How much superannuation you need for a comfortable retirement is one of the most common and most important questions Australians ask as retirement starts to come into view.

Unfortunately, there isn’t a single number that works for everyone. The amount of super you need depends on the lifestyle you want, whether you are retiring as a single or a couple, and how long your savings will need to last.

That said, there are reliable benchmarks that can help you understand what comfortable actually means in dollar terms, and whether your current balance is likely to get you there.

What does a comfortable retirement actually mean?

The most widely used benchmark comes from the Association of Superannuation Funds of Australia (ASFA). It breaks retirement into two broad standards: comfortable and modest.

According to ASFA, a comfortable retirement allows retirees to enjoy more than just the basics. It includes private health insurance, a reliable car, regular social activities, eating out occasionally, and the ability to take domestic holidays, plus an overseas trip every few years. Importantly, it is about maintaining independence and choice, not luxury.

ASFA estimates that to achieve this level of retirement at age 67, you need approximately:

• $595,000 in superannuation for a single person
• $690,000 combined for a couple

These figures assume you own your home outright and will receive at least a part age pension.

How much superannuation for a modest retirement?

A modest retirement covers the essentials. It allows retirees to meet basic living costs, maintain a simple lifestyle, and enjoy limited leisure activities, but with far less flexibility.

ASFA estimates that a modest retirement requires around $100,000 in superannuation for both a single and a couple.

This level of retirement relies far more heavily on the age pension and leaves little room for unexpected expenses or lifestyle upgrades.

What if you won’t reach the comfortable number?

Falling short of ASFA’s comfortable benchmark doesn’t mean retirement will be unpleasant, it just means trade-offs.

Australians commonly adjust by retiring a year or two later, working part-time in early retirement, downsizing their home, and reducing discretionary spending like travel.

In many cases, small changes can bridge surprisingly large gaps.

And if you’re behind but still have time to build that nest egg, you could look at making additional contributions to your superannuation. You could also look at switching funds if yours is consistently underperforming benchmarks.

Foolish takeaway

There’s no magic number that guarantees a perfect retirement. But ASFA’s benchmarks provide a useful reality check.

If you’re aiming for comfort and flexibility, around $600,000 as a single or $700,000 as a couple is a solid target. If your balance is lower, the age pension, lifestyle choices, and timing could help you bridge the gap.

The post How much superannuation do you really need to retire comfortably in Australia? appeared first on The Motley Fool Australia.

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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, this ASX 200 gold stock sat awkwardly at the gold table. Ramelius Resources Ltd (ASX: RMS) was not quite a dud, but rarely the star.

Now the gold mining share has climbed to an all-time high to close Friday at $4.20, starting the new year 3.4% higher. This gain comes on top of last year’s surge of 102%.

As a result, the underperforming small speculative Perth miner is now an $8 billion company.

Intriguing mid-tier miner

The ASX 200 gold stock, like many of its rivals, soared on the back of record gold prices. Gold reached record highs in 2025 as lower interest rates in most major economies boosted its performance. 

Ramelius is a Western Australian gold producer through and through. Its engine rooms are Mt Magnet and Edna May, supported by a stable of satellite pits and underground operations.

However, Ramelius Resources has also quietly rebranded itself and is evolving into one of Australia’s more intriguing mid-tier gold producers. At its core, the company mines, processes, and sells gold from a range of WA operations.

Never Never deposit

The real plot twist for this ASX 200 gold stock came with the acquisition of Spartan Resources and its Dalgaranga Gold Project. Suddenly, Ramelius wasn’t just steady — it was ambitious.

Dalgaranga brings scale, high-grade optionality and the tantalising Never Never and Pepper deposits. These have quickly become one of the more talked-about discoveries in the mid-tier gold space.

The ASX 200 gold stock has grown its mineral resources every year since 2016 and continues to spend strongly on exploration, with a budget of $80 to $100 million earmarked for exploration this financial year.

Buy-now gold share

That’s why Ramelius is suddenly a buy-now candidate. Management is openly targeting a move towards 500,000 ounces a year by the end of the decade.

That would push Ramelius out of the awkward middle ground and into proper mid-tier territory. A place where institutions start taking you seriously and valuation multiples tend to behave better.

The strengths are stacking up. Ramelius runs a concentrated, low-risk WA portfolio, generates strong operating cash flow and now boasts a much larger resource base post-merger.

