Category: Stock Market

The ASX share market is seeing its fair share of volatility this month; it could be a great opportunity to invest in ideas trading near 52-week lows.

Certain companies’ performance can be closely linked to consumer confidence in the short term. But downturns shouldn’t last forever, so I view any pessimism as a chance to buy the dip.

The two ASX shares below have shown their ability to grow over the long-term. Let’s get into why I think they’re buys.

Collins Foods Ltd (ASX: CKF)

At the time of writing, the Collins Foods share price has fallen more than 30% since December 2025, as the chart below shows. I think the KFC franchisee operator is now very good value.

I believe it still has significant growth potential in both Australia and Europe.

The FY26 result included a number of positives, including revenue growth of 8.6% to $1.59 billion, underlying operating profit (EBIT) growth of 10.1% to $130.7 million and underlying net profit growth of 13% to $61.4 million.

Collins Foods was also able to reduce its net debt by close to $18 million, while increasing the annual dividend per share by 7.7%.

The first eight weeks of FY27 saw total KFC sales growth of 6.7% in Australia and 26.4% in Germany, but a 5.2% decline in the Netherlands. Same-store sales growth was 4% in Australia, but there was a decline of 7.2% in Germany and 7.8% in the Netherlands. The company noted consumer sentiment was weak in Europe amid the Middle East conflict and high fuel prices.

I think the company can have a good FY27 and beyond. It’s expecting a stable cost environment in FY27 and plans to open between seven and ten restaurants in Australia and another seven in Germany.

According to Commsec’s projection, the Collins Foods share price is valued at less than 15x FY27’s estimated earnings, with further earnings growth projected for FY27 and FY29. This looks like the right time to invest near its 52-week low.

Temple & Webster Group Ltd (ASX: TPW)

The other ASX share that looks cheap to me is this leading Australian online business that sells furniture, homewares, and home improvement products.

The Temple & Webster share price is down more than 70% in the past year and has fallen more than 60% in 2026 to date, as the chart below shows.

The company has seen customer demand slow over the past year, so it is currently looking to maximise its profitability. April 2026 was the most profitable April in its history, with operating profit (EBITDA) of around $2.5 million.

For FY26, the company expects to grow its revenue by between 11% and 12%, and grow EBITDA by between 6% and 17%. Management believes FY27 EBITDA could close to double, even in a low-growth scenario.

The company is benefiting from rising adoption of e-commerce by households. Australia is following UK and US trends, but just a few years behind, suggesting online shopping could account for 30% or more of the Australian homewares and furniture market by the end of the decade.

Temple & Webster also suggests that the uplift in profitability and its strong balance sheet position the company for both organic and acquisition growth.

According to Commsec’s projection, the Temple & Webster share price is valued at 38x FY27’s estimated earnings. I think it looks great value at this level, near its 52-week low.

The post 2 ASX shares near 52-week lows I’d buy today appeared first on The Motley Fool Australia.

More reading

• How should I invest my money in FY27?
• Buy, hold, sell: Collins Foods, Karoon Energy, and Pro Medicus shares
• Which ASX 200 share offers 36% upside and a 4.2% dividend yield?
• 5 things to watch on the ASX 200 on Wednesday
• Which ASX 200 share is jumping 8% on results day?

Motley Fool contributor Tristan Harrison has positions in Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Collins Foods and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two of the most popular ASX exchange-traded funds (ETFs) on the market today are Vanguard Australian Shares Index ETF (ASX: VAS) and Vanguard Australian Shares High Yield ETF (ASX: VHY).

In an article, Jamie Nemtsas, founder of retirement wealthy advisory, Wattle Partners, explains which ASX ETF he likes better for clients in retirement.

The result may surprise you.

What are VAS and VHY ETFs?

Firstly, let’s go over the differences between VAS ETF and VHY ETF.

VAS ETF

VAS provides easy exposure in a single trade to the top 300 companies by market cap on the ASX. 

