Kim Ji-hoon, an workplace employee in his 40s, grew his 300 million received ($220,000) funding into 1.5 billion received over 5 years. Now financially unbiased, he earns a steady post-retirement earnings of about 4 million received monthly — sufficient, he says, to reside comfortably and journey after leaving his job.
Kim shared his funding strategy within the ebook “Retire with Simply 3 U.S. ETFs,” which has bought over 30,000 copies since its launch in March, turning into one of many yr’s most talked-about monetary titles.
Trade traded funds (ETFs) are funding funds that personal monetary belongings like shares, bonds and commodities which are traded on exchanges.
Reasonably than chasing fast earnings, Kim emphasizes what he calls “lazy investing” — sustaining long-term, constant investments that produce regular, above-average returns. “It’s higher to maintain ending fourth or fifth persistently than to win first place as soon as and cease,” he mentioned.
Lee Eun-mi, an editor at Leaders E book, which revealed the title, mentioned the idea resonated with many readers. “For busy employees, time-intensive energetic investing might be aggravating and doesn’t assure higher outcomes,” she mentioned. “Kim’s technique reveals {that a} low-effort, regular strategy can yield robust, sustainable positive aspects.”
Planning for retirement: the 4 p.c rule
Kim advises starting with a transparent goal for retirement financial savings, utilizing the so-called “4 p.c rule.” The rule means that retirees can withdraw about 4 p.c of their complete belongings annually with out working out of cash for roughly 30 years.
As an example, somebody who expects to spend 3 million received a month after retirement would wish about 900 million received in complete financial savings. Kim additionally stresses the significance of offsetting inflation, noting that with a median value enhance of three to 4 p.c yearly, buyers want returns of not less than 6 p.c to keep up their buying energy.
Kim’s funding technique focuses on three complementary U.S. ETFs designed to stability stability, development and earnings and assist folks construct monetary freedom.
The S&P 500 ETF represents the general U.S. market by monitoring 500 main corporations and supplies long-term stability. The Nasdaq 100 ETF captures development by investing in main tech companies corresponding to Apple, Microsoft and Google, which drive innovation and long-term growth.
The Dow Jones Dividend 100 ETF focuses on corporations with a historical past of regular dividend payouts, together with Coca-Cola and Johnson & Johnson, providing liquidity and a supply of passive earnings.
By combining these three ETFs, Kim believes buyers can construct a well-rounded portfolio able to weathering market volatility whereas nonetheless rising over time.
A mindset for regular investing
Kim says his ebook will not be about stock-picking or market timing, however about adopting a mindset of persistence and perception within the long-term energy of the U.S. market. “You don’t want to investigate each chart or predict each motion,” he mentioned. “For those who make investments passively and persistently on this planet’s main market, you possibly can obtain significant returns.”
He recommends well-established ETFs with low charges over smaller, trend-driven merchandise. “When doubtful, it’s safer to belief massive, confirmed funds which have stood the check of time,” he mentioned.
After publishing his ebook, Kim left his job to work as a author, lecturer and funding coach. He mentioned he initially nervous that revealing his funds could be seen as bragging. “However I wished to indicate that having each wage and funding earnings makes an actual distinction — and that it’s achievable by way of a easy, disciplined strategy,” he mentioned.
Many readers, he added, inform him they envy his success. His response is all the time the identical: “Don’t envy me — begin now. My technique doesn’t require particular perception or luck. For those who belief the U.S. market and make investments steadily for 5 – 6 years, anybody can obtain outcomes.”
Kim is at the moment writing a follow-up ebook, due out subsequent yr, to share updates to his technique. “The most effective sort of funding,” he mentioned, “is one the place you belief the market, keep affected person and let time do the work.”
This text from the Hankook Ilbo, the sister publication of The Korea Occasions, is translated by generative AI and edited by The Korea Occasions.
