{"content_id":"bfccor7s5l","slug":"how-to-invest-savings-for-beginners","locale":"en","schema_type":"HowTo","category":"how_to","category_name":"How-to","title":"How to Invest Your Savings: Asset Allocation for Beginners","summary":"Divide your savings based on when you will use them, then decide how much to invest. This explains the differences between deposits, interest-rate ETFs, and TDFs, gives asset allocation examples, and examines the calculation that ₩700 million can provide ₩3 million per month after tax.","sponsorship_disclosure":null,"affiliate_disclosure":null,"commerce_disclosure":null,"author":{"name":"Injoys Editorial Team","url":"https://injoys.com/ko/about"},"key_points":["Set aside living expenses and planned expenses separately, and assess your loan repayment burden.","Decide how much to invest based on when you will need the money and how much loss you can tolerate.","Compare the risks and withdrawal terms of deposits, interest-rate ETFs, and TDFs.","Set target allocations for assets such as stocks and bonds, then start by investing an amount you can afford.","Check after-tax returns and your actual asset allocation, and rebalance if necessary."],"content_markdown":"When putting your savings to work, first set aside living expenses and planned expenditures. Divide the remaining money based on when you will use it and how much loss you can bear. Interest rate ETFs and TDFs can also lose principal, so decide the purpose of the money before choosing a product.\n\nThe allocation ratios and annual return of 6% are assumptions used for calculations, and the tax information also refers to the National Tax Service's guidance dated March 9, 2026.\n\n## The Order for Putting Your Savings to Work\n\nBefore choosing products, decide how much you can invest. Asset allocation means dividing money among different assets such as stocks and bonds. Your investment period and ability to bear losses should determine the allocation.\n\n1. **Separate the money needed for daily life.** First secure money for living expenses and emergencies.\n2. **Write down when you will use the money.** Separate planned expenditures such as tuition, deposits, and home purchase costs.\n3. **Compare products and accounts.** Check the possibility of losing principal and the conditions for withdrawing money.\n4. **Set target weights and invest.** Start with an amount that will not disrupt your daily life.\n5. **Review the planned and actual weights.** Adjust the investment plan if the purpose of the money changes.\n\nIf you have loans, first check the interest rate applied to them. Compare the interest saved by repayment with the expected after-tax return from investing. If there is an early repayment fee, include it in the repayment cost.\n\n## Conditions Based on the Purpose of the Money\n\nEven for the same lump sum, the appropriate management method varies depending on when the money will be used. If the investment period is short, it is difficult to allow enough time to recover from losses. Make decisions based on your actual spending schedule rather than your age.\n\n| Current situation | What to decide first | Management approach |\n| --- | --- | --- |\n| A university student with tight living expenses | Money left over each month and tuition payment dates | First consider managing expenses and securing emergency funds |\n| Someone with a lump sum who is about to begin military service | Expenses during service and money needed after discharge | Check maturity dates and ease of withdrawal based on when the money will be needed |\n| An employee who saves every month | Amount that can consistently be set aside from salary | Consider regular investing only for long-term funds |\n| Someone saving for a deposit or home purchase | Schedule for paying the down payment and balance | Prioritize preserving principal and withdrawal timing over price movements |\n| Someone preparing retirement funds | Expected retirement date and possibility of interim withdrawals | Consider pension accounts and long-term asset allocation |\n\nSet the size of your emergency fund based on essential expenses and income stability. It should cover necessary expenses even if your income stops temporarily. You can learn about the relationship between the investment period and risk tolerance in [Investor.gov's asset allocation guide](https://www.investor.gov/introduction-investing/getting-started/asset-allocation).\n\n## Comparing Deposits, Interest Rate ETFs, and TDFs\n\nConsider deposits for holding money under contractual terms, and funds according to your investment purpose. An ETF is a fund traded on an exchange like a stock. A TDF is a fund that adjusts its asset allocation based on a target date.\n\n| Option | Main purpose to consider | Nature of principal and returns | Conditions to check |\n| --- | --- | --- | --- |\n| Time deposit | Managing the maturity of an existing lump sum | Contracted interest rate applies, and eligible products are protected within the statutory limit | Maturity, early termination rate, protection status |\n| Installment savings account | Regularly saving future income | Interest calculated according to how long each payment remains deposited | Payment method, preferential interest rate conditions |\n| Demand deposit | Holding living expenses and emergency funds | Interest rate may change, and protection status must be checked for each product | Interest rate tiers, transfer conditions |\n| Interest rate ETF | Investment reserve funds seeking short-term interest returns | Performance-based product with possible loss of principal | Tracked benchmark, costs, trading price, settlement date |\n| Equity ETF | Growth funds to be managed over the long term | Gains or losses from stock price movements | Investment country, industry, holdings |\n| TDF | Long-term funds with a target date, such as retirement | Automatic asset allocation adjustments with possible loss of principal | Target year, stock allocation, total costs |\n\nDeposits and installment savings accounts should not be compared based only on their stated interest rates. Each installment savings payment remains deposited for a different period. Even at the same interest rate, the interest differs from a time deposit in which the entire lump sum is deposited from the beginning.\n\nThe protection limit for eligible deposits was raised on September 1, 2025. At the same financial institution, the principal and stipulated interest are combined for each depositor. The limit for ordinary deposits is KRW 100 million.\n\n\u003e All principal and stipulated interest on deposits and installment savings accounts held at one financial institution are protected up to a total of KRW 100 million.\n\nThis wording comes from the Financial Services Commission's “Everything You Want to Know: Deposits Protected up to KRW 100 Million Starting September 1.” Performance-based products such as funds are not covered by this protection. Check the scope of protection in the [Financial Services Commission's guidance dated July 23, 2025](https://www.fsc.go.kr/no040101?cnId=2817\u0026curPage=81\u0026pastPage=81\u0026srchKey=\u0026srchText=).