Having a goal in mind for how much income you’d like to receive in retirement can be a very comforting strategy.

So how much do you need? What most of us aim for is a comfortable retirement, which means something different to everyone.

But it’s fair to say that an income stream of $3,000 per week would provide a standard of living most people would deem very comfortable.

How much is needed for a comfortable retirement?

Indeed, the Association of Superannuation Funds of Australia (ASFA) estimates singles will need $55,923 per year to fund a comfortable retirement. So $3,000 per week, or $156,000 per year, is well above this.

The ASFA figure does assume a retiree owns their own home and draws a part pension from the age of 67 when they become eligible.

So, how much superannuation would you need to generate $3,000 per week in passive income?

For simplicity’s sake, I will assume that a retiree is living off of dividends and not drawing down any capital.

Naturally, how much you would need in superannuation savings depends on what sort of dividend yield you can regularly rely on.

If the figure was just 5%, you would need $3.12 million in superannuation savings.

I would argue that this figure is too low, as retirees who are paying a zero per cent tax rate get the benefit of franking credits – that is, they get paid back the tax already paid by the companies whose shares they own.

In practice, this means that if a company is paying a 5% dividend yield, what is called the “grossed up” yield comes out at 7.14%.

If you were able to maintain a 10% dividend yield, you’d only need $1.56 million in superannuation, but I’d argue that somewhere in the middle, let’s call it 7.5%, is realistic.

At this level you’d need $2.08 million in retirement savings.

Which shares deliver good dividend yields?

So, what are some shares you might consider investing in to deliver these sorts of returns?

Keep in mind that companies with excessively high returns might not be able to sustain them over time.

A class of shares that tends to offer stability over time is infrastructure. In this sector, gas pipeline operator APA Group Ltd (ASX: APA) pays a 5.29% dividend yield, 31% franked, while toll roads operator Atlas Arteria Ltd (ASX: ALX) pays 8.84% with no franking.

Among financial services stocks, Regal Partners Ltd (ASX: RPL) is paying 11.15%, fully franked, while among the banks, Westpac Banking Corporation (ASX: WBC) is paying 4.4%.

Retailer Universal Store Holdings Ltd (ASX: UNI) is paying 5.67% (fully franked), while major retailer Coles Ltd (ASX: COL) is paying 3.29% fully franked.

There are also a diverse array of exchange traded funds such as the Betashares Australian Dividend Harvester (ASX: HVST) which are focussed on dividend payouts, with this one yielding 5.53%.

So as you can see, it’s possible to build a portfolio returning a decent yield, which can help hit your income targets.

The post How much is needed in superannuation for $3,000 in weekly passive income? appeared first on The Motley Fool Australia.

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• $10,000 a year in passive income buying just $10k worth of ASX shares? Here’s how I’d go about it
• How much do I need in my superannuation to earn $10,000 passive income every month?
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Motley Fool contributor Cameron England 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 positions in and has recommended Apa Group. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Austal shares climbed again this week, extending a run that has now added more than 30% since July.

The catalyst for this? The possibility that a second buyer has appeared for the company’s American shipyard.

Why Austal shares are moving

Austal Ltd (ASX: ASB) confirmed on Monday that it had held an initial discussion with Wildcat Infrastructure, a United States investment firm, after media reports identified it as a potential buyer of Austal USA.

The company was clear that it had not received a formal offer.

The reason the market reacted at all is that a bidder already exists.

Hanwha Defence USA lodged a non-binding, indicative proposal in August, and the board granted it a four-week due diligence window.

A second interested party changes the negotiating dynamic significantly for Austal.

What Hanwha has actually offered

Hanwha’s proposal values Austal USA at between US$1.05 billion and US$1.2 billion on an enterprise value basis, cash and debt free.

It is an offer for the shares in the Austal USA holding entities only.

It explicitly excludes the listed shares in Austal Limited, the Australasian operations across Australia, the Philippines and Vietnam, and the Strategic Shipbuilding Agreement with the Commonwealth.

Completion would require approval from CFIUS, the Defense Counterintelligence and Security Agency, and United States antitrust regulators.

The board set out its thinking in the announcement.

The Austal Board and its advisers have carefully assessed the Proposal and determined that it merits further evaluation, approving Hanwha to undertake due diligence related to Austal USA to improve the certainty of any proposal.

