Passive ETF Investing

[FlamingWombat]

So I have finally taken the plunge and set up an IBLLC account so I can invest as an American living in Japan for the very long-term. I am completely new to investing, but have been doing research including scouring this site. My initial thoughts are to mostly buy ETFs and not fiddle with things too much, mostly concerned with saving for retirement, not quick gains. I would welcome any advice from other passive and/or ETF investors. I seem to frequently see that Vanguard products are well-regarded and that there are specific ones geared for your retirement year. Anyway, I will read all the old threads I can, but hope for some more up-to-date advice if it exists here.

[beanhead]

VT is popular:
https://investor.vanguard.com/etf/profile/portfolio/vt

The 'target year' ETFs and funds are a bit more conservative. These may be more appropriate if you are closer to retirement age than, say, 25 years old.

[FlamingWombat]

I am a bit closer to retirement than I am to 25, but it's not looming too close yet Thanks, I will check out your link. I have nothing decided yet, but see lots of seemingly creditable advice towards a three fund portfolio: US stocks, international stocks, bonds (probably old news to the veterans here). So something like VTI, VXUS, and one of Vanguard 's bond funds. Is it common sense for a passive investor to put the bulk of their investment eggs into just three (or so) baskets like these or similar? And then hold on to them for 10/15/20 years with only occasional rebalanci g?

[RetireJapan]

I am a bit closer to retirement than I am to 25, but it's not looming too close yet Thanks, I will check out your link. I have nothing decided yet, but see lots of seemingly creditable advice towards a three fund portfolio: US stocks, international stocks, bonds (probably old news to the veterans here). So something like VTI, VXUS, and one of Vanguard 's bond funds. Is it common sense for a passive investor to put the bulk of their investment eggs into just three (or so) baskets like these or similar? And then hold on to them for 10/15/20 years with only occasional rebalanci g?

No arguments with that plan. Invest as much as you can without affecting your quality of life, rebalance the portfolio from time to time (easiest way is just to buy more of the lagging fund rather than selling and buying), don't worry about it too much, and leave it alone for as long as you can

[FlamingWombat]

Can anyone using IB tell me, if you have funded your IB account in yen but plan to buy ETFs (or whatever) that are listed in USD, do you have to convert that JPY to USD to make the purchase, or do you just buy the stock/fund with yen for the equivalent amount?

[runmanTX]

Can anyone using IB tell me, if you have funded your IB account in yen but plan to buy ETFs (or whatever) that are listed in USD, do you have to convert that JPY to USD to make the purchase, or do you just buy the stock/fund with yen for the equivalent amount?

Welcome to the investing club, so to speak.

I'm not sure about IB and their system but I use TD Ameritrade in the US. I normally send a monthly remittance (yen) via Wise into my US bank account. Then transfer the USD into my TDA brokerage account. Then I buy ETFs (currently VTI) in USD.
I'm a middle aged American and recently started investing this past spring. I also plan to stick with ETFs and keep it simple with a portfolio of 2 to 3 items. Currently, I've only bought VTI but plan on some bond ETF later. I'm looking at investing for 15 years or so before I retire, unless I can speed that process up.

[FlamingWombat]

It must be convenient to have an American brokerage account! To answer my own question in case anyone else is in the same situation, yes you do have to convert to USD before purchasing USD stocks/funds. And you can do that rather easily within IB (you basically buy USD with your JPY). And I plan to get me some VTI in the next couple of days, and likely a bond ETF too (Vanguard's BND sounds good from my basic research).

[Zoomtokyo]

you can do that rather easily within IB (you basically buy USD with your JPY)

Have you checked the rate? My Canadian online brokerage does that as well, but the problem is that the rate is a bit of a ripoff. I get a better rate when I go through the hassle of phoning their forex desk and placing an order for the cash. The thinking is that if you want to do a quick and easy conversion, you'll need to pay for it.

[captainspoke]

Pre-retirement (back when I had paydays and bonuses) I used Shinsei for years, to convert to USD, then a wire transfer to my broker. (free, at least at the time, for platinum level status)

This is a summary: https://www.reddit.com/r/JapanFinance/w ... /transfers Seems like Sony/Shinsei are best--if you have their highest customer status level.

[rasselbiluga]

I think it should be fine exchanging with IKBR. The exchange rate is the market rate, and the commission is small (0.002% of the trade value, minimum 2 USD).
https://www.interactivebrokers.co.jp/en ... 39753&p=fx
https://gfmasset.com/2018/09/better-tha ... s-account/