Just the kind of help I was looking for! Subscribed! As for requests - any investment related, even property/real estate stuff, for foreigners residing in Japan would be a useful watch.
Thanks so much for this information! I am totally new to investing and I'm really not sure how to actually pick mutual funds etc. Do you have any recommendations for learning how to figure out what mutual funds/stocks to choose?? Thanks so much for your help!
Thanks for the reassuring video. Changing into a new system is always nervewracking, so I don't think you can review for enough for me. I put some money in my new NISSA and it seems perfectly smooth and straightforward. Shocked face emotji.
Depends what you invest in! NISA is just a tax tree account, and not paying tax on your investment gains is a good thing, regardless of what the yen is doing.
It is stressful until you get the account open and set up, but after that you can automate everything and not worry about it day to day. It is worth persevering! Good luck 😀
Interesting & informative, as ever. If you are looking for more content ideas, I'd love to see an explainer video on the Raukten tax withholding/payment for the 特定 accounts.
Thanks for the video! Great information. I’m interested to know what happens with your yearly and lifetime contribution limits when you sell stocks or mutual funds that you have in your NISA account. Do the limits reset? As an example, if I reach my yearly contribution limit of 2.4m but then withdraw 1m in stocks to lock in any gains, can I then reinvest 1m? (How would this affect the lifetime contribution limit?) Also, as a request, you have a lot of videos describing the buying process… how about the selling process? Why to sell, good/bad times to sell, how to do it… I think this would be an interesting set of videos.
@@RetireJapan_OG So that means, In in year 1, I bought 1.2 million of Tsumitate on Jan 31st, then I had some need and needed to sell and use .5 m yen in March. I cannot contribute to my Tsumitate for that year as I have used my 1.2m yen limit, but I get my .5m yen limit back from the lifetime of the 6m yen limit. So I have a 6 - 0.7 = 5.3 m yen limit left, but I can start using it starting the following year. Also, next year, I can only use the 1.2 m yen limit, not 1.2 + .5 = 1.7 m yen. If you sell anything, you lose that limit for that year, but you get that limit back at the lifetime level.
Many thanks, very helpful. For the Tsumitate NISA, MUST it be invested monthly, or can the whole year's amount be invested upfronteg as a bonus? What is the NISA year, is it 1 year from date account opened? Or by calendar year / tax year etc?
NISA year is calendar year from Jan to Dec. Tsumitate portion must be invested monthly, but you can get around it by setting a low monthly amount (100 yen min) and then using the bonus/top up feature to invest the remainder of the annual allowance as a lump sum.
Probably a dumb question but wondering if one can pay the contribution to Rakute NISA account with/by Rakuten credit card? Or is it too much of a hopeful wish? 😅 Great content, thank you very much!
Sadly not. You can get an English language account with Interactive Brokers Japan, but they don't offer NISA yet. Or a NISA account with a Japanese broker, but they don't offer English.
@@RetireJapan_OG That's how it's in the UK. They call it ISA and there's a 20k annual limit, but no lifetime limit. Btw, is it possible to invest into S&P 500 in Japan?
Thankyou for the explanation.your video is very usefull, now i am working and living in tokyo , and i have plan to open NISA account, but my resident card have short time to stay in japan. If i back to my country, can i still invest in NISA without japan residents card?
subscribed. thanks so much for the info, amazing! I recently signed up to interactive brokers until I came across this new NISA. decided to go with rakuten securities and continue my investing from there due to the tax free capital gains. question... i plan to invest amounts each month into etfs/single stocks to gain interest from market price increase and dividends, compounding over a long period of time. the 18 million yen limit. is that on yen invested or the overall portfolio value? My goal is to take my portfolio well beyond this over the next 20-30 years, so once that happens, at what point will i be paying the 20% capital gains tax? Is it as soon as my account hits the 18 million yen value point? If so will I be taxed on everything in the account, or just on amounts beyond the 18 million. So for example, if my portfolio continues to compound and was to reach, 150 million. Once I start selling assets, am I then paying capital gains tax? Sorry is that is long and confusing!
No, you can put in up to 18m yen and the investments are tax free regardless of how much they grow to. NISA has a contribution limit, not an account limit.
Honestly your videos really helpful :) I just started leaning about NISA and trying to have an account but I didn’t know it’s very stressful just to open an account online 😂😢 😢 maybe I made a mistake about my name etc and tried to call the service customers etc oh my god I hope I can open an account soon successfully 😂😂
Thank you so much!:) fingers crossed I can open within this month 😂btw I’m planning to invest at 新NISA SBI証券 オルカん 10万円 per month but I’m confused which credit card to use if 三井住友カード gold or the platinum?:) I’m just housewife no work so my husband will just give the money .
You should be aware that you can only receive up to 1.1m yen a year in gifts before you have to pay gift tax, and your husband giving you money to invest will count as a gift 😅@@babukawaii3345
1- I tried to sign up with SBI and the website said only Japanese citizens who reside in Japan can get one with them! Is this for real? I guess so since you have to check off two boxes to confirm it. I never bothered faking it to see how I could go.. 2-Does investing reduce your taxable income for the year? It would be great to put money in and pay less on that super expense health “insurance” that doesn’t cover anything except a good life for those who work at the doctor’s office!
Most brokers ask non-Japanese citizens to apply with a paper application, not the online one. You may have run into that. If you are trying to apply via Shinsei Bank it won't work as they only have the online application -you need to apply to SBI Securities directly.
Hello~ I signed up with SBI証券 last November (British citizen living in Japan), so foreigners are indeed eligible. However, as RetireJapan mentioned, the process does involve a paper application which is completed after the online portion of the application. The entire process itself took me no longer than a few weeks, so hopefully you should be OK if you decide to join up! In regard to your second question, I believe investing eliminates taxes on the gains made on said investments, and not your total taxable income that you may receive from employment, etc. That's my understanding, so if I am wrong, hopefully someone here will inform both of us on the matter!
