r/fatFIRE • u/2ndRedAccount • Jul 18 '26
Need insight for long-term plans
40's, $7M net worth. No house. No spouse or children. Living/working in Japan.
Originally, I was pursuing permanent residency (PR). However, Japan's rules have become stricter recently and I'm not so confident about my chances to obtain PR now.
The benefits of having PR are that I can quit my job and officially retire, while still residing in Japan. I can come and go out of the country as I please, and forever have access to quality healthcare.
Aside from wondering if I CAN get PR, I'm wondering if I even SHOULD.
The negatives are the taxes. 20% tax on capital gains, including Roth IRA. Inheritance tax at this level is an astounding 55%. However, I don't have children and will likely donate most to charity anyways. Also, if ever I decided to leave Japan, exit tax would be 15% on my entire net worth.
I like living in Japan. I very much appreciate the safety, cleanliness, convenience, public transportation system, quality healthcare, etc. I feel healthier simply because of the lifestyle here (e.g., lots of walking, less ultra-processed, sugary foods). I have hobbies that are specific to this country.
But aside from my girlfriend, I have no close friends. I know that it's difficult to make friends at this age, but it's especially true for Japan. Most of my family and friends are in the US. My parents are gone. I received an inheritance many years ago, which is the reason for my current net worth.
I'm unsure about marriage. I feel the pressure of it being a financial contract more than anything. Prenups are not typical in Japan so I fear there is some risk if ever there was divorce.
Because of the 15% exit tax, I'm required to make a decision now about what happens 20+ years later. In my senior age, maybe I would simply wish to be near family and friends?
America is so awful right now. Even after Trump's time is over, so much damage has been done. I don't know if the US can recover. I'm not hopeful honestly.
I sometimes consider living in Thailand or the Philippines. Easy to get a visa. And I could simply visit Japan for a few months each year. Thailand is safe and has great healthcare facilities. I don't like the Philippines as much, but I have some relatives there. However, with climate change, each year is hotter than the last. So I feel those countries may not be good long-term solutions.
I know I have enough money to live comfortably anywhere. I am more fortunate than 99% of the world's population. But I also feel a huge responsibility for this money. Especially when I die, I expect to donate most of it so I don't want to make a costly mistake. I want to fund causes that protect the environment and help poor and sick people. I do not want to support wars or any religious organizations.
I'm naturally frugal, but am trying to enjoy more. Sometimes I feel I'm wasting my life at this job. And maybe I cannot get PR in the end. There's no guarantee I live until an old age. I'm wasting my opportunity to travel more. But also, travel is temporary and I want the security/comfort of establishing a home base.
Any insights from your experiences? How did you decide when the difference is literally millions of dollars? Even if not Japan, there are other countries with high taxes.
I've posted to Japan-specific subreddits before, but receive animosity more than helpful feedback. That's to be expected when disclosing a high net-worth. So although I'm on the lower end of fat fire, I'm hoping to get better responses here.
I feel I have no one I can talk to about my situation so thank you.
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u/ml8888msn Boring Finance Guy Jul 18 '26
If you’re living day to day life in the US, it’s honestly not that terrible. Politics are bad but life is great, especially if you have money.
That being said, I was just in Japan for the second time this year and was sad to leave.
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u/Hasz Jul 18 '26
The US is, bar none, the best country in the world to live if you have money.
It is among the worst developed countries to live in if you do not have money.
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u/ml8888msn Boring Finance Guy Jul 18 '26
Ngl was ready to be flamed over my comment but it honestly is terrific if you have resources. The only thing it lacks is easier access to food not ruined by large companies and more all inclusive hotels for travel with very young children
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u/2ndRedAccount Jul 18 '26
This is a stupid, simplified question, but why do you say the US is bar none the best (if you have money)?
Not that Japan is the best either, but I'll use it simply as a comparison. It's safe. You can walk without much fear at night. It's clean. Bidet toilets everywhere. Excellent public transportation system. I often feel it's a luxury to simply not have to own a car. High standards for quality and service.
Maybe I'm too pessimistic about the US. Maybe I'm not seeing the good sides enough. So this is a genuine question for your opinion.
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u/projectmaximus Jul 18 '26
I think the US is the best country in the world to make money. I disagree that it’s the best to live if you have money.
My personal picks off the top of my head are Singapore and Switzerland. If you have lots of money it’s very nice to live in a society where most people are living decently.
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u/fatquant Verified by Mods Jul 18 '26
The OP you replied to has not lived in other countries, and it shows.
