If You Want to Be Rich... "Use Your Body in Your 30s, Mind in Your 40s, and Time in Your 50s"

Hanwha Investment & Securities' Wealth Report by Age Group
"The Criteria for Being Wealthy: Unearned Income and Self-Control"

Hanwha Investment & Securities offered advice on becoming wealthy by age group through the report 'Investment Strategy - The Art of the Rich.'

On the 17th, Park Seung-young, a researcher at Hanwha Investment & Securities, explained in the report, "The definition of being rich is subjective, but universally recognized wealthy individuals present similar criteria," adding, "They can cover expenses through unearned income and exercise self-control by not being greedy after becoming rich." He further noted, "Households meeting the first criterion account for about 1% of all households in South Korea."

According to the report, people possess human capital and financial capital. Researcher Park stated, "Human capital is formed through education received until one's 20s and serves as the source of earned income," and "Financial capital is accumulated from earned income and serves as the source of property income." He also added, "The tools to convert income into assets vary by timing: when one has nothing, it is diligence; when one has a little, it is knowledge; and when one has enough, it is time."

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He then presented age-specific suggestions for becoming wealthy. He said, "In your 30s, use your body. It is a period of growth," adding, "Although you are not yet rich, both income and assets increase rapidly, and the highest return is investment in yourself." He emphasized, "Expertise is the most powerful intangible asset," and "The top 1% of earners in their 30s have sufficient earned income to accumulate assets."

In the 40s, as career and income peak, it is time to convert income into assets. Researcher Park explained, "In your 40s, you need to use your head. You earn well, spend well, have many assets, and also many liabilities," adding, "Since there is no room to reduce consumption expenditure, you need to reduce taxes. Surplus income must accumulate to enable investment." He also added, "Execution requires completely different know-how, so those with even small experience have an advantage, and it is recommended to have an advisory group."

The 50s is a period when income is maintained while expenses decrease. Education expenses decline and leisure expenses increase, improving quality of life. Researcher Park analyzed, "In your 50s, you need to make time your ally," adding, "Financial assets and non-residential real estate are sources of asset income." He evaluated, "If these exceed financial liabilities and current income is positive, assets increase over time, so time can be considered your ally," and "Since those in their 50s have relatively less time to recover from losses, investments should be defensive and portfolios diversified."