My Experience Starting ETFs After Only Saving in Savings Accounts
For five years, I only put money into savings accounts, but with interest rates stuck like this, I finally made up my mind and switched to ETFs.
At first I was scared, so I only put in 300,000 won a month. After six months, I can really feel that it's better than a savings account. Of course, there are times when it drops.
But honestly, what I regret most is not starting earlier. I spent a whole year just watching YouTube to 'study' lol.
In conclusion, just buy the S&P like everyone says... no, actually, it seems right to start with an amount you can afford.
5 answers
True, honestly the year I spent watching YouTube is what I regret most lol. I wasted mine the same way.
Well, that's a bit... It's risky to claim based on six-month returns that it's better than a savings account. That's only because we're in a bull market right now; once you go through a -30% stretch, you'll probably feel differently. An ETF isn't 'better' than savings—it's a 'different product.' You're taking on volatility to aim for higher expected returns, so the key is whether you can handle that risk. At 300,000 won a month, the amount is reasonable, but you're using spare money, right? If you're dipping into living expenses or emergency funds, you should sell and get out right now.
I also switched over around the same time. I do half S&P and half Nasdaq, with a few dividend stocks mixed in, and it’s a different kind of fun checking my account than getting savings account interest. That said, for the first year, the answer is really not to look at it. I turned off notifications and only set up monthly automatic buys.