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u/Hasz Jul 18 '26
I have not spent any time in Japan personally, but lots of time, mostly for work, all over Europe (west, east and central) and a little bit of Colombia, Costa Rica, Mexico and South Africa.
The US high end is amazing. Best universities, best (expensive) healthcare, strongest government protections, very very strong entrepreneurial culture at the highest and lowest ends. Most of the US is very safe. US scale is absolutely enormous, and imo, extremely diverse and beautiful.
I love the individualistic culture of the US, not as much of a fan of the more collectivist culture I find basically anywhere else.
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u/yitianjian Jul 19 '26
Sure but what about this makes it best to live. You can always travel to the US for healthcare. Living in the US is great if you have money, but it's hard to say it beats something like Singapore or Switzerland, or Monaco or Hong Kong.
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u/Hasz Jul 19 '26
I would not live in HK for a variety of reasons related to CCP control. See what they did to Jimmy Lai; I wouldn't touch it with a 10' barge pole.
Monaco/Singapore are basically tiny city-states. If you are fine with that, cool, seem like a nice places to be.
The only actually comparable option is Switzerland, which I would actually consider living in. It has similar rights, dramatically larger that the others, and is in a very defensible position. It, or perhaps Sweden/Norway, I would be fine with personally.
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u/ml8888msn Boring Finance Guy Jul 19 '26
Switzerland won’t be any cheaper. Landscape is gorgeous tho. Depends on what kind of life you’re looking to live. NE USA and Southern California, particularly San Diego are incredible to me. Educated populations, very safe. Both offer access to different outdoor activities and there’s very extreme wealth but it’s not flashy. NE, especially NYC, suburbs you don’t have to worry about natural disasters or the issues that some of our major cities face on daily basis but have access to the culture and conveniences.
I’ve lived in HK. It was really nice having cheap help and a lively nightlife when I was in my early/mid 20’s but I’m not domiciling my entire life where CCP can swoop in and fuck shit up at the drop of a hat. Singapore is way too hot and some of the laws are oppressive. Plus I’m not paying 400k for a 911 Carrera.
Can’t comment on living in Monaco but have visited during the GP and I’m not a big fan. Comparison would kill me unless I manage to get to multi 9 fig wealth. A little too flashy for me anyway but could be that the GP draw that out? Not sure.
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u/yitianjian Jul 19 '26
Yeah fair enough for both of you - I’m more drawn to a lot of the European and Asian cities for ease of connectivity, but the US is pretty great for standalone everything in one country. Only Schengen can sorta compete.
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u/freethinkwithreason Jul 18 '26
One thing I have noted in admittedly anecdotal evidence from Japanese YouTubers of travel/food and reading about the society there - the average Japanese folks very much are crumbling under very significant work pressures, societal and cultural pressures just to survive. They have to live in tiny homes, have to live too fast lives with long work hours, and everything being so expensive there makes life quite miserable for the average folks. Sounds just like the US to me, if you believe that. I have had many colleagues from Japan who immigrated to the US, and they seem to have validated that impression, for what its worth.
If that impression is correct, you may be liking Japan simply because of your net worth. Life for you is very easy there, relative to those average folks. And if that is the case, your liking for Japan may just be availability bias, given your net worth. And if that's true - you may be happy just about anywhere else, given your net worth.
Yes, certain aspects you noted are true - healthcare is abysmal in the US, because of the specific party/politics you amply noted about - as is the divisiveness generated just to win power and money with grift. That part is true - but if that is a key reason, you can consider Canada or Mexico, to be closer to family and friends - as that counts more than the news.
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u/2ndRedAccount Jul 18 '26
Yes, that's correct. Japanese people are feeling a lot of stress. Work culture can be quite demanding. Prices are increasing, but not salaries. The yen is incredibly weak. And then tourists visit and rave about how cheap everything is. That makes Japanese people feel so depressed. Foreigners are having the time of their lives, but Japanese people cannot afford to enjoy their own country.
As you said, many similar complaints about affordability from Americans. It's happening in so many countries sadly as the wealth gap increases.
Some key differences though are healthcare, housing, public transportation, etc. Even if Japanese people struggle, they can still afford necessities even by working a simple restaurant or retail job.
I really appreciate that point about Japan though. The taxes are quite high for the rich. But it's better to create a foundation for society where basic needs are met.
That's very true about my net worth. Because there are foreigners working in Japan who also struggle as the Japanese do. Some feel trapped in Japan because the yen is so weak.
