It’s hard to ignore the growing sense of unease in the share market right now.

Rising geopolitical tensions, surging oil prices, and ongoing concerns that artificial intelligence (AI) will disrupt parts of the technology sector have all contributed to increased volatility. At the same time, the ASX only recently pushed toward record highs, which naturally raises questions about how much further the market can run.

None of this guarantees that a stock market crash is coming. Markets are notoriously difficult to predict.

But I do think it’s fair to say that a sharper pullback in share prices is a possibility investors should at least be prepared for.

Market corrections are normal

One thing I always remind myself is that market corrections are a normal part of investing.

Even strong long-term bull markets experience regular pullbacks along the way. Sometimes these are triggered by economic events, geopolitical tensions, or interest rate changes. Other times, they simply happen because sentiment becomes stretched.

Either way, they can feel uncomfortable when they occur.

But history shows that corrections are not only common, they are often temporary.

The COVID crash is a good reminder

A good example of this came during the COVID market crash in early 2020.

At the time, fear was everywhere. The ASX 200 fell more than 30% in a matter of weeks as the world faced an unprecedented global shutdown. For many investors, it felt like the beginning of a prolonged financial crisis.

Yet the opposite happened.

Markets recovered far faster than most people expected, and many investors who bought during that period saw extraordinary returns in the years that followed.

High-quality ASX shares such as Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), and ResMed Inc (ASX: RMD) all went on to reach significantly higher levels after the crash.

Why I think preparation matters

For me, the lesson from that experience is not that crashes should be feared.

Instead, it’s that they should be prepared for.

If markets fall sharply, the investors who are able to stay calm and think long term are often the ones who benefit the most. Lower share prices can create opportunities to buy strong businesses at valuations that may not be available during bull markets.

Of course, not every falling stock is a bargain. Some businesses decline for very good reasons.

But when quality ASX shares get caught up in broad market sell-offs, long-term investors sometimes get a second chance to buy them at attractive prices.

Foolish Takeaway

No one can predict exactly when the next stock market crash or correction will arrive, or how deep it might be.

But if it does happen, I would view it less as a disaster and more as a potential opportunity.

History suggests that some of the best long-term investments are made during periods when the market feels the most uncertain. The key is having the patience and discipline to take advantage of those moments when they appear.

The post A stock market crash feels like it might be imminent appeared first on The Motley Fool Australia.

More reading

• Buying ASX shares? Here’s what to expect from Tuesday’s RBA interest rate decision
• If I invest $5,000 in NAB shares, how much passive income will I receive in 2027?
• Why I think these Vanguard ETFs could outperform the ASX 200
• 3 defensive ASX ETFs to battle through market turmoil
• What are the best ASX 200 shares to consider buying for the next 5 years?

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed and Wesfarmers. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With rising expectations of back-to-back interest rate hikes from the Reserve Bank of Australia, the S&P/ASX 200 Index (ASX: XJO) could receive a sizeable boost on Tuesday should the RBA opt to hold rates steady.

(I’m not holding my breath in hopes of a cut.)

As you’re likely aware, at its last meeting on 3 February, Australia’s central bank increased the official cash rate by 0.25%, bringing it back to 3.85%.

“The board considers that inflation is likely to remain above target for some time… and it was appropriate to increase the cash rate target,” the RBA noted on the day.

The inflationary pressures the Aussie economy was facing in February – including housing and a tight labour market – are still in play this month. But since then, we’ve also witnessed the outbreak of the major Middle East conflict. That’s seen global oil prices leap above US$100 per barrel.

So, is there still a chance ASX 200 investors could get an interest rate reprieve on Tuesday?

Here’s what the experts are telling us.

What the experts forecast for Tuesday’s RBA interest rate call

“For the RBA, an energy shock was the last thing they needed. Inflation was already running above target before the Iran conflict began,” eToro market analyst Josh Gilbert said.

As for the likelihood of a Tuesday interest rate increase, Gilbert noted:

Deputy Governor Hauser’s comments this week were about as close to a signal as you’ll get without explicitly pre-committing to a move.

