This book is enough for studying finance for those in their 40s and 50s!
Between retirement and old age, finance is the language of survival!

For the 40-50 age group, who are contemplating retirement at the peak of their careers, the most urgent need is 'the power to handle money.'
This book is not a simple introduction to financial management; it is a financial survival manual that provides insight into reality and prepares for crises.
For the 40-50 generation, who simultaneously shoulder the triple burden of supporting their parents, educating their children, and preparing for retirement, finance is not a choice but a language of survival.
Nowadays, working hard alone is not enough to secure the future.
We live in an era where 'studying about money' becomes the standard for determining stability in life.
Based on numerous consulting cases and field experience, the authors have compiled principles for asset management that will remain unwavering even after middle age.
By setting proper standards now through this book, you will be able to maintain your own financial routine even after retirement.

The core of this book is practical financial studies that can be applied 'here and now.'
It provides concrete examples of how concepts like interest rates, exchange rates, and asset allocation relate to my actual life.
It is structured to be easily understandable, especially for those new to finance, and focuses on creating "standards that are not swayed by the market," rather than simply recommending products.
The criteria presented in this book are not complex theories, but rather standards of judgment that can be applied directly to real life.
This is a book that makes you immediately look back on your bank account, pension, and investment habits.
The world today is too harsh to live without knowing about finance.
This book is an essential first step toward facing that truth.

In a survey on living with children, most seniors over 60 years of age hope to live separately from their children in the future (80.7% in their 60s, 77.2% in their 70s, and 65.4% in their 80s).
In contrast, there are cases where parents in their 70s or older want to live with their children, and the main reason is that the children are physically and mentally incapable of becoming independent.

If you prepare well for old age, the chances of you being able to live independently without help from your children increase.
Therefore, in order to live a peaceful and prosperous life in retirement, you must carefully plan and prepare for your anticipated post-retirement financial needs and housing plans.

---From "CHAPTER 1: The Key to Retirement Preparation for 4050"

As direct investment has shifted to indirect investment, we have increasingly invested in financial assets.
As more and more people invest in securitized financial products, they naturally realize that "if you don't study finance, it will be difficult to manage your assets in the future."

If you want to invest for a comfortable retirement, but insist on investing in real estate on your own, believing that "real estate doesn't lie," you could end up having a difficult life because of "real estate that doesn't hesitate to lie."
It is reasonable to start preparing for retirement by studying finance from the basics, even now.
Studying the logic of money through financial studies will help you understand the ways of the world more deeply, so the more you study, the more fun it will become.

---From "CHAPTER 1: The Key to Retirement Preparation for 4050"

Just as there is no such thing as a free lunch, there is always a price to pay when money moves.
The cost of moving money is interest rate.
Interest rate is, in a word, the 'value of money', and it is called by various names such as 'interest rate' in terms of lending and borrowing of funds, 'rate of return' in terms of investment, and 'discount rate' when converting future value to present value.
Whatever its name, interest rates dominate financial markets as the 'traffic lights of money.'


Money moves from places with low interest rates to places with high interest rates.
It's similar to the reason why we look for a financial institution that can give us even a little more when we open a time deposit account.
When we have money, there are plenty of places offering to lend us money, but when times are tough, all we get are calls demanding we pay back the money.
That's the way the world works.
The problem isn't with money itself, but with the way it moves.
Money moves in search of higher returns and lower risks.

---From "CHAPTER 2: The Foundation of Financial Economics for the 4050 Generation"

A typical mistake made by novice investors is to be discouraged by the thought that "the economy is tough, so there's nowhere to invest."
Even though the economy is tough, growth industries continue to emerge.
These are industries that we already know will grow, such as artificial intelligence, robotics, autonomous driving, and bio.
To ensure a happy retirement, you need to understand the economy from a broader perspective, identify growth industries, and continually expose your assets to them.
---From "CHAPTER 2: The Foundation of Financial Economics for the 4050 Generation"

There are many different types of investors in the world, each with their own needs, and therefore many different products.
People with a lot of assets may be able to manage their assets sufficiently with just safe term deposits.
However, for ordinary people, it is not easy to prepare for a satisfactory retirement even if they work hard to save.
So, even now, we are studying hard to learn about investing, analyzing risks, and finding the optimal portfolio that takes on the right amount of risk and increases expected returns.
We are studying finance now to choose an investment with a higher expected return for the same risk, and to diligently seek out an investment with a lower risk for the same return.

---From "CHAPTER 3: Essential Financial Knowledge for 4050"

All Weather refers to the four seasons, and it means pursuing a portfolio that can generate steady profits even when economic conditions change just like the seasons.
The all-weather investment strategy is a suitable investment strategy for pension asset management, and interest in this strategy has grown significantly as it has performed well even during the COVID-19 pandemic.

A traditional asset allocation portfolio consists of 60% stocks and 40% bonds.
Ray Dalio pointed out that the problem with this type of asset allocation is that more than 90% of the risk (volatility) is concentrated in stocks.
So, from a risk management perspective, you need to allocate about 18% to stocks and 82% to bonds so that the risk (volatility) of the two assets becomes similar at 5:5.
However, in this case, the disadvantage occurs that the expected rate of return is very low.
So Ray Dalio built a four-season portfolio that diversifies asset classes and allocates risk differently depending on economic conditions, generating stable returns even in times of crisis.

