NISA yearly allowance deadline

[Oliver]

Hello everyone.
I finally almost got NISA set up with SBI. It had more hurdles than I had expected, but I sent off the last mail yesterday to do Yucho direct. So, all that to say, I finally think I am set to start investing.

I have a very simple question.
When is the TNISA year over?
I would like to invest the full amount for one year (400,000 yen) before the year allowance is over.

[zeroshiki]

Its per calendar year so you have 3 months left but TNISA has a restriction where you can't invest more than 33,333 a month (400k divided by 12) so you have to do a workaround with "bonus" months and fill up the 400k using that.

[Oliver]

Thank you for your reply!
What do you mean by bonus months?
If I understand correctly, I can only invest 33,333¥ a month.
Is there a yearly bonus month?
Also, I would like to ask if there is a setting that can automatically buy 33,333¥ per month of maxin all country.

[zeroshiki]

Thank you for your reply!
What do you mean by bonus months?
If I understand correctly, I can only invest 33,333¥ a month.
Is there a yearly bonus month?
Also, I would like to ask if there is a setting that can automatically buy 33,333¥ per month of maxin all country.

It depends on your broker but for most of the popular ones, when you go to your tsumitate settings, there's an option to set a bonus month. What people usually do is do a tsumitate of 100 yen (or whatever the minimum is) then do a bonus month in August (for example) of 398,900 to automatically fill up the TNISA.

[Oliver]

Thank you for your reply.
I had another question if you don’t mind. Is it wise to just do a 400,000¥ buy once a year? I know about the dollar averaging strategy, but if I have 3 month left it may not make much of a difference.
I also had another thought.
If I already have the money at the beginning of the year why should I wait to invest it?
Shouldn’t time in the market be better than dollar averaging over the year in the long run?
I am sure there is a super simple logical answer to these questions. I just don’t know them.
I appreciate your input!

[RetireJapan]

Thank you for your reply.
I had another question if you don’t mind. Is it wise to just do a 400,000¥ buy once a year? I know about the dollar averaging strategy, but if I have 3 month left it may not make much of a difference.
I also had another thought.
If I already have the money at the beginning of the year why should I wait to invest it?
Shouldn’t time in the market be better than dollar averaging over the year in the long run?
I am sure there is a super simple logical answer to these questions. I just don’t know them.
I appreciate your input!

The short answer is if you invest for 20 years it doesn't really matter. Do whatever is easiest. For most people that just means setting up a monthly purchase and not worrying about it.

For your first year if you are able to, topping up the account probably makes sense (set your monthly payments as normal and do a bonus payment to get to 400,000).

There are lots of things you can do to fine-tune the account, but I'm not sure they are worth the time/effort. I just pay in my 33,333 a month and don't really think about it any further

[adamu]

I just pay in my 33,333 a month and don't really think about it any further

What about the last 4 yen??

[Oliver]

Thank you for your prompt reply.
May I ask if these settings (the monthly automatic 33,333¥ payment) can be done with SBI?

[Oliver]

I wanted ask this question and not sound so ignorant, but I can’t think of a clever way to ask such a simple question.
Is SBI my broker?

[adamu]

It looks like SBI have a tutorial for how to set it up here:

https://www.sbisec.co.jp/ETGate/WPLETmg ... trade.html