Beginner

Hi Kristy and welcome :)

If you don’t have a lot to invest, the single best piece of advice I can give is to do anything you can to find more money to invest with. Whether it’s through getting rid of any debts to free up more cashflow, doing your best to earn extra income, or reduce spending in various areas (wherever your money is going).

These actions are going to make investing way more powerful, by giving you more fuel to add to the fire.

In terms of investment selection, I’d encourage you to have a look at the Shares page, which lists the most popular investments in the Pearler community (they’re mostly diversified ETFs): https://pearler.com/explore/invest/shares

This gives you a good start for further research, along with the following article: https://pearler.com/explore/learn/blog/invest...

All the best,
Dave

Presuming you have 20 years before you need to access the funds, you can probably go 100% growth (i.e. shares vs fixed income(bonds)). I also assume you take all your dividends and reinvest them via pearler, rather than use a dividend reinvestment plan scheme. (DRP can take a long time before you get to a whole unit, whereas using pearler reinvestment in conjunction with regular investment amounts (DCA) will get you whole units sooner plus will give you automatic rebalancing). A simple portfolio could be
– Australian biggest ASX 200 or 300, provides reasonable dividends with franking credits. Using IOZ or VAS.
– USA biggest 500 (e.g. IVV), or the more tech sector NASDAQ (e.g. NDQ), will give you more growth than dividends because of the way the US taxes capital growth vs dividends being different from Australia. Depends on how you feel about US at the moment.
– Global shares (excluding Australia) but with a fair bit of USA (e.g. VGS) which will give more dividend than US but less than Australia and with no franking credits, but probably more growth than Australia
Maybe set up pearler automations to
– invest regularly what you can afford every month but to trigger a purchase when getting above a certain threshold. (I use $650 since the $6.50 brokerage is then 1% of the costs, but you have to weigh opportunity cost of money sitting in the pearler cash account vs sitting in an offset or HISA covering inflation.)
– have a target allocation of the above with 40%/30%/30% weights so in 1st reaching of the threshold, a parcel of your chosen Australian ETF is bought, next month or 2 your US ETF parcel is bought then a month or 2 later it is your World ETF to be bought. Now in the next month, say there has been a bit of movement in the values of the ETFs or distributions have been paid and the weights in your portfolio are now Aus 42%, US 40% and World 38%. So the World ETF weight is furthest from your target allocation, so next parcel that would be bought is World. Over time the actual al

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