RetireJapan

Hello. Probably not the best option for most people here as I always see Monex, SBI and Rakuten securities but due to application issues, I ended up applying Tsumitate NISA thru Shinseibank's Online Banking (PowerDirect). Tsumitate NISA's max per year is Y400,000. Does that mean I can invest all of that amount in lump sum at one time? I heard from somebody that it's not designed that way and there is actually a monthly investment limit of Y33,333 which is Y400,000 divided by 12 months. I'm planning to invest in ｅＭＡＸＩＳ Ｓｌｉｍ 米国株式（Ｓ＆Ｐ５００). Thank you in advance for any clarification or suggestion.

Yes, tsumitate NISA requires a regular monthly investment. You can game the system by setting your monthly investment to a low amount, and then 'top up' with the bonus payment, or just set the maximum 33,333 per month. I am planning to do the latter when I switch to tsumitate next year.

*moved this post to more appropriate forum.

RetireJapan wrote: ↑Mon Aug 23, 2021 7:05 am Yes, tsumitate NISA requires a regular monthly investment. You can game the system by setting your monthly investment to a low amount, and then 'top up' with the bonus payment, or just set the maximum 33,333 per month. I am planning to do the latter when I switch to tsumitate next year.

*moved this post to more appropriate forum.

What happens if you have set it up to take 33,333 yen each month, but then one particular month you forget to transfer money across (I always have to do a manual transfer from my bank to SBI each month), or simply can't afford the 33,333 that particular month?
Can I have them take 66,666 the following month to make up the shortfall, or what?

Roger Van Zant wrote: ↑Mon Aug 23, 2021 7:43 am What happens if you have set it up to take 33,333 yen each month, but then one particular month you forget to transfer money across (I always have to do a manual transfer from my bank to SBI each month), or simply can't afford the 33,333 that particular month?
Can I have them take 66,666 the following month to make up the shortfall, or what?

I think the monthly payment is capped at 33,333, but there should be a 'bonus' or 'top up' function that allows you to do one-off payments up to the annual limit.

Roger Van Zant wrote: ↑Mon Aug 23, 2021 7:43 am

RetireJapan wrote: ↑Mon Aug 23, 2021 7:05 am Yes, tsumitate NISA requires a regular monthly investment. You can game the system by setting your monthly investment to a low amount, and then 'top up' with the bonus payment, or just set the maximum 33,333 per month. I am planning to do the latter when I switch to tsumitate next year.

*moved this post to more appropriate forum.

What happens if you have set it up to take 33,333 yen each month, but then one particular month you forget to transfer money across (I always have to do a manual transfer from my bank to SBI each month), or simply can't afford the 33,333 that particular month?
Can I have them take 66,666 the following month to make up the shortfall, or what?

The order just wouldn`t go through.

You would need to reset the Tsumitate setup.

Option A. Evenly distribute the remaining allocation across the remaining month.

Option B. One-time bonus payment, and an even monthly allocation of the remaining. *

Option B is only offered by a few online brokers, and it takes a little fiddling as the remaining monthly withdrawals MUST all be a uniform number. It is called "bonus" because it is designed for those who get a yearly bonus, but may not be able to invest much other months.

RetireJapan wrote: ↑Mon Aug 23, 2021 7:55 am

Roger Van Zant wrote: ↑Mon Aug 23, 2021 7:43 am What happens if you have set it up to take 33,333 yen each month, but then one particular month you forget to transfer money across (I always have to do a manual transfer from my bank to SBI each month), or simply can't afford the 33,333 that particular month?
Can I have them take 66,666 the following month to make up the shortfall, or what?

I think the monthly payment is capped at 33,333, but there should be a 'bonus' or 'top up' function that allows you to do one-off payments up to the annual limit.

The monthly payment is not capped. If you start late in the year you can use the full 40万. However, just like after a bonus allocation, each monthly deposit/payment must be a uniform amount. So you may lose out on a few 円、no big deal.

Established wrote: ↑Mon Aug 23, 2021 7:59 am The monthly payment is not capped. If you start late in the year you can use the full 40万. However, just like after a bonus allocation, each monthly deposit/payment must be a uniform amount. So you may lose out on a few 円、no big deal.

Interesting! I don't have a tsumitate account yet, so haven't been able to play with it, but I thought you couldn't set the monthly amount over 33,333.

So if you only have four months left you can set your regular payment to 100,000?

RetireJapan wrote: ↑Mon Aug 23, 2021 8:11 am

Established wrote: ↑Mon Aug 23, 2021 7:59 am The monthly payment is not capped. If you start late in the year you can use the full 40万. However, just like after a bonus allocation, each monthly deposit/payment must be a uniform amount. So you may lose out on a few 円、no big deal.

Interesting! I don't have a tsumitate account yet, so haven't been able to play with it, but I thought you couldn't set the monthly amount over 33,333.

So if you only have four months left you can set your regular payment to 100,000?

Exactly.

You are also correct that if you started in January, the max monthly allotment would be 33,333.

.....

The maximize approach would be something like:

January

Bonus Allotement -> 398,800
Monthly x12 -> 100 Yen

**This assumes you are already getting 1% Rakuten points through a regular Non-nisa Tsumitate. If not, you may want to weigh the pros and cons of missing out on 4000 Year Rakuten points by not using your Rakuten Credit Card to make monthly 33,333 payments.

I see. Thanks everyone.