My investments

[Tatsuo]

How do you invest for retirement etc. ?

[Scot27]

Open a brokerage account and start pumping in money every month. Heres a couple of good ones -

Invest in these badboys - 3 x leverage ETFs.

http://www.direxionshares.com/etfs

Also check out

www.trend.ky

Excellent Futures Fund. Kicks AHL out of the window.

[jj-peasuke]

Originally Posted by Tatsuo

How do you invest for retirement etc. ?

at what age should a person start considering saving for retirement?

and... do you invest or save for retirement? (I believe the former involves risk... do you risk your pension scheme?)....

sorry, since you opened the post...

[Marius_II]

Originally Posted by jj-peasuke

at what age should a person start considering saving for retirement?

When you can.

(following alongdrivers advise on posting)

[Super Grover]

Originally Posted by Tatsuo

How do you invest for retirement etc. ?

Cyclically. Blue chip stocks, real estate, real estate related, art (a bit) and cash. Recently, commodity-based stocks and related equipment.

And you?

[Tatsuo]

Originally Posted by jj-peasuke

at what age should a person start considering saving for retirement?...

If the person's parents are clever starting with 0 is not a bad idea.

Originally Posted by jj-peasuke

and... do you invest or save for retirement? (I believe the former involves risk... do you risk your pension scheme?)....

Yes, I' m investing every month on mutual funds with a 100% discount on the agio.　I don't like the idea of ETF's or index-based funds.
Just wondering if it might be better to use a foreign broker as funds seem to be better / cheaper abroad.
I also miss managed funds in Japan. I mean there are "managed" funds but there are (almost) no funds with a portfolio managament that is free (can go 100% cash, 100% in stocks or even short etc.)

Times of "hold-and-become-rich" are over. You even switch on you own, have somebody who does it for you or you really have to believe that you will need the money only during a bull market.

I like funds like

http://www.blackrock.co.jp/retail/pr...file_1114.html

Although it`s a mixed fund it beat the MSCI (even in times of a bull market). Still, its size could be a problem.

I think a good way is to invest in small managed funds that are free in region / investment and could beat the market (different benchmarks) over a long period.

Originally Posted by Marius_II

When you can.

(following alongdrivers advise on posting)

Heh heh heh. It's great to read posts like that. ROFLCOPTERS

[Scot27]

Originally Posted by Tatsuo

If the person's parents are clever starting with 0 is not a bad idea.






Yes, I' m investing every month on mutual funds with a 100% discount on the agio.　I don't like the idea of ETF's or index-based funds.
Just wondering if it might be better to use a foreign broker as funds seem to be better / cheaper abroad.
I also miss managed funds in Japan. I mean there are "managed" funds but there are (almost) no funds with a portfolio managament that is free (can go 100% cash, 100% in stocks or even short etc.)

Times of "hold-and-become-rich" are over. You even switch on you own, have somebody who does it for you or you really have to believe that you will need the money only during a bull market.

I like funds like

http://www.blackrock.co.jp/retail/pr...file_1114.html

Although it`s a mixed fund it beat the MSCI (even in times of a bull market). Still, its size could be a problem.

I think a good way is to invest in small managed funds that are free in region / investment and could beat the market (different benchmarks) over a long period.

You should invest in Managed Futures Funds then. They invest in anywhere between 100 - 300 different markets which spreads your risk and they perform in bull and bear markets. They can go long or short, and recduce their exposure in any marketn when they want.

Check out MAN AHL, Winton Futures, AMT Futures, Tulip, or do a search for CTA funds. You do need at least somewhere between 3-5 Million Yen before you can get in though.

[Tatsuo]

Originally Posted by Scot27

You should invest in Managed Futures Funds then. They invest in anywhere between 100 - 300 different markets which spreads your risk and they perform in bull and bear markets. They can go long or short, and recduce their exposure in any marketn when they want.

Check out MAN AHL, Winton Futures, AMT Futures, Tulip, or do a search for CTA funds. You do need at least somewhere between 3-5 Million Yen before you can get in though.

