You do not need a huge amount of money to start investing.

Even $500 can be enough to begin building long-term wealth on the ASX.

The key is to keep things simple. With a smaller amount, investors can either choose a broad exchange traded fund (ETF) or start building positions in high-quality ASX shares over time.

Here are three options that could be worth considering.

iShares S&P 500 ETF (ASX: IVV)

The first option to look at is the iShares S&P 500 ETF.

This fund gives investors exposure to 500 of the largest listed companies in the United States.

That includes many of the world’s strongest businesses across technology, healthcare, finance, consumer goods, communication services, and industrials.

For someone investing $500, this can be a simple way to gain global exposure straight away.

The US share market has been home to many great long-term compounders, and this ETF gives investors access to that market without needing to choose individual shares.

If I were investing my first $500, this would be one of the top options on my list.

Pro Medicus Ltd (ASX: PME)

Another option is Pro Medicus. This healthcare technology company provides medical imaging software to hospitals and radiology groups.

Its Visage platform helps doctors and specialists view, manage, and interpret large volumes of medical images quickly and efficiently.

That may sound like a niche area, but it is an important part of modern healthcare.

Hospitals are producing more imaging data than ever, and they need systems that can handle that complexity without slowing clinicians down. This has worked in Pro Medicus’ favour, with the company consistently winning major contracts with large health networks overseas.

Its shares can be volatile because the company often trades on high expectations. However, for investors with a long-term view, Pro Medicus could be a great buy and hold pick.

Wesfarmers Ltd (ASX: WES)

A third option to consider is Wesfarmers. It is one of Australia’s highest-quality blue-chip companies, owning a collection of well-known businesses, including Bunnings, Kmart, Officeworks, and its chemicals, energy and fertilisers operations.

That gives the company a diversified earnings base across retail and industrial markets.

Bunnings remains one of the strongest retail franchises in Australia, while Kmart has built a powerful position in value-focused retail.

Wesfarmers also has a long track record of disciplined capital allocation, with a willingness to invest in growth, reshape the portfolio, and return capital to shareholders when appropriate.

For investors using $500 to start building a portfolio, Wesfarmers could be a high-quality individual share to consider.

The post Where to invest $500 on the ASX right now appeared first on The Motley Fool Australia.

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• Pro Medicus shares are flying 35% higher. Time to cash out?
• One ASX dividend and one ASX growth stock to buy now
• 3 reasons why the Wesfarmers share price is a buy
• The ASX investing strategy that could quietly make you rich
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Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Your 60s are a turning point in your life where the priority for your superannuation and your finances needs to switch from growth to preservation.

After all, at the age of 61, you’re just four years from the average Australian retirement age and six years from potentially receiving the Age Pension payment. 

The question is, do you know exactly how much you have in your super, and exactly how much money you need to fund your retirement when you decide to stop working.

Here’s a rundown of what the average Aussie has at age 61, and what you actually need to retire comfortably.

What is the average superannuation balance at age 61?

There isn’t an exact figure for the average superannuation balance at age 61, but the Association of Superannuation Funds of Australia (ASFA) has a good guideline.

ASFA’s data shows that at age 60 to 64, the average Australian male has around $395,852 in their superannuation. Meanwhile, the average 60 to 64 year old female has less, at approximately $313,360.

How does your balance compare to the average Aussie the same age?

What does a comfortable retirement look like?

ASFA defines a comfortable retirement as being able to maintain a good standard of living above and beyond the Age Pension. 

It assumes you’ll have top-level private health insurance, own a good brand of car, and do regular leisure activities. 

It allocates funds to set aside to build an emergency fund, for home repairs or renovations. And perhaps even go for the occasional meal out, and an annual domestic trip.

How much will that cost me?

According to ASFA, a comfortable retirement for Australians aged 65 to 84 years old is expected to cost around $54,840 per year for single Aussies. It is expected to cost roughly $77,375 per year for a couple. 

These figures also assume that you’ll be entitled to receive a part Age Pension payment once you reach age 67.

That means ASFA’s data indicates that by age 67, single Australians need a superannuation balance of approximately $640,000. And couples should have closer to $730,000.

How do I know if I’m on the right track?

