RetireJapan

Hi everyone. I'm a bit confused about the 'bonus' portion of Tsumitate.

This is my understanding:
- The annual Tsumitate limit is 1.2million, and you set up monthly payments of up to 100,000 yen to fill the allowance.
- However, you can use the 'bonus' setting to add more than this to fill your allowance more quickly, or make up for any missed months.

My questions:

1) How is the amount you can add as a 'bonus' calculated? Depending on how much I set up as the basic monthly payment (100-100,000 yen), the system will let me allocate between 0-580,000 yen as a bonus. (I currently have 200,000 yen in my tsumitate).

2) I have a Rakuten credit card and would get 1% points on each monthly payment (I think the max you can pay by card is currently 50,000 yen). I only started a Nisa this year, and have enough money in my account to fill this year's allowance using the 'bonus'. Is this the best thing to do, as hopefully the growth on the investment will be larger than the points earned for monthly payments?

TLDR:
- How is the total amount you can pay as a bonus calculated?
- If you have money available, is there any advantage to paying in monthly (using a Rakuten card) over paying in a lump sum as a bonus?

CC points limits are now 100,000 yen a month.

The amount of the bonus is going to be 1.2m yen minus the amount of your monthly payments. If you want to front load your tsumitate portion by paying in a lump sum at the beginning of the year, you need to set the monthly payments to the minimum (usually 100 yen a month).

Personally I find investing the same amount every month to be the easiest option (I use a Rakuten CC to get points but it is not generous enough to be a major deciding factor).

RetireJapan wrote: ↑Wed Jul 10, 2024 12:18 am
Personally I find investing the same amount every month to be the easiest option (I use a Rakuten CC to get points but it is not generous enough to be a major deciding factor).

As a side note on the points Rakuten has reduced the points they give you for some funds, like eMaxis Slim, while offering better point returns for their own funds.
I decided not to chase the points and stick with the larger eMaxis Slim products rather than these new Rakuten funds.

beanhead wrote: ↑Wed Jul 10, 2024 3:00 am As a side note on the points Rakuten has reduced the points they give you for some funds, like eMaxis Slim, while offering better point returns for their own funds.

Bait and switch AGAIN

When will I learn?

FriendlyFox wrote: ↑Tue Jul 09, 2024 11:50 pm 1) How is the amount you can add as a 'bonus' calculated? Depending on how much I set up as the basic monthly payment (100-100,000 yen), the system will let me allocate between 0-580,000 yen as a bonus. (I currently have 200,000 yen in my tsumitate).

My understanding at least is:

Allowed bonus amount = annual allowance - amount already invested - projected remaining monthly investments for the rest of the year.

That implies your current remaining Tsumitate contributions project to ¥420,000 (so ¥70k/mo, if you didn't invest this month yet).

FriendlyFox wrote: ↑Tue Jul 09, 2024 11:50 pm 2) I have a Rakuten credit card and would get 1% points on each monthly payment (I think the max you can pay by card is currently 50,000 yen). I only started a Nisa this year, and have enough money in my account to fill this year's allowance using the 'bonus'. Is this the best thing to do, as hopefully the growth on the investment will be larger than the points earned for monthly payments?

Points were a good ride, but they're a distraction these days IMO. Better to focus on low costs and quality products over chasing points.

Thanks for the responses! I guess I'll fill up with the bonus this year, then set up monthly payments next year.

dont you have to set up monthly payments anyway-even if you put most of it as bonus?

Yes, what people do (I've never tried this so not sure of the mechanics of it) is they set a 1000 yen Tsumitate and then do a bonus for the limit. In this case, set a 1000 yen Tsumitate and do a bonus of 1.188 million.

thanks -the thread starter was saying upthread that the max was set at 588,000yen for thr bonus?i couldnt follow this bit..
is this because you can do two bonuses?

bryanc wrote: ↑Thu Jul 18, 2024 2:38 am thanks -the thread starter was saying upthread that the max was set at 588,000yen for thr bonus?i couldnt follow this bit..
is this because you can do two bonuses?

If they set a 580,000 bonus and started a Tsumitate from July for 100,000 a month that would be just about the full 1,200,000 yearly contribution.

Only missing 20,000.