Korean Job Discussion Forums

[Hanson]

So I'm reading up a little these days on investment options - I just finished reading David Bach's Automatic Millionaire Homeowner,


and I've started reading Christopher Browne's The Little Book of Value Investing (thanks the_beaver!)


and I've just ordered Smart Couples Finish Rich, also by David Bach

- and while I'm learning a lot, I feel isolated here in Korea, investment-wise.

There have also been a few threads about investing lately here on Dave's (like How'd your stocks do in '06?), but I'm finding it difficult to put into practice what I'm learning about.

For example, someone told me that you can own property in Canada as a non-resident and still not have your overseas income subject to Canadian income taxes - which is what I'd like to do. However, after a bit of research on the net, I've yet to come across this information - and actually a lot of the literature one can find is quite vague. There's no way I want my Korean salary taxed by Revenue Canada and its crazy tax rates.

Another example, stocks. I'd be willing to get into the stock market, but living in Korea, I don't even know how I would trade stocks, and what the implications of earnings would be on my tax situation (both Canadian and Korean). Do any of you have a broker here in Korea? How did you find him/her? What kind of commissions do they charge?

Finally, I've heard a lot about these accounts/funds in Korean banks, where you put in a certain amount of money, locked in, for a duration of 1 year (or whatever amount of time contracted for), and you get a decent return on your money (8-10% is what I've heard). I'd like to hear from you if you are currently doing this, and what the deal is. I went into my local KB bank and asked to speak to an investment advisor (through my wife) and the dude in charge of customer service looked at us like we had been speaking a different language.

So, I guess my questions are multiple and bsically...

How are you investing while in Korea?
How are you going about it?
Do you have a financial advisor - how did you find him/her?


Basically any comments on this topic are welcome.

Please!

[Hanson]

BUMP

[the_beaver]

I invest with E*Trade.

I get my information about stocks from different sources and then check the SEC filings, investor relations, and anything else I can find about the company.

No financial advisor although I was thinking about checking Regency Asset Management -- I can't find any dirt about them on the internet but their mickey mouse website has me leery.

[HapKi]

Stocks, accounts, mutual funds- all sound advice. Among other things, we have a mutual fund through Kookmin Bank.

Something I would advise is, put 5-10% of your total savings into gold. Raw, solid, 24 carat gold. If you're married with kids that have had their Ddol party, you're well on your way. Most portfolio managers will tell you the same. Its a hedge against inflation, and something stable for economic rough times.

[Homer]

Term deposits are a good idea as they give a decent return here.

Realestate is also a good investment (long term) both here and home.

Get yourself a financial advisor if you are unsure and he or she can get you started.

I invested in a few different places (diversified portfolio) and in realestate here and home. We own out appartment here and a property in Canada. The property in Canada is rented out and will be paid off in a couple of years as we put it on a 10 year morgage *thereby saving heaps on interest*.

My income is not taxed by the CDN gov either and I can understand Hanson not wanting this to happen as they will basically charge in like some viking pillaging band and go to town on your income.

We also started an education fund for our son and are putting away money in retirement funds too. You can do this in many different ways: some goiv. sponsored program that is tax free, by yourself through a savings account...we chose a financial levee and it is working well.

With the disposable income you have here, especially if your wife works and with the low taxes you can invest quite a bit for your future and get well ahead of the curve as opposed to back home on a teachers salary (in a major city with a decent lifestyle). So, make use of the opportunity but do not try to do it all from the get go. Start with one or two investments, learn the ropes and listen to your financial advisor.

[Unposter]

Good thread, good questions.

If you are American, most American banks have on site financial managers that you can see for free.

I was introduced to a broker by a friend and it has proved very useful. I suspect not all brokers/financial planners are so be very judicial in your choices. You may want to talk to family back home and ask how to start investing.

The one bit of advice I have is don't feel shy about talking to banks and financial planners. They want your money so your in charge. Go talk to them. Tell them what you want to do. It is their job to sell you financial products not your job to sell them that you deserve to have financial products.

