"From 100 Million to 1 Billion Won"... From 6% Interest Parking Accounts to Dividend and Growth ETF Portfolio Construction Methods

Lee Ji-han, appearing on the YouTube channel 'Finance with Toad Tax Accountant' which covers finance-related content, explained short-term fund management methods tailored to recent interest rate fluctuations and asset allocation strategies for office workers.

Long-term Investment Strategies Using Parking Accounts with Low Preferential Conditions and ISA

Lee Ji-han introduced parking account products with preferential interest rate conditions that are not overly stringent. According to the video content, Daishin Savings Bank's 'The The The Parking Account' provides a maximum interest rate of up to 6% including preferential rates for up to 2 million won, and features a rate that rises up to 4% if first-time customers agree to market reception. In the case of the Naver Pay Money Woori Account, one can receive an interest rate of at least 3.0% per annum by adding a 2.9% preferential rate to the base 0.1% per annum, but he explained that the event special interest rate (3.9%) mentioned in the video ended in August. Additionally, the Daol FI 30-Year Account was mentioned as a product that pays differential interest rates depending on the amount without separate preferential interest rate conditions.

Regarding the use of ISA, he stated that it is efficient to compose the portfolio mainly with products capable of long-term investment, considering the minimum mandatory holding period of at least 3 years. Lee Ji-han explained that he manages his portfolio by holding S&P 500 or Nasdaq-100, which are representative US index ETFs listed domestically, through an ISA account, and also holding dividend ETFs to enjoy tax savings on dividend income.

Gold and Bitcoin Risk Hedging and Three Ways to Invest in Gold

In terms of asset allocation, Lee Ji-han revealed that he holds gold and Bitcoin at a weight of about 15% in his portfolio. He added that while Bitcoin has high volatility, it has the characteristic of limited supply, and gold, as a representative safe-haven asset, helps in terms of risk hedging because its flow does not match that of stocks. He presented three methods for gold investment. Gold accounts opened at banks have the advantage of allowing small-scale investment and physical withdrawal. Gold ETFs offer high convenience as they can be invested in not only general accounts but also ISA or pension accounts. Finally, gold spot accounts through securities firms are characterized by allowing small-scale investment and having tax-free benefits in terms of taxation.

Dividend and Growth-type Portfolio Construction for Office Workers Holding 100 Million Won in Assets

Assuming a case where a newcomer to society has accumulated 100 million won, Lee Ji-han advised prioritizing major life tasks such as purchasing a home over immediate retirement preparation. If managing assets thereafter, he presented a portfolio example composed of 30% dividend growth ETFs, 50% growth-type ETFs such as S&P 500 and Nasdaq-100, and 20% cash-like assets to prepare for market volatility. This composition produces an effect similar to investing in the US dollar, and dividends are reinvested according to a ratio determined by the individual (e.g., growth 5, dividend 3, cash 2, etc.).

Regarding the burden of health insurance premiums and tax issues according to dividend income, he cited the use of tax-saving accounts as the best solution. An ISA account allows for tax savings on dividend income, and in the case of the general type for low-income earners, there is a tax benefit of up to 4 million won, with excess amounts subject to separate taxation. He also explained that utilizing pension accounts such as pension savings or IRP is efficient as it allows the taxation on dividend income to be deferred until the time of receiving the pension.