RetireJapan

Bubblegun wrote: ↑Fri Nov 01, 2024 8:13 am

Roger Van Zant wrote: ↑Thu Oct 31, 2024 2:42 pm

Wales4rugbyWC23 wrote: ↑Thu Oct 31, 2024 12:18 pm

I bet the Japanese state pension won't be that much more than it is now.... How pensioners manage to live on 64,000 yen a month, I don't know.

I just looked online at my Japanese pension forecast.
117,000 yen per month. That'll be for thirty years paid in (kosei nenkin).
Scandalous.

I wonder how much that would be if you had just taken the money, and put it into the s&p500. Although you will never ever run out. I wonder what the break even point is.

Roger Van Zant wrote: ↑Thu Nov 07, 2024 7:05 am

Bubblegun wrote: ↑Fri Nov 01, 2024 8:13 am

Roger Van Zant wrote: ↑Thu Oct 31, 2024 2:42 pm

I just looked online at my Japanese pension forecast.
117,000 yen per month. That'll be for thirty years paid in (kosei nenkin).
Scandalous.

I wonder how much that would be if you had just taken the money, and put it into the s&p500. Although you will never ever run out. I wonder what the break even point is.

Erm, it would be illegal for me NOT to pay in to the Japanese pension though....

RetireJapan wrote: ↑Sun Nov 03, 2024 5:47 am

adamu wrote: ↑Sun Nov 03, 2024 5:46 am

RetireJapan wrote: ↑Sun Nov 03, 2024 2:55 am iDeCo

The problem with iDeCo is that you have to do annoying paperwork every time your situation changes. And it requires a maintenance fee even if you want to stop paying into it. A few too many strings for me to easily recommend it over NISA to people, anyway.

Sure, but the advantage with regards to the grandkids is that they can't cash it out

YouMeWeThem wrote: ↑Thu Nov 07, 2024 11:24 pm Sounds so nice to not be a US Person

Tkydon wrote: ↑Thu Nov 07, 2024 7:51 am

RetireJapan wrote: ↑Sun Nov 03, 2024 5:47 am

adamu wrote: ↑Sun Nov 03, 2024 5:46 am

The problem with iDeCo is that you have to do annoying paperwork every time your situation changes. And it requires a maintenance fee even if you want to stop paying into it. A few too many strings for me to easily recommend it over NISA to people, anyway.

Sure, but the advantage with regards to the grandkids is that they can't cash it out

The Benefit of iDeCo is the large Tax Deduction. Tax Free Money In, Taxable in Retirement

You pay with Pre-Tax Yen, but if you have already paid tax on that Yen due to Withholding, then you get that tax refunded at the end of the year.

refund = iDeCo Contributions / (1 - Marginal Tax Rate and Reconstruction Tax) - iDeCo Contributions

e.g. 12,000 x 12 / (1 - 0.33693) - 12,000 x 12 = 73,171 Yen Tax Refund

or 23,000 x 12 / (1 - 0.33693) - 23,000 x 12 = 140,245 Yen Tax Refund

So the National Government pays nearly half of the iDeCo Contribution.

When you receive the tax refund you can put it straight in to NISA Tax Free....

Roger Van Zant wrote: ↑Thu Nov 07, 2024 11:57 pm

Tkydon wrote: ↑Thu Nov 07, 2024 7:51 am

RetireJapan wrote: ↑Sun Nov 03, 2024 5:47 am

Sure, but the advantage with regards to the grandkids is that they can't cash it out

The Benefit of iDeCo is the large Tax Deduction. Tax Free Money In, Taxable in Retirement

You pay with Pre-Tax Yen, but if you have already paid tax on that Yen due to Withholding, then you get that tax refunded at the end of the year.

refund = iDeCo Contributions / (1 - Marginal Tax Rate and Reconstruction Tax) - iDeCo Contributions

e.g. 12,000 x 12 / (1 - 0.33693) - 12,000 x 12 = 73,171 Yen Tax Refund

or 23,000 x 12 / (1 - 0.33693) - 23,000 x 12 = 140,245 Yen Tax Refund

So the National Government pays nearly half of the iDeCo Contribution.

When you receive the tax refund you can put it straight in to NISA Tax Free....

I dutifully submit the postcard I get from the iDeCo people along with my 年末調整 forms from my company each year in November.
However, I have never gotten a refund anywhere near the above 73,171 yen you mentioned above (I pay in 12,000 per month from my bank account).
Usually I get a refund of about 10,000 yen the following January or February, just as I used to get before starting iDeCo....
Any ideas as to why?

Roger Van Zant wrote: ↑Thu Nov 07, 2024 7:05 am

Bubblegun wrote: ↑Fri Nov 01, 2024 8:13 am

Roger Van Zant wrote: ↑Thu Oct 31, 2024 2:42 pm

I just looked online at my Japanese pension forecast.
117,000 yen per month. That'll be for thirty years paid in (kosei nenkin).
Scandalous.

I wonder how much that would be if you had just taken the money and put it intohough you will n the S&P500. Altever run out, I wonder what the break-even point is.

Erm, it would be illegal for me NOT to pay in to the Japanese pension though....

Bubblegun wrote: ↑Fri Nov 08, 2024 6:29 am There was a point when they wanted me to pay for 30 years and then say, "You didn't pay the full 40. "So sorry! You get Jack.

Roger Van Zant wrote: ↑Thu Nov 07, 2024 11:57 pm

Tkydon wrote: ↑Thu Nov 07, 2024 7:51 am

RetireJapan wrote: ↑Sun Nov 03, 2024 5:47 am

Sure, but the advantage with regards to the grandkids is that they can't cash it out

The Benefit of iDeCo is the large Tax Deduction. Tax Free Money In, Taxable in Retirement

You pay with Pre-Tax Yen, but if you have already paid tax on that Yen due to Withholding, then you get that tax refunded at the end of the year.

refund = iDeCo Contributions / (1 - Marginal Tax Rate and Reconstruction Tax) - iDeCo Contributions

e.g. 12,000 x 12 / (1 - 0.33693) - 12,000 x 12 = 73,171 Yen Tax Refund

or 23,000 x 12 / (1 - 0.33693) - 23,000 x 12 = 140,245 Yen Tax Refund

So the National Government pays nearly half of the iDeCo Contribution.

When you receive the tax refund you can put it straight in to NISA Tax Free....

I dutifully submit the postcard I get from the iDeCo people along with my 年末調整 forms from my company each year in November.
However, I have never gotten a refund anywhere near the above 73,171 yen you mentioned above (I pay in 12,000 per month from my bank account).
Usually I get a refund of about 10,000 yen the following January or February, just as I used to get before starting iDeCo....
Any ideas as to why?