Thank you for your videos! They are very well made and you make it easy to be able to take the steps for investing. Question: after some big expenses, husband and i will be moving most of our savings (not counting what we aside for emergencies) to stock. Possibly we'll be able to max out the both type of Nisas this year and a bit more. Would you set the rest for the next year Nisa max or just invest in taxable accounts with the surplus?
That is a great question, and of course the answer is... it depends 😉 Investing extra money in taxable accounts now might leave you with more money to invest next year (after paying tax on your gains to sell taxable investments and rebuy in NISA). Keeping the money in cash is guaranteed to lose a bit of value to inflation but if stocks fall or the yen strengthens before next year you will have more to invest in your 2025 NISA. You could go with whichever you feel is more likely, or split your money up and do both.
Fantastic! Thanks for the info. As an American, we can invest in individual stocks and ETFs? Any videos about the New Nisa for American citizens and all our crazy tax laws?
US citizens can use the growth portion of new NISA to buy individual Japanese stocks (as long as they are not PFICs, like some of the holding companies etc.). This may or may not be worth it compared to just investing normally in index funds via Interactive Brokers or a US broker.
Hi! Kudos to your channel! Very informative. Question 🙋🏻♀️ I’m torn between Rakuten or Monex account. I’m quite inclining to the later because of benefits from Aeon Bank. Will I miss a lot from Rakuten?
All the big brokers are very similar and compete with each other in terms of fees, products, and services. I have accounts with Rakuten and Monex, my wife has an account with SBI. I don't think there are any meaningful differences other than which point programs they have etc.
Great videos. If you're unemployed in Japan and looking to invest spare cash can this be done? Secondly, if you're employed, can you contribute into NISA pre-tax with your employer? Lastly, If employed, do you inform your employer to deduct and place proceeds into the NISA? Many thanks
Thank you very much@@RetireJapan_OG. I've caught up on what the differences between both are. Most useful. It's also possible to open up additional NISA if the other NISA quota fills up correct?
Hillo. Im new in this topic. No knowledge about investment. I apllied nisa in JP and didn't know what category i apply. What would you recommend. Thank you very much
thank you for the regular updates. I'm curious as Rakuten have launched mutual funds similar like Emaxis Slim, with a lower fee. I don't see any reason except that this is a newly established mutual fund but still hesitate if it is more worth buying Rakuten MF or Emaxis MF going forward.
Great question! The new Rakuten all country fund has an annual fee of 0.0561%. eMaxis Slim all country has lowered their fee to 0.05775% IMO that is not enough of a difference to change. eMaxis Slim have lowered their fees twice while I have owned them, so I largely trust them to do the right thing. Rakuten, on the other hand, I have an impression that they tend to bait and switch customers. But either of them are probably fine!
Do unused amounts of NISA roll over to the next year and accumulate or do you need to use the full amount each year? Also, you answered another question saying that if you sell some of the stocks in your NISA you get back your lifetime allowance but not your annual. I’m a bit confused, When do you get the lifetime balance back? After the five years? So say you sold 500,000 yen from your NISA on the 6th year you’d have an allocation of 500,000 yen? And this cycle would repeat? Thanks in advance
Because the new NISA is tax free forever now, it's quite different from the legacy one. The annual limits do not roll over. The most you can invest in a calendar year is 3.6m yen. The lifetime limits are 6m/12m for a total of 18m. You use them up with every investment. If you sell something in NISA, your lifetime limit is replaced by the amount you originally bought it for. So if you buy something for 1m and it grows to 2m yen, and then you sell it, you get 1m yen back towards your lifetime allowance.
Good question! Yes, with the new NISA if you sell your investments you can get your lifetime allowance back, so you could sell some of your ETFs in the future and buy new ones. No one is quite sure how this will work in practice though, as it is at least six years away 😀
I wonder if given a person that does not have enough money to use up their new NISA limits, to take the money out of the Legacy NISA then use that money to fund the portion of the annual limit for new NISA that would have otherwise been unused because you didn't have enough money from other source? There are a few other patterns to this of course, so I think it is best to think of your own situation in future income, the timing of the Legacy NISA term ends, etc. to determine what strategy makes sense for that particular person.
@@RetireJapan_OG Flip side of it is that if you end up with more money later on before the Legacy NISA term expires and before you used up the new NISA. (that's probably the scenario you were thinking) It's really tough sometimes to decide which makes more sense because of the many factors involved.
It depends what investments you buy in the account. World stock mutual funds or ETFs have a historical return of around 8%, but this may not be the case in the future.
That is not what it's designed for, and you'll likely run into the annual contribution limit quite quickly. Best to use NISA for long term investing and day trade with a taxable account.
hi, thanks for the great video! I'm pretty new to investments here in JP, I've recently opened Matsui Securities for my corporate SO management, do you think it is a good option to also open a NISA with them?
I'm afraid not. But many people successfully use Google Translate or similar to navigate the broker sites, and once you know which 3-4 buttons you need it isn't too difficult.
@@RetireJapan_OG thank you for taking the time to reply. Yes, that's usually what I do too, but as all three seem to be similar, if one had a native site in English, it'd be the easy choice to make :)
@@gorigori_kun Yes, they are all very similar in terms of fees, services, etc. No domestic broker has English language support as far as I know. Best option would be Interactive Brokers Japan, but they don't have access to NISA etc. yet.
First, I want to thank you for the videos on retiring in Japan. My wife and I have moved back to Japan and we are always looking for more ways of investment to grow our nest egg when the time arrives for us to retire. I did some reading on NISA and came across something that you did not mention about American xpats and if you can confirm is to be true or false. Of course I will also confirm with my tax advisor back in the US, but you might have some feedback too that will help. According to US tax law NISA is considered a standalone brokerage account? When filing in Japan it's tax free on dividend & capital gain, but when filling foreign income on US taxes I will have to clam as income on dividend & capital gains and will have to pay taxes?
One thing I really don’t understand. With this new NISA is possible to buy stocks and ETF. Ia it possible to buy certain stocks, get profit, sell them and get the profit into my pocket tax free??
YES. That is the point of the NISA account: you don't have to pay tax on capital gains or dividends. If you sell your investments, you get your lifetime allowance back (but not the annual allowance) and can then buy new investments.