\n\n## Conditions to Check When Choosing an Interest Rate ETF\n\nInterest rate ETFs do not guarantee principal like deposits. They are managed in connection with short-term interest rate benchmarks such as CD rates or KOFR. When interest rates change, the pace at which future returns accumulate may also change.\n\nCD stands for certificate of deposit. KOFR is a benchmark interest rate calculated from short-term funding transactions in Korea. Even if a product name includes the term risk-free reference rate, that does not mean the ETF itself is risk-free.\n\n- **Tracked benchmark:** Check which interest rate the product uses as its benchmark.\n- **Actual costs:** Check trading fees as well as management fees.\n- **Trading price:** Check the bid-ask spread and the difference from net asset value.\n- **Synthetic structure:** Check the risk that a derivatives counterparty may fail to meet its obligations.\n- **Cash availability:** Also check the date when proceeds from a sale can be withdrawn.\n\nSynthetic products use derivatives contracts to replicate benchmark returns. The resulting risks are stated in each product's prospectus. For example, the [HANARO KOFR금리액티브 prospectus](https://www.hanaroetf.com/_upload/public/fund-new/FB58E7CC6231433E/G410MK10WESAUINX7.pdf) explicitly states the risks of over-the-counter derivatives.\n\n## Criteria for Using TDFs in Pension Savings Accounts and IRPs\n\nLong-term investors who want to reduce the work involved in managing asset allocation may consider TDFs. They generally reduce their stock allocation as the target date approaches. Even with the same target year, risk levels vary by product.\n\nPension savings accounts and IRPs are accounts that hold money. A TDF is an investment product that can be selected within those accounts. Depositing money into an account does not automatically complete the purchase of a TDF.\n\n| Item to check | What to check |\n| --- | --- |\n| Target year | Whether it matches the actual retirement date or time when the money will be used |\n| Current asset allocation | Whether the current stock allocation is bearable |\n| Allocation adjustment path | How risk changes before and after the target date |\n| Costs | How the costs of the TDF and its underlying funds are reflected |\n| Existing investments | Whether stock and country allocations overlap with other accounts |\n| Account conditions | Which products can be purchased and what the interim withdrawal conditions are |\n\nA TDF does not guarantee principal or living expenses at the target date. Automatic adjustments cannot reflect an individual's spending circumstances. Differences among products are also explained in [Investor.gov's 2025 TDF guide](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/target-date-funds-investor-bulletin).\n\nBefore putting money into a pension account, consider whether you may need to withdraw it early. Some interim withdrawals from an IRP are restricted to legally prescribed reasons. Check with the financial institution offering the account about taxes resulting from withdrawals and account termination.\n\n## Asset Allocation Example and Actual Risk Exposure\n\nThe ratios below are examples for reviewing the structure. They are not recommended ratios suitable for every beginner. In particular, they should be interpreted with the understanding that dividend stocks are also stocks.\n\n| Asset | Example weight | Expected role | Risk to check |\n| --- | --- | --- | --- |\n| Domestic stocks | 30% | Participate in corporate growth | Concentration in the domestic market and specific industries |\n| Overseas stocks | 25% | Participate in the growth of overseas companies | Stock price and exchange rate movements |\n| Bonds | 20% | Interest income and reduced volatility | Interest rate changes and issuer credit risk |\n| Gold | 5% | Diversification from other assets | Price movements and no interest or dividends of its own |\n| U.S. dollars | 5% | Currency diversification | Possible foreign exchange losses in Korean won terms |\n| Dividend stocks | 10% | Dividend cash flow | Falling stock prices and reduced dividends |\n| REITs | 5% | Real estate-related cash flow | Vacancies, borrowing costs, and price movements |\n| Total | 100% | Divide roles among assets | Overall risk must be reviewed separately |\n\nDomestic stocks at 30% and overseas stocks at 25% add up to 55%. Adding 10% in dividend stocks brings the stock allocation to 65%. The 5% in REITs may also decline in price along with the stock market.\n\nBonds, gold, and U.S. dollars together account for 30%. This ratio does not indicate how much loss will be prevented. When interest rates rise, fixed-rate bond prices may fall. You can learn about the relationship between interest rates and bond prices in [Investor.gov's bond guide](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/what-are).\n\n## Comparing Simple Portfolios and Common Mistakes\n\nHaving more products does not automatically increase diversification. Check both the types of assets and the actual holdings. Multiple ETFs may hold the same companies.\n\n| Portfolio structure | Management method | Easy-to-miss point |\n| --- | --- | --- |\n| Products tracking the S\u0026P 500, Nasdaq-100, and Dow Jones U.S. Dividend 100 | Buy separately by U.S. stock index | All focus on U.S. stocks and may have overlapping holdings |\n| 60% stocks and 40% bonds | Adjust directly to maintain the set ratios | Stocks and bonds may decline together |\n| TDF-centered | Asset manager adjusts asset allocation | Overall allocation, including other accounts, must be reviewed directly |\n| Direct allocation among multiple assets | Manage target ratios for each asset | More products and greater management burden |\n\nAn action plan can reduce the tendency to delay decisions while searching for the perfect investment. First understand how the product can generate losses. Then invest only an amount you can bear.\n\nCommon mistakes include:\n\n- **Viewing gold as an asset that guarantees principal:** Gold can also be sold below its purchase price.\n- **Classifying dividend stocks as safe assets:** Stock price losses may exceed the dividends received.\n- **Thinking regular purchases eliminate losses:** Buying in installments does not remove the risk of the investment.\n- **Reading the distribution rate as the total return:** Both distributions and changes in the price of the assets held must be considered.\n- **Buying real estate first when the lump sum grows:** First consider the concentration of funds and the time required to sell.\n\n## Example Calculation for Receiving KRW 3 Million a Month From KRW 700 Million\n\nEven if KRW 700 million earns 6% annually, receiving KRW 3 million per month after tax is not guaranteed. The calculation below assumes an annual cash dividend yield of 6%. It applies only a withholding rate of 15.4% to ordinary taxable domestic dividends.