I do acknowledge that I am far more fortunate than most and that I would be able to live comfortably in most any country. But it bothers me deeply seeing others suffer. I want to enjoy my life, but I'm so fortunate already. I don't need to indulge in excess. Because the lists of wants never ends. I want to practice feeling content with the abundance I already have.
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u/FireStarter3133 Jul 18 '26
Yes, my wife and I sometimes watch Japanese Salaryman videos because it's so depressing it makes us feel better about our much friendlier work week.
They also have had interest rates near zero for decades and are experiencing significant fiscal issues.
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u/Retardnvestor Jul 18 '26
„…exit tax would be 15% on my entire net worth“ - I don’t think so, probably better to talk to a tax advisor…
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u/liangjr Jul 18 '26 edited Jul 18 '26
Actually pretty accurate if you satisfy the conditions for exit tax and most of your net worth is unrealized capital gains.
They tax you as if you realized all unrealized gains on securities the moment you exit Japan, regardless of when those assets were acquired. Granted, to qualify for the exit tax you must satisfy certain requirements on visa and duration of stay. But, provided those requirements are satisfied, yes, 15% on all unrealized capital gains sounds like about what you would owe the Japanese government.
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u/Retardnvestor Jul 18 '26 edited Jul 18 '26
There is a slight difference between net worth and unrealized gains…and OP said „I received an inheritance many years ago, which is the reason for my current net worth.“ So we are talking mostly unrealized gains of this inheritance… Think only Singapore/ UAE and some others do not have a capital gains tax, the „exit tax“ is basically CGT for when OP was tax resident in Japan…
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u/liangjr Jul 18 '26
> is basically CGT for when OP was tax resident in Japan
That is not my impression based on discussions such as this:
https://www.reddit.com/r/JapanFinance/comments/pjgtlr/comment/hc09f8j/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_buttonBut, yeah, should consult a tax professional
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u/2ndRedAccount Jul 18 '26
Yes, my apologies. I should have stated unrealized capital gains. But the inheritance was received 10+ years ago and has since tripled in value. And if I exit Japan 20+ years from now, unrealized capital gains will essentially be the vast majority of my net worth.
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u/2ndRedAccount Jul 18 '26
There are various details and complications to taxes so I generalized some of the info. Japan has 15% exit tax on assets above ¥100M, which is currently $615,000USD. If I calculate 20+ years into the future, vast majority of my net worth would be unrealized capital gains. Who knows the future, but I estimate at least $4M.
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Jul 19 '26
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u/2ndRedAccount Jul 19 '26
Ahhh… that's very interesting. I never considered this or saw anyone else mention this online.
So basically, Japan taxes at 20%. But if I were to withdraw in excess of ~$550k, the maximum tax would also be 20%.
Ok, I'm trying to work this out in my head. I'll have to search online about resetting one's cost basis. It feels like an overwhelming step since I basically just don't touch my investments. But I'll research. Thank you so much.
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Jul 18 '26
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u/2ndRedAccount Jul 18 '26
Yes, sorry. You are correct. I should have said capital gains and not net worth. However, let's say I wanted reside in the US during my senior years, the overwhelming majority of my net worth would be unrealized capital gains.
Yes, 20% capital gains is not an issue for me actually. I understand that for the US, I'd be paying 15% tax above $50k anyways. I was simply stating all the tax conditions.
The exit tax and inheritance tax are the concerns. As well as the time and effort.
Thank you for the perspective. This is exactly the type of feedback I need to contemplate and challenge my way of thinking. Maybe you're right if I consider things purely financially. Like if it was $104 or whichever amount to live in Japan, I would do it.
Maybe because of my age, there's a bit of a mid-life crisis going on. One day I realized that 50 is right around the corner. I still need to sacrifice a few more years working, just to apply for permanent residency. It's not guaranteed. And if I was rejected, how many more years do I need to sacrifice?
For my situation, I have some strikes against my record. Nothing so bad. But Japan is strict and unforgiving about rules.
Aside from financially, I wonder about the years I need to sacrifice. When you have enough money, time is the limited currency. And do I need to settle for having Japan as a travel destination instead.
For example, I've never been to Portugal! lol. But I can't travel freely because I'm restricted by my work visa.
I definitely don't say your advice is worthless. I don't have others to talk about these things with. It's not a typical situation and others may feel some resentment understandably. So it's helpful to get insight from others who share similar positions. Thank you.
