One Year of Running an ISA Account (Returns Are a Secret)
Last year, I opened an ISA account for the first time, put a few ETFs in it, and ran it for about a year. I started because of the tax benefits, and compared with a regular account, it definitely feels less stressful psychologically.
But it’s not all advantages—there are restrictions on partial withdrawals or changing accounts, so it may not suit people who need quick access to cash. I plan to keep mine for the time being. Has anyone here managed dividend stocks in an ISA?
7 answers
Agreed—the tax benefits are more noticeable than I expected.
I've been running dividend stocks in an ISA for three years now, but once dividend income exceeds KRW 2 million, it's subject to comprehensive taxation anyway, so it ends up being the same as a regular account. The ISA is only meaningful up to the tax-free limit of KRW 2 million (KRW 4 million for the low-income type), and any excess is subject to 9% separate taxation, so if you focus on high-dividend stocks, you could actually end up worse off. So I split my investments: dividend stocks in a regular account and growth stocks in the ISA.