Common Mistakes and Correct Usage of ISA Accounts

ISA account allows tax benefits. Overseas stocks, ETFs, and domestic stocks have specific usage rules.

### ISA Account: 6 Common Mistakes and 3 Correct Usages
* 🌏 The first common mistake is that you cannot invest in **overseas stocks and overseas-listed overseas stock-type ETFs** in an ISA account. "Overseas stocks like Apple and Google cannot be invested through an ISA account."
* 💸 The second mistake is depositing money into an ISA account. It is better to deposit money for tax savings in a cooperative union where you can join a **tax-exempt deposit**. "Depositing money into an ISA account is a **very marginal choice**."
* 🏠 The third mistake is investing in domestic stocks. While the profit from buying and selling domestic stocks is tax-exempt, a **15.4% dividend income tax** is imposed on the dividends. "Only the profit from buying and selling is tax-exempt, and only the **dividend income can be tax-exempt**."
* 📈 The fourth mistake is investing in domestic stock-type ETFs. Similar to domestic stocks, these ETFs are tax-exempt for capital gains, but **15.4% of the total distribution is tax-exempt**. "Putting these in an ISA account is **regrettable**."
* ⏳ It is important to be aware of these common mistakes so that you can make informed decisions when considering other investment methods. "**You will use it for all your investments**, so please listen carefully."
* 🌟 The first correct usage is **investing in overseas knowledge-based ETFs listed domestically**. These products invest in U.S. stocks and the tax treatment varies depending on whether they are listed domestically or overseas. "When all these products are put into an ISA account, you can achieve a **120% effect**."
* The second correct usage is investing in products like **gold ETFs or commodity ETFs**. These products are **tax-efficient** when investing in them and are recommended for **portfolio investments**. "It may sound a bit **exaggerated**."
* 📊 The third correct usage is **domestic stock-type ETFs with TR attached**. These ETFs reinvest dividends as total return, and while they are taxed on trading gains, they are **more tax-efficient for ordinary investors**. "Therefore, for ordinary investors, putting these TR products into an account and receiving **tax benefits** would be **more advantageous**."

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Understanding the Basics of an ISA Investment Account

An ISA account offers tax benefits and is not for investing in overseas stocks or overseas-listed ETFs.

Depositing money into an ISA for tax savings is not the most beneficial choice; instead, joining a tax-exempt deposit at a cooperative union is a better option.

It's essential to be aware of these limitations and alternatives when considering an ISA for investment purposes.

Financial Advice for Investment and Savings

Consider opening a joint account for the family to benefit from tax advantages.

Instead of deposits, explore ISA accounts and other low-risk investment options for higher returns.

Avoid investing solely in domestic stocks, as the tax implications on both buying/selling profits and dividend income are not favorable.

Instead, consider investing in high-dividend domestic stocks and avoid domestic stock-type ETFs due to the tax implications on distributions.

The Impact of Domestic Stock-Type ETFs in an ISA Account

Domestic stock-type ETFs, like KODEX 200 and KOSDAQ 150, are a regrettable choice for an ISA account.

Investing in these ETFs can be disappointing and a waste of time, especially when there are better options available.

On the other hand, using an ISA account to invest in overseas knowledge-based ETFs listed domestically, such as the U.

S&P 500 ETF, can be a more suitable approach for financial education and wealth growth.

stock market listing determines domestic or overseas classification for companies.

The tax implications and eligibility for ISA accounts differ based on this distinction.

Gold ETFs and commodity ETFs are recommended for ISA accounts due to favorable taxation, offering potential portfolio growth.

Other investment products and utilizing ISA accounts can have a significant impact on asset growth and financial planning.

Taxation of Domestic Stock-Type ETFs with Total Return (TR) in an ISA Account

Domestic stock-type ETFs with TR are subject to taxation on trading gains but can be put into an ISA account for tax benefits.

TR products reinvest dividends, similar to dividend income, and are taxed on trading gains.

Understanding the taxation details and the difference in buying and selling prices is crucial for investors.