RetireJapan

Greeting everyone.
I’ve currently got about 4 million in my NISA. I’m planning to fill up the yearly maximum for long term growth NISA again in 2025.

I’ve got these:
ｅＭＡＸＩＳ Ｓｌｉｍ 米国株式（Ｓ＆Ｐ５００）
ｅＭＡＸＩＳ Ｓｌｉｍ 先進国株式インデックス
ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（オール・カントリー

What I’m wondering is, at my age, 47, I’m reading that I could be too old have enough time to benefit much from equities. The set and forget approach implies decades, yes?

Should I put money into bonds for NISA 2025 or continue what I’ve been doing?

I know nobody has a crystal ball but I’d like some input.

I would also like to fill up NISA 2026, but I might only enough juice for 60 percent or so.


Many thanks in advance for your time.

It kind of depends on when you will need the money, and what other assets (cash? real estate? your home? pensions?) you have.

But 47 is not particularly old. I'm 47

Assuming you live a normal life, you might expect to be alive for another 3-4 decades. So you likely have enough time for your stock funds to grow tax free within NISA.

Thank you for your reply.

I will have a Shigaku kyousai pension and I’m ok for cash, no bills other than my mortgage.

So I don’t need go heavy into bonds? From what I think I understand, there is more of a steady return buts it’s lower with the lower risk compared with the three I mentioned in my first post. Is that correct?

If you max out your yearly NISA contributions from 47 years old that will take you to the limit of 18 million yen by the time you are 62 perfect time for retirement. It is actually what I am thinking of doing. A fellow 47 year older....

Tanekuma wrote: ↑Sun Nov 17, 2024 11:40 am ｅＭＡＸＩＳ Ｓｌｉｍ 米国株式（Ｓ＆Ｐ５００）
ｅＭＡＸＩＳ Ｓｌｉｍ 先進国株式インデックス
ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（オール・カントリー

Because nobody's said it yet, this is:

America
America, 21 other developed countries but not Japan.
America, 21 other developed countries but not Japan, all other countries.

You've got America 3 times, developed countries twice, and only a little bit of Japan, the 2nd largest country by market cap.

Wales4rugbyWC23 wrote: ↑Sun Nov 17, 2024 10:07 pm If you max out your yearly NISA contributions from 47 years old that will take you to the limit of 18 million yen by the time you are 62

That's at ¥1.2M a year. Max is ¥3.6M so you can fill it in 5 years.

As has been said:

1.) you can invest 3.6M per year, so you can max it out in the next 4 years.

2.) your asset allocation is weird. Default is a simple emaxis slim all country. Only deviate from that if you can explain your reasons very well.


Then, my personal opinion: stop thinking in YEN. Instead, think in real goods.

You say: "What I’m wondering is, at my age, 47, I’m reading that I could be too old have enough time to benefit much from equities". Wrong. Fact is, stocks have a risk, because you now own parts of businesses. And the future of those is unknown, so it could end not so great. But here's the thing: if you invest in all country then if ALL businesses are doing bad, what does it mean? It means you will most likely be impacted in other ways too. Like corona - you might lose your job due to corona; or whatever other scenario it is.

So ask yourself: in such a scenario, what would you need? How could you make sure you are doing at least okay during such times? And of course that depends how long those tough times continue. If you are retired, you cannot compensate things by working more or harder or working differently, so you need to account for that.

Once you have answered those questions for yourself, you can come back here and ask for advice on how to invest.

If that's too abstract, here's an example: let's say you work for Nintendo as a game developer. Now let's say that there's a huge game crysis. It means you lose your job and you can't get a new one. What does it mean for your investments? It means that you should NOT invest in Nintendo and similar companies, so that your investments can *compensate* your worklife-risks. Makes sense? Now keep that going and apply it to different scenarios. That's how you do it.

adamu wrote: ↑Sun Nov 17, 2024 10:35 pm

Tanekuma wrote: ↑Sun Nov 17, 2024 11:40 am ｅＭＡＸＩＳ Ｓｌｉｍ 米国株式（Ｓ＆Ｐ５００）
ｅＭＡＸＩＳ Ｓｌｉｍ 先進国株式インデックス
ｅＭＡＸＩＳ Ｓｌｉｍ 全世界株式（オール・カントリー

Because nobody's said it yet, this is:

America
America, 21 other developed countries but not Japan.
America, 21 other developed countries but not Japan, all other countries.

You've got America 3 times, developed countries twice, and only a little bit of Japan, the 2nd largest country by market cap.

Japan is in All-Country, but yes, there is not much logic in dividing between these 3.
I also have a bit of S&P500 as well. Stops the stupid itch to buy NVDIA or TESLA or something.

beanhead wrote: ↑Mon Nov 18, 2024 3:12 am I also have a bit of S&P500 as well. Stops the stupid itch to buy NVDIA or TESLA or something.

As of end of April, all country is already 3.5% Nvidia 0.9% Tesla (Microsoft and Apple were the highest at 4.6% and 4.1% but I'm guessing it's Nvidia now).

Nvidia already worth more than the whole UK in that fund (It's the AI bubble though, it won't last).

Tanekuma wrote: ↑Sun Nov 17, 2024 11:40 am Should I put money into bonds for NISA 2025 or continue what I’ve been doing?

I know nobody has a crystal ball but I’d like some input.

I'd say don't bother with bonds, pick one of those funds and put as much into it as you can. If you don't pick all country, consider that you might want some exposure to Japan too.

adamu wrote: ↑Mon Nov 18, 2024 5:05 am As of end of April, all country is already 3.5% Nvidia 0.9% Tesla (Microsoft and Apple were the highest at 4.6% and 4.1% but I'm guessing it's Nvidia now).

Nvidia already worth more than the whole UK in that fund (It's the AI bubble though, it won't last).

Damn, is it that much?. I guess I am going big on the US tech stocks then, if I buy a bit of S&P500 and a bit of All Country. No need for any FOMO about not owning them directly.

For what it's worth, I am 48 and I just started investing this year as well. In fact, my list isn't too far off from yours but with one little change.

SP500 60%
All World 20%
Topix 20%

The reason I chose a domestic Japanese fund is that I'm bullish on Japan in the future. Otherwise, pretty much the same. Perhaps someday, I could merge SP500 with All World or Vice Versa. We will see how it plays out. Nothing is written in stone. Though to bring them together I will have to sell either one or the other.