I bet there are many of you like me who just don’t know what to do when you receive the first monthly salary. There are so many ways to save and invest your money. I brought some useful information for you today.
The Financial Services Commission plans to launch long-term tax exempt fund, or “So-jang Fund” in Korean, in March 2014. Long-term tax exempt fund sounds like another boring financial term that has nothing much to do with our life but in fact its main target investors are the youths in their 20s and 30s who earn less than 50 million won per year. So, if you have just started your career and took your first step into the “real world,” you are one of the main target customers of this fund. Once you subscribe to the fund, you may have to pay up to 6 million won per year from 5 to 10 years. From where? Anywhere including banks, securities companies, insurance companies and on-line fund supermarket. More importantly, how much tax is exempted? Don’t be surprised! Up to 2.4 million won, or 40% of the payment will be exempted at the year-end. Doesn’t it sound wonderful? If you are willing to bear some risks and want more profits, this is your chance! Especially when you plan to save money, it would be one of the fastest ways you can use.
However, I believe you might have a question here; what is the difference with ‘Nest-egg savings?’ Let me explain it briefly through a simple table.
As you can see, this fund is clearly different from Nest-egg savings in many aspects, such as the target and principal guarantee. But you can subscribe to both products. And don’t forget! The subscription period ends on December 31, 2015.
If you are interested, more information is available in the press releases from the FSC and Korea Financial investment Association. If you have further questions, feel free to ask!