\n\n| Calculation item | Formula | Result |\n| --- | --- | --- |\n| Annual pre-tax dividends | 700,000,000 won × 6% | 42,000,000 won |\n| Average monthly pre-tax dividends | 42,000,000 won ÷ 12 months | 3,500,000 won |\n| Annual amount withheld | 42,000,000 won × 15.4% | 6,468,000 won |\n| Annual amount after withholding | 42,000,000 won - 6,468,000 won | 35,532,000 won |\n| Average monthly amount after withholding | 35,532,000 won ÷ 12 months | 2,961,000 won |\n\nThe 15.4% consists of 14% income tax and 1.4% local income tax. The general withholding structure for taxable fund income can also be found in the [Midas Asset Management prospectus](https://midasasset.com/wp-content/uploads/2021/10/tujaseolmyeongseo-maidaseu-maidaseu-KoreaStockaektibeu-jeungkwon-sangjangjisutujasintakjusik_202404.pdf). This table does not reflect final tax settlement or separate costs.\n\nAnnual financial income generally also requires consideration of whether it is subject to aggregate taxation. The threshold for financial income subject to aggregate taxation is KRW 20 million per year. Tax-exempt income and separately taxed income should be assessed separately.\n\nStarting with payments made in 2026, a special provision applies to dividends from qualifying high-dividend companies. Separate taxation requires confirming eligibility and submitting an application. The same tax treatment does not apply to every payment simply because it is a dividend. Check the detailed conditions in the [National Tax Service's guidance dated March 9, 2026](https://www.nts.go.kr/nts/na/ntt/selectNttInfo.do?mi=2163\u0026nttSn=1349597).\n\nThe annual return of 6% is an assumption for this calculation, not a guaranteed return. The monthly average also differs from the amount actually paid each month. The market value of the principal may also fluctuate.\n\n## Living Expense Withdrawal Schedules and Investment Cash Flow\n\nTo cover living expenses with investment returns, payment dates and withdrawal dates must be coordinated. It is difficult to assess monthly spending based only on total annual dividends. Money to use before dividends are paid must also be set aside.\n\n| Schedule to check | Reason for checking |\n| --- | --- |\n| Rent, credit card, and insurance payment dates | Identify the dates when cash is actually needed |\n| Dividend and distribution payment dates | Check whether payments arrive before expenses are due |\n| ETF sale proceeds settlement date | Check the time between selling and withdrawing funds |\n| Tax payment dates | Set aside money for taxes separately from living expenses |\n| Deposit maturity dates | Check whether maturity matches the time when the money is needed |\n\nDomestically listed ETFs generally settle 2 business days after the trade date. Do not assume that sale proceeds can be withdrawn immediately. Check the settlement structure in the [Korea Exchange ETF settlement system](https://regulation.krx.co.kr/contents/RGL/03/03060102/RGL03060102.jsp).\n\nSet your financial independence goal based on actual living expenses. List expected income, such as public pensions, separately. Review whether investment assets can cover the remaining expenses. As prices rise, the amount needed to maintain the same standard of living also increases.\n\n## How to Rebalance After Buying\n\nRebalancing means bringing changed asset weights back in line with target ratios. When prices rise or fall, the original weights also change. New investment funds can also be used to increase underweight assets.\n\n1. **Gather the current market values.** Review assets across multiple accounts together.\n2. **Calculate the actual weights.** Divide the market value of each asset by the total investment amount.\n3. **Compare them with the target weights.** Also review whether the timing for using the money has changed.\n4. **Check adjustment costs.** Calculate trading fees and taxes.\n5. **Adjust as much as necessary.** Also check whether the allocation can be adjusted through additional contributions.","content_html":"\u003cp\u003eWhen putting your savings to work, first set aside living expenses and planned expenditures. Divide the remaining money based on when you will use it and how much loss you can bear. Interest rate ETFs and TDFs can also lose principal, so decide the purpose of the money before choosing a product.\u003c/p\u003e\n\u003cp\u003eThe allocation ratios and annual return of 6% are assumptions used for calculations, and the tax information also refers to the National Tax Service's guidance dated March 9, 2026.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#the-order-for-putting-your-savings-to-work\" class=\"anchor\" id=\"the-order-for-putting-your-savings-to-work\"\u003e\u003c/a\u003eThe Order for Putting Your Savings to Work\u003c/h2\u003e\n\u003cp\u003eBefore choosing products, decide how much you can invest. Asset allocation means dividing money among different assets such as stocks and bonds. Your investment period and ability to bear losses should determine the allocation.\u003c/p\u003e\n\u003col\u003e\n\u003cli\u003e\n\u003cstrong\u003eSeparate the money needed for daily life.\u003c/strong\u003e First secure money for living expenses and emergencies.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eWrite down when you will use the money.\u003c/strong\u003e Separate planned expenditures such as tuition, deposits, and home purchase costs.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eCompare products and accounts.\u003c/strong\u003e Check the possibility of losing principal and the conditions for withdrawing money.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eSet target weights and invest.\u003c/strong\u003e Start with an amount that will not disrupt your daily life.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eReview the planned and actual weights.\u003c/strong\u003e Adjust the investment plan if the purpose of the money changes.\u003c/li\u003e\n\u003c/ol\u003e\n\u003cp\u003eIf you have loans, first check the interest rate applied to them. Compare the interest saved by repayment with the expected after-tax return from investing. If there is an early repayment fee, include it in the repayment cost.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#conditions-based-on-the-purpose-of-the-money\" class=\"anchor\" id=\"conditions-based-on-the-purpose-of-the-money\"\u003e\u003c/a\u003eConditions Based on the Purpose of the Money\u003c/h2\u003e\n\u003cp\u003eEven for the same lump sum, the appropriate management method varies depending on when the money will be used. If the investment period is short, it is difficult to allow enough time to recover from losses. Make decisions based on your actual spending schedule rather than your age.