All Ordinaries Index (ASX: XAO) construction services specialist Shape Australia Corporation Ltd (ASX: SHA) counts among my top passive income picks today.

There’s a lot to like about this stock.

First, the share price has been in a strong upward trend for more than three years now.

Second, it pays fully franked dividends. This give you credit for the 30% in corporate taxes the company has already forked out to the ATO on the profits it earns. Meaning you should be able to hold onto more of that passive income when it’s time to pay your own tax bill.

And, importantly, Shape has been steadily increasing its dividend payouts for four years running now. That’s a trend I like to see.

Over the past 12 months (as at Thursday afternoon) the Shape share price has rocketed 74.5%, recently trading for $7.40 a share.

Over this time, the ASX All Ords stock has paid – or shortly will pay – two fully franked dividends totalling 32 cents per share.

Shape shares traded ex-dividend on 28 August. Shareholders who held the stock on 27 August can expect to see the final 18 cents per share hit their bank accounts on 14 September.

At the recent share price, then, Shape trades on a 4.3% fully franked trailing dividend yield.

But some investors are earning a lot more from their Shape shares.

Getting in early for that passive income boost

While trying to time the market is incredibly difficult – and nearly impossible to do consistently – buying the right ASX dividend stocks in their earlier growth days can pay off handsomely over time.

Which relates more to “time in the markets” than timing them.

In Shape’s case, savvy passive income investors could have bought into the company for $1.80 a share in early January 2024. Now, I’m not cherry-picking a particularly low entry point here. Indeed, in January 2024, the Shape share price had gained 19% over the prior 12 months.

Now, if you’d bought Shape shares in January 2024, and held tight, you’d have been eligible to receive the past six fully franked dividends, totalling 71.5 cents a share. This would have already returned 40% of your initial investment to you as passive income alone, not to mention the 311% increase in the Shape share price over this time.

And at your buy-in price of $1.80, the past year’s dividend payout of 32 cents per share equates to a fully franked dividend yield of 17.8%. Or 25.4% grossed-up, if we factor in those franking credits.

The post How these savvy passive income investors are earning a stellar 18% dividend yield from this ASX All Ords stock appeared first on The Motley Fool Australia.

More reading

• Up 75%! Why this rocketing ASX All Ords stock is forecast to deliver more outsized gains
• SHAPE Australia: Record profit, revenue, and dividends in FY26

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 recommended Shape Australia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Turning 60 has a way of making superannuation feel more immediate.

For much of working life, the balance can sit quietly in the background while mortgages, family costs, and everyday spending take priority.

But at 60, superannuation starts to move to the foreground and retirement planning comes into play.

That makes the average balance at this age particularly interesting for anyone wondering how they compare.

The average superannuation balance at 60

The latest data is reported in five-year age groups rather than for individual birthdays, so there is no precise figure for Australians who are exactly 60.

However, the 60 to 64 age bracket gives us the clearest guide. The average superannuation balance for women in this group is $327,440, while the average for men is $413,700.

Those numbers are noticeably higher than in the 55 to 59 age bracket, where the averages are $260,199 for women and $341,115 for men.

That difference shows how much work super can still do late in a career. Employer contributions are continuing, and a larger balance means investment returns can have a greater dollar impact when markets are favourable.

Is the average balance enough?

The Association of Superannuation Funds of Australia (ASFA) estimates that homeowners need $630,000 in super for a comfortable retirement as a single person at age 67, while a couple needs about $730,000 combined. These figures assume some Age Pension support over time.

Against those targets, the typical balance for someone around 60 may still leave a single person with some ground to cover. The picture can look different for a couple, particularly if both partners have balances around the averages and own their home outright.

Retiring at 60 also creates another consideration because Age Pension eligibility does not begin until 67. Someone leaving work at 60 may therefore need super and other savings to carry more of the load during those early retirement years.

A useful checkpoint

The average superannuation figures should be treated as a comparison rather than a target because retirement needs vary depending on housing, spending, health, other investments, and when someone plans to stop working.