Of course, it’s not all glitter. Costs have crept higher, as they have across the sector. Integrating Dalgaranga won’t be instant or painless, and execution risk remains the biggest swing factor. And like every gold miner, Ramelius lives and dies by the gold price in the short term.

So, what do analysts think?

The tone has shifted. Brokers are warming to the growth story.

The ASX 200 gold stock enjoyed a big boost last month after announcing it intends to buy back up to $250 million in shares over the next 18 months. The Ramelius board also revealed an increase in the minimum dividend to 2.0 cents per share each year.

That’s why most brokers are sporting strong buy recommendations and 12-month target prices clustered around $4.70. This points to an 11% upside.

However, the most optimistic analysts see potential gains for the ASX 200 gold stock of over 50% in 2026.  

The post Watch this ugly duckling ASX 200 gold stock in 2026 appeared first on The Motley Fool Australia.

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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 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.

If you are wondering which ASX shares to buy, hold, or sell, then read on!

That’s because Morgans has given its verdict on the three popular shares named below.

Here’s what it is saying about them:

Commonwealth Bank of Australia (ASX: CBA)

Morgans thinks that banking giant Commonwealth Bank of Australia is overvalued at current levels. It has put a sell rating on CBA shares with a $96.07 price target.

The broker feels that there a risk of poor future investment returns due to its current valuation. In response to its recent quarterly update, Morgans said:

The market’s response to a mild earnings miss for a stock priced for perpetual perfection was today’s sharp share price decline. WBC seemed to be a beneficiary. We’ve downgraded FY26-28F EPS and DPS by c.3%. Lower earnings also reduces terminal ROTE and sustainable growth in our DCF valuation. DCF-based target price declines to $96.07/sh. We remain SELL rated on CBA, recommending clients aggressively reduce overweight positions given the risk of poor future investment returns arising from the even-now overvalued share price and low-to-mid single digit EPS/DPS growth outlook.

REA Group Ltd (ASX: REA)

Another ASX 200 share that Morgans has been running the rule over is realestate.com.au operator REA Group.

It was pleased with its solid performance during the first quarter of FY 2026, highlighting yet another strong yield outcome.

However, it isn’t enough for a buy rating. Morgans has put an accumulate rating and $247.00 price target on its shares. It said:

REA’s 1Q26 trading update benefited from a strong yield outcome (+13%), which helped to offset a softer new listings environment in the period (volumes down -8% vs the pcp). Group revenue was A$429m (+4% on pcp), with EBITDA (ex assoc.) up 5% on pcp to A$254m. We make minor changes (-1%) to our FY26-FY28 EPS estimates. Our DCF-derived price target is lowered to A$247 (from A$254). Given REA is trading on ~42x FY26F PE (MorgansE), broadly in line with its 10-year historical average, and now with >10% TSR upside to our valuation we upgrade REA to ACCUMULATE.

Xero Ltd (ASX: XRO)

Finally, this cloud accounting platform provider has also been given an accumulate rating by Morgans with a $141.00 price target.

While its first half performance was in line with expectations, it has trimmed its estimates to reflect the acquisition of Melio. Morgans said:

XRO’s 1H26 result was largely in line with expectations but higher investment expenses in the 2H and the inclusion of Melio into our forecasts lowers our EBITDA and FCF forecasts. Our prior XRO research presented our first take on XRO including Melio numbers and now, following its 1H26 result and greater clarity on costs, we reduce our short-term forecasts and formally publish our combined XRO and Melio forecasts. Our target price reduces ~30% to $141 on lower peer multiples and lower FCF per share. We retain our Accumulate recommendation, noting it may take some time for management to build investor confidence in the value add of Melio and return XRO back to rule of 40 growth.

The post Buy, hold, sell: CBA, REA Group, and Xero shares appeared first on The Motley Fool Australia.

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

It’s interesting when one analyst thinks an ASX share is a buy, however it could be a compelling buy signal if numerous experts are calling that ASX share a buy.

Share prices are changing all the time, giving investors the opportunity to buy at good value if they appear undervalued.

While analyst predictions aren’t necessarily going to be precisely correct, I think it could be very worthwhile to look at which businesses are expected to deliver big returns and underrated earnings.

Let’s take a look at two ASX shares that are highly rated today.

ALS Ltd (ASX: ALQ)

According to the collation of analyst ratings by Commsec, there are currently nine buy recommendations on this company, which is a substantial number.

UBS describes ALS as a leading analytical and testing services business with operations spanning the mining, natural resources, environmental, food, pharmaceutical, industrial and inspection sectors. It provides testing, sampling and remote monitoring to those sectors.