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCurrent situation\u003c/th\u003e\n\u003cth\u003eWhat to decide first\u003c/th\u003e\n\u003cth\u003eManagement approach\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Current situation\"\u003eA university student with tight living expenses\u003c/td\u003e\n\u003ctd data-label=\"What to decide first\"\u003eMoney left over each month and tuition payment dates\u003c/td\u003e\n\u003ctd data-label=\"Management approach\"\u003eFirst consider managing expenses and securing emergency funds\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Current situation\"\u003eSomeone with a lump sum who is about to begin military service\u003c/td\u003e\n\u003ctd data-label=\"What to decide first\"\u003eExpenses during service and money needed after discharge\u003c/td\u003e\n\u003ctd data-label=\"Management approach\"\u003eCheck maturity dates and ease of withdrawal based on when the money will be needed\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Current situation\"\u003eAn employee who saves every month\u003c/td\u003e\n\u003ctd data-label=\"What to decide first\"\u003eAmount that can consistently be set aside from salary\u003c/td\u003e\n\u003ctd data-label=\"Management approach\"\u003eConsider regular investing only for long-term funds\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Current situation\"\u003eSomeone saving for a deposit or home purchase\u003c/td\u003e\n\u003ctd data-label=\"What to decide first\"\u003eSchedule for paying the down payment and balance\u003c/td\u003e\n\u003ctd data-label=\"Management approach\"\u003ePrioritize preserving principal and withdrawal timing over price movements\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Current situation\"\u003eSomeone preparing retirement funds\u003c/td\u003e\n\u003ctd data-label=\"What to decide first\"\u003eExpected retirement date and possibility of interim withdrawals\u003c/td\u003e\n\u003ctd data-label=\"Management approach\"\u003eConsider pension accounts and long-term asset allocation\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eSet the size of your emergency fund based on essential expenses and income stability. It should cover necessary expenses even if your income stops temporarily. You can learn about the relationship between the investment period and risk tolerance in \u003ca href=\"https://www.investor.gov/introduction-investing/getting-started/asset-allocation\"\u003eInvestor.gov's asset allocation guide\u003c/a\u003e.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#comparing-deposits-interest-rate-etfs-and-tdfs\" class=\"anchor\" id=\"comparing-deposits-interest-rate-etfs-and-tdfs\"\u003e\u003c/a\u003eComparing Deposits, Interest Rate ETFs, and TDFs\u003c/h2\u003e\n\u003cp\u003eConsider deposits for holding money under contractual terms, and funds according to your investment purpose. An ETF is a fund traded on an exchange like a stock. A TDF is a fund that adjusts its asset allocation based on a target date.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eOption\u003c/th\u003e\n\u003cth\u003eMain purpose to consider\u003c/th\u003e\n\u003cth\u003eNature of principal and returns\u003c/th\u003e\n\u003cth\u003eConditions to check\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Option\"\u003eTime deposit\u003c/td\u003e\n\u003ctd data-label=\"Main purpose to consider\"\u003eManaging the maturity of an existing lump sum\u003c/td\u003e\n\u003ctd data-label=\"Nature of principal and returns\"\u003eContracted interest rate applies, and eligible products are protected within the statutory limit\u003c/td\u003e\n\u003ctd data-label=\"Conditions to check\"\u003eMaturity, early termination rate, protection status\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Option\"\u003eInstallment savings account\u003c/td\u003e\n\u003ctd data-label=\"Main purpose to consider\"\u003eRegularly saving future income\u003c/td\u003e\n\u003ctd data-label=\"Nature of principal and returns\"\u003eInterest calculated according to how long each payment remains deposited\u003c/td\u003e\n\u003ctd data-label=\"Conditions to check\"\u003ePayment method, preferential interest rate conditions\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Option\"\u003eDemand deposit\u003c/td\u003e\n\u003ctd data-label=\"Main purpose to consider\"\u003eHolding living expenses and emergency funds\u003c/td\u003e\n\u003ctd data-label=\"Nature of principal and returns\"\u003eInterest rate may change, and protection status must be checked for each product\u003c/td\u003e\n\u003ctd data-label=\"Conditions to check\"\u003eInterest rate tiers, transfer conditions\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Option\"\u003eInterest rate ETF\u003c/td\u003e\n\u003ctd data-label=\"Main purpose to consider\"\u003eInvestment reserve funds seeking short-term interest returns\u003c/td\u003e\n\u003ctd data-label=\"Nature of principal and returns\"\u003ePerformance-based product with possible loss of principal\u003c/td\u003e\n\u003ctd data-label=\"Conditions to check\"\u003eTracked benchmark, costs, trading price, settlement date\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Option\"\u003eEquity ETF\u003c/td\u003e\n\u003ctd data-label=\"Main purpose to consider\"\u003eGrowth funds to be managed over the long term\u003c/td\u003e\n\u003ctd data-label=\"Nature of principal and returns\"\u003eGains or losses from stock price movements\u003c/td\u003e\n\u003ctd data-label=\"Conditions to check\"\u003eInvestment country, industry, holdings\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Option\"\u003eTDF\u003c/td\u003e\n\u003ctd data-label=\"Main purpose to consider\"\u003eLong-term funds with a target date, such as retirement\u003c/td\u003e\n\u003ctd data-label=\"Nature of principal and returns\"\u003eAutomatic asset allocation adjustments with possible loss of principal\u003c/td\u003e\n\u003ctd data-label=\"Conditions to check\"\u003eTarget year, stock allocation, total costs\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eDeposits and installment savings accounts should not be compared based only on their stated interest rates. Each installment savings payment remains deposited for a different period. Even at the same interest rate, the interest differs from a time deposit in which the entire lump sum is deposited from the beginning.\u003c/p\u003e\n\u003cp\u003eThe protection limit for eligible deposits was raised on September 1, 2025. At the same financial institution, the principal and stipulated interest are combined for each depositor. The limit for ordinary deposits is KRW 100 million.\u003c/p\u003e\n\u003cblockquote\u003e\n\u003cp\u003eAll principal and stipulated interest on deposits and installment savings accounts held at one financial institution are protected up to a total of KRW 100 million.\u003c/p\u003e\n\u003c/blockquote\u003e\n\u003cp\u003eThis wording comes from the Financial Services Commission's “Everything You Want to Know: Deposits Protected up to KRW 100 Million Starting September 1.” Performance-based products such as funds are not covered by this protection. Check the scope of protection in the \u003ca href=\"https://www.fsc.go.kr/no040101?cnId=2817\u0026amp;curPage=81\u0026amp;pastPage=81\u0026amp;srchKey=\u0026amp;srchText=\"\u003eFinancial Services Commission's guidance dated July 23, 2025\u003c/a\u003e.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#conditions-to-check-when-choosing-an-interest-rate-etf\" class=\"anchor\" id=\"conditions-to-check-when-choosing-an-interest-rate-etf\"\u003e\u003c/a\u003eConditions to Check When Choosing an Interest Rate ETF\u003c/h2\u003e\n\u003cp\u003eInterest rate ETFs do not guarantee principal like deposits. They are managed in connection with short-term interest rate benchmarks such as CD rates or KOFR. When interest rates change, the pace at which future returns accumulate may also change.