The ETF seeks to mirror the returns of the S&P/ASX 300 Index (ASX: XKO), before fees.

ASX VAS is the most popular ETF on the market, with $25.7 billion in funds under management (FUM).

VHY ETF

VHY ETF is full of ASX dividend shares that have higher forecast dividend yields than their peers.

This ETF tracks the FTSE Australia High Dividend Yield Index, before fees.

VHY ETF has a few rules: It doesn’t invest more than 40% of funds in any one industry, nor more than 10% in any one stock.

VHY holds 73 shares across all sectors bar real estate investment trusts (REITs), and has $7.67 billion in FUM.

Both ASX ETFs pay distributions (dividends) quarterly.

VAS vs. VHY ETF in retirement

Nemtsas reviewed the 15-year performance of the VAS and VHY ETFs to decide which one he felt was the better pick for retirement.

His answer: VAS.

Nemtsas said:

While a high-dividend ETF looks tempting for retirement income, the hidden structural trade-offs can derail long-term wealth.

Nemtsas gives five reasons as to why he prefers VAS ETF for retirement.

1. Portfolio diversification

VAS holds about 300 shares while VHY holds 73.

This means VHY’s portfolio is more concentrated in the banks and miners through their weightings.

The result, according to Nemtsas:

When BHP Group Ltd (ASX: BHP) halves the dividend, as it has twice in the last decade, VHY feels it harder.

When the banks compress payout ratios under APRA pressure, VHY feels that harder too.

2. Management fees

VAS charges an annual management fee of 0.07% while VHY charges 0.25%.

The 18 basis point difference compounds. On a $500,000 holding, that is $900 a year.

Over 20 years of retirement, with reinvestment, that is closer to $35,000. Fees are the one input you can guarantee. Yield is not.

3. Fund turnover and capital gains tax (CGT)

Nemtsas says VAS turns over less than 5% of its portfolio per year, while VHY turns over closer to 37% because it chases yield.

The result is capital gains tax events inside the fund, distributed back to unit holders in non-cash form at the end of the year.

Retirees in pension phase wear less of this, but the structural inefficiency is real and persistent.

4. Total return vs. headline dividend yield

Nemtsas says VAS has produced a higher average total return of 8% than VHY at 6.8% over the past 10 years.

He says:

That is the cost of buying yield by ignoring price.

The names with the highest forecast yield are typically the names the market is least optimistic about.

Sometimes the market is wrong. Often it is not.

5. VHY ETF’s higher yield is not free

Nemtsas explains:

VHY’s 6% versus VAS’s 3.6% comes from two places.

First, higher payout ratios in the names VHY overweights.

Second, the screening methodology itself, which mechanically tilts toward stocks where the dividend is high relative to a depressed share price.

Both effects can persist for years. Both also reverse.

The franking benefit in VHY is real, but VAS picks up plenty of franking through its Commonwealth Bank of Australia (ASX: CBA), BHP, Macquarie Group Ltd (ASX: MQG) and Wesfarmers Ltd (ASX: WES) exposure too.

The franking gap is narrower than the headline yield gap suggests.

The post VAS vs. VHY: Which is the better ASX ETF for retirement? appeared first on The Motley Fool Australia.

More reading

• Where to invest $50,000 in ASX ETFs this month
• How much do I need in my superannuation to get $50k per year in passive income?
• How much must I invest in BHP shares to earn a $1,000 passive income in 2027?
• 3 ASX mining shares to buy now: experts
• 9 ASX 200 shares with reiterated buy calls this week

Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has recommended BHP Group, Macquarie Group, Vanguard Australian Shares High Yield ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A $50,000 investment can give investors a solid starting point on the ASX.

And with exchange traded funds (ETFs), it can easily be spread across Australia, global markets, technology, cybersecurity, and robotics.

Here is one way to invest $50,000 in ASX ETFs this month.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

I would start with the Vanguard MSCI Index International Shares ETF.

A $20,000 investment in this fund could form the core of the portfolio.