The superfund-way ?
http://www.superfund.com

Their performance is great but I can't get rid a of a weird felling. No idea why but the word "Madoff" pops in my head. Still, this is just me.
Thanks for the tip.

[jack05]

Does anyone know the different types of retirement accounts available?
Thanks in Advance

[Welesley]

I started when I was 18. I also lost 40% of the value of the funds last year plus the exchange rates back to yen.

Find the plan that works for you and that you can understand easily.

[jj-peasuke]

Originally Posted by Welesley

I started when I was 18. I also lost 40% of the value of the funds last year plus the exchange rates back to yen.

Find the plan that works for you and that you can understand easily.

Well, here it goes...I am not sure about investing for my pension, rather than saving. If you
loose that 40% right when you are retiring.. uff...

In any case, it seems you guys are at a complete whole different league.

[jj-peasuke]

Originally Posted by Tatsuo

The superfund-way ?
http://www.superfund.com

Their performance is great but I can't get rid a of a weird felling. No idea why but the word "Madoff" pops in my head. Still, this is just me.
Thanks for the tip.

Tatsuo,
I did check the superfund website. Numbers are sweet.
However, I kind of patologically distrust nice websites and nice numbers... so... how do you know how to trust
such companies... as a guy said above, after all these scandals... how do you know who to trust with your hard-earned money?

[Scot27]

Originally Posted by jj-peasuke

Tatsuo,
I did check the superfund website. Numbers are sweet.
However, I kind of patologically distrust nice websites and nice numbers... so... how do you know how to trust
such companies... as a guy said above, after all these scandals... how do you know who to trust with your hard-earned money?

I know nice numbers make people suspicious.......but I have been investing in CTAs (not Superfund though, but similar) for years. I mentioned some of them above. You have to do your due dilligence on the fund. They have major differences from Madoff.

For example - The Tulip Fund I mentioned - It doesnt recieve or issue any actual cash. They have a seperate bank (JP Morgan I think?) who are advised by a completely different company who are the administrator (swiss financial services). The fund managers only advise where the money is invested, they dont have access to any of the cash! They are audited by PWC and the broker for the trades are a big bank in London. So my point is its completely unlike Madoff. Madoffs own company was accepting money and his own company were making trades and his own company were reporting the results. The Tulip Fund is the same setup as MAN , Winton or any of the others I mentioned.

Managed Futures Funds do not operate like this and are in fact the most liquid investments in the world as they only deal with Futures, not actual stock or assets. A simple bit of due dilligence rather than a `its too good to be true so its dodgy` type of attitude , makes the difference in large returns and no returns!

One thing to mention though, these type of funds make money when there is trends in the market they trade. At the moment there is a distinct lack of trend so might be better to wait 6 months! And I only use these funds for a part of my portfolio, not all of it......but I have used them for years, and taken money out of them so can vouch for the ones I mentioned!

[Tatsuo]

Originally Posted by jj-peasuke

Tatsuo,
I did check the superfund website. Numbers are sweet.
However, I kind of patologically distrust nice websites and nice numbers... so... how do you know how to trust
such companies... as a guy said above, after all these scandals... how do you know who to trust with your hard-earned money?

Difficult question.

What company/broker do you guys use in Japan ? Nomura etc. are quite expensive.

There are lots of funds without agio but usually they take their share with a higher management fee. Everywhere else it seems like you have to pay 3-5 per cent.

It seems as there are less funds offered in Japan, the management fees are higher, reduced agio is not very common and everywhere you can find those "we-invest-in-everything-at-the-same-time"crap that cost a lot of money. Most funds just reinvest in funds abroad, so you pay a lot of fees and this with full risk (exchange rate etc.).

So it might be better to transfer your money abroad and invest there. The risk is the same and the costs seem to be lower. The problem might be the transfer costs and the trouble with tax authoroties. Experiences ?

[Tatsuo]

Originally Posted by Scot27

I know nice numbers make people suspicious.......but I have been investing in CTAs (not Superfund though, but similar) for years. I mentioned some of them above. You have to do your due dilligence on the fund. They have major differences from Madoff.