Even so, age 60 is a valuable time to take stock. With average balances of around $327,000 for women and $414,000 for men in the 60 to 64 age group, many Australians have accumulated substantial retirement savings while still having time to improve their position if they keep working.

I think the more useful question is not simply whether your super matches the average, but whether the balance you have built can support the retirement you want.

The post What is the average Australian superannuation balance at age 60? appeared first on The Motley Fool Australia.

More reading

• How these savvy passive income investors are earning a stellar 18% dividend yield from this ASX All Ords stock
• How Warren Buffett prepares for a market crash and what it means for ASX shares
• Bitcoin is back below US$77,000. Is this an opportunity for ASX investors?
• Why investors should be targeting ASX mid-caps and ASX small-caps after earnings season: Expert
• Five things I’d change about superannuation

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.

ASX shares could face a tougher road ahead as concerns about a potential market correction grow due to high valuations, rising inflation, trade tensions and geopolitical uncertainty.

Market crashes are impossible to predict consistently, but Warren Buffett has spent decades building Berkshire Hathaway to survive — and potentially capitalise on — financial panics.

His approach isn’t about calling the market crash. Instead, it centres on financial strength, patience and having capital available when attractive opportunities emerge.

Keep plenty of cash on hand

One of Buffett’s most important lessons is avoiding situations where you’re forced to sell investments at the worst possible time.

Berkshire Hathaway has historically maintained a substantial reserve of cash and short-term US Treasury securities. Buffett has emphasised the importance of holding enough liquidity to ensure the company can meet its obligations and take advantage of opportunities during periods of market stress.

That philosophy proved valuable during the 2008 financial crisis, when Berkshire had the financial flexibility to deploy capital as other businesses struggled to access funding.

For ASX investors, the lesson is straightforward: liquidity gives you options. Holding some cash can provide a buffer during a downturn and, more importantly, allow investors to buy quality ASX shares when prices become more attractive.

Don’t try to predict the crash

Buffett doesn’t need to know exactly when the next market crash will arrive. In 2024, Berkshire was a significant net seller of equities while increasing its holdings of US Treasury bills. That fuelled speculation that Buffett was anticipating a market collapse.

But there’s an important distinction. Buffett has repeatedly indicated that Berkshire is willing to hold cash when it cannot find enough high-quality investments trading at prices that meet its standards.

For ASX investors, that means there may be little value in constantly trying to predict whether a correction is imminent. A better approach could be maintaining a watchlist of quality ASX shares and waiting for valuations to become compelling.

When prices eventually fall, cash can become extremely valuable.

Buy when others are fearful

Buffett has long viewed market declines differently from many investors. In his shareholder letters, he has highlighted how falling share prices can benefit long-term investors because they allow capital to be deployed more cheaply.

That’s the heart of the strategy: don’t fear volatility if you’re financially prepared to take advantage of it.

For investors considering ASX shares, this doesn’t mean blindly buying stocks simply because they’ve fallen.

Buffett’s approach is about buying high-quality businesses with durable competitive advantages, strong financials and attractive long-term prospects — ideally at sensible prices.

Foolish takeaway

Warren Buffett doesn’t prepare for crashes by predicting them. He prepares by maintaining financial flexibility, avoiding excessive risk and patiently waiting for compelling opportunities.

That could be an important lesson for investors in ASX shares facing elevated valuations and economic uncertainty. When the next market correction arrives, investors with cash, conviction and a long-term mindset could be best positioned to take advantage of it.

The post How Warren Buffett prepares for a market crash and what it means for ASX shares appeared first on The Motley Fool Australia.

More reading

• How these savvy passive income investors are earning a stellar 18% dividend yield from this ASX All Ords stock
• What is the average Australian superannuation balance at age 60?
• Bitcoin is back below US$77,000. Is this an opportunity for ASX investors?
• Why investors should be targeting ASX mid-caps and ASX small-caps after earnings season: Expert
• Five things I’d change about superannuation

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 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.