How I Use Japan's New NISA: My Exact Setup and Fund Picks
A detailed look at the specific funds, monthly amounts, and couple's strategy I use in Japan's tax-free investment account
Introduction
In January 2024, Japan launched the “New NISA” — a significantly upgraded tax-free investment account (similar to a Roth IRA in the US or an ISA in the UK). The lifetime tax-free allowance jumped to approximately $120,000 per person.
Since I’d been investing through the old NISA for years, I already had a clear plan when the new system launched. In this article, I’ll share the exact funds I’m buying, how much I invest monthly, and how my wife and I maximize our combined tax-free allowance.
Background: Old NISA to New NISA
I opened my brokerage account years ago, but didn’t start investing seriously until the old NISA program launched. Those years of steady investing gave me the experience and confidence to transition smoothly into the new system.
Because the old NISA helped me figure out my investing style, the switch to New NISA was effortless.
My Brokerage: SBI Securities
I use SBI Securities, one of Japan’s two largest online brokerages (the other being Rakuten Securities).
Why SBI:
- I already had an account there
- Huge selection of index funds
- Credit card auto-invest earns reward points
- Industry-lowest fees
- Clean, simple interface
Honestly, there’s not much difference between the top brokerages. The worst decision is to get stuck choosing a brokerage and never start investing.
My Fund Selection: Why US Stocks
My core investment philosophy comes down to one idea:
“If you want to grow wealth through stocks, the US market is the most efficient.”
The United States is the world’s premier investment market. The culture of shareholder returns is deeply ingrained, and companies are genuinely incentivized to grow their stock price. That’s why long-term returns in US equities have been consistently strong.
My Portfolio
| Account Type | Owner | Fund | Reasoning |
|---|---|---|---|
| Regular Savings Slot | Me | FANG+ Index Fund | Concentrated US big tech for high returns |
| Growth Investment Slot | Me | NASDAQ 100 Index Fund | Broad exposure to tech-driven growth stocks |
| Regular Savings Slot | Wife | MSCI All Country World Index (All Country) | Diversified global exposure for stability |
My accounts are offense-focused on US tech, while my wife’s account is defense-focused on global diversification. Together, we achieve balance as a household.
Monthly Investment Amount
We currently invest approximately $1,400/month (about 200,000 yen) combined as a couple.
This isn’t because we have an exceptionally high income. We’re gradually moving cash savings into investments over time. Rather than dumping a lump sum into the market (and risking a crash right after), we’re slowly shifting our cash-to-investment ratio.
How We Use the Tax-Free Allowance
The New NISA allows approximately $24,000/year per person ($48,000/year for a couple). We’re not rushing to max it out.
Our plan is to fill our combined lifetime allowance ($120,000 per person × 2 = $240,000 total) over roughly 15 years. There’s no need to rush. What matters is investing at a pace that fits your life.
Investing as a Couple
We actively use both my NISA account and my wife’s. However, I handle all the fund selection and portfolio management for both accounts.
The advantages of using both accounts are significant:
- Double the tax-free allowance ($48,000/year, $240,000 lifetime)
- Better risk diversification (offense × defense combination)
- If something happens to one spouse, the other’s assets are protected
The key is having a shared investment philosophy as a couple. When I can explain why I chose each fund, my wife feels comfortable with the strategy.
How It Feels in Practice
Since starting with the New NISA, our assets have been growing steadily.
I don’t check the balance daily or react to every market fluctuation. But there’s a real sense of “my money is working for me while I sleep.”
Set up the automatic investments, then leave it alone. The assets grow anyway. Building this system was the biggest win.
For Beginners: Your First Step
If you haven’t started with NISA (or any tax-advantaged investing), here’s my strongest advice:
Start with even $70/month. Just start. This is non-negotiable.
- If you can’t decide on a fund, just pick a total world index fund
- Pick any major online brokerage — they’re all fine
- Don’t let the search for the “perfect” setup stop you from starting
How to Start (3 Steps)
- Open an account at a major online brokerage (free, takes 1-2 business days)
- Select a total world stock index fund in the regular savings slot
- Set up automatic monthly investment starting at whatever you can afford
That’s it. As you get comfortable, increase the amount or add more funds.
Summary
| Item | Details |
|---|---|
| Brokerage | SBI Securities |
| My savings slot | FANG+ Index |
| My growth slot | NASDAQ 100 |
| Wife’s savings slot | All Country World Index |
| Monthly total | ~$1,400 (couple combined) |
| Timeline | 15 years to fill tax-free allowance |
The most important thing about tax-free investing is when you start. Getting the perfect fund matters less than starting today.
Begin with $70/month. That small step will become a major asset in 10 years.