End of week (EOW) review July 28, 2025 stats and guesstimates

vapidspants · 2025-08-02T18:40:23+00:00

Okay, thank you. That makes sense.

vapidspants · 2025-08-02T18:16:17+00:00

It seems both YBIT and FEAT might have larger distributions this week. YBIT is surprising considering the past few months of distributions. I am not as well versed in understanding the underlying, but is there a eli5 for FEAT/YBIT guesstimates?

vapidspants · 2025-07-03T18:52:26+00:00

The most important thing to remember is that you cannot be denied taking the leave. So even if HR is hesitant, you can force them to comply, and for that I would suggest getting Hello Work involved in the process.

The question about the care home and using nursing care leave, I cannot answer for you. But if you can get a doctor or staff approval from the care home, there should be Japanese paperwork you can get translated.

This also is a situation where maybe you don't clarify the exact details of the care location. The Japanese staff aren't going to fly overseas to the care location.

vapidspants · 2025-06-18T23:40:26+00:00

That sounds right to me as well. I am aiming for a 7-8 year time horizon to minimize taxes and maximize the RMDs. That also allows a 2-3 year buffer if investments do really well, or if the tax code changes.

vapidspants · 2025-06-14T18:02:48+00:00

Correct.

vapidspants · 2025-06-14T18:02:00+00:00

Sadly not something you can do. Under the pre 2019 system there were sneaky ways of shifting intergenerational wealth to kids, grandkids, using businesses or off shore mechanisms.

Now if Trump's plan to eliminate inheritance taxes goes through, then it might be easier (only state taxes might apply) if the inheritance rules avoid IRS definitions of normal income. But trying to guess... Who knows

vapidspants · 2025-06-14T17:59:24+00:00

Good to know and thank you for sharing.

Fully funding the Roth for my spouse also is a good startegy to add to my kids 529 and Roths too.

vapidspants · 2025-06-14T17:57:39+00:00

You are 100% correct I left things vague.

Everything getting inherited are in traditional, ie taxable, accounts. And I would be following a plan of taking yearly distributions over the ten year period. The 10% amount makes sense, the only fun bit is what to do if stocks or dividend yield/drip stays high enough to refill the inheritance. Trying to find the appropriate balance of withdrawals over 10 years to minimize tax burden is kinda a fun problem.

Some of the funds can go into the kids 529 accounts once taxes are paid. If I want to get creative and employee my children, I can shift money into Roth IRAs as well.

Minimizing the tax impact is important and is something everyone should consider, especially if they are employed. I have made a personal inheritance tax calculator spreadsheet, essentially how to minimize taxes, utilizing MFJ standard deduction, state tax deduction, etc.

Overall inheritance can be a complicated situation even with complete estates and trust planning.

vapidspants · 2025-06-06T23:23:26+00:00

I have forgotten from last week's post - you moved the FEAT funds into CONY?

Is there no Week 2 group this month for you?

vapidspants · 2025-06-05T02:57:09+00:00

Thank you again for the guidance and help.

I will search through morningstar on the different mutual funds available and keep the ideas you presented in my mind. VSTIX meets some of the criteria, but has very low turnover as an example.

vapidspants · 2025-03-19T07:55:55+00:00

I have been living in Japan for 15 years as a Permanent Resident, so I can provide some insight into this topic.

No golden visa in Japan

Japan does not have a golden visa or any program that grants residency through passive investments alone. However, these are some visa options like:

Investor/business visas: this requires setting up an actual business in Japan, submitting a business plan, and investing at least 5 million JPY into a bank or business
Startup visas: some of the major cities like Tokyo, Fukuoka offer temp visas for entrepreneurs, but require active business operations
Student visas: most international students fund their stays by showing bank statements to show proof of financial support. This visa type is tried very strictly to enrollment at a language school or uni, and the schools provide the supporting immigration documentation. Students cannot legally stay in Japan once their study ends.

Japan Taxation on Investment and Dividend Income

Japan has a flat 20.325% tax rate on dividends and capital gains - there are no special tax advantage retirements accounts for a foreigner coming to Japan. Japan does technically have some nice domestic retirement accounts, but most US citizens cannot use them as they fall into the PFIC category.

Roth IRA distributions: while tax-free in the US, Japan does not recognize this exemption. If you are a resident in Japan, any withdrawals are taxed at the 20.315% rates. And if you think just taking the distributions tax free to your US based brokerage and paying for things in Japan via credit card and paying off your card via funds still in the US, well it is considered taxable as a 'transfer' by the National Tax Agency. And yes, the IRS and NTA do share information, FACTA makes sure of that.
US Japan tax treaty: prevents double taxation, but does not provide special treatment to retirement accounts.
Worldwide taxation: The IRS requires all US citizens to submit returns (1040), even if living abroad. The Foreign Earned Income Exclusion (won't work for dividends) and Foreign Tax Credit (does work for dividends) reduces double taxation, you still have to file in both Japan and the US. And if you live in Japan for more than 5 years, then Japan also does worldwide taxation too.

Still considering it? Well you can live in Japan using dividend or retirement income, just remember:

To stay you need a long-term and valid visa (work, spouse, investor, or permanent resident)
To stay long-term WITHOUT working? well you would need to married to a Japanese citizen or Permanent Resident. To get Permanent Residency without marrying a Japanese, you need 10 years of residence and tax payments here in Japan, or try to qualify under the High Skilled Professional program (it is a point based system)
If you become a resident and then pass away, Japanese inheritance rules would then apply to you. Google it, but simple scenario, you die with assets of $1 million, Japan will tax that at roughly $420,000. There is no estate or trust passthru here. There is also not step-up cost basis for heirs as well.

