Thoughts of my approach- DHHF, VAS & HYGG

Hi All,

I am looking to start to diversify outside of residential property in order to build up a portfolio that delivers positive cash flow each year. I am thinking about dollar cost averaging about $8-10K per month over the next 5 years. Ideally in 5 -10 years I’ll be able to start to use the dividends to ideally work less and/or focus on what I am passionate about. Minimal effort is ideal for me due to long work hours. Not too worried about high risk as I could work for another 20 years if needed.

I was thinking about investing as follows:
1) 40% into VAS - Decent yield, franked dividends and low cost
2) 30% into DHHF - international exposure, growth orientated
3) 30% into HYGG - Taking a punt here and it’s against the textbooks but they seem to have a good record or beating the market

Perhaps towards the end I can transition more into decent yielding investments such as AFI. People like Peter Thornhill suggest going straight for dividends.

Any thoughts? There is so much information out there I am finding it hard to narrow down the best approach. Ultimately what probably matters most is just getting started and putting money in each month but it would be good to know if this is a terrible starting point...

Thanks!!
Mark

 

Stick it all in DHHF. That is as simple as it gets and over the long term will beat any combo you come up with...

There is already VAS equivalent within DHHF, so you would be overweighting Aus even more.

HYGG I don't know what it is and not interested either.

 

Or you could do a search for the threads 'Peter Thornhill 2021, Lic & Lit 2021 ( & earlier ones too) ,Exchange Traded Funds' on this forum.

 

Thanks, simple is good.

I guess the question is whether I need the extra growth (and I’d hope the dividends would grow with it) or am I fine just pumping money into shares which pay fully franked dividends. E.g. if you went traveling and earned $50K of dividends you’d pay no tax on that and would even get a partial refund of the flanking credits.

Let me ask it a different way then, would your answer change if I wanted to quit my job and live off the dividends in 5 years? I still have some resi investment properties for long term growth as well.

Thanks,
Mark

 

no

 

Haha ok that’s a clear answer.

 

Not at this stage point as we have spent time overseas and rented out our PPoR. We are renting where we want to live at the moment. Maybe in 4 or so years we may buy another PPoR if we eventually settle somewhere. Are you thinking along the lines of debt recycling?