Saying that further price increases from Iran are ‘not a helpful development’, while reminding everyone of the RBA’s commitment to bringing inflation back to target, is not the language of a central bank preparing to sit on its hands.

Gilbert said that whatever the outcome, the RBA’s decision won’t be an easy one this month.

“Petrol prices are climbing, which feeds directly into broader consumer prices, but that same energy shock could slow the global economy and weigh on growth,” he said. “Governor Bullock has arguably one of the toughest calls since taking the job on her hands.”

On Friday, the RBA rate indicator showed markets pricing in a 66% chance of an interest rate boost this Tuesday.

But Ebury market analyst Anthony Malouf doesn’t expect the central bank to move quite so quickly.

“This oil price shock arrives at an awkward time for the RBA, given it was already forecasting inflation to remain outside its target band until mid-2027,” he said.

Malouf added:

Despite these upside risks, we do not anticipate an immediate rate hike next week. Instead, we expect the board to use the March meeting to firmly put the market on notice and re-establish a clear hawkish bias.

The RBA will likely wait to digest data, in particular the full Q1 CPI print in late April, to definitively gauge the impact of the events in the Middle East. Indeed, we believe this will provide the necessary ammunition to deliver a 25bp rate hike at the May board meeting.

Stay tuned!

The post Buying ASX shares? Here’s what to expect from Tuesday’s RBA interest rate decision appeared first on The Motley Fool Australia.

More reading

• If I invest $5,000 in NAB shares, how much passive income will I receive in 2027?
• Why I think these Vanguard ETFs could outperform the ASX 200
• 3 defensive ASX ETFs to battle through market turmoil
• What are the best ASX 200 shares to consider buying for the next 5 years?
• Here’s what Westpac says the RBA will do with interest rates next week

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

National Australia Bank Ltd (ASX: NAB) shares may be one of the first candidates that passive income investors look at for dividends because of its blue-chip status.

NAB is in a competitive landscape, with names like Commonwealth Bank of Australia (ASX: CBA), ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC), Macquarie Group Ltd (ASX: MQG), and Bendigo and Adelaide Bank Ltd (ASX: BEN) to just name a few of the other ASX bank shares trying to win loans.

But because NAB has a fairly generous dividend payout ratio and a relatively low price-to-earnings (P/E) ratio, it can offer investors a good dividend yield.

Dividend potential of NAB shares

According to CMC Invest’s estimate, the business is projected to pay an annual dividend per share of $1.705 in FY26, then rise to $1.72 in FY27.

While that’s not the fastest growth rate in the world, it does represent forecast growth year over year.

At a time of elevated financial uncertainty, any dividend growth would be welcome, in my view.

At the current NAB share price, that represents a cash dividend yield of 3.6% and a grossed-up dividend yield of 5.2%, including the franking credits.

Further dividend growth is expected in FY28, though that’s a few years away, so I wouldn’t be as confident about that projection as the nearer-term forecasts. The 2028 financial year annual dividend per share is estimated to be $1.755.

How much passive income for a $5,000 investment?

NAB’s focus on business banking has allowed its profitability to remain relatively strong, and that could help a $5,000 investment deliver a solid return.

Based on the above yields, making a $5,000 investment today could mean unlocking $260 of annual passive income, including the franking credits. Just the cash part of the passive income would be $182, excluding franking credits.

Is this a good time to invest in NAB shares?

Analysts generally don’t seem to think so, based on their price targets.

A price target indicates where the analyst expects the share price to be in 12 months from the time of the investment call.

According to CMC Invest, there are currently four buy ratings, one hold rating, and four sell ratings on the business. However, the average price target on NAB shares is $42.20, implying a decline of around 10%, according to CMC Invest.

The most optimistic price target is $50.64 – implying a possible rise of less than 10%, while the most pessimistic price target is $30, implying a decline of 36% from where it is at the time of writing.

In my view, there are other ASX dividend shares that would make better buys for both stronger dividend yields and better capital growth potential.

