The right account matters as much as the right investment
Age-based ETF portfolios for every life stage
22 KODEX ETFs handpicked for pension use
Samsung Asset Management has published its fourth-quarter pension investment guidebook, "ETF Pension Alchemist," designed to help retirement investors build an optimal tax-saving structure and sustain long-term investment success.
To mark the launch, the company will host a live web seminar Wednesday at 6 p.m. on the official KODEX YouTube channel.
The guidebook draws its concept from medieval alchemy — the pursuit of turning base metals into gold. Its central message is that for today's investors, the true form of alchemy is consistently investing small amounts over a long period to grow assets substantially.
The guide defines the essential ingredients of successful pension alchemy not as flashy individual stocks but as "accounts" and "ETFs," emphasizing that even with the same amount of money, the final size of assets an investor ends up with depends on which account — or "vessel" — is chosen and how it is used.
The guidebook is organized into six chapters: the ingredients of alchemy (account selection); the appeal of alchemy (triple tax benefits covering contributions, management and withdrawals); the alchemist's workshop (practical Q&A for the accumulation and withdrawal phases); a field guide to alchemy ingredients (ETF basics and investment principles); the alchemist's formula (age-based ETF portfolios); and the alchemist's chosen materials (22 KODEX ETFs).
The guide addresses real-world concerns that investors most frequently raise, using case-based explanations.
The accumulation phase section covers topics such as the order of contributions for dual-income couples, transferring matured ISA funds into a pension account, and ETFs that cannot be held within a pension account.
The withdrawal phase section explains the tax difference between receiving a lump-sum retirement payout and taking it as a pension, as well as how to manage private pension income around the 15 million won ($11,000) annual threshold. The guide also revisits two topics that drew strong interest in earlier editions: using a pension savings account opened in a child's name, and the annuity gift method.
The guidebook also presents concrete age-based portfolio recommendations tailored to different life stages. For investors in their 20s, who have ample time to invest, it proposes a "growth" portfolio centered on major indexes such as the US S&P 500 with a higher allocation to AI-themed funds. For those in their 30s and 40s, it recommends a "balanced" portfolio that maintains growth while mixing in monthly dividend ETFs, asset allocation funds and raw materials exposure. For investors in their 50s and beyond, when cash flow becomes a priority, it suggests a "stable" portfolio that raises the monthly dividend ETF allocation to 40 percent and adds ultra-short-term bonds to curb volatility.
The guide also features 22 KODEX ETFs across six categories — major indexes, AI themes, monthly dividends, asset allocation, bonds and raw materials — with a description of each product's characteristics. The guidebook is available as a free download on Samsung Asset Management's official website, with no membership required.
Kim Do-hyung, head of Samsung Asset Management's ETF consulting division, said pension investing — which can span anywhere from a few years to several decades — makes it essential to first build a structure that minimizes taxes and then commit to long-term ETF investment suited to one's needs, so as to benefit from the compounding effect of time and accumulation. "As more pension investors move from the accumulation phase into the withdrawal phase, we have incorporated their most pressing concerns and practical solutions into this new edition of the Pension Alchemist," he added.
Samsung Asset Management earlier published a foundational guide titled "Mastering ETFs in One Week," structured as a week-long self-study workbook designed to give ETF investors a compass for their investment journey. The company said its goal is to set a qualitative standard for the market through innovative product development, stable product management and the provision of foundational educational content.
jiyun@heraldcorp.com