Also, beware of fees. Fees are the deathnail of small time investers. I read this one book and it said something like this:

If you ever watch the closing of the stock market (Wall Street), they ring a bell and everyone claps and cheers. Do you know why? Because, no matter whether you made money or lost money, they made money. They made money just by moving your money around.

The key is to pay as little as possibe in fees. There are always fees. Ask what the fees are. Are they external or internal? They have to tell you exactly. If you feel they are being evasive, don't trust them and move on. Look for investment options that carry low, mostly internal fees.

Also, never feel pressure to do something. You read some of these books and you feel like your missing out and you have to do something now. Clear judgement is key. If you feel you are being pulled by some emotion in matters of money, take a deep breath and think about it.

Go to your local (Korean) bank and ask what they offer. You can buy mutual funds from all over the world in Korean banks. You do not have to purchase right away. But, you definately need strong Korean skills or a highly trusted (preferably spouse) Korean speaker.

Do the same thing when you go back home.

Watch your investments succeed.

[Unposter]

I have a question.

I'm interested in buying realestate back home (U.S.) but I don't have anyone who can oversee it. People have suggested to me using a property manager. Has anyone done this? What do you look for in a propertly manager? What are typical fees for a property manager? Can anyone recommend some websites to look at?

Thanks.

[spliff]

[bellum99]

What's the best way to buy/invest in gold?[/quote]

After raiding the ship it is best to sink it into the ocean. Put the enemy sailors onto rafts. Then take your gold to a deserted island. Draw a convoluted map to hide the actual location of the gold. Kill all the sailors with you using a poisoned brandy. Now you have invested your gold....ARRRRR matey.


---Gold is not a good item in Korea as it is very overpriced. It is painful to buy (certification)... there is a gold exchange in Korea but you have to buy in quantity. Unless you are talking about gold mining stocks....If you are talking about ill-gotten loot, then see above description.

[4 months left]

[4 months left]

I made a discussion board or ESLers to discuss investments - stocks, real estate, business, etc.:

http://esl.informe.com/

[blaseblasphemener]

gold is at a 25 year high or something...

Stocks have also been going up for 7 years...

The old adage buy low sell high would seem to apply now...

[ChuckECheese]

Don't forget to invest in yourself.

[luvnpeas]

I had a brokerage account before I came to Korea. To my knowledge you can open one from here just as easily. However, I don't know the details, and I'm American not Canadian. I use Schwab, and recommend it. If a Canadian can open an account with them over the Internet, go for it.

The Canadian investment world is a little different. You can invest in Royalty Trusts, which until recently paid whopping dividends tax-free. Many of these companies are involved in Canada's oil sands industry, which is a great investment if oil is at $60/barrel and a so-so investment when it is at $50, due to the high cost of extracting the oil. A conservative politican proposed taxing these dividends, which caused a royal uproar, particularly since he had campaigned on the usual "no-new-taxes" promise. There are gazillions of Canadian mining companies, so that is one way to invest in gold.

If I were able to trade on the Toronto exchange and wanted a safe investment, I would research Canadian General Investments Limited. It trades at a good discount to NAV and fees are average.
http://www.etfconnect.com/select/fundpages/global.asp?MFID=10483

Investing is risky. If you're not willling to do your homework, you can lose your shirt very easily. Peter Lynch said the main investment you should make, way before stocks, is in a home.

[Yaya]

The first thing to ask yourself is how risk averse are you? If you can't stand to lose even $100, then stick with term deposits or "jeokgeum" in Korean. I have finished several of those and such, and I'm thinking of a mutual fund with HSBC that pays more than five percent interest.

You can also invest in Korean treasury bonds that also pay around five percent. I personally do not like to risk dough on stocks and the like, but who knows, I don't know enough about them so perhaps if and when I do, I'll change my mind.

I plan on buying my own apartment or villa within the next several years.