Writer Hwang Geum-byeol Redesigns Portfolio for Monthly Dividends of 3.5 Million Won... "Securing Cash Liquidity is Important"

Writer Hwang Geum-byeol, who has been preparing for retirement through dividend investing, announced that she has redesigned her portfolio to match recent market conditions. Appearing on the YouTube channel 'Finance with Toad Tax Accountant', Hwang Geum-byeol explained that she is securing cash liquidity by adjusting her monthly dividend income, which was previously around 5 million won, to a recent level of 3 million to 3.5 million won.

Dividend Income Adjustment and Cash Liquidity Securing Strategy

Hwang Geum-byeol stated that she has been living on dividend income since her retirement in 2023, and has made changes to her portfolio following the upward trend of the markets, including the United States stock market. While she previously received more than 5 million won in monthly dividends, she has currently lowered the scale of her dividends to around 3 million to 3.5 million won per month. She explained that this decision was made to secure cash and prepare for potential future market volatility following the recent market uptrend, rather than a change in investment assets.

Mentioning the market downturns and economic crises that repeat every 2 to 3 years, Hwang Geum-byeol emphasized the importance of securing cash liquidity to act like a 'sponge' to endure the market. In particular, she pointed out that investment assets, including dividend stocks, can face difficulties during periods of interest rate hikes and inflation, adding that it is stable to lower one's greed and focus on essential assets when feeling anxious.

Analysis of Leverage Investment Returns and Bear Market Risks

In the video, the difference in returns between the Nasdaq index-tracking ETF QQQ and leverage products QLD (2x) and TQQQ (3x) was compared with specific figures. According to the data presented by Hwang Geum-byeol, if one had purchased one share daily through installment buying during the first half of this year (January 1 to June 30), QQQ recorded a return of 14%, QLD recorded 25%, and TQQQ recorded 36%. This shows the characteristic where leverage products exhibit higher returns during a bull market.

However, the results were different during the bear market of the 2022 interest rate hike period. When the market plummeted by nearly 40% at that time, based on installment investment, QQQ recorded a return of -14%, while QLD showed -33% and TQQQ showed -54%. Hwang Geum-byeol mentioned that in the case of TQQQ, a situation where assets are halved can occur, explaining that investment strategies should differ depending on the 'vessel' capable of enduring volatility in a bear market. Accordingly, she suggested that it is safer to primarily hold two-times leverage or passive products that follow the index rather than three-times leverage.

Importance of Building a Pipeline for Retirement Preparation

In the process of preparing for retirement, the necessity of building a 'pipeline' to create various sources of income besides dividends was mentioned. Hwang Geum-byeol said that before retirement, it is important to go through the process of creating an additional income of about 500,000 to 1,000,000 won per month through things she is good at or likes. This is possible in various ways such as content creation, writing, or operating YouTube, and such additional income serves to reduce the burden of having to rely solely on dividends after retirement.

Furthermore, she advised on psychological control during the investment process. Mentioning the psychology where the desire to buy arises even when the market drops slightly, she admitted that it is difficult to manage the pain of giving up profits or facing losses that occur during the rebalancing process. Hwang Geum-byeol suggested a method of maintaining a portfolio centered on dividends while managing leverage at a small proportion so as not to feel FOMO.