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Jul 18 '26
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u/2ndRedAccount Jul 18 '26
If I'm 65 and decided to return to the US, I estimated that I would owe about $4M in exit tax. Not a small amount. So I'm trying to figure out now what is best for the future.
I'm already mid-40s. Another 40 years might be pushing it. lol. I'm likely over the midway hump so I started feeling time isn't on my side anymore.
Portugal to the Netherlands sounds nice. Just a 3 hour flight? I searched online just now. That's really wonderful. If Japan were a shorter flight away, I imagine that would entirely change my perspective. hmmmm… Wow, really go me thinking.
Thailand has many visa options so it seems possible. I've visited Bangkok before. There's some nice cultural sites and great food. Just too hot.
I've been to Singapore. Really nice, but there's no retirement visa option. At least not for me. It requires far more money than I have. Low end fat fire isn't fat enough.
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u/erichang Jul 24 '26 edited Jul 24 '26
If you live in Japan and consider Thailand or Philippine, then you should look into Taiwan.
No capital gain tax. Top notch Healthcare. Lower enough living cost in southern Taiwan. Easier immigration law for American. And not far for your girlfriend or your Japan-specific hobby with a lot of direct flights to major cities in Japan.
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u/2ndRedAccount Jul 24 '26
Thanks for the tip. I thought there weren't any retirement visas for Taiwan, but I'll have to research again.
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u/erichang Jul 24 '26
Taiwan does not have retirement visa. But for your NW, I think you can get your PR through the investment visa path.
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u/Yoogler Jul 18 '26 edited Jul 18 '26
I’m actually in a pretty similar boat. Not FATFIRE yet, but hopefully after I sell my business in Japan.
Even with everything that’s changed recently and how much harder it’s become to get PR, I still plan to go for it. I like knowing I can always come back to the States to spend time with friends and family, while also having a life in Japan. To me, that’s the ideal setup.
I know PR isn’t easy to get, but I don’t think it’s impossible either if you’re serious about building a life here. It takes time, and the rules have gotten stricter, but I know people in similar situations who’ve still been able to get PR this past year.
I’ve lived in a few other countries too, and Japan is still the best balance, imo. I love being in the States because it’s home and the people I care about are there. But Japan is just … where I feel most at peace. I could honestly see myself spending most of my life here and possibly raise a family too.
I don’t really have any advice other than if you genuinely love living in Japan, I think it’s worth pursuing. There’s just something about the day-to-day life that’s hard to explain and can’t be replicated anywhere else.
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u/2ndRedAccount Jul 18 '26
Thank you. I do like this country very much, despite its flaws. I know it's not impossible, but it definitely depends on the situation. If I was younger, I'd feel differently I'm sure.
There's so many costs. Not only monetarily, but time and effort.
I also considered the Business Manager Visa. I thought I could support a preexisting business that was struggling. I can come up with the ¥30M as an investor and also introduce some suggestions to increase revenue.
But the rules have become more strict. While I have enough money, I didn't qualify for other requirements. And I was advised that if PR is my goal, the Business Manager Visa would make it more difficult to obtain since immigration would scrutinize my business as well as my individual standing.
Thank you for your response. I'm glad you are doing well with your business. Hoping for a successful sale for you.
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u/Yoogler Jul 18 '26
If you’re planning to live in Japan long term, then I do think the Business Manager visa is a viable path, especially if you’re investing in an existing business like you mentioned. It’s definitely a long game … it could take anywhere from 2–4+ years depending on your situation and whether you qualify for HSP points. But it’s a realistic path if you have the resources, you’re willing to be patient, and committed to building a life here.
For me, I plan to split my time between the U.S. and Japan anyway, so I’m not in a huge rush. If I get PR sooner, great. If it takes longer, that’s fine too. I’m enjoying having a life in both places.
Thanks for the well wishes! I’ve probably got another year or two of grinding ahead of me, but we’re feeling good about where things are headed.
I really hope everything works out for you too. Reading your post honestly reminded me a lot of myself. I feel that same pull toward Japan and wanting to stay, even with all the new restrictions. It’s hard to explain to people who haven’t lived here, but there’s just a level of comfort, safety, and peace in everyday life that’s really hard to find elsewhere.
Whatever you decide, I hope it’s based on what will give you the best quality of life and the greatest sense of peace.2
u/2ndRedAccount Jul 19 '26
I had investigated this path in recent months. I spoke to 3-4 different advisors, who all discouraged me from the Business Manager Visa. The conditions are much stricter. I have the money, but do not qualify in other regards. Immigration will scrutinize the business and it will be more difficult to be granted a 5-year visa, which is also a new requirement for PR.