For example - The Tulip Fund I mentioned - It doesnt recieve or issue any actual cash. They have a seperate bank (JP Morgan I think?) who are advised by a completely different company who are the administrator (swiss financial services). The fund managers only advise where the money is invested, they dont have access to any of the cash! They are audited by PWC and the broker for the trades are a big bank in London. So my point is its completely unlike Madoff. Madoffs own company was accepting money and his own company were making trades and his own company were reporting the results. This is the same for MAN , Winton or any of the others I mentioned.

Managed Futures Funds do not operate like this and are in fact the most liquid investments in the world as they only deal with Futures, not actual stock or assets. A simple bit of due dilligence rather than a `its too good to be true so its dodgy` type of attitude , makes the difference in large returns and no returns!

One thing to mention though, these type of funds make money when there is trends in the market they trade. At the moment there is a distinct lack of trend so might be better to wait 6 months! And I only use these funds for a part of my portfolio, not all of it......but I have used them for years, and taken money out of them so can vouch for the ones I mentioned!

Interesting post. I always thought those funds were closed funds and you could only participate if you pass on the right of selling when you want or if you go trough warrants. I have to take a closer look at those . . .

[tokyoleone]

Originally Posted by Tatsuo

How do you invest for retirement etc. ?

A portfolio of low-cost index funds and ETFs. These funds are divided up this way:

US domestic large cap and small cap stocks
International stocks
US real estate
Short and Intermediate US bonds (corporate and government)
Inflation-protectected US bonds (TIPS)
Inflation-protected non-US bonds (government bonds from UK, Australia, Japan, Canada, Norway, and many others)

Also keep emergency funds separate in cash in Yen and Dollars

[Gaijin 06]

Originally Posted by Tatsuo

So it might be better to transfer your money abroad and invest there. The risk is the same and the costs seem to be lower. The problem might be the transfer costs and the trouble with tax authoroties. Experiences ?

The mutual fund industry in Japan sucks for the consumer - high margins and limited product lineup. I invest all my money in a UK based broker as there are zero upfront fee's and reduced management fees. The majority of my investments are in developed market equity tracker funds; the remainder in developing market managed funds. Pretty happy with my Jupiter India fund this week - up 20% in three days.

The main thing to consider (apart from the upfront/yearly fees) is your capital gains tax liability when you come to sell these. This is something that needs to be carefully thought about and is one of the few areas an IFA can actually add value.

[Tatsuo]

Originally Posted by Gaijin 06

The mutual fund industry in Japan sucks for the consumer - high margins and limited product lineup. I invest all my money in a UK based broker as there are zero upfront fee's and reduced management fees. The majority of my investments are in developed market equity tracker funds; the remainder in developing market managed funds. Pretty happy with my Jupiter India fund this week - up 20% in three days.

The main thing to consider (apart from the upfront/yearly fees) is your capital gains tax liability when you come to sell these. This is something that needs to be carefully thought about and is one of the few areas an IFA can actually add value.

Seems to be the right decision. I'm considering changing to a broker abroad but still can't imagine going to the post office every month and transfer money.

The only "good broker" in Japan seems to be fidelity Japan. Compared to a broker abroad the product lineup is still a joke but at least you can get funds that usually cost 3-4% without agio if you invest 10万+/fund/month or go for index funds. Still, it very unclear how much the real costs are as they show the management fees but no TER.


http://www.fidelity.jp/wps/portal/Ba...g.queryString=

[Marius_II]

Originally Posted by Tatsuo

I'm considering changing to a broker abroad but still can't imagine going to the post office every month and transfer money.

Can hardly believe I'm replying to Twatso,
but then again I am known for being nice and handsome.

Why don't you just transfer the money? Get an account, register the payee (your broker), send dough off online and stop pretending you're too lazy to do it.

[Tatsuo]

Originally Posted by Marius_II

Can hardly believe I'm replying to Twatso,
but then again I am known for being nice and handsome.

Why don't you just transfer the money? Get an account, register the payee (your broker), send dough off online and stop pretending you're too lazy to do it.