It gives investors exposure to a large number of companies across developed markets, such as the United States, Europe, Japan, and other major economies. This includes global healthcare companies, technology leaders, consumer brands, industrial businesses, and financial giants.

This fund could act as the foundation before adding more targeted ETFs around it.

Vanguard Australian Shares Index ETF (ASX: VAS)

Next, I would consider putting $10,000 into the Vanguard Australian Shares Index ETF.

This fund provides broad exposure to the local share market. That means investors can own a slice of Australia’s banks, miners, healthcare shares, retailers, property groups, infrastructure businesses, and industrial companies in one trade.

It also gives the portfolio exposure to Australian dividends and franking credits.

The local market is not as deep as global markets, but it still deserves a place in a balanced ASX ETF portfolio.

Betashares Global Cybersecurity ETF (ASX: HACK)

I would then put $7,500 into the Betashares Global Cybersecurity ETF.

Cybersecurity has become a permanent cost of operating in the digital economy.

Companies need to protect data, networks, cloud systems, employees, customers, and payments. As more activity moves online, the risks become larger and more complex.

This ASX ETF gives investors exposure to companies trying to solve those problems through identity security, endpoint protection, cloud security, threat detection, and network defence.

It is more targeted than a broad market fund, but the long-term demand drivers are hard to ignore.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Another $7,500 could go into the Betashares Asia Technology Tigers ETF.

This fund gives investors exposure to Asian technology companies, including businesses linked to semiconductors, hardware, ecommerce, gaming, and digital platforms.

It is a different type of technology exposure from a US-focused fund. Asia plays a major role in both building the digital economy and serving large, fast-moving consumer markets.

The risks are higher because the fund is concentrated by region and sector, but the long-term growth potential remains attractive.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

The final $5,000 could go into the Betashares Global Robotics and Artificial Intelligence ETF.

This fund gives exposure to companies involved in robotics, automation, artificial intelligence, drones, unmanned vehicles, and intelligent machinery.

It is a higher-risk holding, so I would keep the allocation smaller.

The opportunity is tied to industries trying to improve productivity, reduce labour constraints, and use smarter machines in more settings.

It was recently recommended by analysts at Betashares.

The post Where to invest $50,000 in ASX ETFs this month appeared first on The Motley Fool Australia.

More reading

• How to go from zero to $50,000 with ASX shares
• I’d buy these 5 ASX dividend investments for retirement income
• ASX ETFs are booming. Should you join in?
• How should I invest my money in FY27?
• 3 ASX ETFs to buy and hold for 10 years

Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended 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.

Investing your superannuation is a smart way to generate a reliable passive income for retirement.

Not only can it help you build wealth for later on in life, it also comes with the added bonus of low tax rates and long-term compounding.

But how much do you actually need in your super to be able to earn the passive income you want in retirement?

Let’s break it down, using a $50,000 per year passive income as an example.

How much do I need in my superannuation to earn $50,000 per year in passive income?

Working out the superannuation you’ll need to earn that level of passive income is more straightforward than you’d think.

Simply divide your annual passive income by the dividend yield of your portfolio.

Of course, the hard part is that the answer varies significantly depending on the dividend yield of your portfolio. 

For example, a portfolio with a dividend yield of around 5% only needs to be half the size of one with a dividend yield of around 2.5% to generate the same level of passive income. 

Breaking it down further

If your overall portfolio has a dividend yield of around 3%, you’ll need a balance of around $1.66 million to earn $50,000 per year in passive income.

Then, as your portfolio’s dividend yield increases, the superannuation balance required to earn the same passive income decreases. Say the yield of your portfolio is around 4%, for example, your balance would need to be closer to $1.25 million to earn the same dividend income.

For a 5% yielding portfolio, you’d need a balance of closer to $1 million to earn the same amount.

Increase that to a 6% or 7% dividend yield, and you’re looking at closer to $833,000 or $714,000. You’d still earn $50,000 per year in passive income from these portfolio sizes.

