January 22, 2019, 01:49:57 PM


Author Topic: Ways to grow savings? Investing? Passive Income? Cryptocurrency?  (Read 6549 times)

Offline kobayashi

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #20 on: September 28, 2017, 08:17:46 AM »
The problem with dividends is the tax consequences, at least for US citizens.

if you are tax resident in korea and have been here longer than 5 years you should only pay 20% tax on your dividends, since that's the tax rate in korea. in the US the tax rate on dividends is 30%, so you would pay that initially then claim a rebate of 10% by virtue of the fact that you're tax resident in SK.

if you die and have more than $60,000 in your account you would probably still be subject to the inheritance tax though, especially if the fund(s) you own are situated in the US.

following the appropriate tax laws and filing as tax resident in korea can actually save you money, despite what people like Pecan seem to think.

Offline gogators!

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #21 on: September 28, 2017, 09:07:32 AM »
The problem with dividends is the tax consequences, at least for US citizens.

if you are tax resident in korea and have been here longer than 5 years you should only pay 20% tax on your dividends, since that's the tax rate in korea. in the US the tax rate on dividends is 30%, so you would pay that initially then claim a rebate of 10% by virtue of the fact that you're tax resident in SK.

if you die and have more than $60,000 in your account you would probably still be subject to the inheritance tax though, especially if the fund(s) you own are situated in the US.

following the appropriate tax laws and filing as tax resident in korea can actually save you money, despite what people like Pecan seem to think.
How does that work if your overseas income is below the amount exempted from US taxes?

Offline Pecan

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #22 on: September 28, 2017, 09:43:28 AM »
filing as tax resident in korea can actually save you money, despite what people like Pecan seem to think.
I never stated that it couldn't save you money, merely that you can navigate the tax treaty in a way that is most beneficial to you, if you understand the ins and outs (you don't have to be subject to double taxation as you incorrectly claimed).

Offline gideonvasquez

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #23 on: September 28, 2017, 10:29:14 AM »
The problem with dividends is the tax consequences, at least for US citizens.
if you are tax resident in korea and have been here longer than 5 years you should only pay 20% tax on your dividends, since that's the tax rate in korea. in the US the tax rate on dividends is 30%, so you would pay that initially then claim a rebate of 10% by virtue of the fact that you're tax resident in SK.
I don't know where you are getting this information on the US tax-regime. The information on the 5-year exemption to global income taxes is correct to my knowledge. You get 5-years from the proceeding 10-years free from taxation on global income. After that you might be liable for income taxes on it in Korea.

The U.S. dividend tax rate is the ordinary tax rate for ordinary-dividends and 0/15/20% for qualified-dividends (depending on adjusted gross income). With a potential for higher taxes from the ACA investment tax (3.8%) and Alternative Minimum Tax calculations at very low or very high incomes. It hasn't ever been strictly 30% to my knowledge but was tied to ordinary income rates prior to the 2003 Bush-era tax cut which made it universally 15% on qualified dividends (the LT-cap. gains tax rate).

The way U.S. taxes work for double taxation is no matter how you cut it you have to pay up to the U.S. rate. The same is true of Korea. If you make $100,000 your combined tax liability should be the higher of Korea's or America's effective rate.
Example (I'm using simplified numbers and not converting from USD for this):
Total global Adjusted Taxable Income:
USA:   $100,000
Korea: $100,000 (this number will almost certainly be different based on source of income)

USA effective tax rate at $100,000: 20%
Korea--------------------------------: 25%

Let's say you want to pay more to the USA
US tax liability = 100k * 20% = 20K   <-- paid by April 15th

Korea tax liability = 100K * 25% = 25K
Foreign income tax credit =          -20K
Final liability =                               5k <-- paid by Korean final tax date

---------------------------------------------
Let's say you want to pay more to Korea
KR tax liability = 100k * 25% = 25K   <-- Paid by Korean tax date

US tax liability = 100K * 20% = 20K
Foreign income tax credit =       -20K   <-- this credit is limited by your income tax liability
Final liability =                          0K

Either way you have to pay $25k (the highest effective tax rate) to one government or part to both governments. The foreign income tax credit in both nations is limited by your income tax liability.

The rules for investment income in the U.S. are janky when you only have a high taxable income from investment sources. And just weird in general.

