RetireJapan

I’m a Brit living in Japan, and started investing in Vanguard index funds earlier last year (very much a beginner). I used my family address to register in the UK.

I currently buy 600 pounds of the blended 60% life strategy equity fund every month. I use TransferWise to send remittances from Japan to the UK when the rates are relatively decent.

After coming across this site and checking out some of the articles, I have become concerned as to whether I am investing efficiently or not.
I will be in Japan for at least the next few years and have ties here - whether I will retire here or not is still uncertain!
I essentially have two questions I would like to pose to you guys -

1. Should I stop sending money to the UK and redirect my funds to a Japanese index fund? If so, what do you recommend?

2. I understand that Vanguard investors are required to reside in the US/UK, however I read of a number of people online who registered with a relatives’ address. Is this likely to cause issues in the future? Is this reason alone to stop the way I am investing currently?

Thanks.

Welcome to the forum!

That fund is somewhat conservative but there is nothing wrong with it. You may run into trouble with the non-resident thing. I had an investment account closed at very short notice because I was non-resident in the UK.

Some other things you may want to look at:

1. paying into the UK state pension on a voluntary basis -best investment I am aware of right now
2. iDeCo here in Japan -save on income tax

Anyone else?

Thanks for the quick response!
I may consider mixing in some of the 80% strategy plan this year, but I’m generally quite conservative with my money! Ha

When your account was closed, were you at least refunded the current price of the stocks?

I actually started voluntary UK pension payments in the middle of last year. This does indeed seem a good deal, however, if I were to retire in Japan, wouldn’t I become ineligible for the UK state pension, since I’d be receiving one in Japan already?

iDeCo is definitely something I will start as soon as I can! Anything to stop my money rotting away in a Japanese current bank account!

KyushuMatt wrote: ↑Sun Jan 06, 2019 9:53 am When your account was closed, were you at least refunded the current price of the stocks?

I actually started voluntary UK pension payments in the middle of last year. This does indeed seem a good deal, however, if I were to retire in Japan, wouldn’t I become ineligible for the UK state pension, since I’d be receiving one in Japan already?

Yes, I had the proceeds of the forced sale sent to a bank account of my choice. Within the UK it might have been possible to transfer the shares, but I found it impossible to open another account as a non-resident...

Both the UK and Japanese pensions can be paid anywhere worldwide. They cannot be combined, so as long as you have 10 years in the UK pension and 120 months in the Japanese one you can receive both

Regarding whether or not you have to reside in the US or UK to be a Vanguard investor my experience is as follows: When I established my Vanguard account I had to use a US address (I am a US citizen, now with PR in Japan) but Vanguard had no objections to me then moving my address to Japan and continuing to invest new funds. For each new account we've opened (e.g. a Vanguard account for my son now in college in the US) we had to use a US address but again expect to be able to move it to Japan if/when he returns. Keep in mind that you'll eventually be paying taxes in Japan on that foreign account and when your total assets are above a certain amount also need to report each foreign account when you make your Japanese tax application.

Thank you both. Reassuirng words! Much appreciated.
One of my coworkers mentioned today that Rakuten offer Vanguard funds now. Is that an equivalent service to the ones available in the US and UK,or does the fact that it works through Rakuten mean the fees are higher?

KyushuMatt wrote: ↑Tue Jan 08, 2019 1:08 pm does the fact that it works through Rakuten mean the fees are higher?

Yes. They are a bit higher...

When I tried to open a Vanguard UK account last year, I went through the whole 'using parents address' thing, but I got turned down as they couldn't find any information about me when they did a credit check... Boo...

KyushuMatt wrote: ↑Tue Jan 08, 2019 1:08 pm Thank you both. Reassuirng words! Much appreciated.
One of my coworkers mentioned today that Rakuten offer Vanguard funds now. Is that an equivalent service to the ones available in the US and UK,or does the fact that it works through Rakuten mean the fees are higher?

Yes, Rakuten tacks a fee on top of the US funds, plus you have the US withholding tax on dividends, etc. Investing locally using something like the eMaxis Slim mutual funds is very popular with RJ members: https://emaxis.jp/lp/slim/index.html

They are available on all major platforms.