Stocks vs Crypto vs Savings Account on a 2.5M KRW Monthly Salary
I'm a new graduate with a monthly take-home pay of about 2.5 million KRW. I'm looking to save/invest around 500,000 to 800,000 KRW each month. With interest rates high these days, a savings account seems like a good option, and people are saying stocks are at a low, so I'm torn. Crypto seems too risky... My current goal is to save up for a jeonse deposit within 5 years. I'd appreciate any advice on a smart way to allocate my money.
5 answers
A savings account is the safest option. These days, a fixed deposit rate of 4-5% isn't bad. While stocks are said to be at the bottom, there's still a possibility of further decline. Since your goal is to secure a jeonse deposit in 5 years, it's best to minimize risk. I recommend putting the full amount into a savings account.
I had a similar dilemma, and I ended up splitting it 70% savings account and 30% stocks. I'd never recommend crypto—speaking from experience. For stocks, sticking with dividend stocks or ETFs is more stable, and using a savings account to secure safe assets while gradually building experience works well.
If your goal is to save for a jeonse deposit, a savings account is pretty much the right answer. Stocks are too volatile in the short term, so there's a risk you won't hit your target amount within five years. Not to mention crypto. How about just putting 800,000 won into a savings account each month and dabbling in stocks with whatever's left over?
Interest rates are high, but considering inflation, savings accounts alone might feel lacking. I split it as 500,000 won into savings, 200,000 won into stocks (KOSPI 200 ETF), and 100,000 won into crypto (a small amount of Bitcoin). I only put a tiny amount into crypto, and in the long run, I think increasing the stock allocation is better.
If you need the money for a jeonse deposit in 5 years, a savings account is the only way to go. Stocks require a 10-year horizon or more, not 5 years, and crypto is basically a lottery. These days, there are also products like youth housing subscription accounts, so look into those. If you have a fixed savings goal, playing it safe is the best approach.