Category: Investment
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U.S. Treasury Investment (2) – Traditional IRA vs Roth IRA (+Backdoor Roth IRA)
U.S. Treasury Investment Journey Regarding U.S. Treasury investment, you can buy directly through a brokerage general account or treasurydirect.gov. However, aiming for retirement readiness, we prefer using an IRA account in the U.S. There are two main types of IRA accounts: Traditional IRA and Roth IRA, as discussed in a previous post comparing the U.S.…
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U.S. Treasury Investment (1) – Opening Fidelity Accounts
U.S. Treasury Investment Plan The first post of 2024 outlines a plan for U.S. Treasury investments. Currently, the pension strategy allocates 100% to the U.S. stock market (index) due to my aggressive investment approach. However, the need for hedging assets has been contemplated. Though individual preferences may vary, I aim for a 7:3 ratio of…
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Pension Account Priorities and Reflections on Retirement in Korea
Pension Account Priorities in Korea – When investing in personal pension, the order of accounts can vary based on individual circumstances and preferences. According to pension-related literature and rules of thumb, the following order of investment is generally considered efficient: Pension Savings Fund 6M KRW > IRP (Individual Retirement Pension) 3M KRW > Pension Savings…
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Turning Daily Coffee Savings into Retirement Wealth: What Happens?
If you save the cost of a cup of coffee each day and invest it in a long-term pension savings account, what will happen? It’s not easy to get through a day without caffeine, but the price of a cup of coffee is actually not that cheap. Some suggest saving the cost of daily coffee…
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Comparison of TR (Total Return) vs PR (Price Return) ETFs and Its Performance Case Study in Korea
In recent years, investing in Exchange-Traded Funds (ETFs) has gained significant popularity, thanks to the simplicity and diversity they offer. When investing in ETFs, one crucial aspect to consider is the type of returns they provide. This is where Total Return (TR) and Price Return (PR) ETFs come into play. In this blog, we’ll explore…
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Analysis of Management Fees and Charges for Domestically Listed International ETFs in Korea
Recently, I came across an article stating that the ETF market in Korea has exceeded 100 trillion won. It’s incredible to see how the market has significantly grown, encompassing various types of ETFs, including index, international, and active ETFs. As a consumer, this growth is exciting, especially given the fierce competition among asset management companies.…
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Comparison of US Pension Account and Korea Pension Account
Starting this year, as I have been residing in the United States, I became curious about the U.S. pension system and decided to do a bit of research. While there are many types of pension plans in the United States, and I’m by no means a tax expert, I thought I’d write a little on…
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Analysis of Currency Hedged vs Unhedged ETF and Its Results
Exchange-traded funds (ETFs) have revolutionized the way investors access international markets. They provide a convenient way to gain exposure to a wide range of assets, from stocks and bonds to commodities and currencies. When investing in ETFs, one important decision investors face is whether to choose currency-hedged or unhedged ETFs. In this blog post, we’ll…
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Pension Income vs Labor Income (feat. Retirement Preparation Should Start from Birth)
If you want to retire at a specific age, how long and how much investment should you make? I conducted a planning simulation to receive an average pension based on age and average annual wage in Korea. The simulation was conducted using the Portfolio Visualizer, as described in the previous post. First, the investment conditions…
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Projected Pension Investment Performance in Korea (feat. Portfolio Visualization – Monte Carlo Simulation)
Our question is as follows: If we invest a fixed amount each year in a pension fund or an IRP account and continue contributing until retirement, how much will we have accumulated, and how much annual living expenses will we be able to cover? In this regard, we would like to introduce a useful simulation…