RetireJapan

I don't know which IDeCo online broker to choose between Monnex, SBI or Rakuten. If you're using one of these what's your likes and dislikes about them?

I would like to do a comparison of their products to one another. I think I saw a link on a post, but now I can't seem to find it. Can anyone help me with a link to such a comparison?

And last question, what should I invest in for my IDeCo? I'm 43, would like to retire in 19 years. I would like to make high rates of return and don't care about short term volatility. I like the idea of index funds and their low fees. Any recommended index funds? How do I roughly speculate the long term return rates for the different types of funds in IDeCo?

My wife is also starting her own IDeCo and she wants low volatility and doesn't need high return rates so if anyone has advice for funds for her. We are also ok with separate online broker for each of us.

Cheers and thanks in advance for any advice.

Wilbur wrote: ↑Wed Mar 29, 2023 10:51 pm And last question, what should I invest in for my IDeCo? I'm 43, would like to retire in 19 years. I would like to make high rates of return and don't care about short term volatility.

I'll take the easy part. Go for eMaxis Slim all country. It's listed here:

https://retirewiki.jp/wiki/Japanese_global_index_funds

Of your listed brokers, it's only available in Monex, so I'd go for Monex. The only issue from previous threads is that you might have issues opening the account as a foreigner.

You didn't define what a "high" rate of return is, but this will give you the return of the global stock market.

adamu wrote: ↑Thu Mar 30, 2023 12:45 am

Wilbur wrote: ↑Wed Mar 29, 2023 10:51 pm And last question, what should I invest in for my IDeCo? I'm 43, would like to retire in 19 years. I would like to make high rates of return and don't care about short term volatility.

I'll take the easy part. Go for eMaxis Slim all country. It's listed here:

https://retirewiki.jp/wiki/Japanese_global_index_funds

Of your listed brokers, it's only available in Monex, so I'd go for Monex. The only issue from previous threads is that you might have issues opening the account as a foreigner.

You didn't define what a "high" rate of return is, but this will give you the return of the global stock market.

Thanks for the link, that was exactly what I was looking for, so nice to have it written in English.

High rate of return? I would be super happy with 15 but I don't think that is possible. So would 7 or 8 percent after fees be realistic?

iDeCo is tax-advantaged so I think it makes sense to put just equities there for most people, rather than a more conservative balanced fund including bonds. (for your wife).

Keep cash or even bonds/bond funds outside of iDeCo / NISA, if you can.

Wilbur wrote: ↑Wed Mar 29, 2023 10:51 pm I don't know which IDeCo online broker to choose between Monnex, SBI or Rakuten. If you're using one of these what's your likes and dislikes about them?

I use Monex because of a historical reason, but I like it. Haven’t had too many problems personally, as a foreigner. Whole family has Monex accounts.

I am procrastinating about opening an SBI account; I have an SBI neobank that I like, so would be interested to play with the combination.

Nothing against Rakuten either, maybe I will try them one day too.

A book I read recently made it a toss-up between SBI and Rakuten on cost grounds, but Monex is a reasonable choice still, too, I think. The author of the book is working for an SBI group company, so maybe that had something to do with him not mentioning Monex. (An earlier edition of this book had mentioned Monex.)

I have all 3. Currently SBI is the best choice due to their point program. Rakuten has a better UI and ideco integration.

Monex is great for trading us stocks and having Emaxis Slim All all country in ideco.

Do you have an SMBC credit card? What bank do you use?

beanhead wrote: ↑Thu Mar 30, 2023 4:56 am
Keep cash or even bonds/bond funds outside of iDeCo / NISA, if you can.

I get the keeping cash out of iDeCo / NISA. Can you explain more the reason why keeping bonds/bond funds out of them also is a good idea?

sutebayashi wrote: ↑Thu Mar 30, 2023 12:33 pm
I use Monex because of a historical reason, but I like it. Haven’t had too many problems personally, as a foreigner. Whole family has Monex accounts.

I am procrastinating about opening an SBI account; I have an SBI neobank that I like, so would be interested to play with the combination.

Nothing against Rakuten either, maybe I will try them one day too.

A book I read recently made it a toss-up between SBI and Rakuten on cost grounds, but Monex is a reasonable choice still, too, I think. The author of the book is working for an SBI group company, so maybe that had something to do with him not mentioning Monex. (An earlier edition of this book had mentioned Monex.)

Thanks for your reply, I like Monex for its access to the eMaxi slims and it's good to hear you haven't had any problems with Monex .

TokyoBoglehead wrote: ↑Thu Mar 30, 2023 1:30 pm I have all 3. Currently SBI is the best choice due to their point program. Rakuten has a better UI and ideco integration.

Monex is great for trading us stocks and having Emaxis Slim All all country in ideco.

Do you have an SMBC credit card? What bank do you use?

I did watch the Retire Japan video on Rakuten IDeCo, UI looks good like you say. No SMBC credit card, just using some local prefectural banks. Tell me more about, if I did have a SMBC card?

Returns on bonds are so low that putting them in a tax advantaged account is counter productive.

Wilbur wrote: ↑Fri Mar 31, 2023 12:41 am I get the keeping cash out of iDeCo / NISA. Can you explain more the reason why keeping bonds/bond funds out of them also is a good idea?

I think it depends on whether you are intending to take maximum advantage of the untaxed accounts or not.

If you aren’t going to max out your iDeCo or NISA, then no problem putting bonds in them too. Tax free is good for bonds too.

But if you are using up your entire tax free allocation, and also are putting more money into investments in taxed accounts, then you want to aim to keep the more profitable types like stocks in the tax free account, rather than eating up your tax free with lowering yielding assets like bonds. Thus minimizing taxes.

Points are only rewarded for tsumitate {regulatory scheduled monthly payments} (nISA or non nISA, not ideco) purchases.*

SBI - SMBC Vpoint cards up to 5% points back per 5man monthly monthly investment with platinum card, 1% gold, .5% free.

Rakuten - .5% points with Rakuten cash and Rakuten card.

Monex 1.1% with money card

Kabir - 1% with a Kabu branded card

*Rakuten has Precious metal tsumitate as well.