Junior NISA alternative

[AlexanderLamas]

Hello RetireJapan forum!

Greetings!

In regards to Junior NISA, which is now ended.
And yes, I missed out.

What are the alternatives to replace the Junior NISA investment account?
Have the government released, or have plans to release anything like it again near future?

Also, does anyone know if we have in Japan custodial account to invest under the kids name?
If so, which institutions have that?

Thank you very much in advance!

Best regards,
Alex

[sutebayashi]

Yes you can open accounts in your kids name and invest via them.

Unlike with nisa, when you or the kid sells, they may have to pay tax on it.

People really hate paying tax on investments, but I think investing is still worth it, as opposed to losing 2% a year through inflation and doing nothing.

Major net brokers all support kid accounts I believe.

There is nothing concrete from the FSA yet about a revised Junior nisa program.

[AlexanderLamas]

Hi @ sutebayashi-san!

Thank you very much for your reply.
Much appreciated.

I'm starting to search around for those institutions.
The only problem for me is because of my Japanese skills.
It's not so good yet. It's working progress though.

Do you have any suggestions?

Thanks in advance.

[Tsumitate Wrestler]

Yes you can open accounts in your kids name and invest via them.

Unlike with nisa, when you or the kid sells, they may have to pay tax on it.

People really hate paying tax on investments, but I think investing is still worth it, as opposed to losing 2% a year through inflation and doing nothing.

Major net brokers all support kid accounts I believe.

There is nothing concrete from the FSA yet about a revised Junior nisa program.

Taxable investing for kids is only advantageous if it is the "kids" money, and not the parents. The main use case in Japan is grandparents gifting under the 1.1 million threshold yearly to avoid inheritance tax down the road. The account would be then used to invest the "child" money.*

Otherwise, a parent is better off using their tax-advantaged accounts, or taxable accounts.

(This is general, there are special cases etc).
*The FSA has been cagey about this use case, etc. Some of the tax-heads on japanfinance are wary.