RetireJapan

blos wrote: ↑Wed Aug 09, 2023 12:28 pm Super dumb question

Does it matter at all the JPY/USD exchange rate when investing into, let's say, eMaxis Slim S&P500 fund?

Should I wait for the yen to get a bit stronger before investing?

I had a rather large fallout (settlement from illegal dismissal) that I'd rather not keep in my bank account much longer.

Beaglehound wrote: ↑Wed Aug 09, 2023 12:43 pm It matters in that the lower the yen the less overseas market stock it will buy and vice versa

pfdsa wrote: ↑Sun Feb 04, 2024 10:54 pm Quick beginner's question:
When investing on Nisa, is there something with lower risk than an index fund (emaxis slim all country)?

sutebayashi wrote: ↑Mon Feb 05, 2024 1:19 am Index funds are by their nature very diversified, so good for lowering risk.

EMAXIS slim all country puts your money into thousands of companies around the world (mostly the US and other developed markets though).

Still, if equities globally meltdown, which happens every decade or so I guess, they might all suffer together.

Less risky than equities, are bonds. There are indexes that invest in a diversified selection of bonds too.

But even global bonds are risky too, since buying them means exposing yourself to currency risk, and even governments don’t pay back their debt always… but they are less risky than equities normally.

If you are averse to that sort of risk, you might consider restricting yourself to only Japanese bonds or equities.

But if you are planning to be invested for more than 10 years, there might be some ups and downs all by the way, but after 10 years you’ll probably come out looking good.

What’s the alternative?
Keep your yen in the bank, and see the value of your savings whittled away by 2% a year.

If you stick to doing tsumitate in your nisa and stick to only funds that are approved for purchasing in tsumitate nisa, and stick to it for 10 years, I think the risks are very low.

Butterball wrote: ↑Mon Feb 05, 2024 1:21 am

pfdsa wrote: ↑Sun Feb 04, 2024 10:54 pm Quick beginner's question:
When investing on Nisa, is there something with lower risk than an index fund (emaxis slim all country)?

Well, all-country index funds are about as low-risk as you can get with equities. However, if you need/want lower risk, you could buy bond funds (債券) or balanced funds (資産複合/バランス) . Usually one would manage their risk by holding a combination of stocks & bonds, rather than avoiding stocks outright. But it depends on your overall savings and time horizon.

blos wrote: ↑Wed Aug 09, 2023 1:51 pm

Beaglehound wrote: ↑Wed Aug 09, 2023 12:43 pm It matters in that the lower the yen the less overseas market stock it will buy and vice versa

I thought this might be the case.

Just did a quick calc, the spread I'd be confident to predict that might happen is less than 9%, so yeah I better invest now.

Thanks for the clarification!

Tkydon wrote: ↑Thu Sep 08, 2022 5:14 am Japanese Taxes on Dividends.

If you hold shares in a regular account, your broker is obliged to withhold Dividend Tax on the Dividends you receive at the Dividend Tax Rate of 20.42%.

At Kakutei Shinkoku Time, you can elect to have your dividends taxed by the Aggregate Income Taxation Method at your marginal Tax Rate OR by the Separate Taxation Method for Dividend Income at the fixed Tax Rate of 20.315% (15% National, 0.315% Reconstruction and 5% Residents' Tax Rates).

Due to some credits that I will not go into here, as I have written about it before...
For Dividends on Japanese Stocks, if your Total Taxable Income is less than about Y6M, then it would be better for you to select the Aggregate Income Taxation Method at your marginal Tax Rate.

For Dividends on Foreign Stocks, if your Total Taxable Income is less than about Y3.5M, then it would be better for you to select the Aggregate Income Taxation Method at your marginal Tax Rate.

Otherwise, it would be better for you to select the Separate Taxation Method for Dividend Income at the fixed Tax Rate of 20.315% (15% National, 0.315% Reconstruction and 5% Residents' Tax Rates).

Seasider4374 wrote: ↑Tue Mar 12, 2024 1:32 pm

....

If I were to buy (in JPY) any given fund on Rakuten broken down by holdings of, say, 60% US, 5% Japanese, (other countries' 35%) companies is this still a Japanese fund in the eyes of the Japanese tax office, or does it become a foreign fund due to amount of overseas investment?