The "Core 4" Allocation
With $10,000, you cannot afford to be over-diversified. You need concentration in quality. We recommend a 4-ETF model that covers every base: Growth, Income, Real Estate, and Tech.
1. The Foundation (40%)
Ticker: SCHD or VIG
Allocation: $4,000
This is your safety net. These companies raise dividends every year. They defend your principal during crashes.
2. High Income (30%)
Ticker: JEPI or SPYI
Allocation: $3,000
This generates your monthly cash flow "salary". Use this income to reinvest into the Foundation.
3. Real Estate (20%)
Ticker: O (Realty Income)
Allocation: $2,000
Instant landlord. Monthly rent checks without fixing toilets. Provides inflation protection.
4. Tech Growth (10%)
Ticker: QQQM or DGRO
Allocation: $1,000
Pure capital appreciation. We need the portfolio value to grow faster than inflation.
Why This Works
This portfolio yields approximately 4.5% - 5.5% blended. On $10,000, that is ~$500/year or ~$42/month.
It sounds small, but $42/month buys you 1/2 a share of SCHD every single month automatically. This is the "Snowball Effect" in action.
Execution Strategy
- Open a Brokerage: Fidelity, Schwab, or Robinhood.
- Deposit $10k: Or deposit $2k/month for 5 months.
- Set DRIP: Turn on "Dividend Reinvestment" immediately. Do not spend the cash.
- Wait 5 Years: Do not sell during corrections.