New NISA strategy -GO!

[RetireJapan]

…For tsumitate, you would set up a monthly purchase (choose a fund, date, and amount to invest each month). This would then come off a credit card (if eligible), from your broker cash account, or deducted from a bank account.

Wait, what? Investing with a credit card?

Is it just me, or does seem like a horrible idea for nation that already has big gambling addiction problem?

This brings up so many questions- leveraging, using foreign currency, family credit accounts, to name a few.

It's very restricted (only up to 50,000 yen a month, using a particular card, on mutual funds), and Japanese credit cards generally need to be paid off in full every month so not as bad as you might be thinking

[adamu]

What's the conversion rate of pachinko balls to eMaxis Slim these days?

[nanaya]

I'll be selling 2.4M worth of funds from 特定 account in January every year to top up new NISA until it's empty (in a few years).

Existing NISA (all tsumitate for me) will stay until they expire at which point hopefully I'll have maxed out new NISA anyway.

I kind of expect that'd be the strategy for most people as the goal is to fill up NISA as early as possible (new or otherwise).

(I initially wrote investing 150k per month (if available) and transferring less in January. Upon further thinking, having as many funds in NISA as early as possible is probably better so I'd still fill the whole 2.4M up and put the extra 50k per month to 特定 account instead)

[adamu]

I kind of expect that'd be the strategy for most people as the goal is to fill up NISA as early as possible (new or otherwise).

(I initially wrote investing 150k per month (if available) and transferring less in January. Upon further thinking, having as many funds in NISA as early as possible is probably better so I'd still fill the whole 2.4M up and put the extra 50k per month to 特定 account instead)

Yes, this is the thinking for most people on this forum with existing investments to juggle. I still maintain that most people who are in the accumulation phase's goal should be to focus on regular monthly investments, and using New NISA to take full advantage of that.

[AdultingInJapan]

I'm planning to sell my Wolrd fund from a taxable account and transfer it to the new NISA in 6 months time. I just started this taxable account recently since I have maxed our my tumitate NISA account.

Reading a line from Investopedia: "Investments held (in a taxable account) for less than a year are taxed at the higher, short-term capital gain rate."

My question is: Is the statement above also holds true for capital gains tax in Japan? Should I hold this taxable account for more than a year and transfer it to the New NISA or should I sell it right away in 2024 ?

[RetireJapan]

Japan has a flat tax for stock market capital gains and investments (real estate has short term capital gains I believe, but not stocks).

[Tkydon]

Reading a line from Investopedia: "Investments held (in a taxable account) for less than a year are taxed at the higher, short-term capital gain rate."

My question is: Is the statement above also holds true for capital gains tax in Japan? Should I hold this taxable account for more than a year and transfer it to the New NISA or should I sell it right away in 2024 ?

No, that Investopedia line is not for Japan. It is, like most information out there, for the US.

As Ben said, Japan has Short-Term Capital Gains on Real Estate and other forms of property owned for less than 5 years, but not on Investment instruments such as equities, bonds, mutual funds, etc..

The Japanese Capital Gains Tax Rate on equities, etc., is a flat 20.315% (15% National, 0.315% Reconstruction, and 5% Residents' Taxes).

[nanaya]

As I can only fill in 100k new investments to nisa each months I wonder if should I bother doing the sell regular (tokutei, non-nisa) - buy growth nisa ritual every month (200k x 12) or just do it in one go in january (2.4M x1)...

Heck, does it even count as DCA when it's just moving between investment accounts

[RetireJapan]

As I can only fill in 100k new investments to nisa each months I wonder if should I bother doing the sell regular - buy growth nisa ritual every month (200k x 12) or just do it in one go in january (2.4M x1)...

Heck, does it even count as DCA when it's just moving between investment accounts

I'm not sure it is worth selling investments that are still tax shielded in a legacy NISA account in order to fund a New NISA account.

New money into New NISA? YES
Sell investments in taxable accounts, move to New NISA? Maybe, likely yes for many people.
Sell investments coming out of legacy NISA accounts, move to New NISA? Sure.
Sell investments in legacy NISA accounts, move to New NISA? Don't see a reason to do this.

Anyone else?

[nanaya]

I'm not sure it is worth selling investments that are still tax shielded in a legacy NISA account in order to fund a New NISA account.

Oh, I do mean regular/tokutei/taxable account, not nisa.

I don't think selling from existing legacy nisa account makes sense. At least not while it's still being tax exempted.