I forgot to post last month, apologies. There isn’t all that much to say about this summer so far. Markets did very well in June and less well in July, but at the same time the yen weakened by about 5% in July, which was enough to offset any USD gains that I had. Of course it makes the JPY numbers look great, but a persistently weak yen will eventually lead to price increases, which increases the FIRE target number....
Hello world, long time no see. I fell out of the habit of writing updates, so apologies for that. I managed to file my taxes for last year, both for Japan and the US. I ended up going with my company’s payroll provider for preparing my Japanese taxes, and based on the results I’m fairly confident that I will be able to file on my own next year without assistance. Surprisingly, (or maybe not that surprisingly) wrangling Turbotax to correctly a credit for my taxes paid in Japan turned out to be the most time-consuming part of the whole process....
January is already over. Not a whole lot to say for the month, except that this year’s tax situation looks complicated. My company’s payroll provider apparently also provides tax preparation services as well, so I might go with them to prepare my Japanese taxes for this year, just so I can see how it is done. If it’s not too difficult I will do it myself next year. Here’s a summary of my financial position this month:...
Welp, another year is already over. I managed to do my annual Roth conversion again this year, ensuring more tax-free gains in 5 years’ time. There was a large market drop on 12/18 this year, which set me back quite a bit in terms of savings, but these things happen and are an inevitable part of investing. The yen also declined about 5% this month, which doesn’t bode well for the long term despite the short-term reduction in USD expenses....
Apologies for missing last month’s update, as I was away on the Europe trip. The trip was mostly a success: we were able to successfully navigate the aggressive itinerary, despite occasional transport delays. My favorite locations we visited were Helsinki, Vienna, and Switzerland (Geneva and Zurich). Paris was worse than I remembered it from my very first visit back in late 2011, and Munich was crowded and noisy due to Oktoberfest....
The yen continued to strengthen a bit this month, with the USDJPY rate dropping from 149 to 146 at the end of August, which is a 2% change. This was larger than my portfolio gains this month, which meant that my net worth dropped in JPY terms, even while rising in USD terms. This is the second month in a row that this phenomenon has happened, and while I do completely understand the mechanism behind it, it’s still a bit unsettling to see....
Breaking news on the yen front: the Japanese central bank decided to raise interest rates again, now up to 0.25%. Immediately afterwards, the Fed declined to raise raises, and apparently hinted at a rate cut next quarter. As a result, the yen has rapidly strengthened, currently at 146.6 as I write this, which is over 10% strengthening in about 3 weeks. In addition, the Japanese stock market has plunged and is now in correction territory, potentially headed for a bear market....
Well, the yen has fallen to an all-time low (in my lifetime, at least), breaking the 160 barrier. JCB doesn’t seem to care that much as long as the volatility doesn’t get too high. US interest rates remain really high, and Japan is unable to raise its own rates to match, so the yen will continue to bleed. As a result, the USD numbers were basically unchanged, whereas the yen numbers are at an all-time high....
Since last month, the yen strengthened a bit, but it’s still quite weak (over 155 / USD). Investments jumped up quite a bit, so that helped the bottom line. The biggest expense this month was I booked flights to Europe for later this year for our honeymoon trip. The final itinerary is still TBD, but I’m hoping that it will be enjoyable for us. Hopefully I’ll be able to use miles for intra-Europe flights and hotel stays....
April is US tax month, and I owed a few hundred dollars due to my previously-mentioned slightly-too-large Roth conversion. I also surprisingly received a bonus from my company, which is the first time that’s happened since I’ve worked in Japan. All the more reason to like where I am! This month, the yen fell even further, hitting 160 to the US dollar at one point. I’m pretty sure that the Japanese government did another intervention, as the yen has dropped below 155 this week, but unless Japan raises its interest rates or the US lowers its rates, I don’t see why it won’t continue creeping up over the near term....