\u003c/p\u003e\n\u003cp\u003eCD stands for certificate of deposit. KOFR is a benchmark interest rate calculated from short-term funding transactions in Korea. Even if a product name includes the term risk-free reference rate, that does not mean the ETF itself is risk-free.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003e\n\u003cstrong\u003eTracked benchmark:\u003c/strong\u003e Check which interest rate the product uses as its benchmark.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eActual costs:\u003c/strong\u003e Check trading fees as well as management fees.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eTrading price:\u003c/strong\u003e Check the bid-ask spread and the difference from net asset value.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eSynthetic structure:\u003c/strong\u003e Check the risk that a derivatives counterparty may fail to meet its obligations.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eCash availability:\u003c/strong\u003e Also check the date when proceeds from a sale can be withdrawn.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eSynthetic products use derivatives contracts to replicate benchmark returns. The resulting risks are stated in each product's prospectus. For example, the \u003ca href=\"https://www.hanaroetf.com/_upload/public/fund-new/FB58E7CC6231433E/G410MK10WESAUINX7.pdf\"\u003eHANARO KOFR금리액티브 prospectus\u003c/a\u003e explicitly states the risks of over-the-counter derivatives.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#criteria-for-using-tdfs-in-pension-savings-accounts-and-irps\" class=\"anchor\" id=\"criteria-for-using-tdfs-in-pension-savings-accounts-and-irps\"\u003e\u003c/a\u003eCriteria for Using TDFs in Pension Savings Accounts and IRPs\u003c/h2\u003e\n\u003cp\u003eLong-term investors who want to reduce the work involved in managing asset allocation may consider TDFs. They generally reduce their stock allocation as the target date approaches. Even with the same target year, risk levels vary by product.\u003c/p\u003e\n\u003cp\u003ePension savings accounts and IRPs are accounts that hold money. A TDF is an investment product that can be selected within those accounts. Depositing money into an account does not automatically complete the purchase of a TDF.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eItem to check\u003c/th\u003e\n\u003cth\u003eWhat to check\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item to check\"\u003eTarget year\u003c/td\u003e\n\u003ctd data-label=\"What to check\"\u003eWhether it matches the actual retirement date or time when the money will be used\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item to check\"\u003eCurrent asset allocation\u003c/td\u003e\n\u003ctd data-label=\"What to check\"\u003eWhether the current stock allocation is bearable\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item to check\"\u003eAllocation adjustment path\u003c/td\u003e\n\u003ctd data-label=\"What to check\"\u003eHow risk changes before and after the target date\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item to check\"\u003eCosts\u003c/td\u003e\n\u003ctd data-label=\"What to check\"\u003eHow the costs of the TDF and its underlying funds are reflected\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item to check\"\u003eExisting investments\u003c/td\u003e\n\u003ctd data-label=\"What to check\"\u003eWhether stock and country allocations overlap with other accounts\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Item to check\"\u003eAccount conditions\u003c/td\u003e\n\u003ctd data-label=\"What to check\"\u003eWhich products can be purchased and what the interim withdrawal conditions are\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eA TDF does not guarantee principal or living expenses at the target date. Automatic adjustments cannot reflect an individual's spending circumstances. Differences among products are also explained in \u003ca href=\"https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/target-date-funds-investor-bulletin\"\u003eInvestor.gov's 2025 TDF guide\u003c/a\u003e.\u003c/p\u003e\n\u003cp\u003eBefore putting money into a pension account, consider whether you may need to withdraw it early. Some interim withdrawals from an IRP are restricted to legally prescribed reasons. Check with the financial institution offering the account about taxes resulting from withdrawals and account termination.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#asset-allocation-example-and-actual-risk-exposure\" class=\"anchor\" id=\"asset-allocation-example-and-actual-risk-exposure\"\u003e\u003c/a\u003eAsset Allocation Example and Actual Risk Exposure\u003c/h2\u003e\n\u003cp\u003eThe ratios below are examples for reviewing the structure. They are not recommended ratios suitable for every beginner. In particular, they should be interpreted with the understanding that dividend stocks are also stocks.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eAsset\u003c/th\u003e\n\u003cth\u003eExample weight\u003c/th\u003e\n\u003cth\u003eExpected role\u003c/th\u003e\n\u003cth\u003eRisk to check\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Asset\"\u003eDomestic stocks\u003c/td\u003e\n\u003ctd data-label=\"Example weight\"\u003e30%\u003c/td\u003e\n\u003ctd data-label=\"Expected role\"\u003eParticipate in corporate growth\u003c/td\u003e\n\u003ctd data-label=\"Risk to check\"\u003eConcentration in the domestic market and specific industries\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Asset\"\u003eOverseas stocks\u003c/td\u003e\n\u003ctd data-label=\"Example weight\"\u003e25%\u003c/td\u003e\n\u003ctd data-label=\"Expected role\"\u003eParticipate in the growth of overseas companies\u003c/td\u003e\n\u003ctd data-label=\"Risk to check\"\u003eStock price and exchange rate movements\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Asset\"\u003eBonds\u003c/td\u003e\n\u003ctd data-label=\"Example weight\"\u003e20%\u003c/td\u003e\n\u003ctd data-label=\"Expected role\"\u003eInterest income and reduced volatility\u003c/td\u003e\n\u003ctd data-label=\"Risk to check\"\u003eInterest rate changes and issuer credit risk\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Asset\"\u003eGold\u003c/td\u003e\n\u003ctd data-label=\"Example weight\"\u003e5%\u003c/td\u003e\n\u003ctd data-label=\"Expected role\"\u003eDiversification from other assets\u003c/td\u003e\n\u003ctd data-label=\"Risk to check\"\u003ePrice movements and no interest or dividends of its own\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Asset\"\u003eU.S. dollars\u003c/td\u003e\n\u003ctd data-label=\"Example weight\"\u003e5%\u003c/td\u003e\n\u003ctd data-label=\"Expected role\"\u003eCurrency diversification\u003c/td\u003e\n\u003ctd data-label=\"Risk to check\"\u003ePossible foreign exchange losses in Korean won terms\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Asset\"\u003eDividend stocks\u003c/td\u003e\n\u003ctd data-label=\"Example weight\"\u003e10%\u003c/td\u003e\n\u003ctd data-label=\"Expected role\"\u003eDividend cash flow\u003c/td\u003e\n\u003ctd data-label=\"Risk to check\"\u003eFalling stock prices and reduced dividends\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Asset\"\u003eREITs\u003c/td\u003e\n\u003ctd data-label=\"Example weight\"\u003e5%\u003c/td\u003e\n\u003ctd data-label=\"Expected role\"\u003eReal estate-related cash flow\u003c/td\u003e\n\u003ctd data-label=\"Risk to check\"\u003eVacancies, borrowing costs, and price movements\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Asset\"\u003eTotal\u003c/td\u003e\n\u003ctd data-label=\"Example weight\"\u003e100%\u003c/td\u003e\n\u003ctd data-label=\"Expected role\"\u003eDivide roles among assets\u003c/td\u003e\n\u003ctd data-label=\"Risk to check\"\u003eOverall risk must be reviewed separately\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eDomestic stocks at 30% and overseas stocks at 25% add up to 55%. Adding 10% in dividend stocks brings the stock allocation to 65%. The 5% in REITs may also decline in price along with the stock market.