So, you've decided to take control of your future and aim for early retirement — excellent move.
But before the $1 million portfolio and $50,000 in annual passive income becomes reality, you've got to take that all-important first step.
And that step starts with your first $10,000.
Done right, this initial investment sets the tone for everything that follows. It's not about chasing the next hot stock — it is about building a strong, diversified foundation designed to grow steadily and compound over time.
Here's how I'd invest $10,000 today to kickstart the journey toward early retirement.
Step 1: Think long-term, not short-term
The goal here isn't short-term profits — it is long-term wealth. That means you want exposure to businesses and sectors with staying power, resilience, and room to grow.
You're not looking to beat the market next week — you're looking to build a portfolio that works quietly and consistently over the next 15 to 25 years.
So how should that $10,000 be allocated?
Step 2: Build a core with ASX ETFs
A good way to start might be with broad exposure through high-quality ASX ETFs. For example, I might put $3,000 in the Betashares Nasdaq 100 ETF (ASX: NDQ). This allows me to tap into long-term growth in U.S. tech and innovation with stocks such as Apple, NVIDIA, and Tesla.
I might also put $1,000 into the Vanguard MSCI Index International Shares ETF (ASX: VGS). This provides me with exposure to 1,500+ companies from across the globe.
Finally, I would look to put $2,000 in the VanEck Morningstar Wide Moat ETF (ASX: MOAT). This fund gives me access to fairly valued stocks with sustainable competitive advantages. Warren Buffett has built an incredibly successful career by buying companies exhibiting these qualities.
Step 3: Add a few individual ASX shares for extra growth
With $4,000 left, I would look to add some high-conviction, long-term shares to round out my portfolio.
I would consider putting $1,500 in Goodman Group (ASX: GMG). It is a top-tier property group riding the growth of data centres, ecommerce, and logistics infrastructure.
I think $1,500 in CSL Ltd (ASX: CSL) would be a great shout too. This biotech giant appears well-placed for long term growth thanks to its world class operations and significant investment in R&D.
I might also consider $1,000 in cloud accounting platform provider Xero Ltd (ASX: XRO). It has 4.4 million subscribers at present but an estimated 100 million total addressable market. This gives it a multi-decade runway for growth.
Step 4: Reinvest and stay consistent
Equally as important as your stock selection is staying consistent. Reinvest all dividends, top up your portfolio regularly (even $500 a month helps), and resist the urge to panic during market dips.
This allows compounding to work its magic, super charging your wealth creation.
Foolish takeaway
Investing your first $10,000 is more than a financial decision — it's a mindset shift. You're planting the seeds of early retirement with a portfolio built on diversification, discipline, and long-term vision.
A $1 million retirement target with ASX shares won't happen overnight. But by starting with the right structure, staying invested, and adding over time, you're giving yourself every chance to get there — and enjoy the financial freedom that follows.
