How I Invest: Without Stress, Guessing or Trying to Beat the Market

For many people, investing feels overwhelming. There’s fear around getting it wrong, buying at the wrong time, or losing money you worked hard to earn. Even when we understand the basics, there’s often still that lingering anxiety: What if I make a mistake?

This week, I wanted to share how I invest, why I do it the way I do, and how I’ve come to feel at peace with my approach.

Income vs Capital: A Foundational Shift

One of the biggest misconceptions I see is the confusion between capital growth and income returns. Capital growth is what most people focus on, buying something for one price and selling it for more later (hopefully). But income, such as dividends or interest, plays an equally important role, especially as we move closer to retirement.

If you’re relying purely on capital growth later in life, you’re forced to sell assets to fund your lifestyle. Income-producing investments, on the other hand, allow your money to continue working for you while you live off the returns.

Understanding Your Real Risk Profile

Risk isn’t just about age or timeframes, it’s also emotional. I often ask clients: How do you feel when your investments drop in value? Do you panic? Do you sell? Or do you stay the course?

Investing isn’t just numbers on a screen, it’s psychology. If you’re checking balances daily and stressing yourself out, the issue isn’t the investment, it’s the strategy.

It's also important to keep in mind that your risk profile can change over time, influenced by life experiences, investing success (or not), and approaching retirement.

Diversification: More Than a Buzzword

True diversification means spreading risk across asset types, regions, and markets, not owning three properties in neighbouring suburbs (which may still be financially viable, even though it isn't diversified). This is why I personally prefer ETFs and pooled investments over solely relying on direct property investing. They give broad exposure without the stress, debt, and concentration risk.

The predominant advantage with property is the ability to use debt as leverage, so you can buy a larger asset without having to spend decades saving up for it (which I've only ever seen happen once!)..

How I Structure My Portfolio

I’ve always maintained roughly a 70% growth / 30% defensive balance, gradually adjusting as life evolves. Defensive assets provide stability, while growth assets create long-term wealth.

On the growth side, I invest primarily in ETFs, favouring low-cost, globally diversified options (like Vanguard). I automate my investing so money goes in regularly, without emotion or overthinking. Dividends are reinvested, allowing compounding to quietly do its work.

The Power of Micro-Investing

Micro-investing completely changed the playing field. Small, consistent contributions, even $10 or $50 at a time, add up over years. I’ve seen this firsthand, including investing for my daughter through a child sub-account.

It doesn’t feel dramatic. It doesn’t feel clever. But it works.

I continue to micro-invest alongside my other investments.

Timing vs Time

Trying to time the market creates stress and not necessarily a better outcome. Consistent investing over time, known as dollar-cost averaging, has repeatedly outperformed attempts to jump in and out.

If you want to know more and see some numbers, this is a good article to have a look at.

Investing isn’t about being brilliant. It’s about being consistent.

If there’s one takeaway, it’s this:
👉 You don’t need to do everything perfectly.
👉 You just need to start, and keep going.