NISA for my 16 years old son

[Beaglehound]

Thank you for you speedy reply!
I have another question:
I have 800,000 yen saved for my son’s first year on university. Should I put it in Junior NISA? My son is 16 years old and the money has two years to grow.

It seems like a simple question. But I worry that it will be difficult to get the money out on time to pay for the university tuition fee.

Second question: Does anyone have any experience with taking out a Junior NISA money to pay for university?

Standard advice would be that it is extremely risky to invest in equities over such a short time frame. Yes, it may grow, but may also do the opposite in a market downturn.

[captainspoke]

Thank you for you speedy reply!
I have another question:
I have 800,000 yen saved for my son’s first year on university. Should I put it in Junior NISA? My son is 16 years old and the money has two years to grow.

It seems like a simple question. But I worry that it will be difficult to get the money out on time to pay for the university tuition fee.
...

I'd leave that in cash (bank). The first year is perhaps the most expensive--getting thru the testing cycle itself, matriculation fee (入学金, then actual tuition will probably come a little later in the spring), getting setup in a rental (if a different city), deposits, the normal 4-5 things for that (fridge, rice cooker, microwave, TV, laptop) set of futon/furniture, also if you and wife go to the entrance ceremony, and so on.

[adamu]

I have 800,000 yen saved for my son’s first year on university. Should I put it in Junior NISA? My son is 16 years old and the money has two years to grow.

it is extremely risky to invest in equities over such a short time frame.

I'd leave that in cash (bank).

Agree with both of these points. The rule of thumb is don't invest anything you need within the next five years, as you could end up with less than you started with for such a small time frame.

[Oliver]

Thank you !!! All super good advice! Yeah, I will just keep the money in the bank as it is already designed for his education. A simple stress free life is best for me.

[Oliver]

When I invest for myself, I have my SBI set for automatic investment in my tsumitate NISA.
So, back to my average question.
I am giving my son (16years old) 30 000 yen to start junior NISA with the hopes that he will understand investing.

Wouldn’t it be best to invest 6000 yen for the next 5 months to get an average price?

Second question is: will the possibility to invest in Junior NISA will end this December? Is that correct?

[sutebayashi]

Yes the Junior nisa can only be used until the end of this year.

But even from next year, you can still invest on a monthly basis using a normal taxable account for your kid, I believe.

So if you want him to learn the regular monthly investing style, sure, I would do that for the rest of this year in Junior nisa, and then keep it going next year onwards in his taxable account, until he is old enough to have a new nisa account (is that 18 years of age now?).

The monthly investing thing is the most important bit, in my mind, and using tax free accounts when they are available is like a bonus.

[Oliver]

I have a question about buying Junior NISA.

Can I Tsumitate NISA with a Junior NISA account?
Is that possible?
Is that the correct procedure?

Can I buy “All country” with Junior NISA?

[sutebayashi]

You can set up tsumitate (fixed amount monthly investing) in Junior NISAs, yes.

And eMAXIS All Country is exactly what my kids are getting in their Junior NISAs these days.

[beanhead]

Can I Tsumitate NISA with a Junior NISA account?

Just to be very specific, there are 3 NISA types:

Regular/Ordinary NISA
Tsumitate NISA
Junior NISA

There is no such thing as a Tsumitate NISA / Junior NISA.
Tsumitate means regular payments. As Sutebayashi says, it is possible to fund your junior NISA with the tsumitate function, so you invest a certain amount monthly.
It is also possible to set up a monthly investment (tsumitate) with the ordinary NISA as well. This is not Tsumitate NISA (a different product), but ordinary NISA using the tsumitate tool.

From 2024, in an ideal world, the brokers would increase the amounts available for tsumitate to 300,000 per month so that it would be possible to fill both parts of the new NISA with regular, DCA investments. Preferably via credit cards for points.

[Oliver]

Thank you very much for that explanation!!!
I was just about to ask about this!
Thank you!