Simple Q&A - iDeCo

[William]

Good morning everyone,

Well, thanks to all the message on the forum, I was able to open my iDeco account, with Monex.

I saw a withdraw of 23,000 JPY last month and was quite worried to not see it on the JIS&T website, but as it was mentioned here and there, they just needed several weeks.

Now, I have a question though. I will share a picture. After all, I'm still discovering the tool, and there's only 23,000 JPY there, so it's not super sensitive.



So, if I understand this correctly, it tells me that I bough the fund for 20,066, the value is currently 20,344 so I made some benefit.

But the thing is that 23,000 were withdrawn from my bank account, so, where is the difference?

[Moneymatters]

Good morning everyone,

Well, thanks to all the message on the forum, I was able to open my iDeco account, with Monex.

I saw a withdraw of 23,000 JPY last month and was quite worried to not see it on the JIS&T website, but as it was mentioned here and there, they just needed several weeks.

Now, I have a question though. I will share a picture. After all, I'm still discovering the tool, and there's only 23,000 JPY there, so it's not super sensitive.



So, if I understand this correctly, it tells me that I bough the fund for 20,066, the value is currently 20,344 so I made some benefit.

But the thing is that 23,000 were withdrawn from my bank account, so, where is the difference?

First time(one time only) fee, then a transaction fee.

加入・移換時手数料（初回1回のみ）：2,829円
加入者の方や企業型確定拠出年金からの移換者の方（加入者及び運用指図者）について、加入時又は移換時に手数料として2,829円をご負担いただきます。加入者の方については、初回の掛金又は企業型確定拠出年金から移換された資産のうちから、企業型確定拠出年金から資産を移して運用指図者となる方については、移換された資産のうちからそれぞれ差し引きます。

加入者手数料（掛金納付の都度）：105円
加入者の方には、手数料として掛金納付の都度105円をご負担いただきます。

23,000 - 2,829 - 105 = 20,066

[beanhead]

But the thing is that 23,000 were withdrawn from my bank account, so, where is the difference?

Ben mentions the fees here:https://www.retirejapan.com/ideco-j401k/

and also links to this table:

https://www.dcnenkin.jp/search/commission.php

[Haystack]

The onetime fee is understandable , and the monthly fees are not a concern for most people.

However Japanese articles seem to make a huge deal about the monthly fee. I suppose for those investing a maximum of 12,000 monthly, That can represent 1% or more of their investment.

So in some extreme cases, A. Those starting iDeco near retirement, B. Small contribution amounts. C. Bonds fund investors, the fees may be impactful.

[William]

Thank you so much for the quick, clear, and detailed answer!

I apologise, I totally forgot about the fees, and the thing is that, I couldn't find them anywhere. I mean, I tried to go all over the site to see the calculation but couldn't find it.

Anyway, thank you very much!

[HeavyMetal]

Couple of simple questions,

1. What are average monthly fees, for iDeco (didn't think there are some, at all )?

2. This page
says about monthly investment allowance: "68,000 yen a month if you pay into kokumin nenkin"
Does that mean I can apply for iDeco if I do not pay national pension (paid it for 3 years long time ago, do not pay anymore for years and am a freelancer, with eijuken)?

Thanks!

[zeroshiki]

Kokumin nenkin is a tax. When you say you're not paying into it, do you mean you are paying into kosei nenkin? Or are you exempt?

[beanhead]

Does that mean I can apply for iDeco if I do not pay national pension (paid it for 3 years long time ago, do not pay anymore for years and am a freelancer, with eijuken)?

You have to be paying into the national pension to be able to use iDeCo.
If you pay kokumin nenkin, your iDeCo contribution can usually go up to 68,000yen per month.

For those on the 'salaryman pension', kosei nenkin, the max iDeCo contribution will usually be 23,000yen per month.

[HeavyMetal]

Thanks for replies!
Sorry, but I have no idea what is "kokumin nenkin", to be honest. I think it's national pension... No?
All I know I do not pay any pension for years, not sure how it happened either. I pay yearly taxes of course, looks like "B form" or something, my friend helps me with that.

So, no pension. No any iDeco, then?

Still would like to know average monthly fees (my wife may apply. She pays her pension...)

[beanhead]

Still would like to know average monthly fees (my wife may apply. She pays her pension...)

https://ideco.morningstar.co.jp/compare/compare.html

The government site for iDeCo seems to have been destroyed recently. The English has gone and the Japanese is now harder to understand.
The link above compares the monthly handling fees for iDeCo at different institutions.

If you are not paying into the pension, you should considering starting. 10 years' worth of payments are needed to get something back.