---From "CHAPTER 3: Essential Financial Knowledge for 4050"

There are various criteria to consider when choosing a stock fund, but the most important criterion, "investment style," can be divided into the following two categories.
There are two styles: the 'active style', which invests in stocks with high growth potential with the expectation of outperforming the market average, and the 'conservative style', which aims for stable investments in undervalued stocks with a long-term perspective.
Generally, stocks that show the difference between these two styles are called 'growth stocks' and 'value stocks'.
You can determine whether the fund's management direction focuses on growth or undervaluation, and then choose the one that best suits your style.

---From "CHAPTER 4: Studying Investment Products for 4050"

A wrap account is a comprehensive asset management account where a securities company identifies the investor's investment objectives and tendencies and manages a portfolio of various products, such as stocks, bonds, and funds, tailored to the investor.
From an investor's perspective, mutual funds are a suitable product for customers who are hesitant to invest directly.
Since the investment is managed according to the investor's pre-determined style, it is easy to execute investments that reflect the needs of individual customers.
Additionally, the products available can be selected from a wide range within the wrap account, which helps implement various investment strategies such as asset allocation and concentrated investment.

---From "CHAPTER 4: Studying Investment Products for 4050"

Your 40s and 50s are the busiest and most complex times of your life.
Unlike in my 30s, I have to make and carry out many important decisions at work, and I also have to diligently take care of my children's education and household affairs.
As we live busy lives, it is not easy to manage both fixed and variable monthly expenses.
Naturally, stress about managing finances can build up, and it's easy to suffer from financial anxiety due to expenses that are difficult to control.
After your 40s, it becomes difficult to continue saving and investing if your spending is not controlled.
Therefore, ‘expenditure control’ is the most important task to take care of when managing assets.

---From "CHAPTER 5: The Secret to Raising and Investing Seed Money"

Investing in stocks is difficult, but it has its charm.
Of course, it is cautious to rashly recommend direct investment to those in their 40s and 50s.
However, since we have learned about portfolios, we can manage risky assets within our investment style by adjusting the ratio in our investments.
In other words, it is advisable to invest in stocks only to the extent that you can afford to invest as part of your financial assets.
In an era of low growth and aging, there are few opportunities to invest in assets with growth potential as strong as stocks, making it even more necessary.
And one more thing, when you invest in stocks, you can see how the world turns.
If you want to live younger as you get older, I recommend investing in stocks.

---From "CHAPTER 5: The Secret to Raising and Investing Seed Money"

Once you are over 40, get regular health checkups.
It is also a good idea to have regular checkups with your insurance company to check and manage your current condition.
If possible, we recommend checking every three years.
The reason is that you can file an insurance claim for an insurance accident that occurred within 3 years, so you can also apply for insurance benefits that you missed.
I hope to receive more insurance benefits in proportion to the premiums paid by managing the coverage of the insurance policy signed up for every three years, whether to maintain the renewable insurance policy, and the variable insurance fund yield.
Regular insurance checkups are not optional, they are mandatory.

---From "CHAPTER 6 Smart Insurance, Not Envious of Ten Children"

As a dementia patient, you are assessed as a long-term care level 5 or cognitive support level based on your long-term care recognition score, and you are assessed as a level 4 to 1 based on the level of impairment in your mental and physical function.
If you are under 65 years of age, you can be assessed for disability if you have a disability due to a geriatric disease as prescribed by Presidential Decree. If you are over 65 years of age, you can be assessed for disability if you require long-term assistance from others in your daily life, regardless of the cause.

If your goal is to prepare for long-term care conditions, not just dementia, it is recommended to choose long-term care insurance that provides coverage when receiving home care or facility care. If you want to focus on dementia coverage, it is recommended to choose dementia insurance.

---From "CHAPTER 6 Smart Insurance, Not Envious of Ten Children"

Loans can be divided into 'good loans' and 'bad debts'.
A loan that helps increase assets is a good loan, and a loan that is taken out for consumption is a bad debt.
Because loans taken out for consumption can significantly slow down the rate at which assets grow.


Even if it is a loan taken out for asset growth, it can only be an effective means of asset growth when used appropriately considering financial circumstances and interest rates. Otherwise, it can become bad debt that eats away at assets.

---From "CHAPTER 7: Bad Debt, Good Loan for the 4050s"

Since loans are used by financial consumers to borrow funds they need, they are relatively susceptible to shrinkage.
It would be great if the financial company that provided the loan put the customer's interests first and offered the best terms, but as a private company, the financial company has no choice but to prioritize the company's interests.
Therefore, we need to understand the market interest rate situation and various financial systems and make efforts to utilize them to the fullest extent possible.
It is important to research thoroughly before taking out a loan, but keep in mind that managing it after taking it out can help reduce the interest burden from the loan.

---From "CHAPTER 7: Bad Debt, Good Loan for the 4050s"

To properly prepare for retirement, you need to know how much assets you realistically need and how to prepare them.
First, let's think about the monthly income level you need, taking into account your desired retirement lifestyle, medical expenses, taxes, etc.
And I hope to review how to utilize public and retirement pensions to create the cash flow I want each year, and design my own pension plan, including private pensions.
If you carefully consider and prepare the knowledge necessary for pension design, you will definitely be able to enjoy a prosperous old age.


Preparing for retirement doesn't end with simply accumulating a lot of assets.
After retirement, you need to be flexible and account for unexpected increases in medical expenses, family care costs, inflation, and other variables.

---From "CHAPTER 8: Financial Freedom through Pension"