RetireJapan

Sorry if this is a super basic question, I have about 1.5 million yen I am moving from my post office cash emergency fund (probably a bit too big I know) into my Rakuten NISA account at the start of next year. I will be paying regular month payments of about 30,000 yen into Tsumitate into the new 2024 Nisa.

For the 1.5 million I have it would seem just buying 1.5 million of my chosen investments early in the year would be a good idea? Is there any benefit to for example paying 130,000 a month into tsumitate instead?

david wrote: ↑Mon Dec 04, 2023 12:37 am
For the 1.5 million I have it would seem just buying 1.5 million of my chosen investments early in the year would be a good idea?

Statistically, yes. 55% of times lump sum investment will win over investment split over time.

https://www.morganstanley.com/articles/ ... -investing

I have also read some other research putting this probability at 60%. (Sorry, couldn't find that easily right now)

david wrote: ↑Mon Dec 04, 2023 12:37 am Is there any benefit to for example paying 130,000 a month into tsumitate instead?

Psychological peace, if the market takes a downturn. Even if statistically you win out in the long term going in lump sum, may be after putting in 1.5 MJPY in Jan 1 by Feb 1, the market drops by let's say 20%. Now the asset is worth only 1.2MJPY.
Doing monthly tsumitate would have reduced only the first month's 130 KJPY into 104 KJPY.
But the reverse is also true. If the market takes a sudden up turn, you'll be ruing not putting it all in at once.

Thanks! Thats kind of what I figured but I appreciate the confirmation.

You don't have to assign it to the Tsumitate Portion.
You can drop it in to the Growth Portion any time you like.
You may want to compare the investment opportunities in the Growth Portion vs the Tsumitate Portion at your provider.

I don’t think it will let you put more than ¥100,000 per month into the tsumitate portion. In a year, the maximum amount you can invest is ¥1.2m.
Someone correct me if I’m wrong, though.

Roger Van Zant wrote: ↑Tue Dec 05, 2023 3:01 pm I don’t think it will let you put more than ¥100,000 per month into the tsumitate portion. In a year, the maximum amount you can invest is ¥1.2m.
Someone correct me if I’m wrong, though.

You will be able to set a tsumitate for the growth portion. You can also set a tsumitate into a taxable account.

The phrase is just used for a scheduled, recurring Daily, weekly, or monthly buy.

Maybe we need to capitalize the Tsumitate portion of NISA, and have the regular payment thing as lower case

RetireJapan wrote: ↑Wed Dec 06, 2023 2:01 am Maybe we need to capitalize the Tsumitate portion of NISA, and have the regular payment thing as lower case

That makes sense. It can get confusing otherwise.

Hon Tsumitate