Hanwha is already Austal’s largest shareholder with 19.9% of the register, a stake approved by the Treasurer in December 2025 with conditions attached.

The FY26 result behind the bid

Austal’s full-year numbers explain why the American business is the one on the block.

Revenue rose 11% to $2.03 billion and the order book reached a record $16.5 billion.

The Australasian division produced record earnings before interest and tax of $85.3 million, up 137%.

Austal USA went the other way, posting a $202.8 million EBIT loss after provisions on legacy Navy programs, which dragged the group to a statutory loss of $53.6 million.

Chief executive Paddy Gregg described the Australian side as follows:

Outside of the US, never before has the Australian business been in such an enviable position, with a long-term order book and a strategic agreement that will provide decades of stability and growth.

What a sale would mean for Austal shares

Austal’s whole market capitalisation is roughly $1.8 billion.

The indicative value placed on Austal USA alone is between A$1.5 billion and A$1.7 billion.

If a sale completed near that range, shareholders would be left holding a debt-free Australian shipbuilder with record earnings and a decade of committed work, plus a very large pile of cash.

However, investors should nonetheless adopt a degree of caution.

Hanwha’s proposal is non-binding, Wildcat has made no offer, and United States regulatory approval is not a formality.

Foolish takeaway

Austal shares are still down over twelve months, which tells you how much damage the American contracts did.

A competitive process for Austal USA would be the fastest available route to recovering some of that.

Ultimately, the Australian business is performing well enough to justify holding whatever happens, and that is the better reason to own Austal shares today.

The post Austal shares are surging. Is a bidding war brewing? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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.

Ten years is a long time in the share market. Companies rise and fall, technology changes, and entire industries can look very different by the end of a decade.

That is why I think ASX exchange traded funds (ETFs) can be such a good fit for long-term investors.

They allow investors to back markets, investment styles, and major trends without needing every individual stock pick to work out.

With that in mind, here are three ASX ETFs that I think could be excellent buy and hold options for the next 10 years.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF could be a strong option for investors who want long-term exposure to some of the world’s leading growth companies.

The fund tracks 100 of the largest non-financial companies listed on the Nasdaq exchange. That means investors gain exposure to businesses involved in artificial intelligence, cloud computing, software, semiconductors, ecommerce, digital advertising, streaming, and consumer technology.

I think technology is likely to keep playing a larger role in how businesses operate and how people work, shop, communicate, and spend their time over the next decade. The Betashares Nasdaq 100 ETF gives investors a way to own a collection of businesses at the centre of that change, such as Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).

Vanguard All-World ex-US Shares Index ETF (ASX: VEU)

The Vanguard All-World ex-US Shares Index ETF is another ASX ETF to consider for the long term.

This fund gives investors exposure to a large group of companies outside the United States, including businesses across Europe, Japan, Asia, emerging markets, and other parts of the world. That can be valuable for investors who already have plenty of US exposure.

After all, the next decade will not necessarily be dominated by one country or one market.

This ASX ETF allows investors to participate if growth comes from areas such as Asian consumer spending, European industrials, Japanese companies, emerging market financials, or global healthcare. It is a simple way to spread investments across a very large part of the global economy.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF to consider is the VanEck Morningstar Wide Moat ETF.

This fund takes a selective approach to buying US shares. Rather than simply buying the biggest companies, it focuses on businesses believed to have sustainable competitive advantages and attractive valuations.

Those advantages could come from strong brands, cost leadership, intellectual property, network effects, or customers that are difficult to lose.

This could be a good thing when investing over a 10-year period. Businesses with genuine competitive advantages have a better chance of protecting profits and compounding earnings for many years.

The valuation discipline is important as well, because even a great company can be a poor investment if investors pay far too much for it.

For investors looking for a more selective way to own quality US businesses, I think the VanEck Morningstar Wide Moat ETF could be a strong long-term choice.

The post 3 of the best ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

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• NDQ vs IVV: One could be the better US growth ASX ETF
• These are the most popular ASX ETFs. Which has performed best over the last year?
• IVV vs NDQ ETF: Which is the better buy?
• ASX shares investors are getting younger and trading more often: CBA report
• Are these 3 top Betashares ETFs a buy in September?

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.