Category: Stock Market

Netwealth Group Ltd (ASX: NWL) has quietly built a powerful position in Australia’s growing wealth management industry.

I think the next decade could give this tech stock, which is part of the S&P/ASX 200 Index (ASX: XJO), an even bigger opportunity as more money flows into superannuation and financial advisers continue embracing modern investment platforms.

Here is why I would be happy to own Netwealth shares for the long term.

More money can keep moving onto the platform

Netwealth provides the technology and administration that financial advisers use to manage investments and superannuation for their clients.

I like this business model because growth can build on itself.

An adviser who chooses Netwealth can gradually move more clients onto the platform. Existing clients can contribute more money over time, while rising investment markets can increase the value of assets already sitting there.

Netwealth finished June with $135.7 billion of funds under administration after attracting $15.4 billion of net flows during FY26.

The net flows are the figure that catches my eye. They show investors and advisers are actively choosing to place more money with Netwealth rather than growth simply coming from rising share markets.

Australia’s superannuation system should also continue creating an expanding pool of assets for platforms to compete over. If Netwealth keeps winning more than its current share, I think the business could become substantially larger by 2036.

It can become more valuable to advisers

There is another part of the story I find interesting.

Netwealth does not have to rely solely on attracting more funds. It can also give advisers more reasons to use its technology.

Managed accounts are a good example. These allow advisers to manage client portfolios more efficiently while making changes across many accounts at once. Netwealth’s managed account funds under management reached $30.5 billion at the end of June, almost 30% higher than a year earlier.

I think that growth says something important about the relationship Netwealth is building with advisers.

The more of their work that can be completed through the platform, the more embedded Netwealth can become in how an advice practice operates.

The company is continuing to broaden its offering as well. It recently launched Netwealth Private for sophisticated investors and an Individual HIN solution that allows advisers and clients to hold Australian securities directly while still using Netwealth’s technology and administration.

That gives Netwealth more ways to serve clients whose needs become increasingly complex as their wealth grows.

There is still plenty to compete for

Netwealth has already become a major platform provider, but Australia’s wealth management market is enormous.

That leaves room for the ASX 200 tech stock to keep winning advisers from older platforms and deepen relationships with the advisers already using it.

Competition will remain strong, particularly from HUB24 Ltd (ASX: HUB) and established financial institutions investing in their own platforms.

For me, that makes continued net inflows an important sign to watch. Netwealth expects FY27 net flows of between $18 billion and $20 billion, which would represent another step up from FY26 if management delivers on that outlook.

I think sustained inflows at that level could transform the scale of the business over a decade.

Foolish takeaway

Netwealth is the type of ASX 200 tech stock where I would be happy to give the investment plenty of time.

Every year of strong inflows adds more assets to the platform, while new technology can make the relationship with advisers deeper.

If that continues through to the 2030s, I think today’s Netwealth could eventually look like an early chapter in a much larger story.

The post Could this ASX 200 tech stock be one of the best to own for the next decade? appeared first on The Motley Fool Australia.

More reading

• 5 ASX 200 broker buy ratings
• Here are the top 10 ASX 200 shares today
• Down 40% to 70%. Why I’d buy these ASX tech stocks before August

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

After posting strong returns so far in August, the median growth-oriented superannuation fund is up an impressive 1.3% already this financial year, according to research company Chant West.

A weak start bolstered by a strong August

Returns in July for the median growth fund, with 61% to 80% growth assets, were a modest 0.3%, however with share markets performing well in August so far, Chant West estimates the median growth fund is up 1.3% over the first seven weeks of the new financial year.

Chant West Head of Superannuation Investment Research, Mano Mohankumar, said that share markets were mixed during July with significant variation in returns across regions.

He said:

Over the month, developed market international shares returned 0.2% in hedged terms, largely due to a flat month from US shares, as the technology sector came under pressure amid concerns about the scale of AI investment and uncertainty surrounding future revenue growth. Due to the appreciation of the Australian dollar over the month, the return in unhedged terms was in the red at -0.9%. On average, super funds have about 70% of international shares unhedged. Emerging markets declined 4.4% where the previously strong performance from the tech sector in South Korea and Taiwan reversed sharply. Australian shares, on the other hand, were up a healthy 2.1% over the month supported by the financials and resources sectors, as well as the markets’ relatively low tech and AI-related exposure. Bonds weakened with Australian and international bonds falling 0.4% and 0.9%, respectively, as bond yields rose on renewed inflation concerns.