"...and that Y18 million yen can grow as large as it wants to, and it will remain tax-free until you sell it. So when you sell it, there will be no tax to pay." This last sentence contradicted the first. It remains tax-free until YOU SELL IT. But once you sell it, you have to pay tax on it, don't you? Even when you sell it, assuming it has grown, you don't have to pay taxes when you sell it??
Thanks for the video! Just want to confirm, if you have your old brokerage with Rakuten for example but want to create an SBI account for your new Nisa, can you leave the old with Rakuten or you have to bring it over? When signing up your asked if you want to create a Nisa account or bring one over but not sure what would happen?
That is a great question. I have not tried this myself, but I assume your legacy NISA accounts would stay with the old broker and just your new NISA account would go to the new one.
@@RetireJapan_OG thanks for your response. One other question I have is, what if you haven't added to your new Nisa yet? I assume my current broker created the new account for me, but not sure if that would be carried over, or if I haven't added to it it hasn't been created yet?
If you buy something in your new NISA you will not be able to move it this year, so definitely try to make the transfer before making any purchases.@@adamc3616
@@RetireJapan_OG oh wow. Thank you so much for that!! I was thinking of adding to the new Nisa so I know it's created for the move. Very lucky. Thanks mate!!
Thank you for clarifying this for us. I am super new to investing, and I read your book just 2 months ago. Your videos are what got me interested in investing for the first time in my life 😅. Apologies for the dumb question: I purchased 100k yen for the first time yesterday---all into emaxis slim all country, and I made a mistake in buying it with the growth investment frame NISA instead of the tsumitate NISA. Am I screwed, or should I purchase emaxis again in tsumitate portion next time and set it as a monthly investmemt instead of doing it in the growth investment NISA? I plan to mostly invest in emaxis in my first few months as I am still learning about this.
That's completely fine! If you are just buying mutual funds, the two sections are exactly the same in practice. The only difference is that you need to set up a monthly order for the tsumitate section, and you can do spot purchases for the growth section. But no difference once the investments are in there 😀
Thank you so much for the response sir. This reassures me. When I checked the growth inv NISA it seems I can also setup automatic purchases of emaxis there too (I linked my rakuten bank to rakuten securities) same as the tsumitate portion. I tried in both (setting the date every 12th of the month for a try then just cancelled it) Or do you mean spot and monthly automation is ok with the growth frame but tsumitate does not allow spot purchases? Does this mean I can just keep the initial purchase I made in the growth frame NISA and make an automated purchase there?
Hi, I have just applied for a SBI securities NISA account. Could you please tell me if the dividends/gains/principals can be transferred to any savings accounts (not only the ones listed). I only have my accounts with Prestia. Also it would be great if you can share what level of automation is possible in terms of credit and debit. Too overwhlemed with the process already.. :(
You should be able to send money to/from pretty much any bank. Don't worry too much about automation -you can set up automatic purchses of mutual funds, and just send a lump sum to your broker every few months to pay for them.
Thank you for your very informative video as always. Very well presented and clear! I have already made a New Nisa account with SMBC bank before watching your video and was wondering if it is better in the long term to abolish my account while it's new and open a new one with Rakuten or SBI Securities.. Are there any tangible benefits for doing this and if so, what are they? Thank you so much again and looking forward to more of your videos.
It all depends on what you want to invest in. The NISA account itself is the same regardless of which bank or broker you use, but the products they offer might be different. As long as SMBC offers the investments you want to buy there is no reason to change 😀
@@RetireJapan_OG Thank you so much for your reply and for the helpful information. That's a relief to hear that as I was not looking forward to the hassle of changing my broker, lol! Thank you once again!
1.Can one funded NISA account in one shot? Or there is limit for distribution? 2. As a foreigners with residency status can we have NISA account? Thanks 🙏
Hello, thank you for all your videos! 23 year old beginner here finally setting up an account with Rakuten. A bit of a dumb question, but would greatly appreciate any insight. Will personal details such as what you enter for your occupation matter in the long run or affect your account? I work a dancer/performer so I am struggling a bit with how to answer the questionnaire bit in the setup of the account process. Thank you in advance!
No dumb questions here! That section of the application form is mainly concerned with people who work for financial companies or are directors or similar of publicly traded companies (they have restrictions on what they can invest in). Other than that it doesn't make any difference what your occupation is 😀
Let's say you already have money in the Legacy NISA. You expect the market to do well over time and by the time you let the Legacy NISA term end, the balance might be much higher. There's a lifetime contribution limit on the new NISA. So given those assumptions, would it be more strategically advantageous to pull the money out of the Legacy NISA now up to the point needed to fund your new NISA up your annual limit rather than wait until the Legacy NISA term ends before moving the money into the new NISA as this video suggests?
So I've set up the NISA investments for each month and I complete this by the end of January, so my investments for February are fine. Does this mean that I will only be able to invest 1.1M Yen in Tsumitate portion this year? Can I not invest the 100K Yen I missed for January? If I can, how do I do this? I'm not able to find any option for spot purchase in Tsumitate..
You can top it up (use the 'bonus' function) but it's not that important now the NISA is tax free forever and we have a lifetime allowance. Just make one extra month's payment in year 6.
