RetireJapan

Hello everyone,

My Ideco account was set up through MONEX recently and the first contribution was deducted from my bank account on 28th June. Today when I logged in to JIS&T website to check my portfolio, I was surprised to find out that they have deducted JPY 2,934 as a commission. Is this normal in case of first contribution or I should be calling them to figure this out?

I have selected following contribution plan:

Ａ 026 三菱Ｕ国際スリム全世界株式 - 70％ - 16,100円
Ｂ 025 三菱Ｕ国際スリム米国ＳＰ５００ - 20％ - 4,600円
Ｃ 011 三菱Ｕ国際スリム先進株マネＤＣ - 10％ - 2,300円

It's perfectly normal. It's a one-off payment made to the National Pension Association when you first start up. It's listed in the fees here.

fools_gold wrote: ↑Tue Jul 27, 2021 1:56 am It's perfectly normal. It's a one-off payment made to the National Pension Association when you first start up. It's listed in the fees here.

Thank you for replying. Appreciate it!

After that first month, most places will charge 171yen per month handling fee.

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

beanhead wrote: ↑Tue Jul 27, 2021 2:48 am After that first month, most places will charge 171yen per month handling fee.

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

For those of us who can only contribute 12,000 a month to iDeCo, the 171 yen per month fee is a real pain....

JapaneseMike wrote: ↑Tue Jul 27, 2021 2:53 am

beanhead wrote: ↑Tue Jul 27, 2021 2:48 am After that first month, most places will charge 171yen per month handling fee.

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

For those of us who can only contribute 12,000 a month to iDeCo, the 171 yen per month fee is a real pain....

Soon becomes insignificant though. First month 1.5%ish; second month, 0.75%ish; third month 0.375%ish... (of total assets).

After a couple of years it's a rounding error.

RetireJapan wrote: ↑Tue Jul 27, 2021 5:02 am
Soon becomes insignificant though. First month 1.5%ish; second month, 0.75%ish; third month 0.375%ish... (of total assets).

After a couple of years it's a rounding error.

Yeah, fair point, I hadn't really looked at it, I just figured I'm investing less because of fees, so therefore my return is less.

I did a 20 year future value of increasing investments of 171 yen per month, well, simplified to 2052 yen a year in truth), and it's a total of 41,040 yen in cash, turning into a future value of 90,011 assuming 7% annual return.

Using the same assumptions for the principal of 12,000 /month / 144,000/year (investment 2.88mil) gives a future value of 6.316,585, so yeah, 900 bucks out of 63k (back of envelope FX) is a drop in the ocean.

Thanks for your insight