Forgot to rollover NISA…

[Tomthumb16]

Happy New Year Everyone,

Logged into my NISA account today for the first times in ages. Discovered to my unpleasant surprise that my first NISA 2018 account had reached its 5 year limit, and all the capital gains I made seems to be gone.I know I should have rolled it I’ve but…life got in the way. Reset to todays price.

Please tell me I’m missing something here!



Thanks

[RetireJapan]

As you didn't choose to rollover your investments have been moved to your taxable account.

In order to protect your tax-free capital gains so far, the purchase price of your investments has been reset to the price on January 1st. This is generally a good thing.

Any future capital gains will be taxed normally.

[adamu]

Reset to todays price.

Please tell me I’m missing something here!

This means that if you bought at ¥100 and the price is now ¥200, your account thinks you purchased at ¥200, and you got the capital gain from ¥100 to ¥200 for free. Any gains from ¥200 will be taxed normally.

Also you get another ¥1.2M allowance to invest this year.

[Tomthumb16]

Ok.
Thanks for the reply.

Full disclosure I am planning on leaving Japan in 3 years and move to Canada...

Would it be better to cash out the money and re invest it into a NISA account?

Surely investing for 3 years would be better than not investing at all.

Or close the account and invest in an international brokerage than I can keep when I leave Japan?

Thanks in advance.

[TokyoBoglehead]

Ok.
Thanks for the reply.

Full disclosure I am planning on leaving Japan in 3 years and move to Canada...

Would it be better to cash out the money and re invest it into a NISA account?

Surely investing for 3 years would be better than not investing at all.

Or close the account and invest in an international brokerage than I can keep when I leave Japan?

Thanks in advance.

There is a single brokerage in Canada that allows non-residents Canadians to open account. Open an account with Questtrade.

Continue to invest with a NiSa.

Before you leave, sell in Japan, and rebuy in Canada.

Once home get your TFSA and RRSP setup and continue

[Tomthumb16]

Thanks, but I am not a Canadian citizen.


Any recommendations for an international brokerage?

Thanks

[TokyoBoglehead]

Thanks, but I am not a Canadian citizen.

Oh well, no one's perfect.

Any recommendations for an international brokerage?

Thanks

These aren't really a thing strictly speaking. Your residency status dictates your ability to open an account and meet KYC requirements.

IBKR operates in may countries, and can often send shares to their brokerages in other countries. However, they have closed acceptance of international trading accounts in Japan.

One possible option is the expensive Saxo Bank that operates in Canada and Japan. But you'll need to ask them about share transfers.

Finally check various Canadian bank they have retail investment arms. See if they allow foreign non-residents accounts. (Probably not).