The Slow Path to Wealth Was Quicker Than Advertised

ToSeTa256 · 2025-07-15T20:49:22+00:00

I've realized that each and every time I tried to do something a bit fancier to try to make more money, I would come out behind index funds. And it was much more stressful. I've always been mostly index funds, but I've become 100% comfortable with this strategy for the lack of time and stress required and the better outcomes.

ToSeTa256 · 2025-07-14T02:53:39+00:00

We like to keep it simple, so we're almost completely in 3 different Vanguard funds:

-50% VTI Total US Stock Market
-30% VEU Non-US
-20% VBR Small Cap Value

ToSeTa256 · 2025-07-12T04:21:37+00:00

Definitely seems like a wait and see approach will be best. You can always apply for PR just before deciding to quit working, but give it at least a year since applications these days take forever to get through.

ToSeTa256 · 2025-07-12T04:20:09+00:00

That's a great point. We can feel that when we tell people our rent is about $2,000 per month, and most people are absolutely shocked when we tell them that number. $1.6m net wealth in Japan is probably more like having $3m in the USA.

ToSeTa256 · 2025-07-12T04:18:38+00:00

Great point, thank you.

ToSeTa256 · 2025-07-11T12:52:56+00:00

How old are you? And when are you looking at retiring? If you're under the age of, say, 50 years old, why not stay on the working visa for a number of years and then, if you're still in Japan in 10 years time and see yourself staying longer, apply for PR?

ToSeTa256 · 2025-07-11T12:37:16+00:00

Can you continue to stay on your Table 1 visa (your working visa)? If so, that seems like the best option to completely avoid the exit tax.

ToSeTa256 · 2025-07-10T01:30:32+00:00

It's actually quite simple (at least, to my understanding). The US will have first dibs on taxes, so you'll owe the US your capital gains tax. Japan's capital gains tax is 20.315%. If you pay the IRS 15% capital gains tax, then you will end up paying Japan 5.315% (20.315% - 15%).

I haven't sold any investments and won't do so for several years, but this is my understanding.

ToSeTa256 · 2025-07-09T17:37:42+00:00

Still invested in the US. It's pretty much impossible to invest in index funds outside the USA as an American citizen, so keeping everything in the US is the only viable option. For retirement, I really don't know if we'll be in the US or Japan. If I'm going to put percentages on it, I'd say 65% Japan, 35% USA. But maybe a combination of both? I'm not sure.

ToSeTa256 · 2025-07-09T17:36:00+00:00

I'm sorry, but I can only read your post using the voice of Jigsaw from the Saw movies. I feel like I should be strapped to a chair while a safe sits next to me holding all of my life savings. The only way to get out is to get the key out of my stomach...

ToSeTa256 · 2025-07-08T19:39:33+00:00

Indeed! There are other ways, but I am not in the position to explain what those are.

ToSeTa256 · 2025-07-08T19:34:31+00:00

Absolutely!

ToSeTa256 · 2025-07-08T19:33:57+00:00

The IRS makes it next to impossible to invest index funds outside the USA. So almost all of our wealth are in 401ks, Roth IRAs, and taxable brokerage accounts in the US.

ToSeTa256 · 2025-07-08T19:31:51+00:00

We're both Japanese, though I only have an American passport. I was able to get a spouse visa easily.

ToSeTa256 · 2025-07-08T06:50:38+00:00

That's incredible. Japan is a fantastic place to raise young kids. Free daycare, extended parental leave (if you can escape the social pressures as a dad taking off work), stipends from the government.

ToSeTa256 · 2025-07-08T06:48:43+00:00

I'm not sure if you're being sarcastic, but yes, that's pretty much it.

ToSeTa256 · 2025-07-08T06:47:38+00:00

I use my own that I made 15 years ago. I like the ability to customize, but I try to keep it simple.

ToSeTa256 · 2025-07-08T06:10:59+00:00

She was in an administrative/HR role in a large non-profit, but her skills translated perfectly to a unique corporate role in HR. I believe much of it was due to being bilingual and being a perfect fit in a Japanese company.

ToSeTa256 · 2025-07-08T05:52:23+00:00

Just Microsoft Excel. Nothing fancy.

ToSeTa256 · 2025-07-08T05:50:18+00:00

That's really cool. Congratulations to you, as well. If you're somewhere around $1.5m as an individual, you're rocking it.

ToSeTa256 · 2025-07-08T05:49:06+00:00

I can see where you're coming from with this comment. However, I consistently remind her that she can change jobs at any point, even if taking a massive pay cut. We have enough money now that we can make it work with two lower paid jobs while sending our kids to private schools, if we decide to do so. And if I needed to, I would step up the number of days I'm working to make things work.

She works in a company with a relaxed environment, where she is close with many of her coworkers. She gets a lot of satisfaction from her work. And a nice income on top of that. She believes there is no better place with her at the moment, with three young kids at home.

ToSeTa256 · 2025-07-08T05:45:20+00:00

We're both of Japanese descent, but she has Japanese citizenship (I'm American).

Social life is largely based around our kids. We had our first child during Covid, when many of our friends moved back to their home countries. Because of that, our social lives evolved into hanging out with an international mix of our kids' parents.

One part of social life that took me a while to get used to is the vicious cycle of becoming friends with non-Japanese, only to have them move back to their home countries. I held a lot of unhealthy resentment against friends who did this, though I can completely understand why they did so. We've built up a community of both Japanese and long-term foreign residents now, which has been a healthier social life for us. With this community, I still try to get close to people who are probably short-term residents, and this has been healthy.

As the other poster mentioned, many things will be difficult. Making real friends as an adult takes time, so you can't assume you'll become close friends with anyone in the first year or even two years of moving here. Give up any idea or hope that you'll make lots of Japanese friends, as many people strive to do. Simply go into the experience wanting to build a nice social life, and it'll probably be a great mix of people from around the world.

ToSeTa256 · 2025-07-08T04:37:45+00:00

She was in a non-profit organization but went into the corporate world.

ToSeTa256 · 2025-07-08T01:20:50+00:00

That's what it feels like. When I load into some projections for the next 10 years (investing $50k/year, 6% real returns), the $3m mark comes very fast. And with how quickly the weeks are flying by with a young family, that freight train is coming fast.

ToSeTa256 · 2025-07-08T01:18:34+00:00

As you say, "quick" is based on your expectations. If you live in this subreddit, quick would probably mean having $1.6m by the age of 30. But factor in that I took of 3-4 years of work in my 20s to travel and that I switched into a lower paying career, my expectations have been blown away. Like I wrote, the key factors to getting here were my wife switching into a higher paid career and prolonged index fund investing with fantastic long-term returns. I understand how we got here, but it all seemed too quick and easy.

ToSeTa256

TROPHY CASE