RetireJapan

Hey there,
I am a bit confused with rebalancing in NISA and would really appreciate any advice here.

I started up a Rakuten Tsumitate NISA account earlier this year (at 42 years old). I looked to diversify and bought a range of stocks and bonds.
I left it for almost a year planning to only check it every now and then and just let it basically grow for 20 years.

However, I was a bit impatient when choosing my portfolio allocation and just wanted to start investing in NISA as soon as possible to get the ball rolling. I have since read a few books and more on the retirejapan blog/forum and realised that I don't need as much diversification as is in my portfolio and that a couple of my stocks/bonds cost a little more than I'd like. (I have an ideco account with stocks and bonds).

So, I would like to get rid of a few of my choices and simplify my portfolio however I know that NISA is different than ideco and it is more difficult to do. I also realise that I can't sell and reuse this allocation in NISA.

What would you recommend I do?

I also realised that I don't have any eMaxis slim (all country). Am I able to add them to my portfolio if I want to?

Thanks in advance for any advice offered. Understand what I want to do with my finances but am struggling with the process of actually doing it!

Generally speaking as long as you have enough money to max out your NISA account going forward, it might be best not to sell older investments and just leave them until the NISA tax-free period is up.

You can change your allocation going forward if you feel you found better options.

So basically what you're saying is just to stop buying any more of what I don't want (and leave it in the account) and then use that allocation to buy more/another stock?

Yes, if you sell your NISA investments you can't get your allowance back, so it's a bit of a waste

Thanks Ben, makes sense.

I realise I didn't have any bonds in the NISA account.. urgh.. but figured out how to rearrange some stock funds I had.

Thanks a lot.

Inakappe wrote: ↑Tue Dec 07, 2021 8:48 am Thanks Ben, makes sense.

I realise I didn't have any bonds in the NISA account.. urgh.. but figured out how to rearrange some stock funds I had.

Thanks a lot.

Probably for the best. You would want your bonds in your taxable account considering yields over the last few decades.

If you really don't want some investment and it's currently worth more than you bought it for, you could sell it. You lose out on any future gains, but you do get the gains you did make so far tax free. 20 years of gains is a lot to lose out on though, so unless you really hate it (think it will lose money, it's not something you're happy holding on to), I'd probably just hold onto it like the others said.

Thanks alot guys. Makes perfect sense to keep them