ASX shares around these dividend yields

There is a huge range of options, but here are a few of my favourite ASX dividend shares to get you started.

At a 2%-3% dividend yield, I’d look at well-known companies like Coles Group Ltd (ASX: COL) or Commonwealth Bank of Australia (ASX: CBA).

For options yielding closer to 4%, my choices would be banking giants such as National Australia Bank Ltd (ASX: NAB) or ANZ Group Holdings Ltd (ASX: ANZ).

If you want a slightly higher yield around 5% or 6%, I’d invest in something like Santos Ltd (ASX: STO) or Woodside Energy Group Ltd (ASX: WDS).

Then your high-yield players could include GQG Partners Inc (ASX: GQG) or IPH Ltd (ASX: IPH). These yield 7% or more.

The post How much do I need in my superannuation to get $50k per year in passive income? appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares with reiterated buy calls this week
• Which is the best buy, Coles shares or Wesfarmers shares?
• Your FY27 tax return will look different. Here’s what changed and how to prepare
• How to go from zero to $50,000 with ASX shares
• Forget CBA shares! I’d rather buy these ASX dividend shares

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 recommended Gqg Partners and IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WiseTech Global Ltd (ASX: WTC) is not an easy share to assess right now.

There has been plenty of noise around the technology company, the share price has fallen sharply from its highs, and market confidence is clearly weaker than it was.

But sometimes a difficult story can still contain a very attractive long-term opportunity.

That is how I see WiseTech today.

Why I would buy WiseTech shares

I would be willing to invest $2,500 into WiseTech shares, but I would do it with a long-term mindset.

This is not the kind of business I would buy expecting the market to change its mind immediately. Sentiment may take time to recover, and investors may want more evidence that management can keep executing through the noise.

What keeps me interested is the size of the prize.

WiseTech is trying to become the operating system for global trade and logistics. That is a big ambition, but it is not just a slogan. The company already serves more than 22,000 logistics companies and other industry participants across almost 200 countries. This includes 46 of the top 50 global third-party logistics providers and 23 of the 25 largest global freight forwarders.

With the recent e2open acquisition, WiseTech says its network now reaches more than 500,000 connected enterprises across manufacturing, logistics, channels, and distribution.

That gives the company a much larger platform to build from.

The opportunity is expanding

The recent Macquarie conference update showed how WiseTech is thinking beyond its original logistics software base.

CargoWise remains the foundation. But the company is now talking about multiple deep vertical markets, including logistics and transport, global trade, trade finance and banking, customs and government agencies, and verified identity, trust, trade, and data.

I think that is what makes the business more compelling.

Global trade is full of friction. Goods need to move across borders, through warehouses, across transport networks, through customs systems, and into the hands of end customers. At each step, there are documents, risks, delays, payments, compliance requirements, and data problems.

WiseTech is trying to digitise more of that complexity.

It also believes agentic AI can help customers automate large parts of logistics and customs workflows. The company estimates this could remove up to around 50% of labour costs for logistics service providers over time.

That is a major claim, and investors should watch execution closely. But if WiseTech can deliver even part of that productivity improvement, its software could become even more valuable to customers.

There are risks

I would not pretend WiseTech shares are a simple buy.

The company needs to integrate e2open well, rebuild confidence, manage leadership and governance questions, and prove that its expanded strategy can translate into earnings growth.

There is also the risk that the market remains cautious for longer than investors expect.

That is why I would think carefully about position size. A $2,500 investment could make sense as a measured entry point into a volatile growth share, rather than a bet that everything improves quickly.

Foolish Takeaway

I think WiseTech shares are worth buying for patient investors.

The market is clearly focused on the risks, and some of that caution is fair. But I think the company’s role inside global trade infrastructure is still underappreciated.

WiseTech is not just selling software to freight forwarders. It is building a broader digital network across logistics, trade, compliance, data, and finance.

That will take time to prove, and the share price may remain bumpy along the way. But for investors willing to look out several years, I think putting $2,500 into WiseTech shares could be a smart move.

