NISA or Tsumitate NISA for a 50-year-old?

[notjohnson]

I turn 51 next month, and have not previously invested in the NISA and iDeCo programs. I've opened an account with Monex and applied for iDeCo, which I intend to max out. Within the next few days I'd also like to start investing in either NISA or Tsumitate NISA. At my age, which would make more sense? I intended to go for T-NISA, but it just occurred to me there might be an age limit for investing (like iDeCo) that might make regular NISA the better option.

Any advice or comments would be greatly appreciated!

[RetireJapan]

There are no wrong answers with NISA (both are great). I changed my thinking about tsumitate NISA this year: https://www.retirejapan.com/blog/on-tsumitate-nisa/

[adamu]

With regular NISA you have to deal with rollovers, New NISA, level 1, level 2, and eventually being dumped into a Tsumitate NISA anyway. So I'd stick with your plan - you won't have to worry about rollovers for 20 years at least.

The main reason I could see for you to go with regular NISA is that you want to invest more tax-free quickly.

[beanhead]

iDeCo age limit will be extended from 60 to 65, which is good news.( paying into some form of pension is a prerequisite).

No age limit for NISA, but as Adamu says the program is changing slightly in a few years time.
Either choice is good. If you have 1.2M to invest early each year regular NISA may be marginally better, but a bit more complicated.

[zeroshiki]

The shorter your timeframe to retirement (in this case 10-15 years) the better NISA becomes (assuming constant growth + the ability to invest 1.2M a year).

There is no age limit to TNISA but to fully maximize the benefits of TNISA, you'd have to wait 20 years. In that case, doing 1 rollover with NISA would probably get you more benefit.

[notjohnson]

Thank you all very much for your advice! I'll go with Tsumitate NISA as I won't have 1.2 million to invest every January.

[Dee.Geo]

The shorter your timeframe to retirement (in this case 10-15 years) the better NISA becomes (assuming constant growth + the ability to invest 1.2M a year).

There is no age limit to TNISA but to fully maximize the benefits of TNISA, you'd have to wait 20 years. In that case, doing 1 rollover with NISA would probably get you more benefit.

Bringing up an old topic back as I am struggling to decide between NISA and TNISA. Especially with the year being 2022 and NISA ending in 2023, I am wondering on 2 points
1. As the idea is to keep the contributions going and to hold the funds till retirement, how would I be able to do that as I will have to exit NISA at the end of 2023?
2. If there is a new NISA program then the answer would be rollover (I guess), but then that would mean paying the capital gain tax every year (starting from 2024). Am I right?
I am very new on the forum and still reading through the nuances of NISA accounts. Appreciate any advices and thoughts on this.

[zeroshiki]

The shorter your timeframe to retirement (in this case 10-15 years) the better NISA becomes (assuming constant growth + the ability to invest 1.2M a year).

There is no age limit to TNISA but to fully maximize the benefits of TNISA, you'd have to wait 20 years. In that case, doing 1 rollover with NISA would probably get you more benefit.

Bringing up an old topic back as I am struggling to decide between NISA and TNISA. Especially with the year being 2022 and NISA ending in 2023, I am wondering on 2 points
1. As the idea is to keep the contributions going and to hold the funds till retirement, how would I be able to do that as I will have to exit NISA at the end of 2023?
2. If there is a new NISA program then the answer would be rollover (I guess), but then that would mean paying the capital gain tax every year (starting from 2024). Am I right?
I am very new on the forum and still reading through the nuances of NISA accounts. Appreciate any advices and thoughts on this.

1. NISA are counted per year. If you join in 2022, your tax-free period ends in 2027. Its better to think of NISA as NISA Years. Each year gets its own 1.2M allowance for 5 years. So if you put in 1.2M into your 2022 NISA, the securities inside that account is tax-free until 2027 where you are forced to transfer them into a taxable account at 2027 prices or roll over into a new NISA (theoretically). Nothing you do in 2022 will affect your 2023 NISA. In 2023 you can get a 1.2M allowance NISA or 400k allowance TNISA.
What's ending in 2023 is the original NISA but its already been announced that it will replaced by New NISA which is pretty much the same except that the limit goes up to 1.22M with 220k required to be put into mutual funds.
2. No, there is no capital gains tax for the full 5 years of NISA. Rolling over just means you use up that year's NISA allowance.
Capital gains taxes are only charged when you sell the securities. No sale, no tax.

[Dee.Geo]

Thanks a lot Zeroshiki! That was very informative. I had no idea about the 5 year validity from the year I would invest. And again, the info about the new NISA. I am so glad that I am on this forum

[7-seasons.com]

Hey everyone, a family friend of mine is over 50 and is serious enough to be in the process of opening a NISA account. I believe that she will be asking me for advice on what funds/portfolios to buy.

Is anyone investing in this age-range, or does anyone have advice on funds/portfolios for that age range? I would like to give a pretty damn safe answer, but it probably won't be 100% cash.