Herald Monifesta 2024
Kim Su-han, Senior Manager of Shinhan Bank Pension Solution
‘Collect, Roll, Manage’ According to Age
Withdrawal and Tax-saving Plans with Monthly Dividend-type ETF,
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, ‘“Many people are aware that preparing private pensions is necessary because relying solely on public pensions like the National Pension can make life difficult in retirement, but many do not know how to manage their pensions well. Some people cash out their pensions after changing jobs or retiring and use the money to pay off real estate loans. Due to not paying proper attention to pensions while working, some people end up with either very conservative investment strategies or aggressively investing in risky assets after retirement, leading to ‘reverse selection’.”’,
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, ‘Kim Su-han, Senior Manager of Shinhan Bank’s Retirement Pension Solution Department, who has drawn attention from tech-savvy individuals with the guide to pension management using recently listed index funds (ETFs) called ‘Pension Snowball: ETF Investment Habits’, pointed out the importance of pension management in an interview with Herald Economy. Leading the way in pension investment through ETFs for 25 years in the securities and asset management industry, he is paying attention to the increased importance of retirement pensions, which have doubled to 382 trillion won over the past 5 years.’,
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, ‘Senior Kim said, “When you look at those who manage their pensions, they are divided into extreme cases where more than 90% of their assets are placed in fixed deposits, only receiving interest that does not keep up with inflation, or making extreme ‘all-in’ investments in certain countries, themes, or sectors.”’,
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, ‘He continued, “By investing in index funds such as Nasdaq, S&P500, and KOSPI, one can reduce volatility and participate in growth.” Kim Senior believes that it is necessary to approach pension management from the perspective of life cycle. In their 30s, they should steadily accumulate seed money through investments in excellent indexes such as S&P500 and Nasdaq, in their 40s, they should allocate assets and manage risks through diversified investments, and starting in their 50s approaching retirement, they should reduce the proportion of risky assets such as stocks and plan for withdrawal and tax savings through investments in monthly dividend-type ETFs.’,
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, ‘Due to the nature of long-term pension management that requires being unaffected by small and large short-term events that influence the financial markets, maintaining principles in investment, a ‘firm conviction’, is also important. The first principle is portfolio diversification. He advised, “It is important to divide the allocation between advanced and emerging countries by a 2:1 ratio and invest 40-50% in risky assets such as stocks while allocating 50-60% to safe assets such as bonds, fixed deposits, etc.” When selecting assets to invest in, prioritizing core assets is also a principle. Kim Senior said, “If it’s stocks, invest in U.S. stocks or Korean stocks like Samsung Electronics or SK Hynix, and in real estate, invest in core assets that are straightforward, clear, and easy to understand, such as apartments in Gangnam, Seoul, focusing on high-quality assets. You should aim for assets that can provide returns within the overall market’s upward trend, as niche markets are not easy to generate profits from and stock selection in such markets is difficult.”’,
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, ‘The last principle is rebalancing. “While it is difficult to predict the market, we can respond,” he said. “By determining the proportion of stocks based on your risk tolerance and reinvesting gains from stocks into bonds or deposits every 6 months to 1 year to rebalance to the original proportion, you can manage risks while aiming for upward movements. Realistically, it is important to adapt to the market in this way,” he emphasized.’,
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, ‘Kim Senior will speak at the “Money Fiesta” event on the 2nd of next month at The Plaza in Gangnam-gu, Seoul under the topic of ‘The Necessity of Pension Asset Management and Investment Strategies’. Specific strategies for pension management by age group and risk preference will be introduced so that retirement pensions can become a solid means of preparing for old age. Attendance for the seminar can be registered on the Herald Monifesta 2024 website. Free registration is available until the 30th.’,
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, ‘By Kang Seung-yeon, Reporter’,
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