Selling and rebuying anytime

[banders]

I didn’t give it much thought and planned to sell old NISA at the end of each year and buy in the new. Any reason not to do that right now if we don’t need the buying capacity in the growth portion for the rest of the year?

[zeroshiki]

I didn’t give it much thought and planned to sell old NISA at the end of each year and buy in the new. Any reason not to do that right now if we don’t need the buying capacity in the growth portion for the rest of the year?

If your old NISA still has years left on it, selling it loses that allowance. old NISA allowance != new NISA allowance. What you do with your old NISA has no bearing on your new NISA. So from a min-max perspective, it would be a shame to lose that tax free period on old NISA because you don't get it back.

[banders]

That’s if you sell more than will fit in this year’s allowance, right? But if I have half a million spread over 2020~2023, moving that all into the new NISA (and knowing I won’t use any more of this year’s allowance) makes no difference, I think? They will be able to grow in the new NISA and I won’t have to worry about them growing too much for a future year’s allowance.

However, All Country is rising just about every day so there's a big chance I will have to buy fewer units than I sell. But if I move some money in to the new NISA I will be able to buy and sell on the same day.

[zeroshiki]

That’s if you sell more than will fit in this year’s allowance, right? But if I have half a million spread over 2020~2023, moving that all into the new NISA (and knowing I won’t use any more of this year’s allowance) makes no difference, I think? They will be able to grow in the new NISA and I won’t have to worry about them growing too much for a future year’s allowance.

However, All Country is rising just about every day so there's a big chance I will have to buy fewer units than I sell. But if I move some money in to the new NISA I will be able to buy and sell on the same day.

New NISA has a lifetime allowance of 18M (3.6M x 5). Your 2020-2023 old NISA are not part of this 18M. Assuming this is 400k for 4 years, your total investment could be 19.6M (18M new NISA + 1.6M old NISA) for the next 20 years. That's quite valuable IMO. Unless you're looking beyond 20 years (or you're using the non-tsumitate old NISA) there isn't really a strong reason to sell old NISA to buy into new NISA.

These are all purchase allowances and not total value allowances, in case there's any confusion.

[banders]

The half million total is in the old non-tsumitate NISA. So they would be transferred at the next 4 year-ends. However, transferring them now would be (hopefully!) at a lower cost.

[Tsumitate Wrestler]

The half million total is in the old non-tsumitate NISA. So they would be transferred at the next 4 year-ends. However, transferring them now would be (hopefully!) at a lower cost.

There is no transferring, you would have to sell and rebuy.

Basically, you ripping off the auxiliary gas tank and pouring the contents into your main tank. Completely unnecessary.

Keep it, keep saving in the New Nisa, if the old Nisa finishes its tax free period, then you can sell it and rebuy in the New Nisa.

[Bubblegun]

I have a question which is linked to this. So hopefully not hijacking the thread. Please delete if so.

I have a large amount of yen in the TAXABLE Investments in the NASDAQ. The reason is we have used up all our annual amount.
So should I in January 2025, sell it, Pay the tax on the profits, and rebuy the same fund but in the tax efficient section? Or just let the whole thing run. I probably have about 6 to 10 years before I retire. My head says, mathematically, sell in January and then repurchase immediately.

[zeroshiki]

I have a question which is linked to this. So hopefully not hijacking the thread. Please delete if so.

I have a large amount of yen in the TAXABLE Investments in the NASDAQ. The reason is we have used up all our annual amount.
So should I in January 2025, sell it, Pay the tax on the profits, and rebuy the same fund but in the tax efficient section? Or just let the whole thing run. I probably have about 6 to 10 years before I retire. My head says, mathematically, sell in January and then repurchase immediately.

The answer to that would be if you have enough money to fill up the allowance without selling. If no, then selling seems like a better option IMO.

[Bubblegun]

I have a question which is linked to this. So hopefully not hijacking the thread. Please delete if so.

I have a large amount of yen in the TAXABLE Investments in the NASDAQ. The reason is we have used up all our annual amount.
So should I in January 2025, sell it, Pay the tax on the profits, and rebuy the same fund but in the tax efficient section? Or just let the whole thing run. I probably have about 6 to 10 years before I retire. My head says, mathematically, sell in January and then repurchase immediately.

The answer to that would be if you have enough money to fill up the allowance without selling. If no, then selling seems like a better option IMO.

I certainly won’t be able to fill up next years allocation. So thanks for confirming my initial thoughts. Always good to double check. At the moment I seem to be getting drunk on the NISA returns from the s&p500 and the NASDAQ. When will the party end. .

[beanhead]

I certainly won’t be able to fill up next years allocation. So thanks for confirming my initial thoughts. Always good to double check. At the moment I seem to be getting drunk on the NISA returns from the s&p500 and the NASDAQ. When will the party end. .

which are partly due to the yen/$ exchange rate, of course...