The post Should I invest $2,500 into WiseTech shares? appeared first on The Motley Fool Australia.

More reading

• 10 fantastic ASX shares to buy for FY27
• Has the WiseTech share price finally hit the bottom after crashing 50%?
• 9 ASX 200 shares with reiterated buy calls this week
• Two ASX tech shares hinge on rebuilding trust and growth. Here’s how they can turn around
• How low could WiseTech shares go?

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 Macquarie Group and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX All Ords Index (ASX: XAO) shares increased 2.43% and provided total returns, including dividends, of 5.69% in FY26. 

The All Ords underperformed the S&P/ASX 200 Index (ASX: XJO), which rose 2.77% and delivered total returns of 7%.

Fifteen ASX All Ords shares delivered between 200% and 400% growth last financial year.

Here, we take a look at five of them. 

1. Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price skyrocketed 414% in FY26 to close out the year at $8.35.

Weebit was one of few ASX All Ords tech shares that had a great year amid a broader tech sector rout. 

Weebit develops advanced semiconductor memory technology.

The company’s Resistive Random Access Memory (ReRAM) is a high-performance, low-cost type of Non-Volatile Memory (NVM) technology used in complementary metal oxide semiconductors (CMOS), which are the building blocks of digital integrated circuits. 

2. Elsight Ltd (ASX: ELS) 

The Elsight share price ripped 300% to finish FY26 at $7.10. 

Elsight’s flagship product, Halo, provides Beyond the Visual Line of Sight (BVLOS) connectivity for drones, UAVs, and other unmanned systems in the air and on land.

Halo was launched in 2020, and today, more than 100 drone and UAV manufacturers and operators are using it for connectivity. 

Elsight’s market cap growth elevated it into the top 10 stocks within the ASX 200 tech sector last year. 

3. PLS Group Ltd (ASX: PLS)

The market’s largest ASX 200 lithium share soared 275% to close out FY26 at $5.02. 

Formerly known as Pilbara Minerals, PLS Group is the largest lithium miner on the ASX by market cap.

The company’s flagship is the Pilgangoora Operation, the world’s largest independent hard-rock lithium mine. 

Like all ASX lithium miners, PLS Group benefitted from skyrocketing lithium commodity prices last year. 

4. Wildcat Resources Ltd (ASX: WC8)

The Wildcat Resources share price ascended 225% in FY26 to close out the year at 52 cents.

The mineral explorer is building the Tabba Tabba Lithium-Tantalum project and the Bolt Cutter project in the Pilbara.

Bell Potter analyst James Williamson says Tabba Tabba is the only large-scale near-term Australian lithium development positioned to commence production during the current lithium price cycle.

Wildcat has completed its pre-feasibility study at Tabba Tabba and is working towards a definitive feasibility study.

5. Macmahon Holdings Ltd (ASX: MAH) 

This ASX All Ords materials share increased 213% to finish the year at 96 cents on 30 June. 

Macmahon is a contract mining and civil infrastructure company providing operational services to gold, copper, and coal mines in Australia and Southeast Asia.

For 1H FY26, Macmahon reported a 61% increase in reported net profit after tax (NPAT) to $48.2 million.

The post 5 ASX All Ords shares that ripped 200% to 400% in FY26 appeared first on The Motley Fool Australia.

More reading

• Top 5 ASX 200 lithium shares of FY26
• Why are PLS shares still falling? Here’s what’s behind the sell-off
• 13 ASX 200 shares that doubled in value in FY26
• Sell alert! Why these experts are calling time on Endeavour and PLS shares
• Buy, hold, sell: BHP, Woodside, PLS Group shares

Motley Fool contributor Bronwyn Allen 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.

Australian borrowers have been given a glimmer of hope that interest rates could begin falling sooner than previously thought.

This follows news that Westpac Banking Corp (ASX: WBC) has brought forward its forecast for the Reserve Bank of Australia (RBA)’s first rate cut to August 2027.