\u003c/p\u003e\n\u003cp\u003eBonds, gold, and U.S. dollars together account for 30%. This ratio does not indicate how much loss will be prevented. When interest rates rise, fixed-rate bond prices may fall. You can learn about the relationship between interest rates and bond prices in \u003ca href=\"https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/what-are\"\u003eInvestor.gov's bond guide\u003c/a\u003e.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#comparing-simple-portfolios-and-common-mistakes\" class=\"anchor\" id=\"comparing-simple-portfolios-and-common-mistakes\"\u003e\u003c/a\u003eComparing Simple Portfolios and Common Mistakes\u003c/h2\u003e\n\u003cp\u003eHaving more products does not automatically increase diversification. Check both the types of assets and the actual holdings. Multiple ETFs may hold the same companies.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003ePortfolio structure\u003c/th\u003e\n\u003cth\u003eManagement method\u003c/th\u003e\n\u003cth\u003eEasy-to-miss point\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Portfolio structure\"\u003eProducts tracking the S\u0026amp;P 500, Nasdaq-100, and Dow Jones U.S. Dividend 100\u003c/td\u003e\n\u003ctd data-label=\"Management method\"\u003eBuy separately by U.S. stock index\u003c/td\u003e\n\u003ctd data-label=\"Easy-to-miss point\"\u003eAll focus on U.S. stocks and may have overlapping holdings\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Portfolio structure\"\u003e60% stocks and 40% bonds\u003c/td\u003e\n\u003ctd data-label=\"Management method\"\u003eAdjust directly to maintain the set ratios\u003c/td\u003e\n\u003ctd data-label=\"Easy-to-miss point\"\u003eStocks and bonds may decline together\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Portfolio structure\"\u003eTDF-centered\u003c/td\u003e\n\u003ctd data-label=\"Management method\"\u003eAsset manager adjusts asset allocation\u003c/td\u003e\n\u003ctd data-label=\"Easy-to-miss point\"\u003eOverall allocation, including other accounts, must be reviewed directly\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Portfolio structure\"\u003eDirect allocation among multiple assets\u003c/td\u003e\n\u003ctd data-label=\"Management method\"\u003eManage target ratios for each asset\u003c/td\u003e\n\u003ctd data-label=\"Easy-to-miss point\"\u003eMore products and greater management burden\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eAn action plan can reduce the tendency to delay decisions while searching for the perfect investment. First understand how the product can generate losses. Then invest only an amount you can bear.\u003c/p\u003e\n\u003cp\u003eCommon mistakes include:\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003e\n\u003cstrong\u003eViewing gold as an asset that guarantees principal:\u003c/strong\u003e Gold can also be sold below its purchase price.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eClassifying dividend stocks as safe assets:\u003c/strong\u003e Stock price losses may exceed the dividends received.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eThinking regular purchases eliminate losses:\u003c/strong\u003e Buying in installments does not remove the risk of the investment.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eReading the distribution rate as the total return:\u003c/strong\u003e Both distributions and changes in the price of the assets held must be considered.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eBuying real estate first when the lump sum grows:\u003c/strong\u003e First consider the concentration of funds and the time required to sell.\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch2\u003e\n\u003ca href=\"#example-calculation-for-receiving-krw-3-million-a-month-from-krw-700-million\" class=\"anchor\" id=\"example-calculation-for-receiving-krw-3-million-a-month-from-krw-700-million\"\u003e\u003c/a\u003eExample Calculation for Receiving KRW 3 Million a Month From KRW 700 Million\u003c/h2\u003e\n\u003cp\u003eEven if KRW 700 million earns 6% annually, receiving KRW 3 million per month after tax is not guaranteed. The calculation below assumes an annual cash dividend yield of 6%. It applies only a withholding rate of 15.4% to ordinary taxable domestic dividends.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCalculation item\u003c/th\u003e\n\u003cth\u003eFormula\u003c/th\u003e\n\u003cth\u003eResult\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation item\"\u003eAnnual pre-tax dividends\u003c/td\u003e\n\u003ctd data-label=\"Formula\"\u003e700,000,000 won × 6%\u003c/td\u003e\n\u003ctd data-label=\"Result\"\u003e42,000,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation item\"\u003eAverage monthly pre-tax dividends\u003c/td\u003e\n\u003ctd data-label=\"Formula\"\u003e42,000,000 won ÷ 12 months\u003c/td\u003e\n\u003ctd data-label=\"Result\"\u003e3,500,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation item\"\u003eAnnual amount withheld\u003c/td\u003e\n\u003ctd data-label=\"Formula\"\u003e42,000,000 won × 15.4%\u003c/td\u003e\n\u003ctd data-label=\"Result\"\u003e6,468,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation item\"\u003eAnnual amount after withholding\u003c/td\u003e\n\u003ctd data-label=\"Formula\"\u003e42,000,000 won - 6,468,000 won\u003c/td\u003e\n\u003ctd data-label=\"Result\"\u003e35,532,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation item\"\u003eAverage monthly amount after withholding\u003c/td\u003e\n\u003ctd data-label=\"Formula\"\u003e35,532,000 won ÷ 12 months\u003c/td\u003e\n\u003ctd data-label=\"Result\"\u003e2,961,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eThe 15.4% consists of 14% income tax and 1.4% local income tax. The general withholding structure for taxable fund income can also be found in the \u003ca href=\"https://midasasset.com/wp-content/uploads/2021/10/tujaseolmyeongseo-maidaseu-maidaseu-KoreaStockaektibeu-jeungkwon-sangjangjisutujasintakjusik_202404.pdf\"\u003eMidas Asset Management prospectus\u003c/a\u003e. This table does not reflect final tax settlement or separate costs.