For July, all growth funds led returns among all superannuation products with 0.5%, while conservative funds were steady at 0% gains.

Superannuation a good long-term bet

Mr Mohankumar said over the longer term, superannuation funds had outperformed their objectives.

He said:

Since the introduction of compulsory super in July 1992, the median growth fund has returned 8% p.a. The annual CPI increase over the same period is 2.7%, giving a real return of 5.3% p.a. – well above the typical 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 6.9% p.a., which is still ahead of the typical objective.

Over the past 10 years, all growth superannuation products have outperformed all other funds, returning a compound 9.3%.

This compares to growth funds with 7.6% and conservative funds with 4.5%.

Chant West said all risk categories have generally met their typical long-term return objectives, which generally range from inflation plus 1.5% for conservative funds to inflation plus 4.25% for all growth.

The post Superannuation funds have started the financial year well. See how much they’re up appeared first on The Motley Fool Australia.

More reading

• How high will Judo Capital shares go? Brokers have their say
• Could this ASX 200 tech stock be one of the best to own for the next decade?
• Up 40%! Are Woodside shares still a good buy for passive income now?
• Up 41%: How much higher can Woodside shares go?
• By August 2027, $8,000 invested in WiseTech shares could turn into…

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 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.

Woodside Energy Group Ltd (ASX: WDS) shares have been on a tear this year.

In morning trade today, shares in the S&P/ASX 200 Index (ASX: XJO) energy stock are up 0.5%, changing hands for $33.33 apiece. That sees the share price up an impressive 40.2% in 2026.

For some context, the ASX 200 is down 0.4% today and up 3.5% year to date.

Atop the strong Woodside share price gains this year, the company also paid out a fully-franked 83.5 cent per share final dividend on 27 March.

But with the share price having surged more than 40% already this year, is the ASX 200 energy stock still a good buy for passive income?

Should I buy Woodside shares for passive income?

It goes without saying that investors who bought Woodside shares at the 2 January close of $23.66 will be enjoying a higher dividend yield than investors who buy the stock today.

Taking a look at the trailing yield, atop the 83.5 cent per share dividend the company paid in March, Woodside also paid out a fully-franked 81.8 cent per share dividend on 24 September.

That works out to a full-year passive income payout of $1.653 per share.

So, if you’d bought the stock at the beginning of the year, you’d be earning a fully-franked 7% trailing dividend yield on that investment. Or a 10% grossed-up yield, taking those franking credits into account.

At today’s $33.33, the dividend yield from Woodside shares is a more modest, but still attractive, 5%. Or 7.1% grossed up.

Based on the trailing yield, then, if you invested $10,000 in Woodside shares today, you could expect to earn $496 a year in passive income. And, of course, we’ll be hoping for more capital gains as well.

Could the ASX 200 energy stock’s passive income payouts increase?

2022 and 2023 saw Woodside shares delivering record dividend payments, and attracting strong interest from passive income investors, amid soaring global oil and gas prices.

While oil prices haven’t quite matched those levels yet in 2026, they’ve come close amid the ongoing conflict in the Middle East and closure of the vital Strait of Hormuz shipping lane. Brent crude oil is currently trading just north of US$91 per barrel, according to data from Bloomberg.

Indeed, at Woodside’s June quarter report, the company reported that despite a 9% quarter-on-quarter production slip (primarily related to planned maintenance and inclement weather), operating revenue for the quarter surged 28% to US$4.19 billion.

That revenue boost was largely thanks to the 35% increase in the average realised price to US$85 per barrel of oil equivalent the company received over the three months.

While there are no guarantees, I suspect that higher oil prices, and forecast full-year production in the range of 174 MMboe to 185 MMboe, will result in a higher interim dividend being declared when Woodside reports on its half-year results next week, 25 August.

The post Up 40%! Are Woodside shares still a good buy for passive income now? appeared first on The Motley Fool Australia.

More reading

• Up 41%: How much higher can Woodside shares go?
• How much passive income could I earn from a $630,000 superannuation balance?
• 5 things to watch on the ASX 200 on Monday
• How many Woodside shares do I need to buy for $10,000 of passive income?
• 5 things to watch on the ASX 200 on Friday

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 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.

