarked it for a house purchase..)

If one was going to take out a mortgage in future, with new NISA you are lucky to have the option of using that cash for a down payment of so inclined, and then starting all over again with the NISA again.

Maybe most people don’t bother with down payments and just take out as much via a low rate mortgage as their banker with give them?

Stupid question time. The 2019 NISA doesn't rollover direct into the new NISA?

Jansen wrote: ↑Mon May 08, 2023 3:23 pm Stupid question time. The 2019 NISA doesn't rollover direct into the new NISA?

Sadly no. No more rollovers.
You will get it at the (hopefully increased) value put into your taxable in Jan 2024. From that, buy new products for the new super-duper 2024 NISA.

Well that sucks, 2019 and 2020 were incredible years for me. I've got over 4m in both of those years.

Bushiman wrote: ↑Mon May 08, 2023 12:08 am

eyeswideshut wrote: ↑Fri May 05, 2023 2:45 pm My 2019 normal NISA is sitting at about 2 million so once the wrapper comes off I will cash it out and reinvest the funds in the new new eternal NISA and use whatever money I have available to increase it to the full 2.4 million limit in January.

I'm in exactly the same boat.
Wouldn't you want to sell 'before' the old 5yr NISA wrapper comes off i.e. in December to lock in all those gains tax-free? If you wait till those investments have been moved to your taxable account and then sell, you'll be liable for tax on any increase in value from January 1st, no?

I think it would be a mere matter of days so probably not likely to accrue any major taxable gains or losses over the interim.

eyeswideshut wrote: ↑Mon May 08, 2023 9:38 pm

Bushiman wrote: ↑Mon May 08, 2023 12:08 am

eyeswideshut wrote: ↑Fri May 05, 2023 2:45 pm My 2019 normal NISA is sitting at about 2 million so once the wrapper comes off I will cash it out and reinvest the funds in the new new eternal NISA and use whatever money I have available to increase it to the full 2.4 million limit in January.

I'm in exactly the same boat.
Wouldn't you want to sell 'before' the old 5yr NISA wrapper comes off i.e. in December to lock in all those gains tax-free? If you wait till those investments have been moved to your taxable account and then sell, you'll be liable for tax on any increase in value from January 1st, no?

I think it would be a mere matter of days so probably not likely to accrue any major taxable gains or losses over the interim.

Indeed. And the long term capital gains savings you'll receive will more than make-up for an missed market movement.

Adams advice might be suited for those who would never comment in a thread like this though ..