Unfortunately, at up to $395,852, the average superannuation balance at age 61 falls short of what Aussies at the same age actually need in order to reach the retirement lifestyle they want.

I’ve crunched the numbers and it turns out that in order to reach the superannuation balance needed by age 67, at age 61 you’d need closer to $519,000 in your super.

That’s significantly higher than the average balance for both men and women the same age.

How can I bridge the gap between my average balance and what I actually need?

At age 61, it’s not too late to catch up.

The first thing to do is check that your super fund is performing well and your risk profile is appropriate for your age. 

Next, you’ll need to focus your attention on making extra contributions however you can. Individuals can make concessional (before-tax) super contributions, such as salary sacrificing, taxed at a reduced rate and up to an annual cap. You can also make after-tax payments within your annual limits. 

It also makes sense to check in with Government contribution rules. There are several rules and co-contribution rules you might be eligible for, depending on your personal circumstances. Every cent counts when it comes to compound growth!

The post Average superannuation balance for 61 year olds in 2026. How does yours compare? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

Every year that goes by makes the ASX share Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) more appealing to me.

The investment house regularly adds to its portfolio, which helps improve the quality of the business and increase its long-term prospects.

For example, it recently announced that it was selling its stake of a property investment trust worth $1.9 billion. Management said that this transaction will provide an opportunity for Soul Patts to reallocate capital toward opportunities it’s seeing across domestic and international markets.

This move could help the growth trajectory of the portfolio with the investments it makes with its new war chest. It’s looking at both local and international investments.

There are three areas that make me think this ASX share could be a good buy today.

Diversification

Plenty of investors just want to invest in quality options that provide good diversification and deliver solid returns. That’s partly why exchange-traded funds (ETFs) are so appealing to a lot of Aussies, allowing them to track the market.

Soul Patts has a diversified portfolio across a number of industries, including resources, telecommunications, financial services, building products, property, agriculture, water entitlements, swimming schools, electrification, credit and plenty more.

By owning this investment, investors can get access to a diversified portfolio through just one holding.

With its steadily adjusting portfolio over time, I think this company can future-proof itself and continue its excellent longevity. It’s already more than 120 years old.

Passive dividend income

In multiple ways, Soul Patts is the ultimate ASX dividend share, making it a great choice for passive income.

The company has paid a dividend every year in its listed existence, including through the world wars, global pandemics, economic recessions, various Prime Ministers and so on. Nothing has stopped that passive income flowing. It’s not guaranteed, though, of course.

Soul Patts also has the record for the longest continuous dividend growth streak on the ASX. It has hiked its regular payout every year since 1998, so it’s approaching 30 years of non-stop dividend growth.

It pays its dividend from the investment cash flow from its portfolio of shares, property, credit and private businesses. Soul Patts usually has a reasonably generous dividend payout ratio, but it still retains a material amount of its cash flow each year to invest in opportunities.

The cash flow growth can come from a combination of the organic growth of its own investments, as well as additional investments over time.

The only thing that doesn’t stand out as much is the dividend yield – at the time of writing it has a grossed-up dividend yield of 3.5%, including franking credits.

Capital growth

Some investors may be more focused on capital growth than dividends or diversification.

Soul Patts is not a high-flying AI company, but it’s the sort of business that has been able to provide steady compounding thanks to the growth in the value of the portfolio.

Over the last five years, the Soul Patts share price has risen 41%, at the time of writing. Past performance is not a guarantee of future returns of course, but I wouldn’t be surprised if it delivered a similar (or better) return over the next five years.

I’m seeing the business shift its portfolio towards a more growth-orientated focus, which I think will be a big positive for the longer-term returns.

As the years go by, I think it’s becoming more attractive as an investment for capital growth.

When combined in a portfolio with other attractive ASX shares, I think it’s a very good buy today.

The post I’d buy this ASX share because it offers almost everything an investor could want appeared first on The Motley Fool Australia.

More reading

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• How to invest in ASX shares when you can’t find stocks to buy
• Why are Soul Patts shares pushing higher again on Thursday?
• How much is needed in superannuation to target an $8,000 monthly passive income?
• These ASX dividend shares keep giving investors a pay rise

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.