The post If I invest $5,000 in NAB shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• 3 defensive ASX ETFs to battle through market turmoil
• Here’s what experts think will happen with the RBA interest rate this month
• 3 Australian bank stocks that could outperform global peers again in 2026 and 2027
• Forget NAB shares, this ASX fintech stock could double in value
• 2 ASX stocks to buy and 1 to sell

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) has delivered solid returns for investors over time. But if I were building a long-term portfolio today, I wouldn’t limit myself to Australian shares alone.

Australia makes up only a small portion of the global share market, and the ASX itself is quite concentrated. Banks and miners dominate the index, which means investors can miss opportunities when those sectors go through weaker cycles.

That’s one reason I often look to exchange-traded funds (ETFs) to gain broader exposure.

In particular, there are a few Vanguard ETFs that I think could potentially outperform the ASX 200 over the long run.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

If I had to choose one market that has consistently delivered strong long-term returns, it would probably be the United States.

The U.S. market is home to many of the world’s most innovative and profitable companies. Businesses such as Apple, Microsoft, and Nvidia have become global giants, driving much of the market’s growth over the past decade.

The Vanguard S&P 500 US Shares Index ETF gives investors exposure to 500 of the largest listed companies in the United States.

What I like about this ETF is that it provides access to a broad portfolio of industry leaders across technology, healthcare, consumer goods, and financial services. It also does so at a very low cost.

Personally, I think having exposure to the U.S. economy is one of the easiest ways for Australian investors to diversify their portfolios and potentially access stronger long-term growth than the local market alone.

Vanguard FTSE Asia ex-Japan Shares Index ETF (ASX: VAE)

Another region I believe investors shouldn’t ignore is Asia.

Many Asian economies continue to grow faster than developed markets, supported by rising incomes, expanding middle classes, and rapid urbanisation.

The Vanguard FTSE Asia ex-Japan Shares Index ETF provides exposure to a wide range of companies across markets such as China, Taiwan, South Korea, and India.

This ETF offers exposure to industries that are less prominent on the ASX, including semiconductor manufacturing, global electronics supply chains, and fast-growing consumer businesses.

In my view, the long-term economic growth across Asia could translate into strong corporate earnings growth over time, which may help drive returns that outpace more mature markets.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

If I wanted a single ETF that could serve as the core of a long-term portfolio, I think the Vanguard Diversified High Growth Index ETF would be very hard to ignore.

This ETF invests in a diversified portfolio of other Vanguard funds, giving investors exposure to thousands of companies around the world.

The portfolio is heavily weighted toward growth assets such as global shares, with smaller allocations to Australian shares, emerging markets, and fixed income.

What I like most about the VDHG ETF is its simplicity. With one ETF, investors can gain broad diversification across global markets without having to build a complicated portfolio themselves.

For long-term investors who want a relatively hands-off approach, that type of diversification could potentially deliver stronger returns than relying solely on the ASX 200.

Foolish takeaway

I still think the ASX 200 has a key place in a diversified portfolio.

But if I were aiming for long-term growth, I would want exposure beyond Australia’s relatively small and concentrated market.

With global diversification, exposure to faster-growing regions, and access to some of the world’s most innovative companies, I believe ETFs like these Vanguard funds could have a good chance of outperforming the ASX 200 over the long term.

The post Why I think these Vanguard ETFs could outperform the ASX 200 appeared first on The Motley Fool Australia.

More reading

• How I’d start building an ASX retirement portfolio today
• Look long-term with these 3 ASX ETFs
• I would put $10,000 into these Vanguard ETFs tomorrow if I could
• Where to invest $2,000 in Vanguard ETFs in March
• $5,000 to invest? Here’s how I’d split it across the ASX

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, and Nvidia and is short shares of Apple. The Motley Fool Australia has recommended Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When markets turn volatile, one strategy to protect your portfolio is adding defensive ASX ETFs.

These funds can provide diversification, exposure to resilient assets, and lower volatility during economic downturns.

Rather than trying to time market swings, defensive ASX ETFs aim to smooth returns. They do this by investing in assets that have historically held up better during crises, such as government bonds, gold, and high-quality global companies.

