Rise in ETF Investments in Retirement Pensions and Strategic Approaches
There is a notable increase in investments in exchange-traded funds (ETFs) within retirement pensions. According to Hong Jun-young, the head of Mirae Asset Management, ETF investments have tripled compared to the end of 2022, reaching 15 trillion won. This trend reflects an increased interest among investors in strategically managing their retirement funds. In particular, investments in stable U.S. index-type ETFs and emerging markets such as India and Vietnam are prominent within retirement pensions.
Investors working at large corporations in Seoul are maximizing tax benefits of retirement saving accounts by utilizing various ETFs. Furthermore, experts suggest investing predominantly in U.S. stock ETFs while also diversifying into emerging markets to maximize returns. They also recommend choosing suitable TDFs (Target Date Funds), like those targeting 2030, 2035, or 2040, to enhance long-term investment performance. By utilizing pension savings accounts and individual retirement accounts (IRPs), investors can receive tax deductions up to 9 million won, as well as improve yields through tax deferral.
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The secret to a strong retirement pension is... Diversified investment in emerging markets centered on US indicesWhy did they invest there... Relaxed pension account for a manager at a major company in Gangnam. The cover story is about the product chosen by the top 10% in earnings rate. The secret to a strong retirement pension is diversified investments in emerging markets centered on US indices. According to Mirae Asset's DC account standards, the Nasdaq 100 ETF is the most included, US stock-type products rank high. If managing accounts is difficult, utilize TDF. Securities firms provide recommended portfolios. If you deposit into a pension account or IRP, you can get an annual tax deduction of up to 9 million won.
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