My Savings Plan Matured: What Should I Do Now?
My 3-year installment savings of 12 million won is coming in next week. Putting it straight back into another savings plan feels iffy because the rates are so-so, and after the trauma of cutting my losses on stocks last year, I can't easily get back into them.
For now, I've just parked it in a high-yield savings account, and I'm curious how people in similar situations handled it. I'm considering deposits, bonds, or dividend stocks.
8 answers
First off, congrats lol. Saving up 1,200 isn't easy—you've worked hard. If I were you, I'd split half into a deposit and half into a parking account and give myself a breather.
When you say the rates are meh, what rate are you actually looking at? If you go after bank special offers, you can still get close to 4% a year — parking it in a regular account just means letting it slip away.
If you have trauma from cutting your losses last year, don't touch stocks for a while. I left that unaddressed too, and it only messed my head up even more. And don't forget that dividend stocks are still stocks in the end.
Isn't now a bit of a bad time to get into bonds? The direction of interest rates is unclear, and if you take a long duration position, you could end up getting burned if rates move the other way.
I was in a similar situation, and I kept rolling over 3-month deposits, switching to each special offer as it came out. With a fixed rate, it was easy on the mind.
Honestly, the very idea of throwing 1,200 into something all at once is risky in itself. If you're the type who's been traumatized by cutting losses, a principal-guaranteed product is the way to go.
Got a source? Where are you even finding 4% annual special offers these days lol. I spent all my time just looking for that.
Well, I'm not so sure about that. "Waiting parked in cash" is the riskiest choice. While you put off deciding, you can assume real interest rates will stay negative.