RetireJapan

sutebayashi wrote: ↑Thu Dec 03, 2020 1:09 pm I tried to search the forum for "Junior NISA", but it complains that that search isn't happy so I'm selfishly creating a new topic.

Anyway, I gather that Junior NISA is to be abolished / discontinued after 2023. Ah well.

At the same time, I read that there is a silver lining to this, in that the restrictions on withdrawing funds from the Junior NISA accounts will also be abolished. This article describes it as the merits of Junior NISA being discontinued:
https://kids-money.com/kousi/2020/07/8664.html

Well, whippee! It seems like great news. The adult NISA accounts are already maxed out, and I have been stuffing further investments into a tokutei kouza, but if this is the case with Junior NISA, now I am thinking tactics...

As with iDeCo and NISA, naturally it makes sense to use the Junior NISA allocation for equities related investments.

Yes I hear you say, Junior NISA funds are (in the eyes of the authorities) the possession of young Junior, but young Junior is permitted to gift his parents each 1,100,000 yen a year, I imagine, as the gift tax rules allow for. And so this money becomes accessible again after 3+ years, rather than until the year when Junior turns 18 by March 31st.

So is it not the case that those with kids can use the Junior NISA accounts for the next 3 years for short term investment purposes, and then have Junior gift the money back to them (should they wish) after the Junior NISA is discontinued?

Certainly, there could be an un-timely market crash before 2023 that could spoil the party, but personally I'm going to be continuing with my buy-and-hold for a longer period than that anyways.

I'm thinking to give the kids some Christmas gifts in their NISA accounts.

I am missing anything?

sutebayashi wrote: ↑Thu Dec 03, 2020 1:09 pm Yes I hear you say, Junior NISA funds are (in the eyes of the authorities) the possession of young Junior, but young Junior is permitted to gift his parents each 1,100,000 yen a year, I imagine, as the gift tax rules allow for. And so this money becomes accessible again after 3+ years, rather than until the year when Junior turns 18 by March 31st.

So is it not the case that those with kids can use the Junior NISA accounts for the next 3 years for short term investment purposes, and then have Junior gift the money back to them (should they wish) after the Junior NISA is discontinued?