RetireJapan

Hi all

I started my Tsumitate Nisa at the beginning of 2022. 33,333 yen comes out of my bank account on the 27th of every month.

All of my 2022 allowance was used up (well 399,996 of the 400,000).

However, my 2023 T-NISA shows that 33,337 yen of the allowance wasn’t used.

I have already used up 33,333 of the tsumitate part of the 2024 new NISA, which must have come from the Dec 27th payment.

How has that happened? Did my Dec 27 2022 payment make it onto the 2022 T-NISA but the Dec 27 2023 payment didn’t make it onto the 2023 T-NISA so was used for the 2024 New T-NISA part?

Or has something else happened? Anyone else in the same boat?

It’s not the end of the world at all but want to make sure I’m not doing something wrong. Cheers.

27th is a bit late if you want orders to go through that month. Takes 2-3 working days, and the last working day of the year is the 28th.

Not sure why it worked in 2022 though -maybe they were able to do it retroactively as legacy NISA was still in use whereas it stopped last year.

Anyone else?

No, your December payment did not make it in time to execute the trade before the Year End deadline this year. It needs three business days to clear the trade for international funds.

There were only two business days, 28 Thur and 29 Fri, before the holiday.
30 was a Saturday, and then the Japan market was closed until 4 Jan, when the trade will be completed.

The trades will complete in years when 27 Dec falls on a Sun, Mon or Tues.

In 2022, 27 was a Tuesday. Therefore, 28 Wed, 29 Thur and 30 Friday, just closing the trade before the weekend before year end.

Not, 2024 or 2025...

The next time a 27 Dec payment will make it in time to be included in the year will be in 2026 when 27 Dec falls on a Sun; deduction will actually be on 28 Mon and then 3 days to clear, 29,30,31 Thur.
and
2027 when 27 Dec falls on a Mon; then 3 days to clear, 28,29,30 Thur.

Not 2028
(Note 27 Dec does not fall on a Tuesday in 2028 due to Leap Year, but moves to Wednesday)

Not 2029, 2030, 2031

Again in 2032, when 27 Dec falls again on a Monday.
(Note 27 Dec does not fall on a Sunday in 2032 due to Leap Year, but moves to Monday)

and 2033 when 27 Dec falls again on a Tuesday.

Not 2034, 2035, 2036
(Note 27 Dec does not fall on a Friday in 2036 due to Leap Year, but moves to Saturday)

Again in 2037, when 27 Dec falls again on a Sunday.

and so on...

RetireJapan wrote: ↑Fri Jan 19, 2024 5:01 am 27th is a bit late if you want orders to go through that month. Takes 2-3 working days, and the last working day of the year is the 28th.

Not sure why it worked in 2022 though -maybe they were able to do it retroactively as legacy NISA was still in use whereas it stopped last year.

Anyone else?

The calendar shifts up 1 day each year. You lost a market day. Not enough days to clear the transaction.

*Two days in the case is leap years

Cracking answers - thank you. It all makes sense now.

Why did I choose the 27th? Payday is the 25th, iDeCo comes out on the 26th so put NISA for the 27th. Seemed logical at the time!

Guess I don’t need to make any changes then. The money is still invested in a NISA of some sort. If I have the chance to max out a year, then that’s something to think about, but until then, it’s fine as it is.

Cheers.