UBS is one of the brokers that rates the business as a buy, with a price target of $20.87.

The broker notes that the company’s FY26 first half result was solid, with net profit 3% of what the market was expecting thanks to stronger performances from both the life sciences and commodities divisions.

Operating profit (EBIT) growth of 15% was driven by organic revenue growth of 7%. The commodities division achieved 12% organic revenue growth, while geochemistry revenue grew 14%.

Mineral sample volumes were up in the low double-digits, thanks to supportive commodity prices for gold and copper, as well as demand from onshoring and mineral security trends. Geochemistry demand continues to come from major miners.

UBS notes that ALS’ guidance means the company expects organic revenue growth of between 6% to 8%, up from between 5% to 7%, with commodities growth upgraded to between 12% to 14%, up from 5% to 7%.

The broker suggests ALS’ view on its profit margins is “conservative”.

UBS is optimistic on this ASX share because of the view that the record gold price “should drive a recovery in exploration activity”, supporting a compound annual growth rate (CAGR) of 10% for earnings per share (EPS) over the next three years.

GQG Partners Inc (ASX: GQG)

GQG is a funds management business that gives clients the option to invest in different strategies such as US shares, international (excluding US) shares, global shares and emerging market shares.

According to the Commsec collation of analyst opinions, there are currently seven buy ratings on the ASX share. UBS is one of the brokers that rates GQG shares as a buy.

After a period of fund underperformance because of the defensive setting of GQG portfolios due to high AI-related valuations, the month of November saw GQG outperform.

UBS said the fund manager delivered 360 basis points (3.60%) of “alpha validating GQG’s defensive posture amid increasing scepticism around the AI buildout”.

The broker noted that the business reached US$166.1 billion of funds under management (FUM) in November 2025, a rise of 1.5% month over month, with client FUM net flows contributing negative 1.5% and investment returns contributing 3%.

When the GQG share price was trading at $1.73, UBS noted it’s trading at a price/earnings (P/E) ratio of less than 8 and the dividend yield was around 12%.

UBS said its team continues “to see value appeal as a market-hedge with the dividend underpinned by relatively resilient FUM trends.”

The broker also believes that recent outflows have been “resilient”, considering the depth of GQG’s recent underperformance. But, in early December, UBS saw that there are indications the net flows for December 2025 could show signs of improvement, with trackable flows in positive territory in-line with the first half of 2025 monthly experience.

UBS has a price target of $2.10 on the business, which assumes the business will trade at a P/E ratio of 10.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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

Last year was a good one for homeowners, with the Reserve Bank of Australia (RBA) making several cuts to interest rates.

This left the cash rate at 3.6% at the end of the year.

However, while many economists were for some time forecasting further cuts in 2026, that all changed late in 2025 after economic data supported a case for interest rate hikes this year.

But what is actually going to happen? Let’s see what the economics team at Westpac Banking Corp (ASX: WBC) is predicting from the RBA.

Where are interest rates going in 2026?

The good news for mortgage holders is that Westpac thinks it will be a quiet year for RBA governor Michele Bullock.

According to its latest weekly economic report, the bank’s economics team believes that the central bank will keep interest rates on hold for the entire year. No cuts, no hikes. Just rates on hold at 3.6% for the full 12 months.

Westpac’s chief economist, Luci Ellis, said:

Westpac Economics has revised its outlook for the RBA cash rate to an extended hold for the whole of 2026. While the RBA recognised that some of the recent inflation surprise reflected temporary factors, it has clearly taken signal from it. Inflation is expected to moderate in 2026, but not soon enough to induce the RBA to step back from its current hawkish view of the risks. If our broader set of forecasts are borne out, rate cuts are still feasible in February and May 2027.

Though, Ellis does concede that there are risks that the RBA could both cut rates and increase them this year. She adds:

There are risks on both sides of our base case view. We reserve the option to put rate cuts in 2026 back on the table if the labour market starts to unravel. We think that rate hike talk is premature. We cannot rule out that more near-term bad news on inflation spooks the RBA and induces a near-term hike, but in our view, it is not the most likely outcome. If it does happen, though, our forecasts for growth, the medium-term inflation outlook and the labour market would need to be revised down, and a subsequent reversal of that policy tightening would be in play in 2027.

Overall, it should be a relatively steady year for borrowers if Westpac is on the money with its forecast.