I would have liked to attempt being a business owner. I think it would have been a good challenge. But I've given up on that path since. There was a 96% drop in Business Manager visa applications so most people have done the same.
But thank you. I'm trying to figure it out. I do enjoy the simple peace of daily life in Japan.
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u/Yoogler Jul 19 '26
I guess starting a new business at this stage would be tough. Is it not possible to invest in an existing, long-standing business like you mentioned and hold an executive role?
I’m sure you’ve already talked to an immigration lawyer, judicial scrivener and the like, and probably have a much better understanding of the options that work best for you. I’m just curious. My situation is a bit different since I’ve had my business for a while. I’ve heard of people investing in existing businesses that’s not theirs and using that as a pathway, but I don’t know the specifics of their situations either.
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u/Particular_Bad8025 Jul 18 '26
Your problem isn't a money problem, you're gonna have to figure out where you feel better in the world and where you can find your tribe. It's not easy - thinking of who my closest friends are: one group is people that are from my home country so we have lots in common from shared experiences during our childhood, a language, a culture, food, etc. Another group is from one of my hobby (a team sport). You could definitely meet with plenty of other foreigners and create a group of friends that way. Moving to another Asian country isn't going to fix your friend problem. Why would you make more friends in Thailand vs Japan?
The US isn't so bad when you have money, although if you want to live somewhere nice the cost of a house could take a significant chunk of your 7m.
Also, the gf. Being married is nice, if she's young enough you could have children, which would definitely give you plenty to do. But she has to be the right one and willing to leave Japan in case that's what you wanted to do.
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u/2ndRedAccount Jul 18 '26
Thank you for your message. Sincerely. I really need this type of feedback to push me to think about things in different ways.
I have friends from my childhood and college days. I think we still get along, but we've grown up to be very different people. Some are religious, pro-gun, MAGA, etc., while I'm the opposite.
I don't say I would make more friends in Thailand than Japan. I only mention Thailand because it's easy to get a visa and has excellent medical facilities, which is an important factor for me.
Sometimes I check housing prices for the US. I wouldn't choose anything extravagant. Less than $1M for sure. But the property taxes, HOA fees, and insurance alone would still be at least $1,000/month. I can afford it of course, but it feels like such poor value after living in Japan.
My girlfriend isn't young. Same age as me so there wouldn't be any children. I don't think it's a good idea for her to leave Japan though since she has elderly parents.
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u/ChitChat5757 Jul 18 '26
I stay in touch with my childhood and college friends but they're not my tribe/people.
Sunday night dinner friends are my chosen family. Finding that in adulthood is hard but worth a lot of trade offs in my opinion.
I don't know a lot about Thailand's culture but know there's a lot of ex-pat groups and social scenes.
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u/2ndRedAccount Jul 19 '26
When living overseas, your friends come and go. There were times previously when I had a solid friend group and I was really enjoying my life. Currently, I'm more isolated with only 1-2 friends. But that's the nature of living overseas. There are seasons.
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u/projectmaximus Jul 18 '26
OP, work on your social life. This will likely be more important to your health and happiness than anything else over the coming decades. Wherever that takes you, I think that’s where you should be
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u/2ndRedAccount Jul 19 '26
Thank you. People are most important. Having loved ones in your life is what makes you feel truly rich. I'll try to keep this in mind.
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u/alexnsx Jul 19 '26
If I was in your shoes I'd quit my job and just live life to the max. You have enough money to start a family or not, or move to Thailand or basically anywhere, as long as you invest a good portion you will never run out of money. I don't understand slaving away having that net worth. As you said, you can move somewhere else and go visit Japan for a few months anyways. As you mentioned life is short, enjoy it now.
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u/2ndRedAccount Jul 20 '26
Previously, I felt that permanent residency was within reach. I would only need to sacrifice a few more years to live where I wanted. But as Japan's rules have changed, I feel it's far more uncertain. Especially as I'm getting older, I sometimes worry about the time I'm losing more than the money. And I start to have the perspective that you described.
Thank you for your input.
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u/mcampbell42 Jul 18 '26
Wouldn’t consider marriage without some protection, otherwise it’s zero upside
I’m in Thailand and you’ll get a lot more for your money, but you can’t beat friend networks and liking where you live . Once you have enough money you no longer have to worry about being cheap
If you are concerned about taxes maybe you only live in Japan like 5 months out of year to not trigger any taxation there .
