RetireJapan

I read the retire wiki and I am still confused.

Current account
残りNISA成長投資枠（2024年）1,800,562円

I own Monnex 8698 Bought at 720円
If I sell at 802円 today.
I make 7,400円

What happens to this number if anything? 残りNISA成長投資枠（2024年）1,800,562円

Your yearly allowance won't change. What will change is your lifetime allowance where 720 x 100 units will be returned.

Thank you. But when does that happen?

9%Chuhi wrote: ↑Fri Feb 09, 2024 6:18 am Thank you. But when does that happen?

From the beginning of the next year, that's my understanding.
(Have not done this yet. NISA accounts are not designed for trading.)

I think it will work like this:

The Lifetime Allowance Credit (the amount you paid for the investment you sold) will be credited back to your Lifetime Allowance immediately.

If you have not maxed out your Annual Allowances, you can still invest to the limit of your Lifetime Allowance and your Annual Allowances.

If you have maxed out your Annual Allowances, you cannot invest until the next year, to the limit of your Lifetime Allowance and your new Annual Allowances.

If you have maxed out your Lifetime Allowance, you cannot invest until you sell something to free up your Lifetime Allowance, when you will again be able to invest to the limit of your Lifetime Allowance and your Annual Allowances.

I think the Lifetime Allowance will be the first gatekeeper.

If, Lifetime Allowance Limit of Y18M Reached:
Then, Cannot Invest

ElseIf, Lifetime Allowance Limit of Y18M Not Reached:
Then,
If, Growth Portion Annual Limit of Y2.4M Reached
Then, Cannot Invest more in Growth Portion this year
ElseIf, Growth Portion Annual Limit of Y2.4M Not Reached
Then, Can Invest more in Growth Portion this year
And,
If, Tsumitate Annual Limit of Y1.2M Reached (including budgeted payments to the end of the year)
Then, Cannot Invest more in Tsumitate this year
ElseIf, Tsumitate Annual Limit of Y1.2M Not Reached (including budgeted payments to the end of the year)
Then, Can Invest more in Tsumitate this year (through Bonus Contributions)


This will not become an issue until at least 2029, if you max out your total Annual Contributions to both the Growth and Tsumitate Potions, or later if you do not.

If you have maxed out your Annual Allowances, you cannot invest until the next year, to the limit of your Lifetime Allowance and your new Annual Allowances.

So, that means the next year I will be able to invest not only the 3.6m annual allowance, but also the extra amount which I freed up from selling?

I mean, suppose:

2024 : max out 2.4m 成長 and 1.2m 積立, then sell 1.6m from 成長 (for argument's sake : selling price 1.6m - 1.4m buying price, so 200k profit)。

2025 : max out 2.4m 成長 and 1.2m 積立, plus add the above 1.4m (into 成長?) from the "freed up" portion you sold back in 2024.

If I'm wrong, how do you ever get to use the "freed up" amount from 2024?
Sorry if I am being dense.

Roger Van Zant wrote: ↑Fri Feb 09, 2024 12:24 pm

If you have maxed out your Annual Allowances, you cannot invest until the next year, to the limit of your Lifetime Allowance and your new Annual Allowances.

So, that means the next year I will be able to invest not only the 3.6m annual allowance, but also the extra amount which I freed up from selling?

I mean, suppose:

2024 : max out 2.4m 成長 and 1.2m 積立, then sell 1.6m from 成長 (for argument's sake : selling price 1.6m - 1.4m buying price, so 200k profit)。

2025 : max out 2.4m 成長 and 1.2m 積立, plus add the above 1.4m (into 成長?) from the "freed up" portion you sold back in 2024.

If I'm wrong, how do you ever get to use the "freed up" amount from 2024?
Sorry if I am being dense.

No, The annual limits are the annual limits. You can only invest up to the maximum of those annual limits in any one year, but only if you still have unused / recycled Lifetime Allowance available.

2024 : max out 2.4m 成長 and 1.2m 積立, Lifetime Limit 3.6m used, 18m - 3.6m = 14.4m remaining

then sell 1.6m from 成長 (for argument's sake : selling price 1.6m - 1.4m buying price, so 200k profit)。

You bought the portion of the 成長 that you sold for 1.4m buying price, so your Lifetime Allowance Limit goes back up to 14.4m + 1.4m = 15.8m

2025 : max out 2.4m 成長 and 1.2m 積立, Lifetime Limit 3.6m used, 15.8m - 3.6m = 12.2m remaining


"plus add the above 1.4m (into 成長?) from the "freed up" portion you sold back in 2024"
No, it gets tagged on the Lifetime Allowance Limit so you can still make a contribution at the end, in Year 6 or later...