A Small-Investment Strategy Even Salaried Workers Can Start (3-Minute Summary)
Simply setting aside 300,000 won every month can go a long way toward retirement. The key is compound interest and time.
- Diversify into index funds
- For dividend stocks, focus on dividend growth rate rather than dividend yield
- The worse the economy, the more consistently you should invest through dollar-cost averaging
Obviously, the younger you are, the better. If you're in your early 30s, you can enjoy 30 years of compound interest—so start now.
3 answers
Yeah, index funds are the answer.
I've been putting in 300,000 won every month for about 5 years now, and the hardest part is enduring the losses during downturns. Still, sticking with it consistently, I'm finally starting to see the compound interest effect. And I only just learned about dividend growth rate too lol
Well, even if you save 300,000 won each month for 30 years, it's uncertain how much that will be after inflation. And past performance doesn't guarantee future returns. I think we need to run the numbers.