If I were building a more resilient portfolio today, these three ASX ETFs would be on my radar.

Vanguard Australian Fixed Interest ETF (ASX: VAF)

This Vanguard ASX ETF focuses on investment-grade Australian bonds, including government and high-quality corporate debt.

Bonds are often considered one of the most reliable defensive assets because they tend to perform better when economic growth slows and central banks cut interest rates. During equity market selloffs, investors frequently rotate into bonds for safety, which can support prices.

The fund tracks a broad bond index and includes securities issued by the Australian government as well as major financial institutions such as Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB).

The strength of this ASX ETF is stability. Income from interest payments can help cushion portfolios during equity downturns, and the diversification across many issuers reduces individual credit risk.

However, bond ETFs are not completely risk-free. Rising interest rates can push bond prices lower, which means returns may be weaker during periods of tightening monetary policy.

Global X Physical Gold ETF (ASX: GOLD)

The Global X Physical Gold ETF offers investors exposure to the price of physical gold stored in secure vaults.

Gold has long been viewed as a hedge during financial crises, inflation shocks, and currency volatility. When investors lose confidence in financial markets, demand for gold often increases.

That dynamic has helped the metal perform well during several major market disruptions, including the Global Financial Crisis and the COVID-19 market crash.

Unlike equity ETFs, this ASX ETF doesn’t hold corporate shares. Instead, it tracks the price of physical bullion. While gold mining giants such as Newmont Corporation (ASX: NEM) and Barrick Mining Corp (NYSE: B) are often influenced by the same underlying commodity trends, this ETF gives direct exposure to the metal itself.

The key strength here is diversification. Gold often moves differently from shares and bonds, which can help reduce overall portfolio volatility.

The main drawback is that gold does not generate income like dividends or interest, meaning long-term returns depend entirely on price appreciation.

VanEck MSCI World ex Australia Quality ETF (ASX: QUAL)

The VanEck ASX ETF focuses on high-quality global companies with strong balance sheets, high returns on equity, and stable earnings.

Quality investing is a defensive strategy because companies with durable competitive advantages and consistent cash flow often perform better during economic slowdowns.

The ETF holds global leaders such as Apple Inc (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT), along with dozens of other financially strong multinational businesses.

One of the biggest advantages of this ASX ETF is exposure to resilient global franchises that dominate their industries. These types of businesses tend to maintain profitability even when economic conditions weaken.

The main risk is that the fund still invests in equities, meaning it can fall during broad market selloffs. However, quality stocks have historically been less volatile than the broader market over the long term.

The post 3 defensive ASX ETFs to battle through market turmoil appeared first on The Motley Fool Australia.

More reading

• Here’s the average Australian superannuation balance at age 70 in 2026
• 3 reasons CBA shares could be worth buying today
• Here’s what CBA says the RBA will do with interest rates in 2026
• 5 things to watch on the ASX 200 on Friday
• My 3 best ASX dividend-focused stocks to buy in March

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Microsoft and is short shares of Apple. The Motley Fool Australia has recommended Apple and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The market has been very volatile recently, dragging a number of quality ASX 200 shares sharply lower.

While this is disappointing, for long-term investors, periods of uncertainty can create opportunities to buy strong businesses that are still early in their growth journey or positioned to benefit from major industry tailwinds.

With that in mind, here are two ASX 200 shares that analysts think could be worth considering for the next five years.

Life360 Inc (ASX: 360)

One ASX 200 share that could be a compelling option for the next five years is Life360.

The technology company operates a leading family safety and connection platform that allows users to track the location of loved ones, receive crash detection alerts, and access emergency assistance features.

Importantly, the business already has enormous scale. Life360 finished 2025 with approximately 95.8 million monthly active users, representing 20% year-over-year growth.

However, only a small portion of those users currently pay for premium services. The company ended the year with 2.8 million Paying Circles, up 26% year over year, highlighting the growing opportunity to convert its large free user base into recurring subscription revenue.

Management is also expanding the platform beyond subscriptions. The company is building a broader “family super app” ecosystem that includes hardware devices such as Pet GPS trackers, advertising services powered by location data, and additional safety products.