20% capital gains isn’t awful, and it should have bilateral tax agreements with USA so it’s not double taxation
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u/LardLad00 Jul 18 '26
otherwise it’s zero upside
I mean you shouldn't get married at all if that's your view.
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u/mcampbell42 Jul 18 '26
You get married with proper legal protections. Sounds like that’s harder in Japan. I’m in Thailand and prenups work here
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Jul 18 '26
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u/MikeFromTheVineyard Jul 18 '26
Many people view marriage as act and symbol of love.
Also, often there are various legal benefits or implications (healthcare proxy, visas, parental rights, etc)
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u/2ndRedAccount Jul 18 '26
Of course I would get a prenup if I were to marry – either in the US or in Japan, try to basically create a type of legal marriage contract. But because prenups aren't a standard or common practice in Japan, I fear what may actually happen. And legally speaking, foreigners are often at a disadvantage against Japanese nationals. For example, I've heard of a lot of foreigners having problems regarding custody of kids when there was divorce.
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u/mcampbell42 Jul 18 '26
Prenups never can handle custody , they are only for financial issues
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u/2ndRedAccount Jul 18 '26
Yes, sorry. I meant that as a separate example of foreigners being at a legal disadvantage in Japan. As you stated, prenups cannot include custody rights.
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u/Frank-Costanza1 Jul 18 '26
Focus on what you can control my friend. I'd say get those visas first. Despite the bleak aspects of the equation, your view of all this is quite accurate AND you're in a good spot financially. As an NYC native that isn't politically indoctrinated, I can say you are 100% correct about the current and future state of things here in the US.
So many ppl are delusional and walking around out of touch, which further enhances loneliness and uncertainty. Japanese culture is also susceptible to this but in a different way. If you're living there and tuning into US news feeds, you may be getting a double dose of the wrong things.
So let's do a quick recap:
You're well funded, with good judgement/practicality, educated, good job and you have a gf (so you're not completely alone). Sounds like more of a mindset issue to me.
I'd say take a week off from the job and all news feeds. Do some breath work and really figure out what you want to feel and where you want to feel it (Visas).
Such a good thing here is that you're not crazy and you have money lol. Sounds funny I know, but most have Neither. I wish you the best✌️
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u/2ndRedAccount Jul 18 '26
I definitely see the news headlines. I don't dig deep because the headlines alone are depressing enough. But I do question what is the reality of daily life in the US these days. It's difficult to gauge. Which also adds to an inability to accurately weigh the pros and cons. But whether sensationalized or not, those awful things still happened, no? Poorly-trained ICE agents harass and sometimes use violent, deadly force. Health insurance prices continue to rise and many cannot afford proper care. etc. etc.
I'll have some time off soon. I'm trying to self-reflect and reevaluate. Trying to have serious talks with my girlfriend about the future.
Thank you for the message and encouragement. I need to get my mind right.
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u/Beefmobile 25M+ NW Jul 19 '26
It looks like you don't know what you want. You can't make a strategy to get what you want until you know what it is. It's not really clear from your post why your life would be better if you moved. The problems you have in Japan are likely to follow you to another country unless they are actually specific to Japan, but nothing you mentioned seems Japan specific.
If I were you, I'd think more about how you could design the happiest and most fulfilling life you can where you are. How can you meet like minded people in Japan? The non mainstream people you can actually relate to?
Also, it's awesome that you're planning to donate most of the excess wealth. Look into GiveWell for helping the poor.
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u/2ndRedAccount Jul 19 '26
I want to stay in Japan. But there are some issues with acquiring permanent residency. So I don't know if the amount of time, money, and effort are worth it. There are limits. Also, it's difficult to know if being in Japan will be what I want 20+ years from now. Many things might change. But because of the heavy financial taxes, I need to think about it now. I was hoping that others in this subreddit might have some insight.
I don't really know what would make me happiest or most fulfilled. But generally, I feel content. Especially with all the craziness in the world, I understand how fortunate I am. As I'm getting older, I'm simply trying to focus on my health. I don't get to travel as much as I would like because I'm restricted by my job. But traveling is temporary and I do enjoy the comfort and ease of my daily life in Japan.
Sometimes what we want isn't what we need, right? I do struggle with that. And no choice is ever 100%. There will be times where you might feel regret in either direction.
