A $200,000 portfolio could produce a welcome stream of retirement income.

The harder task is choosing how much income to take today without leaving the portfolio with too little growth for the years ahead.

Here is how I would approach it if I were retiring.

Set a realistic income target

I would begin with an annual dividend yield target of around 4% to 5%.

A 4% yield on $200,000 would generate approximately $8,000 a year before tax and franking credits. At 5%, the annual income would rise to $10,000.

I would aim near the middle of that range and focus on sustainable payments.

Pushing the portfolio towards a 7% or 8% yield could lead to excessive exposure to indebted businesses, cyclical dividends, or companies with limited growth. A slightly lower starting income can be worthwhile when the underlying holdings have scope to raise their payments over time.

Build the income base

I would place around $100,000 across established ASX dividend shares.

Commonwealth Bank of Australia (ASX: CBA) could provide fully franked dividends and exposure to a high-quality banking franchise.

Telstra Group Ltd (ASX: TLS) would add defensive earnings from mobile and telecommunications services, while Coles Group Ltd (ASX: COL) could provide another relatively steady source of cash flow through essential grocery spending.

I would also consider Transurban Group (ASX: TCL) and APA Group (ASX: APA). Their infrastructure assets offer income tied to toll-road traffic and energy networks rather than bank profits or household retail spending.

Spreading the allocation across several earnings drivers can make the income stream less dependent on one sector.

Add some property income

I would invest another $40,000 across selected real estate investment trusts.

HomeCo Daily Needs REIT (ASX: HDN) provides exposure to properties linked to supermarkets, pharmacies, and other everyday services. Charter Hall Long WALE REIT (ASX: CLW) owns properties supported by long leases, which can give investors greater visibility over rental income.

REIT distributions can be attractive, although debt levels and interest costs deserve close attention. I would keep this allocation diversified and avoid letting property become the dominant source of retirement income.

Keep some growth in the portfolio

I would place $40,000 into the Vanguard MSCI Index International Shares ETF (ASX: VGS).

A broad global ETF may initially produce less income than the ASX dividend shares, but it can help the portfolio grow and reduce reliance on the Australian economy.

That growth can support future withdrawals and protect spending power against inflation.

I would treat the global allocation as a source of future income rather than judge it solely by the distributions paid today. During strong market periods, an investor could also sell a small number of units to supplement dividends.

Hold a cash reserve

The final $20,000 would remain in cash or a short-term deposit.

That reserve could cover withdrawals during a market downturn and reduce the pressure to sell shares after prices have fallen.

Dividends and distributions could gradually refill the cash allocation, while excess cash could be reinvested when attractive opportunities appear.

Foolish takeaway

I would expect a portfolio structured this way to begin closer to the lower end of the 4% to 5% income range, producing roughly $8,000 to $9,000 a year before tax and franking credits.

The aim would be a retirement income stream with room to rise, supported by dividend-paying shares, property income, global growth, and a cash buffer.

That approach gives the portfolio several ways to support spending while preserving enough growth for a retirement that may last decades.

The post How I would turn $200,000 into an ASX retirement income portfolio appeared first on The Motley Fool Australia.

More reading

• The FY26 tax return deadline is around the corner. How can I minimise my tax?
• How much do I need in my superannuation to earn $7k per month in passive income?
• 5 ASX ETFs for beginner investors in July
• What’s not to love about these discounted ASX shares with big dividend yields?
• These ASX shares could generate $12,000 per year in passive income

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With the FY26 tax return deadline fast approaching, many Australians are asking how they can legally minimise their tax.

The good news is that you still have several options.

The catch is that some of the most useful doors have already closed.

The financial year ended on 30 June 2026, which means a handful of tax-planning moves for FY26 are now locked in.

Plenty can still be done at lodgement time, however.

When is the FY26 tax return deadline?

If you lodge your own return, the deadline is 31 October 2026.

Because that date falls on a weekend this year, the effective cut-off shifts to the next business day. Miss it, and the ATO can apply late-lodgement penalties.

If you use a registered tax agent instead, you may have until 15 May 2027, although you must be on that agent’s books before 31 October to qualify for the extension.

Any bill from a self-lodged return is generally due by 21 November 2026.

Claim every deduction you are entitled to

The simplest way to cut your tax is to claim everything you are owed.

Work-related expenses are the most common deductions of all. These can include tools, uniforms, self-education and working-from-home costs.

Investment expenses, such as certain adviser fees, may also be deductible.

So can donations to registered charities made before 30 June.

Good record-keeping is absolutely essential, because the ATO expects evidence for every claim you make.

Use franking credits to lower your tax

ASX dividend shares come with a valuable and often overlooked tax benefit.

When a company like Commonwealth Bank of Australia (ASX: CBA) pays a fully franked dividend, it has already paid company tax on those profits.

Each $100 of fully franked dividends carries around $43 in franking credits, which are applied directly against your tax bill.

If those credits exceed the tax you owe, the difference is refunded to you in cash.