Looking further ahead, Life360 is targeting 150 million monthly active users and US$1 billion in annual revenue over the medium term, which highlights the scale of the opportunity ahead of the business.

The team at Bell Potter is bullish on Life360 and has a buy rating and $40.00 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX 200 share that could be worth considering as a buy and hold investment is NextDC.

The company operates data centres that provide the critical infrastructure needed for cloud computing, artificial intelligence, and large-scale digital workloads. As businesses increasingly move their operations to the cloud, demand for high-performance data centre capacity continues to rise.

Importantly, NextDC’s recent half-year update highlighted a record forward order book of contracted capacity that is expected to ramp into billing through to FY 2029, which could underpin strong revenue growth in the coming years.

This growing contracted pipeline gives the company strong visibility over future demand for its facilities. At the same time, NextDC continues to invest heavily in new capacity to support hyperscale cloud providers and enterprise customers.

With artificial intelligence and cloud adoption accelerating globally, demand for secure and reliable data centre infrastructure could continue rising for many years.

Morgans is a big fan of NextDC and recently put a buy rating and $20.50 price target on its shares.

The post What are the best ASX 200 shares to consider buying for the next 5 years? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX tech shares to buy amid ongoing tech wreck
• 2 ASX stocks to buy and 1 to sell
• 2 of the best ASX growth shares to buy now
• $10,000 invested in Life360 shares at the start of March is now worth…

Motley Fool contributor James Mickleboro has positions in Life360 and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Next week is going to be a big one for interest rates, with the Reserve Bank of Australia (RBA) scheduled to hold its next monetary policy meeting.

Just a couple of weeks ago, another rate hike at this month’s meeting looked unlikely after February’s increase, but a sudden spike in oil prices caused by war in the Middle East has changed everything.

In fact, the market believes that there’s a strong probability the RBA will lift the cash rate on Tuesday. But will that be the case? Let’s see what the economics team at Westpac Banking Corp (ASX: WBC) is predicting.

Will interest rates increase next week?

According to the latest cash rate futures, the market has priced in a 66% probability of a 25 basis point increase to 4.1% next week.

Unfortunately for borrowers, Westpac agrees with the market and expects the RBA to make another move in March.

Even worse, the bank’s economics team believes a further increase won’t be far behind.

Westpac’s chief economist, Luci Ellis, said:

The RBA is now expected to hike the cash rate by 25bp in both March and May; this is a change from our previous view of a single hike in May with further hikes as a risk only. The expected peak cash rate is now 4.35%. The effect of higher oil prices on headline inflation is large but temporary. The RBA Monetary Policy Board will nevertheless feel compelled to react, especially given the hit to confidence and financial markets from the Middle East conflict has so far not been severe.

When will there be some relief?

Westpac believes that the interest rate hikes in March and May will be where it ends. After which, the bank is forecasting cuts in late 2027 and early 2028. Ellis adds:

By the end of next year, underlying inflation will be close to the 2½% target midpoint and unemployment noticeably higher. It will also be clearer that supply capacity growth is above 2% and that labour market slack is building outside the formal labour force. We therefore also shift our expectations of the necessary reversal of tight policy, to November and December 2027 and February 2028 (was November 2027 and February 2028).

This is expected to see the cash rate down to 3.6% by the middle of June 2028.

The post Here’s what Westpac says the RBA will do with interest rates next week appeared first on The Motley Fool Australia.

More reading

• Here’s what experts think will happen with the RBA interest rate this month
• 3 Australian bank stocks that could outperform global peers again in 2026 and 2027
• The easiest way to earn $1,000 a month in ASX dividends
• How much have investors made in big four bank shares over the past year?
• Why Brainchip, Fortescue, Qantas, and Westpac shares are dropping today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Age 70 is an interesting moment in the retirement journey.

For most Australians, work is firmly in the rear-view mirror by this point. Superannuation has usually shifted from accumulation mode into drawdown, meaning balances are gradually being used to fund everyday living costs.