Woodside Energy Group Ltd (ASX: WDS) shares are climbing higher again in Wednesday morning trade.

At the time of writing, the shares are up around 0.5% and changing hands at $33.30 a piece. Today’s increase means the shares are now up around 41% for the year-to-date. They’re also roughly 27% higher than this time last year.

What drove Woodside shares higher this year?

So far in 2026, the oil and gas giant has benefited from major oil supply concerns and volatility around conflict in the Middle East.

The US-Iran war shows renewed signs of cooling. But each time it looks like conflict is calming down, it quickly returns. The region is highly volatile, and the movement of oil from the area will continue to be uncertain until a resolution is reached. 

Shipping disruptions and production cuts pushed crude oil prices to a multi-year high of around US$111 per barrel in April, according to Trading Economics data. While the price of oil softened in June and early July, it is now trading back up at around US$85 per barrel.

And it’s not just volatile oil prices and market demand driving the company’s shares higher.

Woodside grabbed headlines in late April after it posted its first-quarter FY26 update. The oil and gas producer reported a 7% quarter-on-quarter increase in operating revenue and an 8% hike in revenue. The company’s production figures were lower thanks to weather events, but this was offset by an 11% increase in the average realised price of oil. 

Late last month the company made waves again after it posted its second-quarter update. Woodside announced a 28% increase in quarterly operating revenue and confirmed that its major growth projects are on track. The Scarborough Energy Project is now 98% complete and remains on budget, targeting first LNG cargo in the December quarter of 2026.

Woodside is expected to release its first-half results for 2026 next week on the 25th of August. Its full FY26 results will be announced in February next year.

Can Woodside shares keep climbing higher?

It looks like brokers now think the oil major’s shares are now trading around fair value. In fact, some are tipping a downside over the next 12 months.

Market Index data shows the majority of brokers have a hold rating on Woodside shares. The $28.52 average target price implies a potential 14% downside ahead.

Experts on TradingView are a little more positive. Sentiment is split between a hold rating and a buy/strong buy rating. Although the average $32.31 now implies a potential 3% downside, at the time of writing. 

The team at Morgans have a hold rating and $32.50 target price on the energy shares. The broker said it was pleased with the company’s latest quarterly update, with the figures coming in ahead of expectations.

Michael Gable from Fairmont Equities recently reduced his rating on Woodside shares to a hold. He said that the US strategic petroleum reserve was recently at a 43-year low, and he is concerned it will be difficult to keep a lid on crude oil prices.

The post Up 41%: How much higher can Woodside shares go? appeared first on The Motley Fool Australia.

More reading

• How much passive income could I earn from a $630,000 superannuation balance?
• 5 things to watch on the ASX 200 on Monday
• How many Woodside shares do I need to buy for $10,000 of passive income?
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday

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.

WiseTech Global Ltd (ASX: WTC) shares are jumping higher again on Wednesday morning.

At the time of writing, the shares are up around 1.5% and changing hands for $43.92 a piece.

The latest increase means the ASX tech shares have now rebounded around 52% from a five-year low of just $28.76 a piece, recorded in late-June. 

But there is still a long way to go until WiseTech shares have regained the huge losses shed over the past 12 months. For the year-to-date and tech shares are still down around 36% and they’re roughly 62% lower than this time last year.

But, while it’s important to consider how the company’s shares have performed over the past 12 months, investors should also keep an eye on what lies ahead.

So, if I buy $8,000 of WiseTech shares today, what could that be worth in 12 months time?

The experts are incredibly bullish about the outlook for WiseTech shares over the next 12 months, with the majority forecasting a strong upside ahead.

Market Index data shows the majority of brokers have a strong buy rating on the shares. The $54.71 average target price implies a potential 27% upside, at the time of writing.

Analysts are even more bullish on TradingView. The data shows that the majority have a strong buy rating on WiseTech shares, but they have a higher average target price of $60.61. That implies the shares could increase another 38%, at the time of writing.

But some are even more optimistic. The $114.11 maximum target price implies a potential 160% upside over the next 12 months.

Assuming the average target price comes to fruition, that means your $8,000 investment today could be worth around $10,160 to $11,040 by August 2027.

But if the more bullish expert forecasts are correct, an $8,000 investment today does have the potential to climb as high as $20,800 over the next 12 months.

What‘s ahead for the ASX tech shares?

WiseTech is due to announce its FY26 results on the 26th of August.