It's not laziness. The sending costs a lot of money. You pay 2500-8000 Yen plus hidden fees in the echange rate. Every month. Later you might have to take it back to Japan and pay again. So you pay 2-7 per cent just for sending money around the globe. Then you have the trouble with the tax authorities. In Japan you have your 特定口座　and no problems what so ever. Having an offshore account is not as easy as you might think. And yes: They know about it.

[Marius_II]

Originally Posted by Tatsuo

It's not laziness. The sending costs a lot of money. You pay 2500-8000 Yen plus hidden fees in the echange rate. Every month.

I pay about 3000 once a month. If that's the sort of sum that bothers you...what can I say. I send when the rates are, what, safe.

Anyways, being thought about offshore accounts by a Japanese... now I remember why I shouldn't have bothered replying.

[Tatsuo]

Originally Posted by Marius_II

I pay about 3000 once a month. If that's the sort of sum that bothers you...what can I say. I send when the rates are, what, safe.

.

Safe rates ? lol

If you transfer 30万　a month you pay 1% plus the 1-2% hidden fees in the exchange rate. If you take it back to Japan the same again. So in 30 years about 500万以上 transfer fees. You are right. It bothers me.
I think it is not that stupid to compare. Still thanks for your insights.

[jj-peasuke]

Originally Posted by Tatsuo

Safe rates ? lol

If you transfer 30万　a month you pay 1% plus the 1-2% hidden fees in the exchange rate. If you take it back to Japan the same again. So in 30 years about 500万以上 transfer fees. You are right. It bothers me.
I think it is not that stupid to compare. Still thanks for your insights.

I know realize you guys were talking about saving money in general, not retirement or pension scheme plans in particular.
Both things are the same, and not, somehow..... just personal way of looing at it.

Anyway, comments are great.

[well_bicyclically]

Originally Posted by Tatsuo

How do you invest for retirement etc. ?

i put the money your wife gives me in a special bank account!

[Tatsuo]

Originally Posted by well_bicyclically

i put the money your wife gives me in a special bank account!

My wife died 4 years ago.

[dirtbagsmith]

If the age of "hold-and-become-rich" is over then isn`t any investment advice completely moot? If we`re dealing with a zero-sum game here, only a few of us can possibly be winners in which case giving advice is pointless.

If, as a layman, you`re in no position to distinguish good advice from bad and only very specific actions taken by a minority will result in success, how are you supposed to determine what action to take?

[Tatsuo]

Originally Posted by dirtbagsmith

If the age of "hold-and-become-rich" is over then isn`t any investment advice completely moot?

Why should be any investment "moot" if the age of "hold-and-become-rich" is over ? Isn't the opposite true ?

Originally Posted by dirtbagsmith

If we`re dealing with a zero-sum game here, only a few of us can possibly be winners in which case giving advice is pointless.

A "zero-sum" game ? What are you talking about ?

Originally Posted by dirtbagsmith

If, as a layman, you`re in no position to distinguish good advice from bad and only very specific actions taken by a minority will result in success, how are you supposed to determine what action to take?

Again: What are you talking about ?

I think even as a layman you can distinguish good advice from bad one if you use your brain, don't believe everything and study things on your own.

[rubirosa]

Tot's investment bank.



Tot's investment property.



Tot's investment advisor.



Tot's ocean front time-share.

[SteadyRollingMan]

Well dang rubi, 1 yen coins only go so far, and that 's where tat's made his fortune on 1 yen coins like his posts. Worthless!

[dirtbagsmith]

Tatsuo - if we can no longer rely upon the general upward movement of the market (which is what a diversified invest and hold strategy relies upon) - then the market becomes a zero sum game - for each person making a profit, there must be someone else making an equal loss. Generally in situations like this the many contribute to only a few peoples significant gains - what reason would any of us have to believe that we have the specialist knowledge that will enable us to become one of the few profit makers, unless we have devoted a greater amount of time to researching the subject than anyone else (have become an expert)?

Likewise is there any reason to expect that someone without any specialist knowledge will be able to distinguish the most effective money managers from the simply lucky or those picking up pennies in front of the steamroller?