Offline kobayashi

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #24 on: September 28, 2017, 01:15:46 PM »
to clarify, the 30% tax i was talking about was the 30% withholding tax that (US) non-resident persons pay on US-sourced income, including dividends.

correct me if i'm wrong, but as a korean tax resident if you accrue dividends from US-held funds you would have to have 30% withholding tax applied to your dividends. and then claim a rebate if the withholding rate should be lower based on a DTA between the country you are currently tax resident of and the US.

i got my figures a bit mixed up above, the 20% i mentioned is the withholding figure applied to korean-held funds.

this chart says that for korean tax residents the withholding % for US-held funds is 10 or 15%

http://taxsummaries.pwc.com/ID/United-States-Corporate-Withholding-taxes

« Last Edit: September 28, 2017, 01:23:25 PM by kobayashi »

Offline Pecan

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #25 on: September 28, 2017, 01:29:28 PM »
Please, give it a rest, already.  You are mistaken.

You are confusing so many things...

The main one here is between a US "non-resident" (your term) and a foreigner.  They are NOT the same, as they each are entitled to entirely different types of exemptions.

Quote
i was talking about was the 30% withholding tax that (US) non-resident

Your link is dealing with corporate withholding tax for
Quote
a foreign person

For f'sake, contact a professional before you seriously injure yourself or others.

Offline hiphopopotamus

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #26 on: September 28, 2017, 10:49:40 PM »
I have a dividend stock portfolio I've built over the past year in the US market. I recommend looking at www.buffetsbooks.com to get started. They introduce the idea of value investing.

I also swing trade crypto currencies. Korea has a great exchange in English called Korbit (www.korbit.co.kr) ... again, if you have the stomach to deal with volatility.

Offline bjinglee

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #27 on: September 29, 2017, 07:47:19 AM »
Whew, I'm glad I hadn't ordered her book. Thanks to all for helping me save some money!  :smiley:
I just wonder, what misleading and incorrect advice does she give, specifically (besides write for Squidoo and buy her book(s))?
She mentions that you should have 10K before investing which is DEAD WRONG. You can start investing in no-load index funds for as little as $50 or $100 in some places. She is completely unqualified to give advice on investing is hurting the people who do follow her advice.

Offline gogators!

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #28 on: September 29, 2017, 08:59:37 AM »
I have a dividend stock portfolio I've built over the past year in the US market. I recommend looking at www.buffetsbooks.com to get started. They introduce the idea of value investing.

I also swing trade crypto currencies. Korea has a great exchange in English called Korbit (www.korbit.co.kr) ... again, if you have the stomach to deal with volatility.
Due to low bond yields, investors have been piling into dividend stocks. It will be hard to find many that are still "value" stocks.

Rather than trying to emulate Buffet, it's probably better to follow his advice--invest in an S&P 500 index fund, which is what he did with the money he plans to leave his wife.

Offline Shreya_pandey

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #29 on: December 12, 2018, 09:36:32 PM »
Hi....So I've been in Korea teaching for about 3 years and have saved a decent amount. But I am looking for ways to maximize my savings and maybe to add some passive income (maybe through investing in the stock market through a stock broker or setting something up online back at home). I feel like teaching is good for saving, but I want to create long-term wealth/financial stability for myself. I think its possible if I make some wise financial decisions now.

Has anyone done any type of investing or taken steps to create passive income(legally)? I think I seen something on cryptocurrency on this forum a while back so I would interested in learning more. Something that doesn't involve teaching. Please share.

Thanks in advance!!

Investing seems really good if you know your basics. You should never go into the stock market without having enough knowledge of what you are dealing with. There are brokerage firms that you can go to. These brokerage firms have stock brokers that help you out with the tradings while advising you about the risks involved and how you can increase your profit. There are also numerous options to invest in the stock market which can suit your choices. I'll ask you to note all the different options available in SK and refer to a good stock brokerage.
If you want to invest in cryptocurrency then I wouldn't really recommend it because I don't know how much your knowledge is regarding cryptocurrencies and this can lead to huge losses.
A home cook & food entrepreneur. Likes to experiment with food over health and nutrition concerns. Health Freak. Love to interact with people about everything. Open to all the new technologies, trends and lifestyle hacks going around the world.

Offline AMDC

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #30 on: December 13, 2018, 07:39:02 AM »
All hail Shreya the necromancer.