\u003c/p\u003e\n\u003cp\u003eAnnual financial income generally also requires consideration of whether it is subject to aggregate taxation. The threshold for financial income subject to aggregate taxation is KRW 20 million per year. Tax-exempt income and separately taxed income should be assessed separately.\u003c/p\u003e\n\u003cp\u003eStarting with payments made in 2026, a special provision applies to dividends from qualifying high-dividend companies. Separate taxation requires confirming eligibility and submitting an application. The same tax treatment does not apply to every payment simply because it is a dividend. Check the detailed conditions in the \u003ca href=\"https://www.nts.go.kr/nts/na/ntt/selectNttInfo.do?mi=2163\u0026amp;nttSn=1349597\"\u003eNational Tax Service's guidance dated March 9, 2026\u003c/a\u003e.\u003c/p\u003e\n\u003cp\u003eThe annual return of 6% is an assumption for this calculation, not a guaranteed return. The monthly average also differs from the amount actually paid each month. The market value of the principal may also fluctuate.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#living-expense-withdrawal-schedules-and-investment-cash-flow\" class=\"anchor\" id=\"living-expense-withdrawal-schedules-and-investment-cash-flow\"\u003e\u003c/a\u003eLiving Expense Withdrawal Schedules and Investment Cash Flow\u003c/h2\u003e\n\u003cp\u003eTo cover living expenses with investment returns, payment dates and withdrawal dates must be coordinated. It is difficult to assess monthly spending based only on total annual dividends. Money to use before dividends are paid must also be set aside.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eSchedule to check\u003c/th\u003e\n\u003cth\u003eReason for checking\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Schedule to check\"\u003eRent, credit card, and insurance payment dates\u003c/td\u003e\n\u003ctd data-label=\"Reason for checking\"\u003eIdentify the dates when cash is actually needed\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Schedule to check\"\u003eDividend and distribution payment dates\u003c/td\u003e\n\u003ctd data-label=\"Reason for checking\"\u003eCheck whether payments arrive before expenses are due\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Schedule to check\"\u003eETF sale proceeds settlement date\u003c/td\u003e\n\u003ctd data-label=\"Reason for checking\"\u003eCheck the time between selling and withdrawing funds\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Schedule to check\"\u003eTax payment dates\u003c/td\u003e\n\u003ctd data-label=\"Reason for checking\"\u003eSet aside money for taxes separately from living expenses\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Schedule to check\"\u003eDeposit maturity dates\u003c/td\u003e\n\u003ctd data-label=\"Reason for checking\"\u003eCheck whether maturity matches the time when the money is needed\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eDomestically listed ETFs generally settle 2 business days after the trade date. Do not assume that sale proceeds can be withdrawn immediately. Check the settlement structure in the \u003ca href=\"https://regulation.krx.co.kr/contents/RGL/03/03060102/RGL03060102.jsp\"\u003eKorea Exchange ETF settlement system\u003c/a\u003e.\u003c/p\u003e\n\u003cp\u003eSet your financial independence goal based on actual living expenses. List expected income, such as public pensions, separately. Review whether investment assets can cover the remaining expenses. As prices rise, the amount needed to maintain the same standard of living also increases.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#how-to-rebalance-after-buying\" class=\"anchor\" id=\"how-to-rebalance-after-buying\"\u003e\u003c/a\u003eHow to Rebalance After Buying\u003c/h2\u003e\n\u003cp\u003eRebalancing means bringing changed asset weights back in line with target ratios. When prices rise or fall, the original weights also change. New investment funds can also be used to increase underweight assets.\u003c/p\u003e\n\u003col\u003e\n\u003cli\u003e\n\u003cstrong\u003eGather the current market values.\u003c/strong\u003e Review assets across multiple accounts together.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eCalculate the actual weights.\u003c/strong\u003e Divide the market value of each asset by the total investment amount.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eCompare them with the target weights.\u003c/strong\u003e Also review whether the timing for using the money has changed.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eCheck adjustment costs.\u003c/strong\u003e Calculate trading fees and taxes.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eAdjust as much as necessary.\u003c/strong\u003e Also check whether the allocation can be adjusted through additional contributions.\u003c/li\u003e\n\u003c/ol\u003e\n","tags":["Diversification","Asset allocation","Everyday Finance","Long-term investment","Rebalancing","Investor psychology"],"faqs":[{"question":"Should I wait until I finish learning about investing before I start?","answer":"You do not need to learn everything. However, first understand the possibility of losing your principal, the costs, and the conditions for converting the investment to cash. You can start with an amount that will not disrupt your daily life."},{"question":"Does keeping a lump sum in a deposit account also count as asset management?","answer":"A deposit account is also an asset management tool suited to a specific time of use and the goal of preserving principal. If you will use the money soon, first check the maturity date and early withdrawal terms."},{"question":"Do interest rate-based ETFs guarantee returns every day?","answer":"No. They are managed in connection with interest rate benchmarks, but trading prices and costs affect actual returns. They are also not covered by deposit insurance."},{"question":"If I sell an interest rate-based ETF, can I use the money for living expenses right away?","answer":"ETFs listed in Korea generally settle 2 business days after the trade date. Do not assume you can withdraw the money immediately after selling. You need to check when withdrawals are available from your brokerage account."},{"question":"Can I choose a TDF based only on the target year in its name?","answer":"In addition to the target year, you should check the current allocation to stocks and how the allocation changes over time. Even with the same target year, risks and costs vary by product."},{"question":"If I put money into a pension savings account or IRP, is it invested automatically?","answer":"Simply depositing money does not complete the purchase of the products you want. Check the account's investment instructions and the products it actually holds. You should also review separate settings, such as the default investment option system."},{"question":"Can I avoid losing my principal by buying only gold?","answer":"The price of gold can also fall. Gold itself does not generate interest or dividends. Decide whether it suits the goal of diversifying your overall assets."