iDeco Account

Japan now has a great option for this those to invest money for retirement.
The new iDeco account is a stockbroking account which will grow tax free until you are 60 years old.
When you withdraw money at retirement there is no capital gains tax (20%) to be paid.
This is similar to the NISA or Junior NISA account.
However investments cannot be deducted until you reach 60.
This is similar to the 401K system in the USA.

Any investments made are also tax deductible at year end.
This means you also save on the taxes you would have paid on the amount invested.
This is similar to the ROTH IRA system in the USA.

The iDeco account actually combines the best of both 401K and Roth IRA system.
Basically there are no taxes to be paid on this account.

The only limitation is that payments are limited to 23,000 / month for employees and 68,000 for self employed.

23,000 / month invested for 40 years would grow to 273M yen (about $2.5M USD).
Sine it was invested in the iDeco account you will save approximately 55,000 / year in tax for a total of 2.2M yen and also don’t have to pay 20% capital gains tax on the growth saving you 52M yen (about $500,000 USD)!

Most millionaires in the USA became millionaires by constant investing into their 401K and they were unable to withdraw or spend it.
Japan now has a great system for building wealth for retirement also.

Year Year Deposits Year Interest Total Deposits Total Interest Balance
1 276,000.00 18,614.54 276,000.00 18,614.54 294,614.54
2 276,000.00 55,979.04 552,000.00 74,593.59 626,593.59
3 276,000.00 98,082.30 828,000.00 172,675.88 1,000,675.88
4 276,000.00 145,525.29 1,104,000.00 318,201.18 1,422,201.18
5 276,000.00 198,985.25 1,380,000.00 517,186.43 1,897,186.43
6 276,000.00 259,225.27 1,656,000.00 776,411.70 2,432,411.70
7 276,000.00 327,105.23 1,932,000.00 1,103,516.93 3,035,516.93
8 276,000.00 403,594.07 2,208,000.00 1,507,111.01 3,715,111.01
9 276,000.00 489,783.61 2,484,000.00 1,996,894.62 4,480,894.62
10 276,000.00 586,904.14 2,760,000.00 2,583,798.76 5,343,798.76
11 276,000.00 696,341.98 3,036,000.00 3,280,140.74 6,316,140.74
12 276,000.00 819,659.28 3,312,000.00 4,099,800.02 7,411,800.02
13 276,000.00 958,616.31 3,588,000.00 5,058,416.33 8,646,416.33
14 276,000.00 1,115,196.56 3,864,000.00 6,173,612.89 10,037,612.89
15 276,000.00 1,291,635.10 4,140,000.00 7,465,247.99 11,605,247.99
16 276,000.00 1,490,450.47 4,416,000.00 8,955,698.46 13,371,698.46
17 276,000.00 1,714,480.61 4,692,000.00 10,670,179.06 15,362,179.06
18 276,000.00 1,966,923.37 4,968,000.00 12,637,102.43 17,605,102.43
19 276,000.00 2,251,382.19 5,244,000.00 14,888,484.62 20,132,484.62
20 276,000.00 2,571,917.51 5,520,000.00 17,460,402.14 22,980,402.14
21 276,000.00 2,933,104.74 5,796,000.00 20,393,506.88 26,189,506.88
22 276,000.00 3,340,099.54 6,072,000.00 23,733,606.42 29,805,606.42
23 276,000.00 3,798,711.48 6,348,000.00 27,532,317.90 33,880,317.90
24 276,000.00 4,315,486.88 6,624,000.00 31,847,804.78 38,471,804.78
25 276,000.00 4,897,802.35 6,900,000.00 36,745,607.13 43,645,607.13
26 276,000.00 5,553,969.98 7,176,000.00 42,299,577.11 49,475,577.11
27 276,000.00 6,293,356.10 7,452,000.00 48,592,933.21 56,044,933.21
28 276,000.00 7,126,514.89 7,728,000.00 55,719,448.10 63,447,448.10
29 276,000.00 8,065,339.06 8,004,000.00 63,784,787.16 71,788,787.16
30 276,000.00 9,123,229.64 8,280,000.00 72,908,016.80 81,188,016.80
31 276,000.00 10,315,287.22 8,556,000.00 83,223,304.03 91,779,304.03
32 276,000.00 11,658,527.54 8,832,000.00 94,881,831.57 103,713,831.57
33 276,000.00 13,172,124.36 9,108,000.00 108,053,955.93 117,161,955.93
34 276,000.00 14,877,683.14 9,384,000.00 122,931,639.07 132,315,639.07
35 276,000.00 16,799,549.46 9,660,000.00 139,731,188.52 149,391,188.52
36 276,000.00 18,965,156.53 9,936,000.00 158,696,345.05 168,632,345.05
37 276,000.00 21,405,416.79 10,212,000.00 180,101,761.84 190,313,761.84
38 276,000.00 24,155,163.12 10,488,000.00 204,256,924.97 214,744,924.97
39 276,000.00 27,253,646.12 10,764,000.00 231,510,571.09 242,274,571.09
40 276,000.00 30,745,094.32 11,040,000.00 262,255,665.41 273,295,665.41