The company reaffirmed its FY26 guidance earlier this year, expecting full-year revenue of US$1.39 billion to US$1.44 billion (representing a 79% to 85% increase) and EBITDA in the range of US$550 million to US$585 million, up 44% to 53% from FY25.

WiseTech has a strong competitive advantage in the global logistics industry. I think the company’s future hinges primarily on its FY26 results. If the company manages to reach or exceed its upgraded guidance, I think we’ll see a turnaround in investor sentiment.

The post By August 2027, $8,000 invested in WiseTech shares could turn into… appeared first on The Motley Fool Australia.

More reading

• WiseTech shares are up 25%. Could this be the start of a huge comeback?
• Down 50% – Are these the best value ASX 200 shares right now?
• Here are the top 10 ASX 200 shares today
• WiseTech shares are taking off: Is this the start of a major comeback?
• These 2 oversold ASX shares look super cheap right now

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

Australian house prices have spent most of this cycle shrugging off higher interest rates.

That stopped in July. National home values fell 0.7% over the month, according to Cotality’s Home Value Index, making it the steepest monthly decline since December 2022.

For investors holding ASX property shares, that gives food for thought.

These trends are a signal about where earnings guidance is heading.

The house prices data has turned

Sydney led the falls with a 1.4% drop in July. Melbourne was close behind at 1.2%, whereas Brisbane slipped 0.6% and Adelaide gave up 0.2%.

Perth managed a 0.1% gain, though that is a long way from the pace it set last year.

What changed in July was the breadth of the weakness.

Cotality head of research Gerard Burg pointed to the gap opening up between buyers and sellers.

There remains a mismatch between the pricing expectations of buyers and sellers.

Annual figures still look strong across the smaller capitals, but annual numbers are a rear-view mirror indicator and the monthly data is what tells you where the market is heading next.

Why rate rises finally bit

The Reserve Bank has lifted the cash rate three times this year.

It held at 4.35% on 11 August, but left the door open to more.

The Board noted that headline inflation “is still too high” and is likely to stay elevated for some time.

The data backs that up. The ABS reported that CPI rose 3.8% over the year to June, with the trimmed mean at 3.6%.

Higher rates do two things to housing, cutting how much buyers can borrow while lifting the cost of carrying the debt they already hold.

KPMG now forecasts house prices nationally to fall 1.1% across 2026 before recovering 3.4% in 2027.

Sydney houses are tipped to fall 4.4% and Melbourne houses 5.0%.

KPMG chief economist Dr Brendan Rynne was direct about the cause.

Three consecutive interest rate rises have also reduced borrowing capacity, while changes to property investment taxation have weakened investor confidence.

What falling house prices mean for ASX property shares

Not every ASX property share is exposed in the same way.

The listed sector blends residential developers, commercial landlords and funds managers, and falling house prices hit each of those business models very differently.

Developers feel it first, through slower sales and thinner margins on completed stock.

Landlords are better insulated, because commercial and industrial rents answer to a different set of drivers.

Much of the damage may already be done, too.

ASX 200 real estate stocks tumbled through the first half of 2026 as the rate outlook soured.

Goodman, Mirvac and Stockland: three very different exposures

Goodman Group (ASX: GMG) is the least exposed of the trio.

The company owns virtually no residential property.

Its growth story is industrial space and data centres, with a portfolio valued at $87.1 billion in May.

Mirvac Group (ASX: MGR) sits at the other end of the spectrum, because as a residential developer its shares sank to their lowest level since 2015 in April.

Stockland (ASX: SGP) lands somewhere in between.

The company’s residential communities arm is directly exposed to weaker prices, while land lease communities and a new data centre joint venture provide some ballast against the cycle.

Stockland maintained FY26 guidance at its third-quarter update in April.

All three report FY26 results within the next week, according to the Foolish reporting calendar.

Foolish takeaway

Falling house prices are not automatically bad news for ASX property shares.

Much of the pessimism is already reflected in share prices after a difficult 2026 for the sector.

What matters now is what management teams say about the year ahead.

Mirvac, Goodman and Stockland will each put a number on that within days, and those guidance statements will tell investors all they need to know about the future of ASX property shares.

The post Rate rises have finally caught house prices. What does that means for ASX property shares? appeared first on The Motley Fool Australia.

