RetireJapan

This came up in another thread, but I think it deserves its own.

Anyone doing one annual payment for iDeCo? Seems to be possible through Rakuten at least (and likely other brokers). Benefit is you save on 11 months' fees, drawback is if something goes wrong you lose that year's allowance...

https://www.rakuten-sec.co.jp/web/info/ ... 08-01.html

RetireJapan wrote: ↑Sun Jun 16, 2024 3:00 pm This came up in another thread, but I think it deserves its own.

Anyone doing one annual payment for iDeCo? Seems to be possible through Rakuten at least (and likely other brokers). Benefit is you save on 11 months' fees, drawback is if something goes wrong you lose that year's allowance...

https://www.rakuten-sec.co.jp/web/info/ ... 08-01.html

Nice to know, I like the monthly discipline of paying for the iDeCo, it also smooths out the yo-yo like movements in stock markets.

A lump sum of 816000, would be difficult to sit on to save a 1000 yen.

I 100% treat iDeco like a bill now, and actually panicked about my savings rate the other day, forgetting that iDeco and tsumitate were not in fact "bills", and I was doing fine.

I think monthly contributions form good habits, and a forced "sudo-DCA" helps us forget the volatility of the marks.

This is great. I think making the contribution at the end of the year is beneficial (if you don't forget it) because it might happen that you e.g. get fired during they year and then your tax burden gets much lower and you might need the money for other reasons. The reduced fees are also great but minor.

Does anyone know any other vendors that allow one-time contributions per year?

The 小規模企業共済掛金 allows you to do a one off yearly contribution, in addition to quarterly or half yearly contribtion. I do this one and the ideco and personally prefer the monthly option for both contribtions.