However, interest rates could still rise again before any relief arrives next year.

Here’s what the bank is expecting.

Why Westpac changed its forecast

According to The Australian, Westpac Chief Economist Luci Ellis expects inflation to ease more quickly during 2027.

The bank believes inflation could fall enough for the RBA to start cutting rates in August next year, rather than waiting until early 2028.

Westpac sees those cuts coming gradually, at 0.25 percentage points each quarter.

However, the outlook for the next few months remains less positive for borrowers.

Rates could rise before they fall

At its meeting last month, the RBA left the cash rate unchanged at 4.35%.

The RBA’s May forecasts showed trimmed mean inflation staying above 3% until the middle of 2027, before easing to 2.5% by early 2028.

Westpac still sees an August rate rise as likely, although what happens after that is less certain.

A second increase in September also remains possible, but Ellis said it could be pushed back or dropped if inflation begins to ease.

The June quarter inflation figures, which are due on 29 July, will be crucial in deciding whether either increase goes ahead.

Any further increase would place more pressure on variable mortgage rates and borrowing costs, especially for those households already dealing with larger repayments.

But keep in mind, higher rates would not affect every borrower straight away.

Households on fixed-rate loans may be protected until their current term ends, while those on variable rates would usually feel the impact almost immediately.

The effect would also depend on whether banks pass on any RBA increase in full.

Why the RBA may take its time

Even if inflation starts to improve next year, Westpac doesn’t expect the RBA to rush into cutting rates.

The central bank lowered rates in 2025, only for inflation to pick up again. Because of that, Westpac thinks the RBA will want clearer signs that inflation is under control before lowering rates again.

The bank is still expecting rates to come down slowly, with much lower borrowing costs unlikely to return quickly.

For mortgage holders, the change gives some hope that relief could arrive sooner than previously thought.

However, the next move may still be higher, with Westpac tipping another rate rise in August.

The post Could the RBA start cutting interest rates sooner than expected? appeared first on The Motley Fool Australia.

More reading

• Expert warns: These ASX bank shares could disappoint in FY27
• Dump ’em! Morgan Stanley slaps sell ratings on 5 ASX 200 shares
• How many Westpac shares do I need to buy for $10,000 of passive income?
• Here are the top 10 ASX 200 shares today
• 2 ASX dividend shares with yields over 4% right now

Motley Fool contributor Aaron Teboneras 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.

Aussies born on or after 1 January 1957 can apply for the age pension when they turn 67, whether retired or not.

To be eligible for the full pension, or a part-payment, you have to pass an assets test and income test.

The thresholds for those tests changed earlier this month.

So, let’s take a look at the new thresholds, and also assess whether the pension is enough to see you through retirement.

Is the age pension enough?

On the face of it, the age pension is not enough on its own to cover life’s expenses in retirement.

The full age pension is $1,200.90 per fortnight for singles, and $905.20 per person, per fortnight, for couples.

That translates to $31,223 per year for singles and $47,070 per year for couples.

Australia’s benchmark retirement budgeting tool, the ASFA Retirement Standard, says retirement costs more than this.

A ‘modest’ retirement costs $36,434 per year for singles and $52,473 per year for couples — if you own your own home.

If you’re renting, a modest lifestyle costs $51,164 per year for singles and $69,002 per year for couples.

A ‘comfortable’ retirement costs even more: $55,923 per year for single homeowners and $78,566 per year for couple homeowners.

You can find out exactly how ASFA defines modest and comfortable retirement lifestyles here.

ASFA does not provide an estimate for comfortable retirement costs for renters.

So, how do you fill the gap given the age pension doesn’t cover all living expenses?

Ideally, you’ll have some superannuation, other investment income, or wages income to do exactly that.

But Centrelink has limits on how much you can own and earn while still qualifying for the age pension.

So, let’s go over the newly-revised thresholds for the pension asset and income tests.

Asset test

Your assessable assets include ASX shares, super, bonds, managed funds, rental properties, and cash. Your home is excluded.

