Starting New NISA with a different broker

[RetireJapan]

After reading this post about spreading investments over different brokers, I had an idea.

My wife and I have the bulk of our investments with Rakuten and SBI, but we could open/move our New NISA accounts to Monex, leaving our current investments where they are. We are planning to basically just tsumitate the new NISA, so once it is set up we can ignore it. There is no duration, so no real downside in terms of having taxable accounts with different brokers etc.

Might be an easy option for people who want to diversify

[zeroshiki]

I'd be interested to see how the brokers deal with New NISA. Whether it would be a new application or you'd just automatically have a New NISA account in the same broker you had your old one.

If it's the latter, your solution would require you to change NISA providers, no? I think it's enough of a hassle that it would preclude me from doing it. Getting it the first time was painful enough.

[Moneymatters]

I'd be interested to see how the brokers deal with New NISA. Whether it would be a new application or you'd just automatically have a New NISA account in the same broker you had your old one.

If it's the latter, your solution would require you to change NISA providers, no? I think it's enough of a hassle that it would preclude me from doing it. Getting it the first time was painful enough.

Rakuten have already said you won’t need to apply to get the new NISA if already have NISA.
And any NISA accounts created this year will also automatically transcend (yeah. I had a bunch of words to choose from and still picked that!), into new NISA for 2024.

What they can’t say is what the application process will be to open a new NISA account or when that will be available Other than by Jan 1st 2024..

[RetireJapan]

I assume it will the same as it is now to open a new NISA year with a separate broker. You apply to the new broker and tell them where you have your current NISA and they do all the paperwork.

I already have a Monex account so should (heh, famous last words) be quite easy

[beanhead]

And any NISA accounts created this year will also automatically transcend (yeah. I had a bunch of words to choose from and still picked that!), into new NISA for 2024.

Each year for NISA is still independent, isn't it?
In which case, nothing from 2023 will extend/transfer/transform/transcend into 2024, surely?

My understanding is that at the end of 2023, your existing NISA broker will automatically create a 2024 account for you.
If, as RJ was suggesting, to diversify more across brokers, you don't want this to happen, you need to open a NISA account at another broker and maybe tell your current one you don't need that 2024 (or other future year) account. I think that is how it will work.

[Moneymatters]

And any NISA accounts created this year will also automatically transcend (yeah. I had a bunch of words to choose from and still picked that!), into new NISA for 2024.

Each year for NISA is still independent, isn't it?
In which case, nothing from 2023 will extend/transfer/transform/transcend into 2024, surely?

My understanding is that at the end of 2023, your existing NISA broker will automatically create a 2024 account for you.

Your understanding is correct. I also wrote “ Rakuten have already said you won’t need to apply to get the new NISA if already have NISA. ”
I playfully referred to this change as transcendental given the dramatic expansion in scope.

[TokyoWart]

So I understand that we can open the new NISA account with a different firm than our current "old" NISA. Does anyone know if we can start that process now? My current NISA is at Nomura and I'd like to use Rakuten for the New NISA but I know from experience that even simple applications can take months with Rakuten so I am thinking of opening the account now so it will be ready in January 2024.

[adamu]

I've not seen anyone offering applications for the New Nisa yet. Most have just stated that existing holders will be automatically transitioned. My guess is that there will eventually be an option to opt out of being automatically transitioned.

If you have already used Nomura this year, you won't be able to open a Rakuten NISA for this year, so can't take advantage of that getting automatically converted next year. Rakuten's site says you can apply the following year's NISA from October, but I'm not sure if this still applies to the New NISA.

[TokyoWart]

I've not seen anyone offering applications for the New Nisa yet. Most have just stated that existing holders will be automatically transitioned. My guess is that there will eventually be an option to opt out of being automatically transitioned.

If you have already used Nomura this year, you won't be able to open a Rakuten NISA for this year, so can't take advantage of that getting automatically converted next year. Rakuten's site says you can apply the following year's NISA from October, but I'm not sure if this still applies to the New NISA.

Thanks. I had not seen that mention of October for Rakuten but will make a note of it.

[beanhead]

My current NISA is at Nomura and I'd like to use Rakuten for the New NISA but I know from experience that even simple applications can take months with Rakuten so I am thinking of opening the account now so it will be ready in January 2024.

Good idea to set up the new brokerage account at Rakuten or wherever, if you don't already have it. That will take some time. Once you have that, the NISA should not take too long. Much quicker than iDeCo, of course...