This stage of life raises a different question from the ones people ask in their 40s and 50s. Instead of wondering “Am I saving enough?”, many retirees are now asking “How long will my savings last?”

That makes understanding the typical super balance at 70 particularly revealing.

What the numbers show

According to the latest data from Rest Super, Australians aged 70–74 hold average superannuation balances of $449,540 for women and $501,785 for men.

Taken together, that means a typical retired couple in their early 70s may have close to $950,000 in superannuation assets combined.

At first glance, these figures may seem surprisingly high, particularly given that retirees are already drawing down their super to fund retirement.

But there are a couple of reasons balances remain relatively strong at this age.

Why balances often remain high at 70

First, many Australians retire with more super than they immediately spend. Withdrawals are often conservative, particularly in the early years of retirement.

Second, investment returns can continue to support balances even after retirement begins. A well-diversified portfolio that remains invested in growth assets can still generate returns that offset some of the withdrawals retirees make.

And finally, some retirees continue working part-time in their 60s, which allows them to delay drawing heavily on their super.

Together, these factors mean superannuation balances don’t necessarily collapse as soon as retirement begins.

How does that compare to what retirees actually need?

According to the ASFA Retirement Standard, a comfortable retirement lifestyle currently requires annual spending of about $54,840 for singles and $77,375 for couples.

To support that lifestyle, ASFA estimates retirees need approximately $630,000 in superannuation for singles and $730,000 for couples, assuming they own their home outright.

Based on those benchmarks, the average couple in their early 70s appears to be comfortably above the suggested threshold, while the average single retiree sits a touch below the recommended level. However, it is worth highlighting that these figures assume retirement at age 67, not 70.

Furthermore, averages never tell the whole story. Savings in your Commonwealth Bank of Australia (ASX: CBA) account, housing costs, health, travel plans, and lifestyle choices all play major roles in determining how far retirement savings will stretch.

Foolish takeaway

The average Australian in their early 70s now holds roughly $450,000 to $500,000 in superannuation, with couples approaching $1 million combined.

But retirement isn’t defined by a single number. Ultimately, what matters most is whether your savings, combined with the age pension and other assets, can support the lifestyle you want throughout the years ahead.

The post Here’s the average Australian superannuation balance at age 70 in 2026 appeared first on The Motley Fool Australia.

More reading

• 3 reasons CBA shares could be worth buying today
• Here’s what CBA says the RBA will do with interest rates in 2026
• My 3 best ASX dividend-focused stocks to buy in March
• Just 3 ASX ETFs could build a lazy Australian millionaire portfolio
• Here’s what experts think will happen with the RBA interest rate this month

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The investment team in charge of Australian Foundation Investment Co Ltd (ASX: AFI) (AFIC) has extensive experience selecting S&P/ASX 200 Index (ASX: XJO) shares to generate income and growth returns.

AFIC is the largest and one of the oldest listed investment companies (LICs) in Australia. It aims to provide shareholders with attractive investment returns through access to a growing stream of fully-franked dividends and enhancement of capital invested over the medium to long term.

It owns a mix of ASX dividend shares and ASX growth shares to provide an appealing portfolio of investments that delivers long-term returns.

The large LIC recently gave an investor presentation discussing the ASX shares it has bought.

Interestingly, the business also reported which companies it has been selling. Those sales include National Australia Bank Ltd (ASX: NAB), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), ALS Ltd (ASX: ALQ), Sonic Healthcare Ltd (ASX: SHL), and Telix Pharmaceuticals Ltd (ASX: TLX).

ASX 200 dividend share buys

There were four names that AFIC highlighted that it had bought, which it classified as income picks.

First, there’s electronics and home appliance retailer JB Hi-Fi Ltd (ASX: JBH), which operates JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys, and E&S.

Next, there was supermarket business Coles Group Ltd (ASX: COL).

Third, AFIC highlighted the portfolio had invested in the share registry (and other services) company Computershare Ltd (ASX: CPU).

The last ASX dividend share that was highlighted was major telco Telstra Group Ltd (ASX: TLS).

