Let's say at the end of December you have an investment of 100,000 yen which is now valued at 50,000 yen. Surely, it makes sense to sell that investment in December (and rebuy it in January presuming you want to keep it).
This would enable you to increase your 2025 NISA allowance by 100,000 (the original buying price), while only using 50,000 yen to rebuy the investment. Am I missing something?
by Professional_Bat_831
3 comments
I’m not sure 100% what you are asking, nor do I 100% understand the NISA system, but, from my understanding:
Your allowance does not accumulate towards next year. Next year is next year, 1200000 tsumitate + 2400000 seichou. What you didn’t use this year doesn’t get added onto next year.
Also, if you sell your NISA investments, your allowance does not come back for this year. If you used 100000 in seichou, you now have 2300000 seichou allowance left. Even if you sell that 100000 (be it worth 50000 now or whatever), your allowance for this year is 2300000, not 2400000 nor 2350000.
It doesn’t increase your 2025 NISA allowance, you’ll hit the yearly cap for 2025 long before you hit the lifetime allowances. If you think it’s going to still be below 100,000 at the end of 2028 then it might be worth selling it now so that you can rebuy at the start of 2029 (assuming you’re planning to max out your contributions 2025-2028, so that at the end of 2028 you’ll be at the lifetime limit). But better to do that at the end of 2028 rather than the end of 2024 (unless you’re planning to buy more of the same stock/fund between 2025-2028 – but why would you do that unless you thought it was going to go back up?).
It doesn’t make sense because you are confusing “lifetime” limit and yearly limits.
If you invest 3.6 million every year for 5 years you will hit your “lifetime limit”
If you invested 3.6 million this year and sell off 100k worth in December, you won’t get a 3.7 million limit next year, you will only notice that allowance at the start of year 6 (assuming you kept up 3.6 million every year) when your lifetime limit will read as 17, 9 out of 18 million.
The yearly limits are the yearly limits.
This raises a question though, will The available limit only return to the part of the Nisa you sold off?
If you sold 100 000 from your growth portion, will you be able to sink it into the tsumitate portion in year 6?
I thought the lifetime limit protected the 1/3 tsumitate, 2/3 growth split but thinking about it that doesn’t make sense since you have to be able to reach the lifetime limit using only tsumitate right?
It’s really a down the road problem since it only started this year but has anyone read the fine print?