In today’s episode, we discuss how to approach asset allocation in Australia when your goal is Financial Independence. We explain why asset allocation matters and how it affects our ability to create passive income, retire early (and stay retired!) for a long period of time.
How much should we invest in Australian versus international assets? What about other things like home ownership, investment property, cash, bonds, or even assets like gold, bitcoin? How do these all fit into the puzzle?
(you can also download the mp3 file here)
- Why does asset allocation matter? (01:55)
- Starting at home: Investing in Australia (02:42)
- Venturing abroad: Investing overseas (06:52)
- Combining Aussie/global shares into a portfolio (09:51)
- Investment properties in your portfolio? (18:53)
- Safe assets – cash or bonds (22:30)
- Gold, crypto and other exciting stuff! (23:56)
- Why is diversification so useful? (27:00)
- Structuring your investments inside and outside super (29:46)
- How Pat and Dave approach asset allocation (35:33)
- Chasing investment performance (40:54)
- Takeaways from this episode (41:38)
- A Guide to Investing in International Index Funds
- Focus, Diversification and Early Retirement
- Vanguard Study: The Role of Australian Equities and Home Country Bias
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