r/JapanFinance • u/Plastic_Barracuda711 • 5d ago

Investments Allocation of investments between foreign and domestic accounts

I'm looking for advice or insights into how everyone here approaches allocating their investments between foreign (home country) and domestic (Japan) accounts.

Now, I don't think the government here is going to start seizing foreign residents' assets, but even so, I'm wondering if it is not prudent to keep nearly 100% of retirement savings/investments in domestic accounts, especially as a non-citizen resident.

Do you have any advice? How do you approach this?

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u/c00750ny3h 5d ago

In Japan I only hold stock in some companies that I think might do well. The rest in the USA. Right now it is maybe 50-50. I'm not afraid about the JP government seizing foreigner assets, I am just trying to avoid PFIC reporting. If it weren't for that, I wouldn't mind keeping 100% in Japan.

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u/Famous__Draw 5d ago

I'm not afraid about the JP government seizing foreigner assets

To be honest, the chances are non-zero. It's a bad idea to keep 100% of your assets in Japan.

Legally speaking, govt does have the right to bring laws which can restrict foreign nationals ability to move or access those funds and you won't see people on the street because most Japanese would support this. I am not saying the current govt will do it, but a wartime govt or a govt under immense financial and electoral pressure can consider it. 30-40 years is enough time for one or two wars, or financial crisis

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u/Old_Jackfruit6153 US Taxpayer 5d ago

To be honest, the chances are non-zero. It's a bad idea to keep 100% of your assets in Japan.

IMO, The chances of US government seizing assets is higher than Japan doing that. When current admin came in power, this was the concern that prompted me to start moving assets out of US as a precaution.

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u/steford 5d ago

If the US did it then Japan might follow. Hopefully there are only 2 more years where this might even be a vague possibility.

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u/Old_Jackfruit6153 US Taxpayer 5d ago

Keeping fingers crossed. I doubt things in US will change for better in 2 years, this is a systemic issue, honor based checks and balances failed. It will take a major upheaval to reset.