Savings vs Stocks: A Beginner's Dilemma
I'm planning to set aside 500,000 won from my monthly salary. Would a savings account be safer? Or should I dip into stocks little by little? I'll need a lump sum in about 5 years. Stocks still scare me, so I'm only considering a small amount.
Advice from the pros would be much appreciated.
8 answers
Recommended Savings Account
Stocks are indeed scary lol
I do both
There's no place with good savings account interest rates either.
For 5 years, a savings account seems better. Stocks fluctuate a lot in the short term, so it's hard to guarantee the principal within 5 years. If the savings rate is around 3%, wouldn't it be better to invest safely?
Start with small investments in stocks. I've been putting 100,000 won into ETFs every month for the past three years, and I've made a decent profit. Five years is plenty of time.
Savings accounts don't even give interest... I think stocks are the answer. Instead, you can diversify and go long-term. But if your goal is 5 years, you have to take on some risk.
Well, the KOSPI is at 2400 now, will it rise in 5 years? Personally, I recommend a half-and-half approach of savings account plus small stock investments. That way you get stability and also gain experience.