Thanks so much for all the informative videos. Just a couple of questions. So with the end of Junior Nisa, can a normal Nisa be used for kids or is Nisa no longer an investment option at all for juniors. I am looking at investing money for my son this year. Secondly I handle all the financials in our household. Is it possible to open a Nisa on behalf of my wife and manage it for her? She would put her own money in and it would be at Rakuten. Thanks again for being so helpful!😊
Sadly no tax-exempt accounts for minors any more. Can still use a taxable junior account OR invest in the parents' NISA and give the money to children later. Technically your wife needs to open the account but as long as it is her money going in from her bank account etc no problem with you running it for her. That's what I do for my wife (she's not very interested 😂)
My pleasure. I recommend having a little meeting 1-2 times a year and explaining what you are doing with the account to your wife, going through the balance, etc 😃
@@gorigori_kun I believe they all do: www.google.com/search?q=%E6%9C%AA%E6%88%90%E5%B9%B4+%E6%8A%95%E8%B3%87&oq=%E6%9C%AA%E6%88%90%E5%B9%B4%E3%80%80%E6%8A%95%E8%B3%87&gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBCDg1NjBqMGo3qAIAsAIA&sourceid=chrome&ie=UTF-8
In my experience all the big online brokers are very similar. Rakuten and Monex will give you pretty much the same options. This is their single Japanese stock service: info.monex.co.jp/lp/account2.html#reason3
Hi, thanks for all the information. I am wondering one thing: I have an old tsumitate nisa setup with the old max/month (33,333 yen/month). Now the new tsumitate nisa can have 100,000 yen/month. ?: What should I do to change from 33,333 yen/month to 100,000 yen/month? also it seems the old tsumitate nisa is not just changed into the new, so is there now an old and a new tsumitate nisa? Otherwise how do they make a difference between the old valid 20 years and the new with no limit.... Thanks if you can clarify...~
1. the legacy NISA and new NISA are not connected. You will keep the legacy accounts until their tax free duration expires. 2. you need to change your monthly order or cancel it and set up a new one. Hope that helps!
@@RetireJapan_OG Thank you. It does clarify a bit. So does that means we can keep the old nisa and also open a new nisa? I do not think so, but just asking. Thank again for your excellent videos.
Indeed! In fact, not only can you keep the old NISA (contributions so far, no new contributions) and have a new NISA account, but you already have a new NISA (your bank or broker will have opened it automatically if you had a legacy NISA with them).@@Hiking-guide-and-scenery
@@RetireJapan_OG Thanks again. I could manage changing to 100,000/months by internet (finally manged to find the right button!). I also went to the bank (UFJ), and it looks like they had transformed my old nisa into the new one without me doing anything, and with the same funds in it, which is somewhat surprising. I also can use the growth version in the same account. Anyway, I am all set now I think. Thanks and I will definitely watch your other contributions~
@@RetireJapan_OGyou made a video to apply to shin nisa few weeks ago and the expiration was like dec 28. My zaryu card wasn’t update so I couldn’t do what you did on time and now that option doesn’t exist any more. Does it mean they are automatically transferred to new nisa?
Ah, I see. You are talking about the tsumitate settings. The easiest way would be to check in your account. Go to the 投資信託 section of the main menu, then click on the blue 積立設定一覧 button. You will be able to see all the active orders on there. If you can't see them you will need to make new ones 😀@@KeigoMoriyama
Rakuten Bank are a separate institution, and can be stricter than the broker for some reason. Worth a try at least. If they turn you down, you can also try SBI and Monex.
Hi! Kudos to your channel! Very informative. Question 🙋🏻♀️ I’m torn between Rakuten or Monex account. I’m quite inclining to the later because of benefits from Aeon Bank. Will I miss a lot from Rakuten?
Thanks, I wasn't following the difference between tsumitate and growth, basically the same with some different products and purchase mode.....
I am thinking to start investing in Japan and your video is useful for me as a beginner. Thanks a lot!
Just the kind of help I was looking for! Subscribed! As for requests - any investment related, even property/real estate stuff, for foreigners residing in Japan would be a useful watch.
We have a few videos on real estate on the channel 😀
Thanks so much for this information! I am totally new to investing and I'm really not sure how to actually pick mutual funds etc. Do you have any recommendations for learning how to figure out what mutual funds/stocks to choose?? Thanks so much for your help!
Great video, and thank you so much for answering what happens with the old NISA accounts!
Thanks! It's funny that the videos that take the least time to make seem to perform best 🤔
First withdrawal went through on Wednesday. Excited to see how it all progresses.
Very cool! Are you going to max it out?
Thanks for the reassuring video. Changing into a new system is always nervewracking, so I don't think you can review for enough for me. I put some money in my new NISSA and it seems perfectly smooth and straightforward. Shocked face emotji.
Ha, ha, good to hear 😁
Thabk you for the video. It was very useful 🎉
My pleasure!
What's the expected rate of return? What are you thoughts about NISA in relation to the falling Yen?
Depends what you invest in! NISA is just a tax tree account, and not paying tax on your investment gains is a good thing, regardless of what the yen is doing.
I just opened my SBI account today but it seems like I still need to open my NISA account within it. I find this process nerve wracking :(
It is stressful until you get the account open and set up, but after that you can automate everything and not worry about it day to day.
It is worth persevering! Good luck 😀
Interesting & informative, as ever. If you are looking for more content ideas, I'd love to see an explainer video on the Raukten tax withholding/payment for the 特定 accounts.
Thanks for the suggestion! I will add it to the list 😀
Thanks for the video! Great information. I’m interested to know what happens with your yearly and lifetime contribution limits when you sell stocks or mutual funds that you have in your NISA account. Do the limits reset? As an example, if I reach my yearly contribution limit of 2.4m but then withdraw 1m in stocks to lock in any gains, can I then reinvest 1m? (How would this affect the lifetime contribution limit?)
Also, as a request, you have a lot of videos describing the buying process… how about the selling process? Why to sell, good/bad times to sell, how to do it… I think this would be an interesting set of videos.
If you sell something from your new NISA account, you get back your lifetime contribution allowance (but not the annual one).
@@RetireJapan_OG So that means, In in year 1, I bought 1.2 million of Tsumitate on Jan 31st, then I had some need and needed to sell and use .5 m yen in March. I cannot contribute to my Tsumitate for that year as I have used my 1.2m yen limit, but I get my .5m yen limit back from the lifetime of the 6m yen limit. So I have a 6 - 0.7 = 5.3 m yen limit left, but I can start using it starting the following year. Also, next year, I can only use the 1.2 m yen limit, not 1.2 + .5 = 1.7 m yen.
If you sell anything, you lose that limit for that year, but you get that limit back at the lifetime level.