The post Here’s what Westpac says the RBA will do with interest rates in 2026 appeared first on The Motley Fool Australia.

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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.

S&P/ASX 200 Index (ASX: XJO) shares rose by 6.8% and provided total gross returns, including dividends, of 10.32% in 2025.

The benchmark index hit a record 9,115.2 points in October before finishing the year at 8,714.31 points.

There are 11 market sectors within the ASX 200.

Here are the ASX 200 shares that experienced the highest capital growth in each sector last year.

2025 stars of each ASX 200 market sector

These were the No.1 shares of each market sector in 2025 based on 12-month share price growth (excluding dividends).

We have ranked the sectors from the strongest to the weakest performers. Four of the 11 sectors lost value last year.

Materials

The ASX 200 materials sector was the best performer of the 11 sectors in 2025.

The S&P/ASX 200 Materials Index (ASX: XMJ) rose by 31.71% and delivered total returns, including dividends, of 36.21%.

Rising commodity prices, particularly gold, silver, copper, and lithium, pushed the sector higher and significantly boosted the miners.

The best performing share within the ASX 200 materials sector was Pantoro Gold Ltd (ASX: PNR).

Pantoro Gold only joined the benchmark index in the December quarter rebalance.

The Pantoro share price rose 220% to close at $4.89 on 31 December.

Industrials

The S&P/ASX 200 Industrials Index (ASX: XNJ) rose 10.2% and delivered total returns of 13.98%.

ASX 200 defence share DroneShield Ltd (ASX: DRO) was the No.1 stock in the industrials space.

The Droneshield share price ripped 300% to close at $3.08 on 31 December.

Financials

The S&P/ASX 200 Financials Index (ASX: XFJ) rose 7.97% and delivered total returns of 12.05% in 2025.

Retirement and investment solutions provider Generation Development Group Ltd (ASX: GDG) was the star of the financials sector.

The Generation Development Group share price rose 65.92% to finish the year at $5.89.

Communications

The S&P/ASX 200 Communications Index (ASX: XTJ) rose 7% and delivered total returns of 10.56% in 2025.

Telecommunications share Aussie Broadband Ltd (ASX: ABB) was the best performer, rising 40.78% to $5.04 per share.

Aussie Broadband shares ascended into the ASX 200 index in the December rebalance.

Utilities

The S&P/ASX 200 Utilities Index (ASX: XUJ) lifted 6.92% and delivered a total return of 13.22%.

Energy infrastructure company APA Group (ASX: APA) was the No.1 ASX 200 utilities share of 2025.

APA Group shares increased 28.69% to close out the year at $8.97 apiece.

Real estate & REITs

The S&P/ASX 200 Real Estate Index (ASX: XPJ) rose 5.03% and delivered total gross returns of 8.38% in 2025.

Property fund manager Charter Hall Group (ASX: CHC) outperformed its property sector peers.

The ASX 200 real estate investment trust (REIT) closed the year 70.38% higher at $24.45 per share.

Consumer discretionary

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) increased 1.77% and produced total returns of 4.09%.

Eagers Automotive Ltd (ASX: APE) outperformed its ASX 200 consumer discretionary peers with 112.78% share price growth.

The Eagers Automotive share price closed at $24.64 on 31 December.

Consumer Staples

The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) weakened 1.43% in 2025.

Dividends mitigated the capital loss, producing a positive total return of 2.01%.

A2 Milk Company Ltd (ASX: A2M) was the top-performing consumer staples share of the year.

The A2 Milk share price lifted 59.34% over the 12 months to finish the year at $9.21.

Energy

The S&P/ASX 200 Energy Index (ASX: XEJ) fell 2.25% and delivered total gross returns of 3.21%.

ASX 200 uranium explorer Deep Yellow Ltd (ASX: DYL) experienced the strongest share price growth.

Deep Yellow shares rose by 62.83% to finish the year at $1.84 per share.

Technology

The S&P/ASX 200 Information Technology Index (ASX: XIJ) crumbled 21.04%, with a total negative return of 20.08% in 2025.

Codan Ltd (ASX: CDA) was the best share in the technology sector last year.

Shares in the electronics solutions provider rose 76.58% to finish the year at $28.43.

Healthcare

Healthcare was the worst-performing sector of 2025.

The S&P/ASX 200 Health Care Index (ASX: XHJ) tumbled 24.91% and delivered a negative total return of 23.66%.

