FINANCIAL INDEPENDENCE
41 and starting out
Hey there, I am 41. I have a house deposit that I'll be holding onto for a house in the next 2 years. However I really want to start getting into investing now. I realise I'm late in the game so I'm looking for a bit of advice for my investment journey of I guess the next 30 years or so. I have 5000 to put in right now. Then, we will put in roughly $400 / month going forward. More when my income in my new business increases. I don't have the luxury of starting 20 years ago so I was thinking of going with a ratio of safer vs something a bit more concentrated. Do I go all into an S&P500 such as VOO/ VTI / VT and just concentrate on that or should I do this with maybe 20%-30% in a concentrated sector (looking at AI) My thinking is that the concentrated sector could offer more in a shorter amount of time. Any advice for an older newbie would be great. Thanks!
Bronwyn null.
15 April 2025
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Comments (1)
Hi Bronwyn,
I wrote an article specifically for people starting their investment journey a bit later in the game which you can read here: https://pearler.com/explore/learn/blog/invest...
As for investing in US ETFS, I’m guessing you’ve been reading US blogs which recommend those ones.
In Australia, we can invest in the same thing while the fund is also operated from here. If we buy the one which is ‘domiciled’ in the US, there’s an extra tax we have to pay so that’s not ideal.
The equivalent S&P 500 ETF here is IVV which is quite popular in the Pearler community. As for specific bets on AI etc I personally wouldn’t do that. There’s already so much hype around sectors like that which means it’s unlikely to outperform. There’s also a ton of US companies in IVV which benefit from AI meaning you already get exposure to that.
I wrote an article on investing in ‘themes’ a while back you can read here: https://pearler.com/explore/learn/blog/themat...
Your progress will largely be determined by how much you can save and market returns, so try not to ‘swing for the fences’ and find investments that shoot the lights out – most people end up shooting themselves in the foot instead! So I’d focus on the big diversified low cost funds (which sounds like is the main plan anyway).
Hope that’s useful and all the best.
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