INVESTING STRATEGY
Investment Strategy and ETF Allocation Guidance
Hello Pearler Team, I’m new to investing and am focusing on building a long-term strategy for passive income to retire my wife early and potentially semi-retire or work part-time in the future. I’ve come up with the following ETF allocation, which I plan to invest $3000 into every 3 months, with automatic rebalancing: • VAS - 20% • VGS - 20% • VDHG - 20% • NDQ - 15% • VHY - 12% • VGE - 13% In addition to this, I plan to invest $2000 every six months into individual stocks (Amazon, Coca-Cola, and JNJ). Could you provide feedback on this strategy? Is the allocation balanced for long-term growth and passive income, and would you suggest any adjustments? Additionally, do you have any tips on automating rebalancing and keeping an eye on my portfolio’s performance? Thank you in advance Aashish Adhikari
Sign in to add a comment
Comments (3)
Superannuation has considerable tax benefits over investing in your own name, so don’t forget an allocation to that. Money you need prior to when you can start drawing super (60) is what you want in your own name. e.g. buying a house or drawing down on between early retirement and age you can access super.
My understanding is that VDHG is going to be duplicating many of your other holdings, so be aware of this.
If you are in accumulation, pearler automation does a wonderful job of getting to your allocation over time, and there is no selling required which is just additional cost. If the market throws a hissy fit over emerging markets causing your allocation to drop, then next purchase will buy them at the discount the market has presented for you.
Reply
1 like
To me this looks like you might be overcomplicating things a bit.
There is considerable overlap between VGS (mostly US shares), VDHG (mostly US), and NDQ (solely US).
There is also overlap between VHY and VAS.
In reality, there’s no need for all these holdings, and then doubling up on some of the biggest US companies individually.
The most common portfolios I see with holdings like that are VAS/VGS/VGE, or VDHG by itself. It can be reasonable to add other things, but make sure they’re actually adding something unique like companies you don’t already own inside these funds (which will be difficult given they cover the entire world already).
Reply
0 likes
Related posts
Investing Strategy
What happens if, in 30 years when I have hundreds of thousands or even millions of dollars in shares, nobody wants to buy them?
Hi there! What happens if, in 30 years when I have hundreds of thousands or even millions of dollars in shares, nobody w...
Investing Strategy
Best way to invest $10k for long-term growth?
Hey everyone! I’ve recently set aside $10k that I’d like to invest instead of letting it sit in my bank doing nothing. ...
Investing Strategy
I've heard that most people would only invest in VDHG if they had to choose one ETF. May I ask why?
Hi everyone, I’m quite new to the platform, and so far I have only invested in VDHG. I've heard that most people would...