RetireJapan

Happy new year everyone,
My question's in subject, I did some search on forum but didn't find similar topics.
So iDeco fees seem to be too high to me, especially compared to "general" stock investing where you only pay twice, buy and sell. But maybe I miss something?

What I see now, is that according to this chart:
https://www.dcnenkin.jp/search/commission.php
More than half of funds have fees of more than 430 yen per month.
So if I want some minimum diversification, and therefore buy at least 3 funds, of 430 y/m average - that's 15,480 yen per year. 3 of cheapest funds would cost 6.156 per year. Not mentioning the withdrawal fee which if I withdraw once a 2 months will be 440x6=2,640 per year. If there are other fees I missed here, would be good to know them too.
Doesn't seem that high maybe, however, neither of these funds guarantees any profit, but each of them guarantees regular spending. Unlike the national pension which does require spending too, but then profit is "guaranteed" by the government.
So I wonder what makes people choose iDeco then? Is it the fact that iDeco creates some non-taxable amount of money, which can pay off those yearly funds fees? I guess they will be paid off in most cases, but probably depends on monthly iDeco deposit size, and also it loses sense after moving abroad.

What do I miss?

HeavyMetal wrote: ↑Wed Jan 04, 2023 7:08 pm What I see now, is that according to this chart:
https://www.dcnenkin.jp/search/commission.php
More than half of funds have fees of more than 430 yen per month.

Those are not fund fees, but platform fees you pay to the broker in addition to fund fees. But you're right, you should choose a 171円 broker.

HeavyMetal wrote: ↑Wed Jan 04, 2023 7:08 pm What do I miss?

This fee is only paid once per month for the entire account, not per fund. You will more than make it back in tax savings.

HeavyMetal wrote: ↑Wed Jan 04, 2023 7:08 pm probably depends on monthly iDeco deposit size, and also it loses sense after moving abroad.

Yes, this is true. iDeCo is only useful if you can contribute to it for a long time.

The real problem is that a lot of the funds available inside the ideco have uncompetitive rates. That's why it's important to choose a provider that provides funds without rate markups.

Thanks for reply!

adamu wrote: ↑Wed Jan 04, 2023 10:42 pm This fee is only paid once per month for the entire account, not per fund

Am I right to understand that it means - if I choose let's say 5 funds of that 171円 rate - I will only pay 171x12=2.052円 a year?
Not 171x5x12=10260円 a year.

adamu wrote: ↑Wed Jan 04, 2023 10:42 pm The real problem is that a lot of the funds available inside the ideco have uncompetitive rates.

Where I can see those rates? Are they called 運用管理費用(信託報酬)? I can see this when I click on certain funds name, for example first trust of イオン銀行 - Ｏｎｅ ＤＣ国内株式インデックスファンド - has this 運用管理費用(信託報酬) of 0.15400%
Is this? And, it is yearly, correct?

adamu wrote: ↑Wed Jan 04, 2023 10:42 pm That's why it's important to choose a provider that provides funds without rate markups.

Provider means broker? Monex in my case.
Or, how do I search for "provider that provides funds without rate markups"...

Thanks again in advance!!!