Single homeowners can own up to $333,000 in assets and still qualify for a full pension.

If you own assets worth between $333,001 and $733,500, you will qualify for a part-payment.

Single renters can own up to $600,000 in assets and still qualify for the full pension.

If you own assets worth between $600,001 and $1,000,500, you will be eligible for a part-pension.

Couple homeowners can own up to $499,000 in assets while still being eligible for the full age pension.

If you have assets worth between $499,001 and $1,102,50, you will qualify for a part-payment.

Couple renters can own up to $766,000 in assets and still be eligible for the full age pension.

If you own assets worth between $766,001 and $1,369,500, you can apply for a part-payment.

Income test

Singles can earn up to $226 per fortnight and still qualify for the full age pension.

If you earn between $227 and $2,627.80 per fortnight, you can apply for a part-pension.

Couples can earn up to $396 per fortnight and still qualify for the full age pension.

If you earn between $397 and $4,016.80 per fortnight, you will be eligible for a part-pension.

Assessable income includes wages and investment income.

Rental income must be reported each year. For everything else, Centrelink uses generous deeming rates to estimate your annual investment income.

The lower deeming rate is 1.25% and the upper deeming rate is 3.25%.

The asset value threshold is $66,800 for singles and $110,600 for couples.

This means the first $66,800 of your assets, or $110,600 for couples, has a 1.25% deemed rate of interest.

Everything above that is deemed to have earned 3.25% interest.

 

The post How much can you own and earn while still qualifying for the age pension? appeared first on The Motley Fool Australia.

More reading

• Could the RBA start cutting interest rates sooner than expected?
• How much must I invest in BHP shares to earn a $1,000 passive income in 2027?
• 10 fantastic ASX shares to buy for FY27
• Here are the top 10 ASX 200 shares today
• 2 ASX mining shares that could more than double in value in FY27: experts

Motley Fool contributor Bronwyn Allen 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.

Owning BHP Group Ltd (ASX: BHP) shares has been a solid choice for passive income over the last decade. It could still be a good choice for FY27.

There are a couple of reasons why ASX mining shares can deliver an appealing dividend yield. Firstly, they usually have a relatively low price/earnings (P/E) ratio compared to other sectors. Secondly, the big miners are usually generous with their dividend payout ratios.

Iron ore miners like BHP can have particularly low P/E ratios because their earnings can be more volatile than other commodities – the iron ore price can shift significantly, depending on what’s happening with Chinese demand.

But, with the iron ore price sitting at around US$100 per tonne (according to Trading Economics), BHP can still generate compelling iron ore profit. Plus, its growing copper exposure can help provide more stability and diversification to its earnings.

With all of the above in mind, let’s see what passive income payments owners of BHP shares could expect in FY27.

Projected passive income

According to Commsec’s estimate, the ASX mining share giant is forecast to pay an annual dividend per share of A$2.06.

Of course, the potential payout may not be exactly that figure. It could be smaller or larger, depending on commodity prices.

An increasing volume of iron ore coming out of Africa could, for example, negatively impact the iron ore price. But it’s also possible that Chinese demand could be stronger than expected. Time will tell how the next 12 months play out.

If BHP pays that level of income to shareholders, it would translate into a grossed-up dividend yield of 5.2% at the time of writing, including franking credits. The yield isn’t as high as it was a year ago following a rise of close to 50% for the BHP share price – this hurts the prospective yield, though it’s great for long-term shareholders.

How much to invest in BHP shares for $1,000 of annual dividends?

The BHP share price certainly isn’t cheap these days, but investors can still buy a slice of the mining giant.

If investors do receive A$2.06 per share in the 2027 financial year, then to receive $1,000 of annual dividends, an investor would need to own 486 BHP shares.

To buy 486 BHP shares, it would cost an Australian $27,415 at the time of writing.

BHP is a solid business, but I think there are even better options out there for returns.