Investment in actively managed funds is actually more of a gamble than anything else (though you probably can rely upon generally rising markets to cover up mismanagement) and certainly not something people should be putting anything other than a small proportion of their savings in.

If you understand enough to judge which funds are effective, there probably isn`t any reason for you to bother with a "managed" fund. Just do it yourself.

[Gaijin 06]

Originally Posted by dirtbagsmith

Tatsuo - if we can no longer rely upon the general upward movement of the market (which is what a diversified invest and hold strategy relies upon) - then the market becomes a zero sum game - for each person making a profit, there must be someone else making an equal loss.

That is not actually right. Even if the market level remains unchanged, companies still make money and pay that out to shareholders in the form of dividends. Although this is pretty low in Japan, there are still companies paying 4% dividends, and much higher that that if you invest in a REIT.

Reinvested dividends form a significant part of any long term investors total return.

Originally Posted by dirtbagsmith

Generally in situations like this the many contribute to only a few peoples significant gains - what reason would any of us have to believe that we have the specialist knowledge that will enable us to become one of the few profit makers, unless we have devoted a greater amount of time to researching the subject than anyone else (have become an expert)?

Agreed on that. Most active funds fail to beat the market even before charges, when those are added on 80% of managers fail to beat index trackers.

Originally Posted by dirtbagsmith

If you understand enough to judge which funds are effective, there probably isn`t any reason for you to bother with a "managed" fund. Just do it yourself.

The trouble is funds can be stunningly effective this year and terrible next. Or vice versa. There are very few managers who deliver long term added value - even some of the best investors over the last twenty years have been wiped out in the past two. The vast majority of people are better off in index trackers than managed funds. Of course, the flipside is when 80% of the market is in trackers than active managers will add a lot more value through bottom up research and there will be value in investing with them again........ a good balance!

[tokyoleone]

Originally Posted by Gaijin 06

The trouble is funds can be stunningly effective this year and terrible next. Or vice versa. There are very few managers who deliver long term added value - even some of the best investors over the last twenty years have been wiped out in the past two. The vast majority of people are better off in index trackers than managed funds. Of course, the flipside is when 80% of the market is in trackers than active managers will add a lot more value through bottom up research and there will be value in investing with them again........ a good balance!

A good example of an actively managed fund gone bad is Legg Mason Value. It's managed by Bill Miller, who was the darling of Wall Street after he outperformed the S & P 500 for many years. His performance attracted a flood of assets to the fund, most of them after the big gains. It also allowed him to charge an egregious 1.68% expense ratio.

And how's he doing now? The fund is down 40% over the past year, ranks in the 96th percentile of all large value funds and trails the S & P 500 over a 10-year period. He is only one example, there are many, many more.

As you say, most people would be better off in index funds. But I doubt we'll ever see 80% of the market in them - too many people think they know how to beat the market and will just chase the best performing funds of the moment (or past).

[Gaijin 06]

Originally Posted by tokyoleone

A good example of an actively managed fund gone bad is Legg Mason Value. It's managed by Bill Miller, who was the darling of Wall Street after he outperformed the S & P 500 for many years. His performance attracted a flood of assets to the fund, most of them after the big gains. It also allowed him to charge an egregious 1.68% expense ratio.

And how's he doing now? The fund is down 40% over the past year, ranks in the 96th percentile of all large value funds and trails the S & P 500 over a 10-year period. He is only one example, there are many, many more.

Yep, Bill Miller was one of the examples at the front of my mind when I typed that.

Originally Posted by tokyoleone

As you say, most people would be better off in index funds. But I doubt we'll ever see 80% of the market in them - too many people think they know how to beat the market and will just chase the best performing funds of the moment (or past).

80% was just an arbitary number - the general point I was making is that active managers will have a better chance to exploit market mispricing as the number of funds and managers goes down. That is one reason why I advocate active funds in lightly covered emerging markets, but tracker funds in developed markets with hundreds of analysts and managers chasing alpha and reducing the opportunities.