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My 10-Year Plan to Build a $300,000+ Income & Growth Portfolio

 

I’ve always liked the idea of investing for income — but I also want to make sure I’m not missing out on global growth opportunities, especially from US technology and innovation leaders.

This is for my wife and children to build on so I’ve adjusted my original high-dividend portfolio to include NDQ and VGS, giving me exposure to some of the world’s biggest growth companies while keeping solid income flowing from Australian ETFs.

Updated ETF Portfolio

ETF SymbolNameApprox. Gross YieldFrankingSuggested AllocationWhy It’s Included
VHYVanguard Australian Shares High Yield ETF5.5%~90% franked25%Core Australian dividend exposure; steady income
SYISPDR MSCI Australia Select High Dividend Yield ETF5.0%Largely franked15%Reliable local high-dividend stocks with ESG tilt
HYLDBetaShares Australian High Dividend Yield ETF6.0%High15%Sustainable dividend payers; monthly income
HVSTBetaShares Australian Dividend Harvester ETF7.5%High10%Active, income-focused ETF capturing franked dividends
VASVanguard Australian Shares ETF3.8%Mostly franked10%Broad ASX exposure for balance and growth
NDQBetaShares NASDAQ 100 ETF0.7%None15%Access to top US tech and innovation giants for long-term growth
VGSVanguard MSCI International Shares ETF2.2%None10%Global diversification across the US, Europe, and Asia

Portfolio Highlights

1. Income Meets Growth
Around 60–65% of the portfolio remains focused on Australian dividend ETFs, maintaining reliable income and franking credits. The rest is invested in global growth ETFs that don’t pay much income but help grow the portfolio’s value over time.

2. Broader Diversification
Adding NDQ and VGS spreads risk beyond the Australian market — particularly into US tech, healthcare, and global consumer brands.

3. Inflation-Resilient Strategy
Dividends from Australian companies help with cash flow, while global growth exposure helps your capital keep pace with inflation and innovation trends.

4. DRP and Reinvestment Power
By reinvesting dividends (and occasionally trimming overweight positions), you can keep compounding growth steadily over 10 years.

Expected Portfolio Performance

MetricEstimateNotes
Gross yield (avg)~4.3%Weighted average after adding global ETFs
Effective yield with franking~5.0–5.3%For Australian portion only
Portfolio return target6–7% p.a.Balanced mix of income + growth
Dividend frequencyMonthly / QuarterlyDepending on ETF
Investment horizon3–10 yearsSuitable for steady accumulation

10-Year Projection (with Global Exposure)

Assumptions:

  • Monthly investment: $2,000

  • Total portfolio return: 6.5% p.a.

  • Gross dividend yield: 4.3%

  • Average franking uplift: 20% overall

YearPortfolio Value (AUD)Annual Dividends + Franking (AUD)Cumulative Dividends (AUD)
385,0004,30012,600
5145,0006,50026,500
7220,0008,90044,000
10335,00011,50078,000

By year 10, your investments could grow to around $335,000, generating over $78,000 in cumulative income — with higher long-term upside from NDQ and VGS.

Why This Mix Feels Right

  • Australian core for dependable income (franked dividends)

  • US and global exposure for growth and innovation

  • Monthly cash flow with long-term compounding potential

  • Low-maintenance structure — easy to manage and rebalance yearly

Next Steps

  1. Invest monthly via auto-debit or brokerage plan

  2. Enable DRP where possible to automatically reinvest distributions

  3. Track performance quarterly using a simple spreadsheet or Sharesight

  4. Rebalance annually — especially if one ETF outgrows the target allocation

Final Thoughts

This portfolio gives me the best of both worlds:
steady Australian dividend income today, and global growth potential for tomorrow.

By consistently investing and reinvesting over the next decade, I’m building a strong foundation for financial independence — one that grows through both income and innovation.

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