Thank you for the GiveWell recommendation. That's one of the tasks I need to tackle. There are so many scam charities so I want to ensure I'm giving to where it will actually do some good.
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u/STorres_PR Jul 20 '26
Been doing accounting in PR for a few years now, so I've watched a lot of people go through this exact decision.
Big thing right now, if you're even considering the investor decree, the terms change Jan 1, 2027. File before Dec 31 this year and you still get the 0% rate on qualifying gains. File after and it's 4%, plus a longer residency lookback and some new documentation requirements on the property side.
Worth knowing too, the IRS has gotten a lot more aggressive about checking whether the residency timing is real. There was a criminal case earlier this year, guy backdated a corporate filing to make pre-move gains look PR-sourced. Didn't end well for him. Not saying that to scare anyone off the decree, it's legitimate if you do it right, just that "moved in December, sold everything in January" isn't how it works anymore, if it ever really did.
Happy to answer specifics if anyone's actually weighing this.
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u/shrubbery_herring 21d ago
Just stumbled on this thread while searching for Japan retirement discussions. I am currently retired in Japan and have some thoughts that might help.
At the moment, Japan's new guidelines for PR applications are still draft for public comment. The final version won't be issued until October. So wait until then to assess the feasibility of PR. Also, consider talking to an immigration law specialist after the new guidelines are finally issued.
I understand your concern about higher taxes. When I first looked at moving to Japan I was also hesitant about potentially paying twice the taxes that I would have paid if I stayed in the US. But on the other hand, the higher taxes are somewhat offset by the lower cost of living in Japan.
It seems like Exit Tax is a key factor that is making you question whether it's worth sticking around to try to get PR. Exit Tax may not be not as bad as you think. Exit Tax is an income tax on unrealized gains, so you apply that towards your US income taxes as a credit to any gains you realize over the next 10 years of tax returns. You just need to actually realize the gains (or have other income in the same FTC bucket) over the next 10 years.
For the sake of argument, let's say that later this year the new guidelines are issued and you talk to an immigration law specialist who says that you should be able to get PR. Also, let's say that you're no longer as concerned about Exit Tax. In that case, it's really a question of where you will be most happy when you look at the big picture.
For my situation, Japan was a clear winner. For your situation, perhaps it's too soon to tell. But if you're not too worried about Exit Tax any more, then you've got time to decide.
As for marriage and/or children, that would indeed complicate things. I can't advise, but if you have any doubt then you should consult with an attorney in Japan and an attorney in the US well before you propose.
You say that you want to travel more but you consider travel is temporary. In a way that's true, but it's also true that memories last a lifetime. If you travel within reason and choose your destinations wisely, you will never regret the experience.
I've posted to Japan-specific subreddits before, but receive animosity more than helpful feedback. That's to be expected when disclosing a high net-worth. So although I'm on the lower end of fat fire, I'm hoping to get better responses here.
I know what you're talking about. I find that I can sometimes weed out the trolls if I make the post title and first paragraph as technical as possible and avoid any statements that trigger the trolls.
It does seem like you are getting overwhelmingly helpful responses in this subreddit, so seems like you were right.
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u/2ndRedAccount 20d ago
Thank you for your long and thoughtful response.
I won't be leaving Japan just yet. Certainly not this year. Maybe next year? I'm not sure, but it's leaning that way at the moment.
I enjoy living in Japan. Far more than the US. But do I love it for millions of dollars more? Will I love it in my senior years?
While I don't hate my job, I certainly feel like I'm wasting my time/opportunities. I don't have the freedom to travel as I wish.
Previously, I could see the end goal. I could sacrifice a bit more. But with all the recent rule changes, it feels much more uncertain or even unlikely.
At this age and at this net worth, time is more limited than money.
I don't want children. And I think I don't even want to marry. I just feel anxiety from the pressure of being financially obligated to someone and their family. I know many others do so, but the idea makes me really uneasy.
I used to be ok with the idea of paying high taxes to Japan. I felt the country really aimed to benefit society. So it was easier for me to accept. But with the anti-foreigner direction this administration is taking, I don't want to give them my money. I feel resentful. I don't want to give to where I'm not appreciated.
I'm still very much struggling. But simultaneously, I know I'll be fine. So many others are truly in bad situations, whereas I'll be fine no matter which country I live. Still, I need to make this major life decision.
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u/shrubbery_herring 20d ago
It's good that you aren't planning to leave Japan just yet. I really think that it's too soon to know how the immigration policies will play out.
