RetireJapan

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.

adamu wrote: ↑Mon May 08, 2023 11:54 pm I guess you could try to lump-sum the growth portion every January, but I still think unless you do it on a strict schedule, that will lead to attempting to time the market, so the monthly contribution route is better.

^ Yes, we all have our different approaches. YMMV.

banders wrote: ↑Sun Jan 14, 2024 2:38 am Now it’s shooting to the stars and I’m certainly not going to buy at an ATH, whatever statistics may say about lump sums.

1. All-time highs are pretty common
2. You are saying, "Statistically lumpsum investing is superior, but I choose not to".

All that is fine, as long as you understand it is a personal/emotional decision.
https://awealthofcommonsense.com/2017/0 ... ime-highs/

Tsumitate Wrestler wrote: ↑Sun Jan 14, 2024 4:25 am 1. All-time highs are pretty common
2. You are saying, "Statistically lumpsum investing is superior, but I choose not to".

One ATH a month on average, yes, but that doesn't mean in-between it doesn't fall. The article actually says 95% of days are below the ATH. And remember, I'm talking about a one-off event, namely having to reinvest my old NISA. This is not my long-term strategy.

banders wrote: ↑Mon Jan 15, 2024 1:44 am

Tsumitate Wrestler wrote: ↑Sun Jan 14, 2024 4:25 am 1. All-time highs are pretty common
2. You are saying, "Statistically lumpsum investing is superior, but I choose not to".

One ATH a month on average, yes, but that doesn't mean in-between it doesn't fall. The article actually says 95% of days are below the ATH. And remember, I'm talking about a one-off event, namely having to reinvest my old NISA. This is not my long-term strategy.

When it comes to lump sum investing into the growth portion of the new Nisa, It's not that unique of a situation.

You can find lots of debate about these circumstances online surrounding windfalls, bonuses, and other one time investments.

Different papers suggest different rates but almost universally lump sum investing is the more advantageous strategy, and the simpler one at that.

It does make me wonder why there is a tsumitate section in NISA at all. If people have the money it’s in their interest to invest it asap. And nisa is more complicated as a result of having both growth and tsumitate portions.

I dumped my partner’s extra cash into a bond fund last year, and this year will sell it in drips and use the proceeds to purchase in nisa. If I am able to remember to sell some each month.

It is what it is though…

Its because not everyone has the money do the lump sum and its good to encourage people to do tsumitate and form good saving habits.

I actually wish they got rid of the growth portion and just restricted everyone to tsumitate for 300k a month with the curated selection. This will encourage people to set and forget and also avoid all the market timing people love to do.

I would be happy to have either tsumitate only or growth only. I don't know why they decided to keep both as it makes it more complicated and difficult to explain (and almost certainly puts people off).

I think they wanted to encourage regular investing, but also are (not so) secretly hoping everyone will load up on J-stocks and boost the domestic market. Aiming for the best of both worlds.

If the goal is to encourage investing, it should be as simple and clear as possible.

Even though I had a fund in the UK that was set up several decades back and was doing extremely well, I still knew next to nothing about it.

For several reasons, I decided it was time to understand. I was fortunate to be able to spend most of last summer researching/studying and getting to grips with the basics (and by now, much more than the basics) of investing. It was very time-consuming, but I'm super glad I did it.

So much so that I now feel foolish for not understanding it all sooner (re: my money sitting in my Japanese bank).

It takes a lot of time to properly understand these things. I'm guessing most people will find it difficult to find the time and head-space to do that and it initially seeming so complicated doesn't help.

Muzukashii desu ne!