Many thanks, very helpful. For the Tsumitate NISA, MUST it be invested monthly, or can the whole year's amount be invested upfronteg as a bonus? What is the NISA year, is it 1 year from date account opened? Or by calendar year / tax year etc?
NISA year is calendar year from Jan to Dec. Tsumitate portion must be invested monthly, but you can get around it by setting a low monthly amount (100 yen min) and then using the bonus/top up feature to invest the remainder of the annual allowance as a lump sum.
Thank you very much, very helpful video
My pleasure! Thanks for watching.
Probably a dumb question but wondering if one can pay the contribution to Rakute NISA account with/by Rakuten credit card? Or is it too much of a hopeful wish? 😅
Great content, thank you very much!
Yes, you can put up to 100,000 yen a month of mutual fund purchases in Rakuten Securities onto your Rakuten credit card and get some points for that.
Thanks for the great video. Does any NISA broker provide online service in English? I much prefer using English with online broker.
Sadly not. You can get an English language account with Interactive Brokers Japan, but they don't offer NISA yet.
Or a NISA account with a Japanese broker, but they don't offer English.
It's nice that they got rid of the limit to sell, but the lifetime limit is too low. There should be no limit.
I completely agree! Not too hopeful though 😅
@@RetireJapan_OG That's how it's in the UK. They call it ISA and there's a 20k annual limit, but no lifetime limit.
Btw, is it possible to invest into S&P 500 in Japan?
Good review, I'm all set thanks these videos and your forum so good karma to you.
Fantastic, good to hear 😀
Brilliant! Thank you so much!!
My pleasure!
Thankyou for the explanation.your video is very usefull, now i am working and living in tokyo , and i have plan to open NISA account, but my resident card have short time to stay in japan. If i back to my country, can i still invest in NISA without japan residents card?
No, if you leave Japan you will need to close all your bank accounts and broker accounts.
subscribed. thanks so much for the info, amazing! I recently signed up to interactive brokers until I came across this new NISA. decided to go with rakuten securities and continue my investing from there due to the tax free capital gains.
question... i plan to invest amounts each month into etfs/single stocks to gain interest from market price increase and dividends, compounding over a long period of time.
the 18 million yen limit. is that on yen invested or the overall portfolio value? My goal is to take my portfolio well beyond this over the next 20-30 years, so once that happens, at what point will i be paying the 20% capital gains tax? Is it as soon as my account hits the 18 million yen value point? If so will I be taxed on everything in the account, or just on amounts beyond the 18 million. So for example, if my portfolio continues to compound and was to reach, 150 million. Once I start selling assets, am I then paying capital gains tax? Sorry is that is long and confusing!
No, you can put in up to 18m yen and the investments are tax free regardless of how much they grow to.
NISA has a contribution limit, not an account limit.
Honestly your videos really helpful :) I just started leaning about NISA and trying to have an account but I didn’t know it’s very stressful just to open an account online 😂😢 😢 maybe I made a mistake about my name etc and tried to call the service customers etc oh my god I hope I can open an account soon successfully 😂😂
Opening the account is by far the hardest thing -once you have it up and running it is fairly straightforward to do things.
Good luck!
Thank you so much!:) fingers crossed I can open within this month 😂btw I’m planning to invest at 新NISA SBI証券 オルカん 10万円 per month but I’m confused which credit card to use if 三井住友カード gold or the platinum?:) I’m just housewife no work so my husband will just give the money .
You should be aware that you can only receive up to 1.1m yen a year in gifts before you have to pay gift tax, and your husband giving you money to invest will count as a gift 😅@@babukawaii3345
@@RetireJapan_OG yes I read about it but is it 1.1 m or 1.2 m with the 新NISA? I’m sorry I’m not really good yet about this NISA things
This is not about NISA but rather gift tax.@@babukawaii3345
1- I tried to sign up with SBI and the website said only Japanese citizens who reside in Japan can get one with them! Is this for real? I guess so since you have to check off two boxes to confirm it. I never bothered faking it to see how I could go..
2-Does investing reduce your taxable income for the year? It would be great to put money in and pay less on that super expense health “insurance” that doesn’t cover anything except a good life for those who work at the doctor’s office!
Most brokers ask non-Japanese citizens to apply with a paper application, not the online one. You may have run into that.
If you are trying to apply via Shinsei Bank it won't work as they only have the online application -you need to apply to SBI Securities directly.
Hello~
I signed up with SBI証券 last November (British citizen living in Japan), so foreigners are indeed eligible. However, as RetireJapan mentioned, the process does involve a paper application which is completed after the online portion of the application. The entire process itself took me no longer than a few weeks, so hopefully you should be OK if you decide to join up!
In regard to your second question, I believe investing eliminates taxes on the gains made on said investments, and not your total taxable income that you may receive from employment, etc. That's my understanding, so if I am wrong, hopefully someone here will inform both of us on the matter!
Yes, NISA does not reduce taxable income, but iDeCo does @@dee_personal 😀
@@RetireJapan_OGahh well I see. Thanks so much
Thank you for your videos! They are very well made and you make it easy to be able to take the steps for investing. Question: after some big expenses, husband and i will be moving most of our savings (not counting what we aside for emergencies) to stock. Possibly we'll be able to max out the both type of Nisas this year and a bit more. Would you set the rest for the next year Nisa max or just invest in taxable accounts with the surplus?
That is a great question, and of course the answer is... it depends 😉
Investing extra money in taxable accounts now might leave you with more money to invest next year (after paying tax on your gains to sell taxable investments and rebuy in NISA).
Keeping the money in cash is guaranteed to lose a bit of value to inflation but if stocks fall or the yen strengthens before next year you will have more to invest in your 2025 NISA.
You could go with whichever you feel is more likely, or split your money up and do both.
Thank you! Much appreciated! You gave me things to think about carefully. ^^ @@RetireJapan_OG
Fantastic! Thanks for the info. As an American, we can invest in individual stocks and ETFs? Any videos about the New Nisa for American citizens and all our crazy tax laws?
Hey Ben, found my answer in this video of yours, ruclips.net/video/kbBRldTmxfQ/видео.htmlsi=6TrtgrFLkHuaKXxV. So, I'll just keep using my US broker.
