Finance – Compound Learning

Comparison Investment in Hoken, TNISA, iDeco

	iDeco	TNISA	THoken
Income tax deduction 所得税控除 (Shotokuzei koujo)	〇年末調整？	✖	? 年末調整？
Rebalance at anytime (Flexible vs fixed commitment)	〇	〇	✖
Tax exemption/deduction for capital gain 売却益・配当の非課税	?	〇	?
Tax exemption/deduction for withdrawal (tax-free cash-out)	〇	?	?
Flexibility of withdrawal/cashing out	✖	〇	✖
Benefit if interrupted (something bad happens) 給付金（悪いことがあったら）	✖	✖	〇
PURPOSE 目的	Pension (e.g., monthly benefit)年金、毎月の給付金(?)	Education fund Partial House EP 繰り上げ返済 Partial House MT	Risk mitigation (esp. house loan) リスク低減・緩和 (住宅ローン) Education fund 学費

売却益 baikyaku-eki : capital gain
配当 haitou : devidend (income)
非課税 hikazei : tax exempt
納税 nouzei : tax payment
手数料 tesuuryou : fee

リスク低減・緩和 risuku teigen – kanwa : risk reduction/mitigation
繰り上げ返済 kuriage hensai : extra/early/advance payment

HOKEN RELATED

List of risks & concerns

Nは収入が得られなくなりましたら
- 死亡
- 介護 (?)
- 重い病気 Severe illness
Payment/fund to manage/prepare
- 住宅ローン House loan/mortgage
- 学費 Academic fund
- 年金・老後生活 (?) Pension/retirement fund

IDECO RELATED

iDeco unique features (source: RetireJapan)
– Pre-tax income investment
> similar to the 401k in the U.S.
– Tax-free cash-out (up to a limit based on years invested), akin to the Roth IRA in the U.S.
– Ability to rebalance at any time without cashing out.
– Flexibility to make contributions until the age of 65.

This means, can enjoy both:
– pre-tax income investment and
– post-tax income withdrawal

Don’t forget to try: iDeCo tax-saving simulator on the official website of iDeco (in Japanese)