Want to retire early? Here's where I'd put my money

The idea of working until 67 before finally enjoying retirement has never appealed to me.

I'd much prefer to build enough wealth to retire earlier and spend more time doing the things I enjoy.

And I think investing in the stock market is one of the best ways to get there.

If I were putting together a portfolio specifically for early retirement, I'd focus on two things: ETFs and individual growth stocks.

Nothing particularly complicated, but I think getting the balance right could make a big difference over time.

Here's how I'd approach it.

I'd start with ETFs

The first thing I'd do is build a decent position in ETFs.

One that really interests me is the Vanguard Australian Shares High Yield ETF (ASX: VHY).

It holds a diversified portfolio of Aussie companies selected for their generous dividend yields.

And that's something I'd want in a retirement portfolio.

While I'm still working, I'd reinvest the distributions to buy more units and let compounding do its thing.

Eventually, I'd like those distributions to provide a steady income stream to help cover my living expenses.

I'd also add a growth-focused ETF with international exposure, so I'm not relying entirely on the Australian market.

The idea would be to build a solid foundation that could continue growing while generating income along the way.

I'd also back some growth stocks

Now, while ETFs would make up a substantial part of my portfolio, I wouldn't stop there.

I'd also want exposure to individual companies that I believe have the potential to become much bigger businesses over the coming years.

Two that interest me are WiseTech Global Ltd (ASX: WTC) and Ouster Inc (NASDAQ: OUST).

WiseTech operates a global logistics software business through its CargoWise platform, which helps freight forwarders manage complex supply chains.

Meanwhile, Ouster offers exposure to lidar technology, robotics, and physical AI.

Its sensors and software help machines understand their surroundings, with applications across industrial automation, robotics, and smart infrastructure.

Of course, these aren't risk-free investments, and I wouldn't be putting all my money into them.

But I'd be happy allocating a portion of my portfolio to businesses I believe have plenty of room to grow.

Time would be my biggest advantage

One thing I wouldn't do is buy shares and expect them to double in six months.

That's not how I'd look to build a retirement portfolio.

I'd want at least a three-year investment horizon for my individual growth stocks, though I'd ideally hold them much longer.

And with ETFs, I'd be looking at decades.

I'd also keep investing regularly, especially when the market gives us opportunities to buy quality businesses at more attractive prices.

Ultimately, I'd want a portfolio that combines dividend income with long-term capital growth.

And if I keep investing over the years, I'd hope to retire early and work because I want to, not because I have to.