US citizens can use the growth portion of new NISA to buy individual Japanese stocks (as long as they are not PFICs, like some of the holding companies etc.). This may or may not be worth it compared to just investing normally in index funds via Interactive Brokers or a US broker.
Hi! Kudos to your channel! Very informative.
Question 🙋🏻♀️ I’m torn between Rakuten or Monex account. I’m quite inclining to the later because of benefits from Aeon Bank. Will I miss a lot from Rakuten?
All the big brokers are very similar and compete with each other in terms of fees, products, and services.
I have accounts with Rakuten and Monex, my wife has an account with SBI.
I don't think there are any meaningful differences other than which point programs they have etc.
Great videos. If you're unemployed in Japan and looking to invest spare cash can this be done? Secondly, if you're employed, can you contribute into NISA pre-tax with your employer? Lastly, If employed, do you inform your employer to deduct and place proceeds into the NISA? Many thanks
1. Sure 😀
2. No, NISA has nothing to do with employment and you put post tax money into it (iDeCo is pre-tax money)
3. No
Thank you very much@@RetireJapan_OG. I've caught up on what the differences between both are. Most useful.
It's also possible to open up additional NISA if the other NISA quota fills up correct?
No, just one NISA account per person.
Hillo. Im new in this topic. No knowledge about investment. I apllied nisa in JP and didn't know what category i apply. What would you recommend. Thank you very much
Welcome! Please watch some of our videos or check out retirejapan.com
thank you for the regular updates. I'm curious as Rakuten have launched mutual funds similar like Emaxis Slim, with a lower fee.
I don't see any reason except that this is a newly established mutual fund but still hesitate if it is more worth buying Rakuten MF or Emaxis MF going forward.
Great question! The new Rakuten all country fund has an annual fee of 0.0561%.
eMaxis Slim all country has lowered their fee to 0.05775%
IMO that is not enough of a difference to change. eMaxis Slim have lowered their fees twice while I have owned them, so I largely trust them to do the right thing. Rakuten, on the other hand, I have an impression that they tend to bait and switch customers.
But either of them are probably fine!
Do unused amounts of NISA roll over to the next year and accumulate or do you need to use the full amount each year?
Also, you answered another question saying that if you sell some of the stocks in your NISA you get back your lifetime allowance but not your annual. I’m a bit confused, When do you get the lifetime balance back? After the five years? So say you sold 500,000 yen from your NISA on the 6th year you’d have an allocation of 500,000 yen? And this cycle would repeat?
Thanks in advance
Because the new NISA is tax free forever now, it's quite different from the legacy one.
The annual limits do not roll over. The most you can invest in a calendar year is 3.6m yen.
The lifetime limits are 6m/12m for a total of 18m. You use them up with every investment.
If you sell something in NISA, your lifetime limit is replaced by the amount you originally bought it for. So if you buy something for 1m and it grows to 2m yen, and then you sell it, you get 1m yen back towards your lifetime allowance.
Now I would like invest in growth ETF without dividends. Later can I transfer it to another ETF with dividends to get the passive income.
Good question! Yes, with the new NISA if you sell your investments you can get your lifetime allowance back, so you could sell some of your ETFs in the future and buy new ones.
No one is quite sure how this will work in practice though, as it is at least six years away 😀
One question. Do you need visa to do it? If yes what happens when your visa runs out and lets say you won't get new visa?
If you leave Japan (with a few exceptions for a temporary work posting abroad) you will be expected to close your bank and broker accounts.
I wonder if given a person that does not have enough money to use up their new NISA limits, to take the money out of the Legacy NISA then use that money to fund the portion of the annual limit for new NISA that would have otherwise been unused because you didn't have enough money from other source? There are a few other patterns to this of course, so I think it is best to think of your own situation in future income, the timing of the Legacy NISA term ends, etc. to determine what strategy makes sense for that particular person.
That could make sense in that scenario, sure!
@@RetireJapan_OG Flip side of it is that if you end up with more money later on before the Legacy NISA term expires and before you used up the new NISA. (that's probably the scenario you were thinking) It's really tough sometimes to decide which makes more sense because of the many factors involved.
Your VDO is very helpful. May I ask how many percentage a year for NISA investment profit?
It depends what investments you buy in the account. World stock mutual funds or ETFs have a historical return of around 8%, but this may not be the case in the future.
Great content! Thank you for educating us about investing. Just want to ask if i can day trade growth nisa account?
That is not what it's designed for, and you'll likely run into the annual contribution limit quite quickly.
Best to use NISA for long term investing and day trade with a taxable account.
hi, thanks for the great video! I'm pretty new to investments here in JP, I've recently opened Matsui Securities for my corporate SO management, do you think it is a good option to also open a NISA with them?
Matsui is probably fine, or you might consider getting a Rakuten or SBI account.
Thanks a lot for the video and explanations. Out of the 3 brokers you mentioned, is there one that has a website/support in English?
I'm afraid not. But many people successfully use Google Translate or similar to navigate the broker sites, and once you know which 3-4 buttons you need it isn't too difficult.
@@RetireJapan_OG thank you for taking the time to reply. Yes, that's usually what I do too, but as all three seem to be similar, if one had a native site in English, it'd be the easy choice to make :)
@@gorigori_kun Yes, they are all very similar in terms of fees, services, etc.
No domestic broker has English language support as far as I know. Best option would be Interactive Brokers Japan, but they don't have access to NISA etc. yet.
First, I want to thank you for the videos on retiring in Japan. My wife and I have moved back to Japan and we are always looking for more ways of investment to grow our nest egg when the time arrives for us to retire. I did some reading on NISA and came across something that you did not mention about American xpats and if you can confirm is to be true or false. Of course I will also confirm with my tax advisor back in the US, but you might have some feedback too that will help. According to US tax law NISA is considered a standalone brokerage account? When filing in Japan it's tax free on dividend & capital gain, but when filling foreign income on US taxes I will have to clam as income on dividend & capital gains and will have to pay taxes?
