RetireJapan

Hi!

I am very new to the investment thing, but after doing a calculation some months ago with my wife about our retirement, we realized that was not an optional thing. So here it is, now, with a Tsumitate Nisa a still very small recurring investment into eMAXIS Slim All World Stocks (All Country).

I now try to educate myself about other products we should invest to diversify. I don't have any ideaabout what is going to happen to different world contries in the future, but I believe that IT/Tech is going to be part of this future, so I would like to bet on that if that is possible.

So my question is: are there mutual funds investing into IT that are purchasable through a Tsumitate Nisa (or Nisa since we will most likely open a new one next year)?

One thing to keep in mind: by owning a world stock fund, you already own the US market and all the big tech companies (and many of the smaller ones).

Using a separate fund to buy MORE of the same companies does not diversify you, it concentrates your investment. This may or may not work (specialised funds like that tend to have more fees).

I would recommend putting most of your efforts into increasing your saving rate to try to fill as much of your iDeCo and NISA accounts as you can. Fussing about with what to invest in is a bit of a waste of time in my opinion (having done it for far too long myself!).

https://www.retirejapan.com/blog/my-inv ... all-wrong/

You can’t get any more diversified (in terms of stocks) than a global properly weighted stock fund. I wouldn’t be overthinking it if I were you.

Ok, I see, thank you for your feedback. Will stop overthinking (at least regarding this matter: it's hard to see the frontier between trying to do the right thing and overthink).

About "trying to fill as much of my iDeCo and NISA as I can", do you think it's a good idea to use most of our savings right now instead of buying regularly (over a year or two) to do what I think is called "dollar cost averaging"?

I'm afraid of the stress I will have if I use almost all our savings now and see in 4 months that it went down... even if I know it's most likely going to go up again later.

dTb wrote: ↑Tue Oct 03, 2023 8:00 am I'm afraid of the stress I will have if I use almost all our savings now and see in 4 months that it went down... even if I know it's most likely going to go up again later.

That's the key issue.

Mathematically/statistically investing the lump sum immediately should get you a greater return over time, BUT that is no good if you are going to be stressed and upset at a short term drop.

In the long run it will not make much difference. If you will be more comfortable investing in installments over time, do that.

dTb wrote: ↑Tue Oct 03, 2023 8:00 am Ok, I see, thank you for your feedback. Will stop overthinking (at least regarding this matter: it's hard to see the frontier between trying to do the right thing and overthink).

About "trying to fill as much of my iDeCo and NISA as I can", do you think it's a good idea to use most of our savings right now instead of buying regularly (over a year or two) to do what I think is called "dollar cost averaging"?

I'm afraid of the stress I will have if I use almost all our savings now and see in 4 months that it went down... even if I know it's most likely going to go up again later.

Sure, it wasn’t meant as a criticism, more as a reinforcement that you are doing the right thing already so no need to worry about it.

I agree with Ben that feeling more comfortable is more important than doing the statistically superior thing. I tend to ‘dollar cost average’ plenty for the same reason. Sometimes it works out better, sometimes it doesn’t.