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 secure post-retirement earnings of about 4 million received monthly — sufficient, he says, to dwell comfortably and journey after leaving his job.
Kim shared his funding method within the e book “Retire with Simply 3 U.S. ETFs,” which has bought over 30,000 copies since its launch in March, changing into one of many yr’s most talked-about monetary titles.
Change traded funds (ETFs) are funding funds that personal monetary belongings like shares, bonds and commodities which can be traded on exchanges.
Fairly than chasing fast income, 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 constantly than to win first place as soon as and cease,” he stated.
Lee Eun-mi, an editor at Leaders Ebook, which printed the title, stated the idea resonated with many readers. “For busy employees, time-intensive energetic investing will be traumatic and doesn’t assure higher outcomes,” she stated. “Kim’s technique reveals {that a} low-effort, regular method can yield sturdy, 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 whole 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 whole financial savings. Kim additionally stresses the significance of offsetting inflation, noting that with a mean worth enhance of three to 4 p.c yearly, buyers want returns of at the least 6 p.c to take care of their buying energy.
Kim’s funding technique focuses on three complementary U.S. ETFs designed to stability stability, development and earnings and assist individuals 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 corporations similar 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 e book will not be about stock-picking or market timing, however about adopting a mindset of endurance and perception within the long-term energy of the U.S. market. “You don’t want to research each chart or predict each motion,” he stated. “In case you make investments passively and constantly on the planet’s main market, you may obtain significant returns.”
He recommends well-established ETFs with low charges over smaller, trend-driven merchandise. “When doubtful, it’s safer to belief giant, confirmed funds which have stood the check of time,” he stated.
After publishing his e book, Kim left his job to work as a author, lecturer and funding coach. He stated he initially nervous that revealing his funds could be seen as bragging. “However I needed to indicate that having each wage and funding earnings makes an actual distinction — and that it’s achievable by way of a easy, disciplined method,” he stated.
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. In case you belief the U.S. market and make investments steadily for 5 or 6 years, anybody can obtain outcomes.”
Kim is presently writing a follow-up e book, due out subsequent yr, to share updates to his technique. “One of the best type of funding,” he stated, “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 Instances, is translated by generative AI and edited by The Korea Instances.