},{"question":"If I buy several U.S. stock ETFs, will that provide sufficient diversification?","answer":"You cannot determine that from the number of ETFs alone. Multiple products may be concentrated in the same country and companies. Check their holdings and the allocation of your overall assets."},{"question":"Can a portfolio of 60% stocks and 40% bonds prevent losses?","answer":"This allocation does not guarantee protection against losses. Depending on market conditions, stocks and bonds can fall at the same time. Set the allocation based on when you will need the money."},{"question":"If I invest 700 million won at 6% annually, will I receive 3 million won per month after taxes?","answer":"Assuming an annual cash dividend yield of 6%, the annual pretax dividend would be 42 million won. Factoring in only the 15.4% withholding tax rate, the monthly average would be 2,961,000 won. The result will vary depending on the final tax and actual dividend amount."},{"question":"Does a high dividend yield mean a high total return?","answer":"You cannot determine total return from the dividend yield alone. The decline in the asset's price may be greater than the dividends received. Account for dividends, price changes, and costs."},{"question":"Should I move my savings into real estate once they grow?","answer":"You do not need to choose real estate simply because the amount has grown. First distinguish between buying for your own residence and buying for rental purposes. You should review the debt burden, concentration of funds, and the time required to sell."}],"sources":[{"url":"https://www.investor.gov/introduction-investing/getting-started/asset-allocation","title":"Investor.gov, Asset Allocation and Diversification","type":"source"},{"url":"https://www.fsc.go.kr/no040101?cnId=2817\u0026curPage=81\u0026pastPage=81\u0026srchKey=\u0026srchText=","title":"Financial Services Commission, We Answer All Your Questions. Deposits of Up to KRW 100 Million Protected Starting September 1, July 23, 2025","type":"source"},{"url":"https://www.hanaroetf.com/_upload/public/fund-new/FB58E7CC6231433E/G410MK10WESAUINX7.pdf","title":"NH-Amundi HANARO KOFR Interest Rate Active Special Asset Exchange-Traded Investment Trust Prospectus","type":"source"},{"url":"https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/target-date-funds-investor-bulletin","title":"Investor.gov, Target Date Funds Investor Bulletin, March 25, 2025","type":"source"},{"url":"https://investpension.miraeasset.com/file/pdfView.do?fileNm=1685425822834.pdf","title":"Mirae Asset Investment and Pension Center, 23 Ways to Use an IRP Properly","type":"source"},{"url":"https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/what-are","title":"Investor.gov, What Are Corporate Bonds?","type":"source"},{"url":"https://www.gold.org/goldhub/research/relevance-of-gold-as-a-strategic-asset-2025/risks-and-challenges","title":"World Gold Council, Potential risks and challenges","type":"source"},{"url":"https://midasasset.com/wp-content/uploads/2021/10/tujaseolmyeongseo-maidaseu-maidaseu-KoreaStockaektibeu-jeungkwon-sangjangjisutujasintakjusik_202404.pdf","title":"Midas Asset Management, Midas KoreaStock Active ETF Prospectus, April 2024","type":"source"},{"url":"https://www.nts.go.kr/nts/na/ntt/selectNttInfo.do?mi=2163\u0026nttSn=1349597","title":"National Tax Service, Reduced Tax Burden Through Separate Taxation of Dividends from High-Dividend Companies, March 9, 2026","type":"source"},{"url":"https://regulation.krx.co.kr/contents/RGL/03/03060102/RGL03060102.jsp","title":"Korea Exchange, ETF Settlement System","type":"source"}],"images":[{"id":1433,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MjA3MTMsInB1ciI6ImJsb2JfaWQifX0=--0f18582bdc0b016ea72819ab9a51f86e9f39787d/ai-70156f5a.webp","is_representative":true,"generation_method":"ai_photo","license":"ai_generated","mime_type":"image/webp","width":1536,"height":1024,"translations":{"ko":{"alt":"사무실에서 원형·막대그래프가 담긴 재무 자료를 검토하는 여성","caption":"한 여성이 여러 투자 자료를 살펴보며 자산배분을 검토하고 있다.","description":null},"en":{"alt":"Woman reviewing financial reports with pie charts and bar graphs at an office desk","caption":"A woman reviews investment data while considering how to allocate her assets.","description":null},"ja":{"alt":"オフィスの机で円グラフや棒グラフが載った財務資料を確認する女性","caption":"女性が複数の投資資料を見ながら資産配分を検討している。","description":null},"es":{"alt":"Mujer revisando informes financieros con gráficos circulares y de barras en una oficina","caption":"Una mujer analiza datos de inversión para decidir cómo distribuir sus activos.","description":null},"id":{"alt":"Perempuan meninjau laporan keuangan dengan diagram lingkaran dan batang di meja kantor","caption":"Seorang perempuan memeriksa data investasi untuk mempertimbangkan alokasi aset.","description":null},"pt":{"alt":"Mulher analisando relatórios financeiros com gráficos de pizza e barras em um escritório","caption":"Uma mulher examina dados de investimentos para planejar a alocação de seus ativos.","description":null},"zh-hant":{"alt":"女子在辦公桌前查看含圓餅圖與長條圖的財務報告","caption":"一名女子檢視多份投資資料，思考如何配置資產。","description":null},"de":{"alt":"Frau prüft im Büro Finanzberichte mit Kreis- und Balkendiagrammen","caption":"Eine Frau wertet Anlagedaten aus, um die Aufteilung ihres Vermögens zu planen.","description":null}}},{"id":1434,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MjA3MTksInB1ciI6ImJsb2JfaWQifX0=--c3505c453f8e8389fd4cb91554a2854e7302d9e4/ai-195c4a00.webp","is_representative":false,"generation_method":"ai_semi","license":"ai_generated","mime_type":"image/webp","width":1536,"height":1024,"translations":{"ko":{"alt":"테이블 위 투자 차트와 자산배분 그래프를 함께 검토하는 두 사람","caption":"두 사람이 차트와 모형을 활용해 자산배분 전략을 논의하고 있다.","description":null},"en":{"alt":"Two people reviewing investment charts and an asset allocation graphic at a table","caption":"They use charts and models to discuss an asset allocation strategy.","description":null},"ja":{"alt":"テーブルで投資チャートと資産配分グラフを確認する二人","caption":"二人がチャートと模型を使って資産配分戦略を検討している。","description":null},"es":{"alt":"Dos personas revisan gráficos de inversión y un diagrama de asignación de activos","caption":"Ambos analizan gráficos y modelos para definir una estrategia de asignación de activos.","description":null},"id":{"alt":"Dua orang meninjau grafik investasi dan diagram alokasi aset di meja","caption":"Mereka menggunakan grafik dan model untuk membahas strategi alokasi aset.","description":null},"pt":{"alt":"Duas pessoas analisam gráficos de investimento e um diagrama de alocação de ativos","caption":"Elas usam gráficos e modelos para discutir uma estratégia de alocação de ativos.","description":null},"zh-hant":{"alt":"兩人在桌前查看投資圖表與資產配置示意圖","caption":"兩人運用圖表與模型討論資產配置策略。","description":null},"de":{"alt":"Zwei Personen prüfen Anlagediagramme und eine Grafik zur Vermögensaufteilung","caption":"Sie besprechen mithilfe von Diagrammen und Modellen eine Strategie zur Vermögensaufteilung.","description":null}}}],"published_at":"2026-09-21T08:38:22+09:00","updated_at":"2026-09-21T08:38:22+09:00","license":"cc_by","translation_status":"reviewed","available_locales":["ko","en","ja","es"],"data_locales":["ko","en","ja","es","id","pt","zh-hant","de"],"url":"https://injoys.com/en/articles/how-to-invest-savings-for-beginners"}