I’m a Japanese living Thailand , and I’m completely new to investing.
I’m planning to start long-term investing with monthly contributions, but I’m still trying to figure out the best approach as an expat. In a few years, I expect to move back to Japan and plan to start using NISA at that time.
If I open an account with Interactive Brokers now and start investing before returning to Japan, what would be a good strategy or what kind of ETFs should I consider for tax efficiency?
I would really appreciate any advice from people in a similar situation. Thank you!
by Competitive_Sun_9436
3 comments
You’ll probably get better advice in a Thailand-specific finance sub.
You could do a wash sale and sell right before returning to Japan, then you’re exposed only to Thai taxation. It’s extremely difficult or almost not feasible to transfer shares across borders, so you either sell before returning or are taxed by Japan. When you arrive late in the year (November) and open your NISA immediately, you get the full annual allowance and can invest a lump-sum and then in January again to maximize your time in the market.
For what to choose, just invest in a low-fee diversified all world fund or ETF.
Gold ETF 1540. Silver ETF 1542. Thank me later 😊
From a little bit of reading online, I don’t see any great tax minimization strategy available to you if you’re using IB Thailand (rather than sneakily keeping your money in IB Japan).
So, just so the best you can: buy a globally-diversified low-fee all-stock portfolio, which could be as simple as just putting everything in a single global fund like VT (Vanguard Total World Stock blah blah).
You’ll have withholdings, you’ll pay taxes when you sell, but that’s just life.
When you relocate to Japan, you’ll sell it, convert to yen, and then plow it into a similar fund (likely eMaxis Slim All World blah blah) in your iDeCo and your NISA.
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