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Too late to max out Tsumitate NISA in 2023?
Posted: Mon Oct 30, 2023 2:11 am
by Matt
Hi everyone
I'm a newcomer to investing (and a very late one at that), so this is a noob question. I think I kind of know the answer, but I'm looking for confirmation.
I'm currently waiting on a Rakuten securities account, and when that comes through I plan to open a Tsumitate NISA. My wife will do the same.
My question is, can we still get the full ¥400,000 into our Tsumitate NISA accounts before the end of the year (I believe we cannot add to it after the end of the year, correct?).
I think it is possible if we set up a monthly payment to the end of the year and then add the remainder as a lump sum. But can anyone confirm this please. If that is not going to work out we might have to go with a regular NISA.
Also, what is the usual waiting period for setting up a Rakuten account and a Tsumitate NISA?
Thank you
Re: Too late to max out Tsumitate NISA in 2023?
Posted: Mon Oct 30, 2023 2:47 am
by Tsumitate Wrestler
Matt wrote: ↑Mon Oct 30, 2023 2:11 am
Hi everyone
I'm a newcomer to investing (and a very late one at that), so this is a noob question. I think I kind of know the answer, but I'm looking for confirmation.
I'm currently waiting on a Rakuten securities account, and when that comes through I plan to open a Tsumitate NISA. My wife will do the same.
My question is, can we still get the full ¥400,000 into our Tsumitate NISA accounts before the end of the year (I believe we cannot add to it after the end of the year, correct?).
I think it is possible if we set up a monthly payment to the end of the year and then add the remainder as a lump sum. But can anyone confirm this please. If that is not going to work out we might have to go with a regular NISA.
Also, what is the usual waiting period for setting up a Rakuten account and a Tsumitate NISA?
Thank you
Did you apply for a NISA at the same time you applied for a general securities account? If not, the process will take a bit longer. Every brokerage has a deadline for Nisa application, for some Mid-November was the deadline.
If your account is successfully set up, you will have until the end of December to contribute.
Yes, you can contribute most of that 400,000 yen.
You will need to set up a payment for the remaining Month, then add an additional one-time payment using the bonus feature. This is fiddly but workable.
Re: Too late to max out Tsumitate NISA in 2023?
Posted: Mon Oct 30, 2023 3:58 am
by Matt
Thank you Tsumitate Wrestler
Did you apply for a NISA at the same time you applied for a general securities account?
No, I applied for the securities account at the same time as a Rakuten bank account - I now see that that was a mistake and will slow things down.
I have a nervous wait ahead, but happy to know that if I can get a NISA opened I'll be able to get the money into it.
Thank you!
Re: Too late to max out Tsumitate NISA in 2023?
Posted: Mon Oct 30, 2023 6:09 am
by RetireJapan
Even if you are not able to get the account open in time, it is not the end of the world as you will still both have access to the new NISA accounts from next year which will allow you to invest up to 3.6m yen per year each
Re: Too late to max out Tsumitate NISA in 2023?
Posted: Mon Oct 30, 2023 10:19 am
by zeroshiki
Tsumitate is better because of the 20 years. Also, regular NISA is not that useful if you don't have the 1.2M to dump into it immediately.
Re: Too late to max out Tsumitate NISA in 2023?
Posted: Tue Oct 31, 2023 12:31 am
by sutebayashi
As a corollary, what would be the fastest time by which one could max out the tsumitate portion of the 2024 NISA?
I am a regular NISA user to date (preferred to go “big” with 1.2 m annual rather than “long” with 0.4 m), so I’ve never used the legacy T-NISA to see how it works.
Would it be possible to set a nominal amount in T-NISA for a monthly amount (eg 100 yen), and the set up “bonus” months in Jan and Feb 2024 of 599,400 yen each to get invested as fast as possible?
(I am going to be migrating funds from my tokutei account to my NISA account, and the funds I have in tokutei should also be available for the NISA tsumitate portion, and I want to just switch with the minimum fuss)
Re: Too late to max out Tsumitate NISA in 2023?
Posted: Tue Oct 31, 2023 1:35 am
by Matt
@RetireJapan
Thanks for the optimistic reality check. Whatever happens we will have somewhere to park our investments.
@JohKun
Yes, I had originally thought regular NISA, but as @zeroshiki pointed out, the Tsumitate is 20 years and I'm now thinking that would better suit our needs.
I'm trying to set up a small university fund for my son. I had thought about junior NISA, but sat on my hands too long and missed out on that. In hindsight, maybe that's not a big loss as the Junior NISA seems a bit finicky. Since this is a longer term investment, splitting it into two tsumitate accounts (one in my name, one in my wife's) and having that seperate from our other investments (in new NISA from next year), seems like the smoothest of the available options.
Thanks for your comments everyone. Very helpful.
Re: Too late to max out Tsumitate NISA in 2023?
Posted: Tue Oct 31, 2023 9:13 am
by Tkydon
Matt wrote: ↑Tue Oct 31, 2023 1:35 am
@RetireJapan
Thanks for the optimistic reality check. Whatever happens we will have somewhere to park our investments.
@JohKun
Yes, I had originally thought regular NISA, but as @zeroshiki pointed out, the Tsumitate is 20 years and I'm now thinking that would better suit our needs.
I'm trying to set up a small university fund for my son. I had thought about junior NISA, but sat on my hands too long and missed out on that. In hindsight, maybe that's not a big loss as the Junior NISA seems a bit finicky. Since this is a longer term investment, splitting it into two tsumitate accounts (one in my name, one in my wife's) and having that seperate from our other investments (in new NISA from next year), seems like the smoothest of the available options.
Thanks for your comments everyone. Very helpful.
You have less than 2 months to pay in Y400,000 for the 20 year limit...
Or just wait until Jan and you can do Growth Y2.4M (Lump Sum) AND Tsumitate Y1.2M through out the year, with no time limit...