A Melbourne Investor Turned $250,000 Into $1.5 Million in Five Years With a Simple ETF Rule
3 min read · RealCase summary
Richard Ye, a 52-year-old in Melbourne who spent 25 years in finance, took a $250,000 cash pile and grew it to $1.5 million on the ASX over five years.
His method was dollar-cost averaging with a technical filter: "If the S&P 500 is a certain percentage higher than the 50-day and 200-day moving average, I will pause," he said, rather than buying at every interval regardless of price. Instead of paying an estimated $22,500 a year for a financial planner, he spent about $1,800 annually on investment research through a low-cost brokerage.
His portfolio holds five ETFs -- two equally weighted US and Australian index funds, the Betashares Nasdaq 100 ETF (NDQ), the Betashares Australian Resources Sector ETF (QRE), and the Betashares Global Cybersecurity ETF (HACK) -- plus direct stock positions in Alphabet (GOOG) and ASX Ltd (ASX). He's aiming for $5 million by age 67, which he estimates would generate $300,000-$500,000 a year in retirement income.
Key takeaways
- ›Built a portfolio around five ETFs tracking the US and Australian markets, tech, resources, and cybersecurity
- ›Used a technical rule: paused new investments whenever the S&P 500 traded too far above its 50-day and 200-day moving averages
- ›Grew the portfolio from $250,000 to $1.5 million in five years, now aiming for $5 million by age 67
Original source
Read the original (Motley Fool Australia)
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