More reading

• Stockland profit up 20% as development surges: FY26 results and outlook
• Mirvac Group FY26 earnings: Operating profit and distributions rise
• Goodman Group secures 20-year data centre lease at Tsukuba Tech Central in Japan
• 2 ASX shares highly recommended to buy: Experts
• Reporting season half-time report: 5 lessons from August so far

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

The team at Morgans has been busy updating its views on a number of popular ASX 200 shares this month.

Three that the broker has been looking at are listed below. Here’s what it is saying about them:

ANZ Group Holdings Ltd (ASX: ANZ)

Morgans was pleased enough with ANZ’s trading update. However, it isn’t a fan of its valuation and sees potential for negative returns even after dividends. As a result, it has put a trim rating and $33.53 price target on ANZ Bank’s shares. It said:

Underlying earnings growth, delivery of cost decline and low bad debts were a feature of the trading update, with lifting momentum behind revenue growth. Forecast changes are immaterial. 12-month target price reset to $33.53/s. TRIM retained, with potential TSR at current prices of c.-9% (including 4.4% yield).

Iress Ltd (ASX: IRE)

Although this financial technology company delivered a softer than expected half-year result, Morgans remains positive. This is due to the quality of its earnings improving and its modernisation story. 

This saw the broker retain its buy rating with a $9.65 price target. It said:

IRE’s 1H26 result was softer than anticipated, with slower revenue momentum along with currency headwinds the main drivers. While Group revenue & underlying EBITDA fell short of MorgF by -2%/-4% respectively, earnings quality continued to improve as efficiency program cost improvements saw underlying EBITDA margins from continuing operations improve +330bps YoY. Revised FY26 guidance sees revenue & UPAT expectations lowered by ~4% at the midpoint, however Cash EBITDA guidance of A$119-124m (+19-24% YoY) was raised, supported by efficiency program delivery, more moderate Capex outlook, and a further A$6-9m of cost savings to be delivered over 2H26 (implying 2H26 Cash EBITDA of A$58-63m). 

We trim our underlying UPAT forecasts by -2 to -6%, which sees our price target reduce by ~7% to A$9.65. Although top line momentum has softened in the half, execution of IRE’s broader efficiency / modernisation story in our view remains on track (albeit early days). We therefore retain our BUY rating.

JB Hi-Fi Ltd (ASX: JBH)

This retail giant delivered a result largely in line with expectations for FY 2026. The only disappointment was its trading update, which revealed a weaker than expected start to FY 2027.

In response, Morgans has retained its accumulate rating on JB Hi-Fi shares with a trimmed price target of $82.00. It explains:

JBH reported a broadly in-line FY26 result, with NPAT up ~3%. However, sales growth slowed in the 4Q, including turning negative in JB Hi-Fi Australia. The July trading update was below market expectations, with 3 out of 4 divisions reporting negative comparable sales growth, and tracking below 1H27 consensus. This was impacted by price increases, supplier stock shortages, weaker consumer backdrop and cycling a strong pcp. We expect some of these headwinds to ease as the year progresses, although the macro trading environment remains choppy. 

We have downgraded our NPAT forecasts by ~5% in FY27 and FY28, respectively. Our valuation lowers to $82.00 driven by earnings downgrades, offset by rolling forward our model. We maintain our ACCUMULATE rating.

The post Buy, hold, sell: ANZ Bank, Iress, and JB Hi-Fi shares appeared first on The Motley Fool Australia.

More reading

• After a steep fall on results, this ASX technology stock could be 40% undervalued
• Buy, hold, sell: Aristocrat, Telstra, ANZ shares
• Why the JB Hi-Fi share price just suffered its worst day on record
• These ASX 200 shares could generate $10,000 per year in passive income
• Buy, hold, sell: Endeavour, JB Hi-Fi, and New Hope shares 

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.

For years, $1 million was shorthand for a comfortable Australian retirement. More recently, $2 million has started appearing in retirement projections, calculator results and attention-grabbing headlines.

However, there is no universal superannuation target.

Whether you need $2 million depends mainly on when you retire, how much you plan to spend and whether the Age Pension will eventually support your income.

The superannuation maths, worked backwards

Start with the income, not the balance.

Consider a couple retiring at 60 and funding a 30-year retirement entirely from their own capital. Assuming annual returns of 6% after fees and tax, inflation of 3% and no remaining balance after 30 years, an income of $80,000 a year in today’s dollars requires approximately $1.6 million.

