How to Get Rich on a 3 Million Won Monthly Salary

ETFs that track major indices are composed of good companies, making a 'buy the dip' strategy effective where additional purchases are made at 8,000 won, 6,000 won, and 4,000 won each time the price falls. This is a good way to invest steadily like a savings account, allowing investors to seize periods of major index declines as opportunities for aggressive purchasing.

Author Park Min-su introduced a strategy to lower the average purchase price by making additional purchases at multiples of the investment amount through the '1·2·4 strategy.'

This method involves investing 1 million won initially, then purchasing an additional 1 million won if it falls by 20%, 2 million won if it falls by 40%, and 4 million won if it falls by 60%. He particularly recommends this aggressive strategy for major indices like the U.S. S&P 500 and Nasdaq 100, explaining that cyclical industries such as the Philadelphia Semiconductor Index can maximize profits by buying at the lowest point.

Since the top three stocks often account for 40-70% of the total ETF, even looking at just these stocks can reveal the ETF's true nature. He advises careful investment by comparing constituent stocks, returns, and fees using sites like 'ETF Check.' Even for semiconductor ETFs, the actual composition can vary, requiring as much caution as individual stock analysis.

If profits exceed 20 million won, high tax rates from 15.4% to a maximum of 49.5% can apply, and additional disadvantages such as comprehensive financial income taxation and increased health insurance premiums may occur. Author Park Min-su explained that utilizing pension accounts (personal pension, IRP) and ISA accounts is essential to reduce this tax burden.

Author Park Min-su strongly recommends using pension accounts when investing in domestic 'other-type' ETFs that track the S&P 500 or Nasdaq.

A maximum of 18 million won can be contributed annually to pension savings and IRP combined, and upon receiving pension payments after age 55, one can benefit from low tax rates ranging from 3.3% to 5.5%, depending on age.

ISA accounts allow annual contributions of up to 20 million won, and any unused limit rolls over to the next year.

Upon maturity, transferring funds to an IRP account can provide additional tax credit benefits. Up to 2 million won is non-taxable, and amounts exceeding that are subject to a 9.9% separate tax, significantly reducing the tax burden. Author Park Min-su particularly recommended ISA account creation for those in their 20s.

ISA accounts allow for a 2 million won deduction, and only 9.9% of the remaining amount is separately taxed, which is significantly more tax-efficient than 49.5%. So, if you're in your 20s, I really hope you open an ISA account.

Gifts up to 600 million won to a spouse over 10 years, 50 million won to adult children, and 20 million won to minor children are exempt from gift tax. In particular, gifting stocks to a spouse and holding them for more than one year can significantly reduce capital gains tax by increasing the acquisition cost.

Mutual gifting between spouses to distribute the tax burden was also mentioned as an effective tax-saving method.

Author Park Min-su emphasized that young professionals earning 3 million won per month should save intensively for three years by being frugal.

The goal should be to save about half of their actual monthly income (2 to 2.2 million won), which is 1 to 1.2 million won, and maintain a rigorous savings lifestyle for three years. He advised that this initial fund should then be used to grow assets through investment.

I tell them this: let's pretend we're dead for just three years. So, let's really be frugal for three years. Just three years.

He believed that by managing this lump sum with an annual return of 20-30%, assets could double every 6-7 years. He particularly emphasized that investing 100 million won in S&P 500 or Nasdaq 100 ETFs for 20 years could yield approximately 18 times the profit.

He added that the experience of cultivating saving habits and patience itself would be a significant turning point in life.

Author Park Min-su pointed out that Instagram encourages consumption driven by the gaze of others, rather than essential needs.

He advised that rather than spending on luxury bags despite a low current income, prioritizing asset growth through stock investment is essential. He suggested that purchasing luxury items as a reward after the three-year savings period and accumulating a lump sum is acceptable.

He explained that maintaining a regular investment strategy to accumulate steadily over the long term can yield higher returns than expected, without being swayed by market fluctuations.

Author Park Min-su stated that studying history helps in understanding market trends and human nature.

He emphasized the importance of long-term patience and waiting through the life of Tokugawa Ieyasu, and revealed that he changed his investment approach from individual stock analysis to examining market issues and historical contexts.

Author Park Min-su explained that he used to spend a lot of time analyzing individual stocks, but has now shifted his strategy to long-term investment over 10-year periods.

He employs a strategy of waiting for the VIX volatility index to plummet, and uses most of his free time outside of investing to study Japanese history, gaining insight into market and national trends.

Author Park Min-su emphasized that the life of Tokugawa Ieyasu is a crucial key to understanding the unique characteristics of the Japanese people.

He mentioned the historical background of Tokugawa Ieyasu, who established the Edo shogunate through patience despite a lifetime of oppression, and stressed the importance of understanding history and responding strategically to Japan, rather than treating it with simple emotions.