Funds Allocation

[sytyue]

Hi everyone,

I recently made an iDeCo account with SBI and I have been reading up on how and where to put my funds. I am putting in 12000 a month and have just begun to move the funds around. I have read about ＤＣインデックスバランス（株式４０） and EXE-i 先進国株式ファンド from previous threads but was wondering if anyone can give me some more advice or tips about how and where I should move my funds. And also, how often do you check? Is once a year decent?


Thanks in advance!

[RetireJapan]

Hi sytyue

Welcome to the forum. I recommend starting with the bigger picture: what kind of asset allocation do you want? Once you've done that it's relatively easy to find funds to construct it.

Basically you will need to decide what types of assets: stocks, bonds, other? Also where they are: Japan, foreign developed, foreign emerging?

What you choose will depend on your age, goals, financial situation, and character/experience with investing.

[Dan]

You would have to try to decide if you would like to take on exposure in global markets or the domestic market and try to come up with your preferred mix of asset classes — stocks, bonds or others.

After logging into the iDeCo website of SBI you should be able to see what funds have secured the most inflows from investors. You could go over them one by one to understand why the funds are popular among investors. It requires a bit of work but would be worth it.

If you are putting in ¥12,000 per month, I think it would make sense to keep your allocation fairly simple by trying to pick just two or three funds to invest in.

[sytyue]

Well, I am 34 this year and I want to put more in stocks compared to bond. I am looking at a 60%(mostly international)/30% (I am still a little lost on this one) and perhaps 10 % in some other.

I am not sure if that would be considered safe or aggressive. Since this is my first time, I am leaning towards a safer portfolio. But since I am still in my early 30's maybe I should be going for something more aggressive?

[RetireJapan]

The general rule of thumb is 'your age in bonds'. This is considered somewhat conservative. An alternative is 'your age minus ten in bonds'. 60-40 stocks/bonds is a common portfolio, as is 70-30.

Generally speaking, the longer your investing horizon (how long you will invest before you need the money) the 'safer' it is to put money in stocks. Historically stocks tend to do better than other investments over periods of decades.

Another consideration is how significant your portfolio is, and what other investments you have. iDeCo allows your investments to grow tax-free, so there is a case to be made to invest in stocks in your iDeCo account, and perhaps balance that with bonds elsewhere (in a NISA account, for example). That way your stocks (which might have higher capital gains) benefit from being in iDeCo, while you can maintain your asset allocation using NISA or taxable accounts.

Hopefully you are investing more than 12,000 yen a month, or will be able to start doing so in the future

[Tomthumb16]

Can anyone please instruct me on how to find the load or no load and annual cost of buying funds/stocks/etf on the SBI securities website?
I can find them easy on monex but can't seem to locate them in SBI.
Thanks.

[fools_gold]

Can anyone please instruct me on how to find the load or no load and annual cost of buying funds/stocks/etf on the SBI securities website?
I can find them easy on monex but can't seem to locate them in SBI.
Thanks.

I find it easier to find the information on the main SBI website, rather than the separate site for managing your iDeCo. Just log into SBI, click on iDeCo at the right of the top bar, then go to 「運用商品一覧」.

[Tomthumb16]

I find it easier to find the information on the main SBI website, rather than the separate site for managing your iDeCo. Just log into SBI, click on iDeCo at the right of the top bar, then go to 「運用商品一覧」.

Thank you.