US citizens have all sorts of issues that don't affect anyone else. Check this page out: www.retirejapan.com/us-citizens-and-green-card-holders/
@@RetireJapan_OG Thank for the link
One thing I really don’t understand. With this new NISA is possible to buy stocks and ETF. Ia it possible to buy certain stocks, get profit, sell them and get the profit into my pocket tax free??
YES. That is the point of the NISA account: you don't have to pay tax on capital gains or dividends. If you sell your investments, you get your lifetime allowance back (but not the annual allowance) and can then buy new investments.
@@RetireJapan_OG I see thanks a lot !! ❤️
"...and that Y18 million yen can grow as large as it wants to, and it will remain tax-free until you sell it. So when you sell it, there will be no tax to pay." This last sentence contradicted the first. It remains tax-free until YOU SELL IT. But once you sell it, you have to pay tax on it, don't you? Even when you sell it, assuming it has grown, you don't have to pay taxes when you sell it??
Yeah, the wording is a bit clumsy. It is completely tax free. No tax, no tax reporting for investments in NISA accounts.
Thanks for the video! Just want to confirm, if you have your old brokerage with Rakuten for example but want to create an SBI account for your new Nisa, can you leave the old with Rakuten or you have to bring it over? When signing up your asked if you want to create a Nisa account or bring one over but not sure what would happen?
That is a great question. I have not tried this myself, but I assume your legacy NISA accounts would stay with the old broker and just your new NISA account would go to the new one.
@@RetireJapan_OG thanks for your response. One other question I have is, what if you haven't added to your new Nisa yet? I assume my current broker created the new account for me, but not sure if that would be carried over, or if I haven't added to it it hasn't been created yet?
If you buy something in your new NISA you will not be able to move it this year, so definitely try to make the transfer before making any purchases.@@adamc3616
@@RetireJapan_OG oh wow. Thank you so much for that!! I was thinking of adding to the new Nisa so I know it's created for the move. Very lucky. Thanks mate!!
My pleasure! Good thing you asked 😁@@adamc3616
Thank you for clarifying this for us. I am super new to investing, and I read your book just 2 months ago. Your videos are what got me interested in investing for the first time in my life 😅. Apologies for the dumb question: I purchased 100k yen for the first time yesterday---all into emaxis slim all country, and I made a mistake in buying it with the growth investment frame NISA instead of the tsumitate NISA. Am I screwed, or should I purchase emaxis again in tsumitate portion next time and set it as a monthly investmemt instead of doing it in the growth investment NISA? I plan to mostly invest in emaxis in my first few months as I am still learning about this.
That's completely fine! If you are just buying mutual funds, the two sections are exactly the same in practice. The only difference is that you need to set up a monthly order for the tsumitate section, and you can do spot purchases for the growth section.
But no difference once the investments are in there 😀
Thank you so much for the response sir. This reassures me. When I checked the growth inv NISA it seems I can also setup automatic purchases of emaxis there too (I linked my rakuten bank to rakuten securities) same as the tsumitate portion. I tried in both (setting the date every 12th of the month for a try then just cancelled it) Or do you mean spot and monthly automation is ok with the growth frame but tsumitate does not allow spot purchases?
Does this mean I can just keep the initial purchase I made in the growth frame NISA and make an automated purchase there?
Yes! Only monthly purchase in tsumitate, monthly or spot purchase in growth. Perfectly fine to do monthly in both if that works for you 😀@@a.m2021
@@RetireJapan_OGThank you so much 🙏 more power to you and your channel sir!
Thanks! We need all the help we can get 😅@@a.m2021
Hi, I have just applied for a SBI securities NISA account. Could you please tell me if the dividends/gains/principals can be transferred to any savings accounts (not only the ones listed). I only have my accounts with Prestia. Also it would be great if you can share what level of automation is possible in terms of credit and debit. Too overwhlemed with the process already.. :(
You should be able to send money to/from pretty much any bank. Don't worry too much about automation -you can set up automatic purchses of mutual funds, and just send a lump sum to your broker every few months to pay for them.
@RetireJapan_OG Thanks you so much! 😊 Really appreciate!
Thank you for your very informative video as always. Very well presented and clear! I have already made a New Nisa account with SMBC bank before watching your video and was wondering if it is better in the long term to abolish my account while it's new and open a new one with Rakuten or SBI Securities.. Are there any tangible benefits for doing this and if so, what are they?
Thank you so much again and looking forward to more of your videos.
It all depends on what you want to invest in. The NISA account itself is the same regardless of which bank or broker you use, but the products they offer might be different. As long as SMBC offers the investments you want to buy there is no reason to change 😀
@@RetireJapan_OG Thank you so much for your reply and for the helpful information. That's a relief to hear that as I was not looking forward to the hassle of changing my broker, lol! Thank you once again!
You're very welcome 😃
How I change my old nissa accout to new nissa account and at old nissa I didn't invest any thing I only opened
Your bank or broker will have opened a new NISA for you automatically. You can use it through your existing account.
1.Can one funded NISA account in one shot? Or there is limit for distribution?
2. As a foreigners with residency status can we have NISA account?
Thanks 🙏
Anyone over the age of 18 living in Japan can open a NISA account. Not sure what you mean by 1., did you watch the video?
I got the answer to 1.
Thanks
Great!@@johnpiroz7075
Can we open multiple NISA account let say 1 with Rakuten securities and another with SBI or with the local bank.
Absolutely not! One NISA per person. You can move the account, but only if you haven't purchased anything yet this year.
Hello, thank you for all your videos! 23 year old beginner here finally setting up an account with Rakuten.
A bit of a dumb question, but would greatly appreciate any insight. Will personal details such as what you enter for your occupation matter in the long run or affect your account? I work a dancer/performer so I am struggling a bit with how to answer the questionnaire bit in the setup of the account process.
Thank you in advance!
No dumb questions here!
That section of the application form is mainly concerned with people who work for financial companies or are directors or similar of publicly traded companies (they have restrictions on what they can invest in).
