RetireJapan

I fleshed out the NISA page a bit with what we currently know about the New NISA from next year.

https://retirewiki.jp/wiki/NISA#New_NISA_from_2024

I think although the growth allowance causes hobbyists to want to play games selling taxable assets in order to max out the allowance as soon as possible, the simplest way to use this NISA, and the one I'll recommend to friends, is to simply Tsumitate every month (a max of ¥100k) until you reach the lifetime limit (takes 15 years at ¥100k/mo). Of course people with more to invest can also make use of the growth portion.

Thank you for that - very helpful!

In order to take advantage of the full ¥18 million allowance, ¥6 million must be made as regular investments over at least 5 years.

Any chance you could expand on that?

banders wrote: ↑Sun May 21, 2023 2:00 am

In order to take advantage of the full ¥18 million allowance, ¥6 million must be made as regular investments over at least 5 years.

Any chance you could expand on that?

For the regular / Tsumitate part, you must do it using monthly investments into approved funds. The maximum you can invest from those monthly investments that count towards the regular part in a year is ¥1.2M. So it takes at least 5 years to fill the full ¥6 million of that part of the allowance. If you don't use it (e.g. by only ever buying ETFs, individual stocks, non-approved mutual funds, or only making one-off investments to approved funds*), you can only use the ¥12 million yen growth portion lifetime allowance, and lose out on ¥6 million part of the allowance.

*Not sure whether or not one off investments in approved mutual funds will count yet.

The wiki says 'The lifetime limit can be re-used when selling investments. Selling an investment from the New NISA increases the remaining lifetime allowance by that amount from the following year.' I can't think of a situation where I would need to sell investments for my retirement, but if I did, what does 'that amount' mean? The amount they're sold for? The number of units/stocks sold x the average value? Or is it FIFO/LIFO?

banders wrote: ↑Tue May 23, 2023 6:27 am The wiki says 'The lifetime limit can be re-used when selling investments. Selling an investment from the New NISA increases the remaining lifetime allowance by that amount from the following year.' I can't think of a situation where I would need to sell investments for my retirement, but if I did, what does 'that amount' mean? The amount they're sold for? The number of units/stocks sold x the average value? Or is it FIFO/LIFO?

The 2.4 and1.2 million tranches (3.6 million total) will be your yearly limit. This limit is renewed yearly until you hit 18 million.

If you sell, and are looking to rebuy the same limits apply.

If your NiSA has accumulated over 18 million and you sell, you can only rebuy to 18 million I believe.

adamu wrote: ↑Tue May 02, 2023 4:14 pm...

Would there be any way to put the wiki (link to it) in the Quick links menu, upper left?

And/Or, in the Board index?

*

When I want to look, I usually have to go searching, tho I may be missing something really obvious.

banders wrote: ↑Tue May 23, 2023 6:27 am The wiki says 'The lifetime limit can be re-used when selling investments. Selling an investment from the New NISA increases the remaining lifetime allowance by that amount from the following year.' I can't think of a situation where I would need to sell investments for my retirement, but if I did, what does 'that amount' mean? The amount they're sold for? The number of units/stocks sold x the average value? Or is it FIFO/LIFO?

The amount they're sold for.

If you sell and get ¥100,000, your remaining lifetime allowance will increase by ¥100,000 the following year.

You might want to switch funds, if your risk attitude changes, or if a nicer fund (more diverse, higher dividend, lower cost, etc.) comes along that wasn't available when you originally invested. This allows you to switch without being penalised. But making sure you have to wait until the following year to get the allowance back ensures you don't go crazy day trading.

captainspoke wrote: ↑Tue May 23, 2023 9:42 am Would there be any way to put the wiki (link to it) in the Quick links menu, upper left?

And/Or, in the Board index?

I think best would be an entry at the forum category level, like on bogleheads: https://www.bogleheads.org/forum/index.php

Oh, they have a link in the quick links too, nice.

But it's not up to me

adamu wrote: ↑Tue May 23, 2023 11:45 am The amount they're sold for.

Isn’t it going to be book value or original purchase value?

If I buy 100,000 yen of a stock, which then goes bonkers and hits 200,000,000 yen, and I sell to buy a yacht or second home or something, I believe I would only get the original 100,000 yen tax free allocation back to invest with the next year.

sutebayashi wrote: ↑Tue May 23, 2023 12:46 pm

adamu wrote: ↑Tue May 23, 2023 11:45 am The amount they're sold for.

Isn’t it going to be book value or original purchase value?

If I buy 100,000 yen of a stock, which then goes bonkers and hits 200,000,000 yen, and I sell to buy a yacht or second home or something, I believe I would only get the original 100,000 yen tax free allocation back to invest with the next year.

Book value. So if you sold more than 18M in gains, you'd get the full lifetime allowance back the following year. At least that's my current understanding.