For retirees on low marginal rates, that can mean a welcome refund each year.

As a result, franking credits are one of the most powerful tax tools available to Australian investors.

Don’t forget the capital gains discount

Selling shares at a profit will trigger capital gains tax. But if you held the asset for more than 12 months, only half the gain is taxable.

This 50% discount can dramatically reduce the tax you pay on a sale.

Therefore, timing your disposals matters enormously, although the deadline of the 30^th of June 2026 has come and past.  

Super contributions and planning ahead

Personal deductible super contributions can also reduce your tax.

For FY26, the concessional contributions cap was $30,000.

However, contributions had to reach your fund before 30 June 2026 to count toward the FY26 return.

If you made one, be sure to lodge a notice of intent to claim it as a deduction.

Looking ahead, the cap rose to $32,500 from 1 July 2026, which gives you more room to plan for next year well in advance.

Foolish takeaway

The FY26 tax return deadline is a hard stop, so it pays not to leave things late.

Claim every deduction, use your franking credits, and apply the capital gains discount where you can.

Together, these steps can meaningfully and legally lower your tax bill.

The post The FY26 tax return deadline is around the corner. How can I minimise my tax? appeared first on The Motley Fool Australia.

More reading

• How I would turn $200,000 into an ASX retirement income portfolio
• Buy, hold, sell: Sigma Healthcare, Wisetech Global, CBA shares
• If I invest $10,000 in Westpac shares, how much passive income will I receive in 2027?
• Buy, hold, sell: BHP, CBA, and Rio Tinto shares
• How to make $50,000 of passive income from ASX shares like CBA

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.

Buying an exchange-traded fund (ETF) is easy. Holding it through rising markets, falling markets, and changing headlines is usually the harder part.

I think the best buy-and-hold ETFs make that decision easier by giving investors exposure they can remain confident in for years.

For that reason, the three Betashares ETFs below would be high on my list.

Betashares Global Shares ETF (ASX: BGBL)

I would begin with a broad international holding. The BGBL ETF invests in approximately 1,000 stocks across more than 20 developed markets outside Australia. That gives investors access to many of the businesses shaping how the world spends, communicates, travels, receives healthcare, and adopts new technology.

I like this fund because it does not require investors to predict which country or industry will lead the next decade.

The United States represents a large part of the portfolio, but the ETF also reaches into Europe, Japan, Canada, and other developed markets. Its holdings span technology, healthcare, financial services, consumer goods, industrials, and more.

That breadth allows the portfolio to change naturally as companies rise and fall in importance.

There will be periods when international shares struggle or the Australian dollar weighs on returns. But over a long holding period, I think the BGBL ETF provides a straightforward way to participate in the growth of global businesses that are largely absent from the ASX.

Betashares Australia 200 ETF (ASX: A200)

Australian investors may already earn their income, own property, and hold superannuation assets locally. Even so, I think Australian shares can still deserve a place in a balanced portfolio.

The A200 ETF owns 200 of the largest companies listed on the ASX.

This gives investors exposure to the businesses financing Australian homes, supplying commodities to global markets, operating supermarkets, building infrastructure, providing healthcare, and paying many of the market’s largest dividends.

The local market has a sizeable weighting towards banks and resources companies, so the A200 ETF will move with interest rates, commodity prices, and the health of the Australian economy. That concentration is one reason I would hold it alongside international shares rather than rely on it alone.

For someone who wants broad local exposure without choosing between individual banks, miners, retailers, and healthcare companies, I think this fund is an attractive long-term holding.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The final Betashares ETF takes a more selective approach.

The QLTY ETF holds 150 global stocks outside Australia that rank highly on measures linked to quality, including profitability, balance sheet strength, and earnings stability.

I see this as a way to lean a portfolio towards businesses that have already shown an ability to manage capital well.

Strong companies can often keep investing when weaker competitors are forced to retreat. They may have loyal customers, healthier margins, lower debt, or products that remain in demand through changing economic conditions.

A quality screen will not protect investors from every fall. These companies can still become expensive, disappoint the market, or struggle when investors favour more speculative areas.

But for money I wanted to leave invested for many years, I would be comfortable placing greater weight on businesses with strong financial foundations.

Foolish takeaway

Buy-and-hold investing works best when the portfolio does not need constant repair.

The BGBL ETF could provide broad access to global growth, the A200 ETF can keep investors connected to Australian earnings and dividends, while the QLTY ETF offers exposure to financially strong international businesses.

Combined, I think this makes these Betashares ETFs great buy and hold options for Australian investors.

The post Why these Betashares ETFs could be strong buy and hold investments appeared first on The Motley Fool Australia.

More reading

• Best money-saving techniques to build long-term wealth
• Where to invest $20,000 in ASX ETFs for 10 years
• Do you want to earn passive income from your superannuation? Here’s a guide to get you started
• Your FY27 tax return will look different. Here’s what changed and how to prepare
• How should I invest my money in FY27?

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 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.