Aussie FIRE | Financial Independence Retire Early 21. Aussie FIRE Q&A: ETF strategy, FI case study, and investing for kids
Sep 13, 2024
In this lively discussion, the hosts tackle pressing questions about investing for future generations, weighing the pros and cons of property versus shares. They explore the balance between enjoying life and saving for financial independence, providing tips to help listeners indulge without guilt. The conversation dives into the risks of US tech stocks compared to diversified ETFs, emphasizing the need for long-term strategies. Finally, they engage with audience queries, highlighting the importance of community involvement in the financial journey.
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Switched From All-in Fund To Regional ETFs
- Hayden stopped buying a multi-asset fund and began buying AU/US ETFs to control regional ratios.
- He preferred control over absolute simplicity for his personal comfort.
Change Weighting To Reduce Concentration
- If you dislike market top-heaviness, use equal-weight or ex-top ETFs to reduce concentration.
- Understand you’re essentially betting on smaller or different segments when you deviate from cap-weighted indices.
Turning Over Positions Brings Hidden Costs
- Consider the penalty of getting an allocation wrong: selling brings forward capital gains tax and admin costs.
- That penalty should influence how much tinkering you do with holdings.