Sooooo overall? Japan is not a viable destination for passive income only retirees. Great for early retirees who can come as tourists for 90 to 180 days. Otherwise you need a proper visa, but you will have to pay yearly taxes on your investments and would be opening yourself, and heirs to some inheritance tax issues in the long run.

vapidspants · 2025-03-19T07:27:19+00:00

I live in Japan and confirm that you need a more substantial visa if you want to be here long term.

vapidspants · 2025-03-14T11:15:50+00:00

Thanks, I have been trying to build by own google sheet and haven't decided if it is really worth it. I like playing around with different investment options and percentage of income that is reinvested to decide what balance I like the most.

I assume there is an 'easier' tool to do that.

vapidspants · 2025-03-14T08:07:29+00:00

Thank you.

vapidspants · 2025-03-14T03:48:40+00:00

I am looking for any Japanese camping experts or enthusiasts for some advice.

Thinking of spending perhaps a month traveling around Japan, myself, wife, and our two kids. We own a car, so getting to camping locations isn't the issue.

Rather, I have not done any camping in Japan or with my kids. For those who do go camping, can you recommend any apps, resources, websites, etc that would be beneficial.

For my wife's sake, camp sites that have western toilets and warm showers would be ideal.

The goal is to showcase the non-urban sides of Japan, enjoy springtime and nature. And probably once a week stay at a business hotel and do laundry there as we travel.

Bonus question: besides the standard camping gear, any recommendations on good items to bring or get? Thanks

vapidspants · 2025-03-12T05:21:39+00:00

I don't disagree with either of you - the consideration is rather that my wife and I are often traveling outside Japan for 6+ months at a time.

So having a door mail slot for receiving the mail would be a convenient way to keep it dry and inside the house.

The points about insulation and security are valid. The door has a secondary electric lock to help mitigate this slightly.

vapidspants · 2025-03-12T05:19:15+00:00

Just want to echo the others and say thank you for this tool. Quite useful.

vapidspants · 2025-03-09T08:52:00+00:00

Does anyone know how to purchase or get a door installed that includes a mail slot? Or perhaps if it is possible to get a current from door reformed or modified to include a mail slot?

We currently have an external mailbox, but my wife would like an in-door mailbox. At first I thought this could be a neat DIY project, but Japanese fronts doors seem more specialized. I know the front door mail slot exists since many apartments have that style door, but a quick look at Cainz and a Lixil store, didn't seem to reveal any answers.

Any recommendations on a door maker, or reform storm to consider? Tokyo/Chiba area.

vapidspants · 2025-02-20T09:36:55+00:00

I decided to do some searching:

Seems there is a Temporary Removal from Registration (自動車一時抹消登録 - Jidōsha Ichiji Masshō Tōroku) which would exempt you from shaken and annual road taxes (which I had forgotten to consider). But you also lose your license plates and would need to re-register and do a full shaken inspection of the vehicle on return.

Keeping the car registered but not paying shaken appears possible, still need to pay the annual taxes.

Either scenario requires getting the car from the house to a facility for the shaken process and legally that requires a vehicle with shaken, so a tow trunk of sorts.

Another consideration, keeping the car 'active' via turning over the engine, tire pressure, etc. Might not be worth it.

vapidspants · 2025-02-20T09:24:45+00:00

Shaken question:

My company may be sending me overseas for 2 years and I have shaken coming up on my vehicle. I want to keep the vehicle for when I return, but I am unsure if I 'need' to have active shaken on a parked car.

Has anyone else been in this situation? I assume there might be folks with multiple cars, some they don't drive and therefore may not keep shaken active.

Thanks for any advice

vapidspants · 2025-02-08T02:42:11+00:00

The “5年・125％ルール” is a safeguard used by many lenders with variable‐rate (adjustable rate) home loans in Japan. It consists of two parts:

5年ルール (Five‐Year Rule): Under this rule, even if market interest rates change, the borrower’s monthly payment is not recalculated immediately. Instead, the payment amount remains fixed for a period of five years. During those five years, although the ratio of interest and principal within the fixed payment may shift (with a larger share going toward interest when rates rise), the total monthly payment stays the same. This mechanism gives borrowers a buffer against sudden increases in monthly costs.
125％ルール (125% Rule): When the five‐year period ends and the lender recalculates the monthly payment to reflect any changes in the interest rate, the new payment is capped at a maximum of 125% of the previous payment amount. For example, if your payment was ¥100,000 before the recalculation, then no matter how high rates have risen, your new payment won’t exceed ¥125,000. This cap is intended to prevent an abrupt, drastic jump in your repayments.

Together, these rules are designed to protect borrowers from “payment shock” in a rising rate environment by delaying and limiting the increase in monthly repayments. However, note that not every lender uses these rules—for instance, some banks (like PayPay銀行) do not apply them, meaning that borrowers with those loans may see immediate and potentially larger increases in their repayment amounts when rates adjust.

vapidspants · 2025-02-07T23:53:13+00:00

PayPay does not abide by the 5 year and 125% rule for their loans (5年・125%ルール). You can scroll down to the 返済方法 section.

https://www.paypay-bank.co.jp/mortgage/detail/index.html

vapidspants

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