Hi there,
I'm looking to diversify away from the vash majority of my assets sitting in stocks for one company. I sold a portion earlier this year and would like to start with re-investing around 10-15m JPY in a "sit and forget" way.
- NISA and iDecco are maxed
- I have several 5-7 year term investments through a broker
- I have a retirement trust into which I pay monthly
- I own my property
- I have an emergency fund, savings for taxes, etc
- I'm in my mid thirties
- Not from the US
- Not actively planning to leave Japan in the near future, but there's an increasing chance work may demand this in the next 5 years
I have limited investment knowledge, through research it seems that expanding upon eMaxis (where my NISA is already maxed) or S&P may be good options. I have a Rakuten Securities account so will likely use that.
Based on this, I'd like to ask for recommendations on specific ETFs or Index funds for consideration.
- Is doubling down on eMaxis Slim all country a good option right now?
- Should I consider something like Rakuten S&P 500 or similar (fees seem higher than eMaxis)
- Any other recommendations?
As a side question, is my understanding correct that I would only pay tax on gains through this method when selling my investment?
Thank you
by Deffy–
3 comments
Yes, it’s a sound plan. I should be doing the same too as I’ve kept all my RSUs and ESPP stock, only selling a little here and there when needed (international school fees are a bitch), so I have a huge pile of my net worth in a single stock right now.
Good old All Country is great, can’t really go wrong. S&P500 is more risky but higher returns, but you’re in your 30s so shouldn’t be afraid of a little risk.
You could add some REITs and Bonds but I wouldn’t do that myself. Just lower returns and higher fees IMO.
Obviously you don’t get taxed until you realize gains and that only happens when selling.
If you have doubts, you can also split your fund to both All country and S&P. Rakuten package is slightly higher but I don’t see the point of getting it over the popular eMaxis slim.
As above comment, you won’t get taxed until you realize the gain. Just one note: When you sell your investment trust you don’t get the gain right at the moment like individual stock, it takes few days later to contract
I put 10k yen every month into TQQQ. Seems low risk high reward enough for me.