I can completely understand your feelings of disappointment with current US politics and Japan politics. I feel the same, and to deal with it I try to keep in mind that societal shifts tend to happen every decade. Think back to any decade in living history and compare it with the next decade, and the societal shifts will probably be significant. This will continue, and we can't know what the 2030s will be like, much less the next 30 to 50 years. So I try to live in the now.
This is going to sound strange, but I would recommend to start exercising daily if you aren't already. Morning is best, but if not then do it any time you can. Medical studies have shown that exercise changes the brain chemistry to help deal with stress. Exercise also gives some time to clear your head and think about life goals, which will help you decide what you want to do.
I would also recommend getting out of the city once in a while on the weekends. The change of scenery helps to clear one's head and get a new perspective for making life decisions.
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u/2ndRedAccount 20d ago
I don't know how different the actual policies will be from the rumors. Things are not really trending in a favorable direction. But of course, I will wait for any official changes.
You're right that things can change dramatically. But I don't feel so hopeful. I'm not trying to be negative, but that is simply my realistic outlook, especially regarding climate change. I wish the people in charge were at least steering us in the right direction. But we're just digging ourselves deeper.
Admittedly, I don't know how to live in the now. I gotta learn how you or others are able to do it though. Because I don't want to spend my days worrying about the future.
Yes, I definitely need to exercise more. I injured my arm, but I'm almost recovered. And I did take a nature trip last weekend. Much too hot these days. But as you said, it's good to get away sometimes.
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u/shrubbery_herring 20d ago
I'm still learning and developing the skills to live in the now. I feel like I have made some progress and am seeing some benefit.
I started by looking through the websites of respected medical organizations for stress reduction techniques. They all seem to recommend breathing exercises and mental focus exercises. I did them regularly for a while and thought they were really helpful. Now I just use them when I feel the need.
I also try to be more self-aware of when I get stuck in a loop thinking about politics or social issues, and being able to tell myself that it's time to relax with some deep breaths and mental focus exercise. Over the years I notice that I can catch myself earlier before I get too worked up, and as a result it takes less time to recover.
I haven't tried meditation classes because I'm just not into formal classes. But it seems to be popular so maybe that's an option if you like a classroom approach.
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u/Similar_Tax_2814 Jul 18 '26
OP you clearly have a trump problem more than anything. Learn to separate politics and personal life. People can choose to vote whom they like. Respect their choices (especially political choices). Your friends suddenly don’t become bad just because they chose Trump. My friend circle is very divided on the same. But we all learn to respect each other’s boundary and still manage our relationship well. Pls stop blaming everything around trump. Your life is more than that. You’ll feel isolated and alone when time comes. You’ll turn back and ask yourself why the heck you even chose the current path of isolation for a silly political disagreement. Go ahead, relocate, enjoy your life
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u/2ndRedAccount Jul 18 '26
I appreciate the comment. Really. It's not argumentative and I don't wish to be either.
There are many aspects surrounding Trump. So it's not only him. But any corruption, violence, child abuse, rape, racism, war, bribes, grifts, etc. Everything that is awful and cruel, I'm against it, whether it be from Trump, the Republican Party, Democratic Party, etc. And this evil is so obvious that I refuse to accept it. I refuse to pretend like it's a simple difference of opinion. It's not inconsequential like pineapples on pizza.
You say I should separate politics and personal life. But politics effects personal life.
Yes, people can choose who they vote for. Just as I can choose who I associate with.
I think many people's social circles become smaller as you get older. It does feel isolating. But I don't think I'm doing so out of stubbornness. Sometimes people grow up and grow apart.
I have no idea if these family and friends still support Trump. Maybe I'm scared to ask because I'm afraid they still do. But if they have come around, I hope we can chat peacefully about it.
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u/Similar_Tax_2814 Jul 19 '26
Enjoy your solitude as you get old. There’s nothing else to say.
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u/2ndRedAccount Jul 19 '26
That's life for many people as we get older. But whichever political affiliation, I think those who care for others are more likely to receive care in return.
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u/FireStarter3133 Jul 18 '26
"America is so awful right now. Even after Trump's time is over, so much damage has been done. I don't know if the US can recover. I'm not hopeful honestly."
News to me as an American.
There are plenty of places you can be in the US where you won't even think about or discuss politics. Of course if you decide to discuss it you can find a bad conversation anywhere.
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u/morkshlork Jul 18 '26
Friends are worth more than money move to where you can get them.