ASX 200 growth share buys

While AFIC highlighted four income names for the portfolio, there were six ASX growth shares, all of which you could describe as being in the tech space.

AFIC invested in the car online marketplace business CAR Group Ltd (ASX: CAR) (which owns Carsales).

Another investment was Pro Medicus Ltd (ASX: PME), a leading provider of medical imaging software and services to clients like hospitals, imaging centres, and healthcare groups.

The next highlighted choice was Netwealth Group Ltd (ASX: NWL), a financial technology business providing a platform and giving clients increased access to investment options.

Another pick was TechnologyOne Ltd (ASX: TNE), a global provider of enterprise resource planning (ERP) software.

After that, AFIC noted SEEK Ltd (ASX: SEK), the global jobs portfolio business, was another recent investment.

The final ASX 200 share investment that AFIC highlighted was REA Group Ltd (ASX: REA), the owner of realestate.com.au and several other real estate-related businesses.

Overall, I think AFIC has made some brave, smart ASX share moves that I think will play out positively.

The post A leading investor just bought these ASX 200 shares for income and growth appeared first on The Motley Fool Australia.

More reading

• A once-in-a-decade chance to earn a supersized passive income from ASX shares?
• AFIC announces CEO transition: Alison Gibson to succeed Mark Freeman in 2026

Motley Fool contributor Tristan Harrison has positions in Pro Medicus and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group, Technology One, and Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Netwealth Group and Telstra Group. The Motley Fool Australia has recommended CAR Group Ltd, Pro Medicus, Sonic Healthcare, Technology One, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortescue Ltd (ASX: FMG) shares have long been popular with passive income investors for the miner’s lengthy track record of paying two fully-franked dividends a year.

The S&P/ASX 200 Index (ASX: XJO) iron ore giant even declared two dividends in the pandemic addled year of 2020.

With that in mind, Fortescue is a solid option for investors looking for some welcome extra passive income.

We’ll dig into just how many Fortescue shares you’d need to buy for a $10,000 annual income boost below.

But first, two important reminders.

Planning your future passive income

When you’re trying to calculate your future passive income levels from ASX dividend stocks, you can use either forecast yields or trailing yields.

Forecast yields rely on analysts’ best guesses as to how a company and the global economy will evolve over the year ahead. These guesses may, or may not, be correct.

Trailing yields, which we’ll employ below, are backwards looking, based on the past 12 months of dividend payments. Future payouts may be higher or lower depending on a range of company specific and macroeconomic factors.

In Fortescue’s case, these include weather conditions suitable to mining operations and, crucially, the price of iron ore. The industrial metal continues to defy expectations of a sustained pullback, with iron ore trading around US$109 per tonne at the end of the week.

The second thing to bear in mind is that a properly diversified passive income portfolio isn’t based on a single stock. There’s no right number for everyone. But to reduce overall risk to your passive income stream, 10 to 20 ASX dividend stocks, ideally operating in various sectors and geographic locations, is a good ballpark figure.

With that said…

Digging into Fortescue shares for a $10,000 annual passive income

Fortescue paid a fully-franked final dividend of 60 cents per share on 26 September.

The ASX 200 miner will pay its 62 cent per share interim dividend on 30 March. It’s a little too late to grab this latest passive income payout, though. Fortescue shares traded ex-dividend on 2 March.

All up then, Fortescue paid out (or shortly will pay out) a total of $1.22 a share in fully-franked dividends over the past year.

Meaning that to secure $10,000 a year in passive income (based on the trailing yield), you’d need to buy 8,197 shares today, with potential tax benefits from those franking credits.

How much would that cost?

Fortescue shares closed on Friday trading for $20.48, up 29% in 12 months.

So, to achieve your $10,000 annual passive income goal, you’d need to invest $168,776 now.

Fortescue trades on a fully-franked trailing dividend yield of 5.96%.

The post How many Fortescue shares do I need to buy for $10,000 a year in passive income? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here’s why the Fortescue share price may have a turbulent few months
• 5 high-yield ASX dividend shares paying 6% to 10%
• Australia’s next great ASX mining boom: Are we already in it?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.