RetireJapan

For those quick, simple questions which don't warrant a whole thread.

Started this in the hope beginner retirement-planners can feel more at ease asking what they think are stupid questions, and to keep clutter out of the forum

Thanks for this thread.

I am in the process of opening a rakuten bank account. Looking into getting their Tsumitate NISA. My question is, once I open it, can I just put some money in every month like a U.K. ISA (savings account), and just leave it in there? Or is it more complicated than that?

KCLenny wrote: ↑Tue Feb 02, 2021 6:46 am Thanks for this thread.

I am in the process of opening a rakuten bank account. Looking into getting their Tsumitate NISA. My question is, once I open it, can I just put some money in every month like a U.K. ISA (savings account), and just leave it in there? Or is it more complicated than that?

For tsumitate NISA you need to set up a monthly payment. This will be deducted from your bank account, etc. each month and paid into the investments you specify. This is an excellent way to build wealth over the long term, and any gains in the account are tax-free for 20 years.

I had a quick question on how the Japanese brokerages display your tsumitate fund investments.

I use Rakuten for my tsumitate nisa and I've set up an SBI one for my wife. On both platforms, the amount of units I own in a fund (保有数量) seems to be inflated x 10,000 compared to the base price (基準価額) and total current value (時価評価額). Is there a reason for this?

I've tried to include an image to show this. Based on the current price in the example I should own just over 10 units, but instead it displays as 100,000.

The price quoted is per 10,000 units. Japanese mutual funds always start life with a base price of 10,000 yen, so the current price is an easy way to see how much the fund has grown since it was founded.

If I have the 400,000 yen for this year's Tsumitate NISA ready right now, is anything stopping me from putting in as much as possible in a 増額 next month, and putting the monthly tsumitate at like 1,000 yen?

Zanuhesu wrote: ↑Thu Feb 04, 2021 12:32 am If I have the 400,000 yen for this year's Tsumitate NISA ready right now, is anything stopping me from putting in as much as possible in a 増額 next month, and putting the monthly tsumitate at like 1,000 yen?

It's not a lump payment. Just adds to your monthly payment. So if you're regular payment was 1,000 x 12 months, your 増額 maximum would be 388,000 / remaining number of months.

It's only really useful if you weren't able to max some monthly payments during the year - then you can use it to catch up.

Yossarian wrote: ↑Fri Feb 05, 2021 12:38 am
It's not a lump payment. Just adds to your monthly payment. So if you're regular payment was 1,000 x 12 months, your 増額 maximum would be 388,000 / remaining number of months.

It's only really useful if you weren't able to max some monthly payments during the year - then you can use it to catch up.

Ah, I see. I guess I misunderstood how it works. Makes sense you can't game the whole tsumitate part of it. Thanks for clearing that up!

Zanuhesu wrote: ↑Fri Feb 05, 2021 2:52 am

Yossarian wrote: ↑Fri Feb 05, 2021 12:38 am
It's not a lump payment. Just adds to your monthly payment. So if you're regular payment was 1,000 x 12 months, your 増額 maximum would be 388,000 / remaining number of months.

It's only really useful if you weren't able to max some monthly payments during the year - then you can use it to catch up.

Ah, I see. I guess I misunderstood how it works. Makes sense you can't game the whole tsumitate part of it. Thanks for clearing that up!

But you can go with a bonus payment. Set up the minimum payment of 100 yen per month for each security you want to invest in, then setup a bonus payment for the next month that equals 400k - (100 * #securities * #remaining months).

Viralriver wrote: ↑Mon Feb 08, 2021 6:37 am But you can go with a bonus payment. Set up the minimum payment of 100 yen per month for each security you want to invest in, then setup a bonus payment for the next month that equals 400k - (100 * #securities * #remaining months).

Genius! I changed my next payment this morning to do just that and it worked perfectly. Now I get to maximize my gains (or losses). Thanks for the tip!