I was delighted to see the changes to the NISA program as i am planning to retire to Japan in a few years. I do have two questions regarding limits, however.
Does it seem likely that the limits (annual and overall) will be indexed or are they static (for the foreseeable future at least)?
Am i correct in understanding that the 18 million yen maximum limit (for combined growth and tsumitate) refers to the overall balance, not contributions? The Japanese text seems to imply this fairly clearly but i haven’t dug terribly deeply so perhaps there are nuances i have missed.
If it refers to the total balance (contributions + gains), it seems to me the best strategy would be to put the income producing components of my portfolio into the NISA so the dividends/interest are all tax free.
If it refers only to contributions, and there is no cap on tax free gains, then i should probably do the opposite and use it for the growth component of my portfolio to make the most if the cgt exemption.
its a fantastic program, especially as the limits are individual not household, so i am happy either way. Just want to have a better understanding of how to integrate it into my investment plans.
by Hot_Benefit7789