Lifting the desired income to $100,000 increases the starting balance to almost $2 million. If annual returns rise to 7% under the same assumptions, the required balance falls to around $1.75 million.

That is where the $2 million figure becomes relevant. It is approximately what an early-retiring couple needs to fund a six-figure lifestyle without relying on the Age Pension.

Change the retirement age, spending target or return assumption and the number changes with it.

Why ASFA’s benchmark is much lower

The Association of Superannuation Funds of Australia estimates that a comfortable retirement currently costs $55,923 a year for a single homeowner and $78,566 for a couple.

ASFA estimates the corresponding superannuation balances at $630,000 and $730,000 respectively. However, those figures assume retirement at 67, home ownership and access to a part Age Pension over time.

That makes them very different from a couple retiring at 60 and funding everything independently.

The maximum Age Pension is currently worth approximately $31,223 a year for a single retiree and $47,070 combined for a couple. However, it is means-tested. A homeowner couple retiring with $730,000 in assessable assets would generally receive only a part pension, with the entitlement potentially increasing as their assets are drawn down.

At a simple 4% withdrawal rate, replacing the maximum couple pension would require almost $1.2 million of additional capital. That is not precisely how ASFA models retirement, but it illustrates why its recommended balance is so much lower than a fully self-funded target.

The important question is not which benchmark is correct. It is which set of assumptions resembles your household.

Where investors can close the gap

For investors with substantial super balances, contributions are only part of the equation. Returns earned on the existing portfolio can become increasingly influential during the final decade of work.

The Australian share market has historically generated average annual returns of around 9% over long periods, including dividends. Past performance does not guarantee future returns, but it demonstrates how compounding can accelerate as the balance grows.

For example, $600,000 earning a 5% annual return after inflation would grow to approximately $977,000 in today’s dollars over 10 years, without further contributions. If another $15,000 reaches the account each year, the balance could grow to around $1.17 million in today’s dollars.

The final decade before retirement is not necessarily when growth stops mattering. It can be when compounding has the largest pool of capital to work on.

Broad-market exchange-traded funds such as the Vanguard Australian Shares Index ETF (ASX: VAS) and iShares S&P 500 ETF (ASX: IVV) can provide diversified exposure to Australian and international shares.

Australian shares may also generate franking credits, although the benefit received depends on the super fund, account structure and individual tax circumstances.

Shares alone are not a complete retirement plan. Fees, diversification, liquidity and the order in which returns occur all matter. A sharp market fall during the first years of retirement can cause substantially more damage than the same decline earlier in life, making portfolio construction and the drawdown plan just as important as the target balance.

Foolish takeaway

A $2 million superannuation balance is a reasonable target for one particular scenario: a couple retiring early, wanting around $100,000 a year in today’s dollars and planning without the Age Pension.

That is not every Australian household.

For people retiring later with a paid-off home and some Age Pension eligibility, ASFA’s modelling suggests a comfortable retirement may remain achievable with considerably less than $1 million.

The number that matters is not the one attracting headlines. It is the capital required to fund your desired spending from your chosen retirement date, under realistic assumptions about inflation, returns and the Age Pension.

For some households, that may be $2 million. For many others, it will be substantially less.

The post Is $2 million really the new superannuation target? appeared first on The Motley Fool Australia.

More reading

• How much do I need to retire on $100,000 a year at 60?
• Which is the best Vanguard ETF? VAS, VGS and VDHG compared
• $500 a month into ASX shares: Here’s what that could be worth in 20 years
• Too many ASX ETFs? You could be paying twice for the same shares
• 5 amazing ASX ETFs for Australian investors in August

Motley Fool contributor Leigh Gant 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 iShares S&P 500 ETF. The Motley Fool Australia has recommended 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.

NextDC Ltd (ASX: NXT) shares have been on the rise, gaining 12% over the past month to $14.73. The stock is up 20% year to date, although it’s only 4% higher over the past 12 months.

Some of the recent momentum appears to be coming from strong earnings from US technology giants including Apple Inc (NASDAQ: AAPL) and Alphabet Inc (NASDAQ: GOOG). But could there be more to the NextDC story?

At the heart of data centre expansion

NextDC operates data centres, increasingly critical infrastructure underpinning the digital economy. The tech company is positioning itself at the heart of this expansion, with a growing Australian footprint and ambitions across Asia.