Neuren Pharmaceuticals Ltd (ASX: NEU) was the No. 1 stock for capital growth in the ASX 200 healthcare sector.

The Neuren Pharmaceuticals share price gained 48.88% to close at $18.61 on 31 December.

The post Fastest rising ASX 200 share of each market sector in 2025 appeared first on The Motley Fool Australia.

More reading

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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 positions in and has recommended Aussie Broadband and DroneShield. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool Australia has recommended Aussie Broadband, Eagers Automotive Ltd, and Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While no investment is ever guaranteed, some Australian companies are entering 2026 with tailwinds that are hard to ignore.

Here are three Australian shares that I believe have particularly compelling bullish catalysts as the next year approaches.

BHP Group Ltd (ASX: BHP)

BHP’s most important catalyst heading into 2026 isn’t iron ore, it is copper.

Copper prices have recently hit record highs, driven by a powerful combination of strong demand and constrained supply. Electrification, renewable energy, electric vehicles, and data centres are all highly copper-intensive, while new supply remains difficult and slow to bring online.

BHP owns some of the world’s most significant copper assets and has been steadily increasing its exposure to the metal. Unlike smaller, single-commodity producers, BHP can benefit from higher copper prices while relying on diversification and balance sheet strength to manage risk.

If copper prices remain elevated or continue to rise, I believe BHP is well-positioned to capitalise on this tailwind and translate it into stronger cash flows in 2026.

Goodman Group (ASX: GMG)

Goodman Group is an Australian share with a bright future, in my opinion.

The rapid expansion of artificial intelligence, cloud computing, and digital services is driving unprecedented demand for data centres, particularly in major global cities. Goodman has been steadily repositioning its global industrial property portfolio to capture this trend.

A recent announcement highlights just how significant this opportunity could be. Canada Pension Plan Investment Board (CPP Investments) has agreed to establish an A$14 billion European data centre partnership with Goodman. The 50/50 partnership includes an initial capital commitment of A$3.9 billion to develop data centre projects across Frankfurt, Amsterdam, and Paris.

This kind of long-term institutional backing validates Goodman’s strategy and provides capital to scale data centre development. I think this is a clear bullish catalyst as demand continues to accelerate.

Super Retail Group (ASX: SUL)

Super Retail Group offers a very different kind of catalyst. One that is tied to the consumer cycle.

After several tough years for household budgets, consumer spending is widely expected to improve in 2026 following interest rate cuts in 2025. That shift could provide meaningful relief for discretionary retailers like Super Retail.

It owns a portfolio of well-known Australian brands, including Supercheap Auto, Rebel, BCF, and Macpac. These businesses cater to automotive, sporting, and outdoor lifestyles, which are categories that often rebound as confidence returns.

The group has already spent recent years focusing on operational efficiency and customer loyalty. If consumer spending improves as expected, Super Retail could be well-positioned to benefit from operating leverage in 2026.

Foolish Takeaway

Bullish catalysts don’t guarantee success, but they can tilt the odds in investors’ favour.

BHP benefits from record copper prices and long-term supply constraints. Goodman Group is capitalising on surging data centre demand driven by AI, supported by major institutional investment. And Super Retail Group could see improving conditions as interest rate relief flows through to consumers.

For investors looking ahead in 2026, I think these three Australian shares are entering the year with momentum that’s worth paying attention to.

The post 3 Australian shares with bullish catalysts heading into 2026 appeared first on The Motley Fool Australia.

More reading

• $20,000 in excess savings? Here’s how to try and turn that into a second income in 2026
• 5 fantastic ASX ETFs for beginners in 2026
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• 5 things to watch on the ASX 200 on Friday

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

Our spending and saving habits can make a big difference to how much our wealth grows over time, as it influences how much money is available to invest in ASX shares or other assets.

While it’s obvious that how much we pay for our home and transportation (the big spending categories) make a difference, there’s a cliché that spending regularly on a coffee (or, several years ago, it was avocado on toast) was holding people back from financial success.

I’m going to take a look at how much of a difference it could make to invest the daily coffee money instead.

Every dollar counts?

In modern life, spending money is largely unavoidable. Some people may decide to spend a bit of their discretionary budget on items that give them a bit of joy or a boost. I’m not going to say people shouldn’t spend a bit of money on themselves.

But, if growing wealth is a key goal for someone, then it could be a useful exercise to analyse where extra dollars could be found.