Other than that it doesn't make any difference what your occupation is 😀
@@RetireJapan_OG Thank you so much for your response! Will continue to learn and grow from your channel. Thank you again!
Let's say you already have money in the Legacy NISA. You expect the market to do well over time and by the time you let the Legacy NISA term end, the balance might be much higher. There's a lifetime contribution limit on the new NISA. So given those assumptions, would it be more strategically advantageous to pull the money out of the Legacy NISA now up to the point needed to fund your new NISA up your annual limit rather than wait until the Legacy NISA term ends before moving the money into the new NISA as this video suggests?
Could do! That would be a judgement call for each individual.
So I've set up the NISA investments for each month and I complete this by the end of January, so my investments for February are fine. Does this mean that I will only be able to invest 1.1M Yen in Tsumitate portion this year? Can I not invest the 100K Yen I missed for January? If I can, how do I do this? I'm not able to find any option for spot purchase in Tsumitate..
You can top it up (use the 'bonus' function) but it's not that important now the NISA is tax free forever and we have a lifetime allowance. Just make one extra month's payment in year 6.
Thanks so much for all the informative videos. Just a couple of questions. So with the end of Junior Nisa, can a normal Nisa be used for kids or is Nisa no longer an investment option at all for juniors. I am looking at investing money for my son this year. Secondly I handle all the financials in our household. Is it possible to open a Nisa on behalf of my wife and manage it for her? She would put her own money in and it would be at Rakuten. Thanks again for being so helpful!😊
Sadly no tax-exempt accounts for minors any more. Can still use a taxable junior account OR invest in the parents' NISA and give the money to children later.
Technically your wife needs to open the account but as long as it is her money going in from her bank account etc no problem with you running it for her. That's what I do for my wife (she's not very interested 😂)
@@RetireJapan_OG Thanks so much! How you handle it for your wife is how I'll do it as well. Keep up the great work!
My pleasure. I recommend having a little meeting 1-2 times a year and explaining what you are doing with the account to your wife, going through the balance, etc 😃
@@RetireJapan_OG Do you know if any of the main brokers you mentioned or other banks offer (taxable) investment accounts for minors?
@@gorigori_kun I believe they all do: www.google.com/search?q=%E6%9C%AA%E6%88%90%E5%B9%B4+%E6%8A%95%E8%B3%87&oq=%E6%9C%AA%E6%88%90%E5%B9%B4%E3%80%80%E6%8A%95%E8%B3%87&gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBCDg1NjBqMGo3qAIAsAIA&sourceid=chrome&ie=UTF-8
Do you need to be a permanent resident to apply for Nisa? Or is a work visa fine?
Any adult resident of Japan can open a NISA account.
Is Monex NISA account good ? can I buy single share/stock using Monex NISA like rakuten securities ?
In my experience all the big online brokers are very similar. Rakuten and Monex will give you pretty much the same options.
This is their single Japanese stock service: info.monex.co.jp/lp/account2.html#reason3
Thank you so much. This is helpful !
Hi, thanks for all the information. I am wondering one thing: I have an old tsumitate nisa setup with the old max/month (33,333 yen/month). Now the new tsumitate nisa can have 100,000 yen/month. ?: What should I do to change from 33,333 yen/month to 100,000 yen/month? also it seems the old tsumitate nisa is not just changed into the new, so is there now an old and a new tsumitate nisa? Otherwise how do they make a difference between the old valid 20 years and the new with no limit.... Thanks if you can clarify...~
1. the legacy NISA and new NISA are not connected. You will keep the legacy accounts until their tax free duration expires.
2. you need to change your monthly order or cancel it and set up a new one.
Hope that helps!
@@RetireJapan_OG Thank you. It does clarify a bit. So does that means we can keep the old nisa and also open a new nisa? I do not think so, but just asking. Thank again for your excellent videos.
Indeed! In fact, not only can you keep the old NISA (contributions so far, no new contributions) and have a new NISA account, but you already have a new NISA (your bank or broker will have opened it automatically if you had a legacy NISA with them).@@Hiking-guide-and-scenery
@@RetireJapan_OG Thanks again. I could manage changing to 100,000/months by internet (finally manged to find the right button!). I also went to the bank (UFJ), and it looks like they had transformed my old nisa into the new one without me doing anything, and with the same funds in it, which is somewhat surprising. I also can use the growth version in the same account. Anyway, I am all set now I think. Thanks and I will definitely watch your other contributions~
Great! Sounds like you are all set 😀@@Hiking-guide-and-scenery
I wasn’t able to apply for change last year and now cannot see all the flow you showed so it means automatically changed itself right?
Not sure what you mean. Which change did you not apply for?
@@RetireJapan_OGyou made a video to apply to shin nisa few weeks ago and the expiration was like dec 28. My zaryu card wasn’t update so I couldn’t do what you did on time and now that option doesn’t exist any more. Does it mean they are automatically transferred to new nisa?
Ah, I see. You are talking about the tsumitate settings. The easiest way would be to check in your account.
Go to the 投資信託 section of the main menu, then click on the blue 積立設定一覧 button. You will be able to see all the active orders on there.
If you can't see them you will need to make new ones 😀@@KeigoMoriyama
@@RetireJapan_OG thanks let me check it!
thanks it shows me what i am buying under NISAつみたて投資枠
@@RetireJapan_OG
i was rejected a bank account by rakuten, will they allow me a brokerage account?
Rakuten Bank are a separate institution, and can be stricter than the broker for some reason. Worth a try at least.
If they turn you down, you can also try SBI and Monex.
Yes, I was rejected a bank account but have a brokerage account
Thanks for the useful data point 😀@@EarthUncutTV
@@RetireJapan_OG lol tho bank with SBI but was rejected a brokerage account with lol 😂
Please make it make sense 😆@@EarthUncutTV
Hi! Kudos to your channel! Very informative.
Question 🙋🏻♀️ I’m torn between Rakuten or Monex account. I’m quite inclining to the later because of benefits from Aeon Bank. Will I miss a lot from Rakuten?
No, no meaningful differences between the brokers as far as I am aware!