It recently opened its first AI-ready facility in Kuala Lumpur and is developing facilities specifically designed for Artificial Intelligence workloads, including its S6 Sydney data centre.

The long-term opportunity is compelling. As businesses increasingly use cloud computing, AI, streaming, online payments, cybersecurity tools and other data-heavy software, demand for secure and reliable data centre capacity should continue growing.

NextDC appears to be executing well. It reported pro forma contracted utilisation of 740MW at 30 June 2026, up 11%, while its pro forma forward order book expanded to 565MW.

Investors in NextDC shares will get more detail when the company releases its FY26 results on 27 August.

Could AI provide another catalyst?

The recent share price strength of NextDC shares has coincided with upbeat results from major US technology companies. Strong spending and growth expectations from tech giants may be encouraging investors to look more closely at Australia’s data centre sector.

But there could be a more interesting catalyst beneath the surface.

In July, AI company Anthropic was reportedly running a confidential tender for at least 1.4GW of Australian data centre capacity as it prepares for a potential $3 billion IPO in October. NextDC was reportedly among the operators approached.

If AI companies continue securing enormous amounts of computing infrastructure, NextDC could be well positioned to benefit.

Analysts see plenty of upside

TradingView data shows nine of 10 brokers rate NextDC shares a buy or strong buy. The average price target is $21.60, implying around 47% upside from the current share price.

The most bullish target is $32.29, suggesting potential upside of about 119%, while the most pessimistic target still implies roughly 5% upside.

UBS is among the bulls, maintaining a buy rating and a $22.55 price target.

With AI driving a surge in demand for data centre capacity, NextDC could be a stock worth watching closely.

The post Could the AI boom just be getting started for NextDC shares? appeared first on The Motley Fool Australia.

More reading

• Where to invest $5,000 in Australian shares now
• How to invest $10,000 the Warren Buffett way: Buy businesses, not stocks
• Anthropic is expected to IPO at $2 trillion. This should excite ASX AI investors.
• Why this NASDAQ-focused ASX ETF keeps outperforming
• 3 top ASX shares for beginners to buy now

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

The Healius Ltd (ASX: HLS) share price was in focus today after the company delivered a 2.2% increase in revenue to $1,373.2 million for FY26, with underlying net loss shrinking by 46.8% to $13.2 million.

What did Healius Limited report?

• Revenue from continuing operations rose 2.2% to $1,373.2 million (FY25: $1,344.2 million)
• Underlying EBITDA grew 8.1% to $258.6 million
• Underlying EBIT jumped 76.6% to $30.2 million
• Underlying loss after tax improved to $13.2 million from $24.8 million a year ago
• Reported loss after tax widened to $415.6 million, from $151.2 million, due chiefly to a $332 million non-cash goodwill impairment
• No dividend declared for FY26 (FY25: 41.3 cps special dividend)

What else do investors need to know?

Healius delivered operational improvements despite headwinds in the healthcare sector, including increased labour costs and limited Medicare indexation. Cost management helped contain annual spend, aided by a detailed workforce optimisation program reducing headcount by around 5%.

The Agilex Biolabs division performed strongly, growing revenue by 14.1% and EBITDA by over 67%. The company is reviewing strategic options for Agilex Biolabs, and an update for shareholders is expected ahead of the AGM.

Healius completed the major phase of its digital transformation program, with most collection centres now processing over 80% of episodes digitally. AI‑driven initiatives are delivering productivity gains and will continue to be rolled out across back-office and laboratory operations.

What’s next for Healius Ltd?

Looking ahead, Healius is focused on expanding higher margin revenue streams in diagnostics, capturing benefits from its completed digital platform rollouts, and further lifting network productivity. The group expects full-year labour cost pressures from regulatory changes, but remains confident about healthcare demand trends over the medium to long term.

The company maintains a strong balance sheet, ending FY26 with net debt of $32.8 million and well within its banking covenants. Management continues to target improved cashflow and margin restoration in FY27.

Healius Ltd share price snapshot

The Healius share price has been sold off over the past 12 months and is down 45%. This compares to a modest 2% gain by the S&P/ASX 200 index (ASX: XJO).

View Original Announcement

The post Healius posts FY26 revenue growth, narrows underlying loss appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Which are the 10 most shorted ASX shares?

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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.