Investment Guide
A knowledge base of investment-related financial products, tax-saving products, and strategies to reference during family financial consultations.
Summary of Financial Product Types
Safe Assets (Risk Level: Very Low~Low)
| Product |
Key Features |
Suitable For |
| Time Deposit |
Lump-sum deposit, fixed interest |
Principal protection priority |
| Installment Savings |
Monthly contributions, build a lump sum |
Salaried workers |
| Flexible Installment Savings |
Flexible contributions, liquidity |
Irregular income earners |
| CMA |
Demand deposits, short-term management |
Emergency fund management |
| Government Bonds |
Government guaranteed, highest safety |
Long-term safe assets |
| Corporate Bonds |
Issued by corporations, differences by credit rating |
Medium-risk bond investment |
Investment Assets (Risk Level: Medium~High)
| Product |
Key Features |
Suitable For |
| ETF |
Index tracking, diversification, low cost |
Beginner~intermediate investors |
| Index Fund |
Tracks market index, passive |
Long-term systematic investment |
| Active Fund |
Expert management, seeks excess returns |
Prefer discretionary management |
| Individual Stocks |
Direct investment, high volatility |
Experienced investors |
Summary of Tax-Saving Financial Products
| Product |
Annual Contribution Limit |
Key Tax Benefits |
| ISA |
20 million won (total 100 million) |
Tax-free 2/4 million won + 9.9% separate taxation |
| Pension Savings |
18 million won |
Tax credit up to 4 million won (13.2~16.5%) |
| IRP |
18 million won (including pension savings) |
Combined tax credit limit of 7 million won |
Tax-Saving Product Priority (General Recommendation):
- Pension Savings (tax credit + early withdrawal possible)
- IRP (secure additional tax credit of 3 million won)
- ISA (tax-free + loss offset)
Summary of Asset Allocation Strategies
| Strategy |
Key Concept |
| Asset Allocation |
Set ratios for stocks/bonds/alternative assets |
| Rebalancing |
Periodically restore target ratios (1~2 times per year) |
| DCA (Systematic) |
Level the purchase price through regular fixed-amount investing |
| Core-Satellite |
Core (index 7080%) + Satellite (theme 2030%) |
| TDF |
Automatically adjust asset allocation according to target retirement year |
Asset Allocation Guidelines by Age Group
| Age group |
Stock allocation |
Bond allocation |
Core objective |
| 20~30대 |
70~90% |
10~30% |
Asset growth |
| 40대 |
50~70% |
30~50% |
Balanced growth |
| 50대 |
30~50% |
50~70% |
Transition to stability |
| After age 60 |
20~30% |
70~80% |
Withdrawal/Preservation |
Core investment principles
- Diversification: Diversification across asset classes, regions, and sectors
- Long-term investing: Maximize compounding effects (at least 5–10 years)
- Minimize costs: Choose products with low total expense ratio (TER)
- Goal-based investing: Separate accounts by goal (retirement, education, home)
- Eliminate emotions: Time in market rather than market timing
Detailed reference