Just read The Simple Path to Wealth. The best short, sweet, easily-digested intro to finances and wealth.

If you want the cash available to use when you get home (1-5 years), don't bother investing it. If you're ready to begin investing for the long-term (20+ years), open a Vanguard account and get the ball rolling.

Offline gogators!

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #31 on: December 13, 2018, 09:03:42 AM »
All hail Shreya the necromancer.

Just read The Simple Path to Wealth. The best short, sweet, easily-digested intro to finances and wealth.

If you want the cash available to use when you get home (1-5 years), don't bother investing it. If you're ready to begin investing for the long-term (20+ years), open a Vanguard account and get the ball rolling.
Vanguard is the way to go. Look at bogleheads.org for great info.

Offline hangook77

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #32 on: December 16, 2018, 11:50:44 PM »
Foreigners are blocked from buying cryptos here?  Thought I heard that.  I was going to look into it.

Offline AMDC

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #33 on: December 17, 2018, 08:10:43 AM »
All hail Shreya the necromancer.

Just read The Simple Path to Wealth. The best short, sweet, easily-digested intro to finances and wealth.

If you want the cash available to use when you get home (1-5 years), don't bother investing it. If you're ready to begin investing for the long-term (20+ years), open a Vanguard account and get the ball rolling.
Vanguard is the way to go. Look at bogleheads.org for great info.

+1

Offline alexisalex

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #34 on: December 17, 2018, 08:35:45 AM »
Foreigners are blocked from buying cryptos here?  Thought I heard that.  I was going to look into it.

Gopax.co.kr allows foreigners.  Good customer support too.

Offline belo horizonte

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #35 on: December 17, 2018, 01:05:31 PM »
Gopax.co.kr allows foreigners.  Good customer support too.

Are foreigners allowed to deposit and withdraw KRW to their Korean bank accounts? Would be great if that's possible, because the main exchanges like Korbit or Upbit stopped letting foreigners do bank transfers.

Offline alexisalex

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #36 on: December 17, 2018, 01:20:03 PM »
Gopax.co.kr allows foreigners.  Good customer support too.

Are foreigners allowed to deposit and withdraw KRW to their Korean bank accounts? Would be great if that's possible, because the main exchanges like Korbit or Upbit stopped letting foreigners do bank transfers.

Yes we can.  I was really surprised!  I've done it and there were no problems at all.  Yeah I was using Korbit until we all got shafted  :laugh:

Offline belo horizonte

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #37 on: December 17, 2018, 01:34:52 PM »
Gopax.co.kr allows foreigners.  Good customer support too.

Are foreigners allowed to deposit and withdraw KRW to their Korean bank accounts? Would be great if that's possible, because the main exchanges like Korbit or Upbit stopped letting foreigners do bank transfers.

Yes we can.  I was really surprised!  I've done it and there were no problems at all.  Yeah I was using Korbit until we all got shafted  :laugh:

That's awesome! Has been a right pain in the arse sending money back to UK to add to Kraken. Let's hope the KRW pairs will be showing some healthy Kimchi premium when we cash out  :P

Offline alexisalex

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #38 on: December 17, 2018, 01:51:03 PM »
Gopax.co.kr allows foreigners.  Good customer support too.

Are foreigners allowed to deposit and withdraw KRW to their Korean bank accounts? Would be great if that's possible, because the main exchanges like Korbit or Upbit stopped letting foreigners do bank transfers.

Yes we can.  I was really surprised!  I've done it and there were no problems at all.  Yeah I was using Korbit until we all got shafted  :laugh:

That's awesome! Has been a right pain in the arse sending money back to UK to add to Kraken. Let's hope the KRW pairs will be showing some healthy Kimchi premium when we cash out  :P

Haha yeah I know the pain of doing that!

Lol that premium...the glory days  :laugh:

Offline alexisalex

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Re: Ways to grow savings? Investing? Passive Income? Cryptocurrency?
« Reply #39 on: December 22, 2018, 08:51:05 AM »
Has anyone seen that Facebook ad for a Korean company called Lendit?  It's a fintech startup for peer to peer loans and has had a ton of investment.

It looks like they offer between 6 and 10% return on your investment (max 10 million) which obviously blows your savings accounts out of the water.  But it looks like they don't have an English site and I have no idea if this is open only to Koreans.

Anyone looked into it or know anything about it?

https://invest.lendit.co.kr/invest