The post How much must I invest in BHP shares to earn a $1,000 passive income in 2027? appeared first on The Motley Fool Australia.

More reading

• 3 ASX mining shares to buy now: experts
• 9 ASX 200 shares with reiterated buy calls this week
• Here’s what brokers tip for BHP shares over the next 12 months
• The bull and bear case for CBA and BHP shares
• Which ASX 200 sectors paid the highest dividend yields in FY26?

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The new financial year could be a good time to consider some new additions to your portfolio.

With that in mind, listed below are ten fantastic ASX shares that could be worth buying for FY27.

Breville Group Ltd (ASX: BRG)

Breville has built a global business around premium kitchen appliances.

Its strength is brand, product design, and the ability to make everyday categories such as coffee machines, cooking, and food preparation feel more premium. International expansion remains a major long-term opportunity.

Cochlear Ltd (ASX: COH)

Cochlear could be a healthcare share to watch closely.

The company is a global leader in hearing implants and related support services. Recent share price weakness has been painful, but the long-term need for better hearing treatment remains significant as populations age and access to care improves.

Goodman Group (ASX: GMG)

Goodman remains one of the ASX’s highest-quality property shares.

Its industrial properties support logistics, warehousing, ecommerce, and data infrastructure. The company has a major development pipeline, particularly with data centres, leaving it well-positioned for growth over the next decade.

Megaport Ltd (ASX: MP1)

Megaport is an ASX tech share with a broader story than it had a year ago.

The company is known for cloud connectivity, but its move into compute through Latitude.sh has added another growth angle. Recent contract wins suggest this newer opportunity is gaining significant traction.

REA Group Ltd (ASX: REA)

REA Group owns Australia’s dominant online property platform, realestate.com.au.

Property markets can move in cycles, but REA benefits from a powerful audience position, deep agent relationships, and the importance of digital advertising in real estate. That gives it a strong base for long-term growth.

ResMed Inc (ASX: RMD)

ResMed is another ASX healthcare share with global scale.

Its devices, masks, software, and connected care tools help treat sleep apnoea and other respiratory conditions. Investor sentiment has weakened recently, but the company continues to serve a large market with ongoing treatment needs.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne provides enterprise software to governments, universities, and large organisations.

Its products help customers manage finance, payroll, planning, property, and administration. The shift to software-as-a-service has strengthened its recurring revenue base and supported consistently strong growth in recent years.

Woolworths Group Ltd (ASX: WOW)

Woolworths gives investors exposure to everyday spending.

The supermarket giant has scale, supply chain strength, loyalty data, and a major role in Australian grocery shopping. It is not a cheap growth stock, but it can provide defensive qualities when economic conditions become uncertain.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global provides software for the logistics industry.

Its CargoWise platform helps freight forwarders and logistics providers manage complex global supply chains. Governance concerns have weighed on WiseTech shares, but its strong long-term growth outlook remains hard to ignore.

Xero Ltd (ASX: XRO)

Xero is one of the ASX’s leading software shares.

Its cloud-based platform helps small businesses and advisers manage accounting, payroll, invoicing, reporting, and compliance. If Xero keeps expanding internationally and adding more services, it could remain a strong long-term growth share.

The post 10 fantastic ASX shares to buy for FY27 appeared first on The Motley Fool Australia.

More reading

• Has the WiseTech share price finally hit the bottom after crashing 50%?
• 9 ASX 200 shares with reiterated buy calls this week
• Two ASX tech shares hinge on rebuilding trust and growth. Here’s how they can turn around
• 3 ASX shares which could deliver 53% to 90% gains
• Why I’d buy and hold ResMed and TechnologyOne shares with $5,000

Motley Fool contributor James Mickleboro has positions in Cochlear, Goodman Group, Megaport, REA Group, ResMed, Technology One, WiseTech Global, Woolworths Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear, Goodman Group, Megaport, ResMed, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended ResMed, WiseTech Global, and Xero. The Motley Fool Australia has recommended Cochlear, Goodman Group, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.