When we think of a regular discretionary item, such as a $7 coffee, it doesn’t sound like much. But, when expressed as a weekly amount of $49 or an annual figure of $2,555, it sounds more sizeable. Those little amounts do add up – $1,000 is made up of 1,000 individual dollars.

How much could the amount grow to if someone invested that amount?

The power of compounding with ASX shares

Saving and investing $7 per day (or $2,555 annually) for a number of years could become a very useful figure after a decade and even larger after two decades thanks to compounding. That’s particularly true if someone’s investments grow at an average of 10% per year, as the global and ASX share markets have done over the long-term.

Using the Moneysmart compound interest calculator, after 10 years the daily coffee amount would grow to $40,720 and after two decades it’d become $146,338.

While that’s not enough to retire on, it’s clear that it could be a very useful contributor to a typical Australian’s finances after a decade.

So, a $7 daily coffee is not stopping someone from becoming very rich. But this does show how a small daily amount can compound into a pleasing figure over time if it’s put into assets like ASX shares rather than spent.

Now imagine how much someone could have in 20 years if they deliberately saved and invested $50 per day towards building their finances.

The post Would dropping that $7 per day coffee actually help make you rich with ASX shares? appeared first on The Motley Fool Australia.

More reading

• 3 Australian shares with bullish catalysts heading into 2026
• 2 no-brainer AI stocks to buy hand over fist for 2026
• $20,000 in excess savings? Here’s how to try and turn that into a second income in 2026
• Is this ASX copper stock still worth buying after a 94% surge?
• Brokers name 3 ASX shares to buy today

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 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 originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Investors are always on the lookout for the next big technology breakthrough. And in recent years, artificial intelligence (AI) emerged as this potential game changer. The idea is AI will make the world a more efficient place, and importantly, help companies save money and increase their ability to rapidly innovate.

Many companies in the space — those developing or using AI — already have seen their revenue soar, and investors have taken notice. They’ve piled into these stocks and often reaped the rewards as AI stocks have driven gains in the S&P 500. And, with the AI market forecast to reach into the trillions of dollars in just a few years, there may be a lot more to gain well into the future.

Of course, there are many AI stocks out there, so choosing just a few may seem overwhelming. It’s important to consider each company’s path so far, competition, and prospects down the road. And with all of this in mind, two in particular look like no-brainer AI stocks to buy hand over fist for 2026. Let’s check them out. 

1. Nvidia

Nvidia (NASDAQ: NVDA) may be the most well-known AI stock on the planet thanks to its dominance in the AI chip market. The company makes the graphics processing units (GPUs) that fuel top AI tasks such as the training and inferencing of large language models (LLMs). The tech giant benefits from its early entrance into the AI market — and its focus on innovation has kept it in the top spot.

All of this has led to enormous gains in earnings, with revenue and net income climbing in the double and triple digits in recent quarters — and revenue has reached record levels. Nvidia has powered the early phases of the AI boom, but the company also is perfectly positioned to drive the next chapters, too. This is because Nvidia has tailored its chips to serve inferencing — seen as the next big growth area for AI — and expanded its offerings into a variety of products and services to suit customers’ AI needs.

Nvidia also has made smart strategic moves — for example, partnering with Nokia to develop AI for telecom, and just recently, acquiring the inferencing technology of start-up Groq.

So Nvidia is very likely to continue generating significant growth as the AI story unfolds, and that makes it a no-brainer buy for the coming year.

2. Amazon

Amazon (NASDAQ: AMZN) is both a user and seller of AI, and that’s helped it become one of the early winners of the AI race. The company applies AI to its e-commerce business, helping it design more efficient delivery routes, for example, and offer shopping assistance to customers. By making shopping easier and delivery faster for customers, they’re likely to keep coming back — and efficiency also helps Amazon lower its cost to serve.

Though you may associate Amazon mainly with e-commerce, the company’s biggest profit driver actually is another business: cloud computing. And through this unit, Amazon Web Services (AWS), the company is scoring a major AI victory.

AWS, the world’s biggest cloud provider, offers customers a wide variety of AI products and services, from leading Nvidia chips and AWS’ own chips targeting the cost-conscious customer to a fully managed AI service called Amazon Bedrock. And these are only a few examples. This along with AWS’ full range of offerings beyond AI have helped the unit reach an annual revenue run rate of $132 billion.

Amazon is a no-brainer AI stock to own because the company has delivered growth over the years thanks to its e-commerce and cloud businesses — so the company doesn’t depend uniquely on AI for revenue. But AI offers Amazon the potential for explosive growth in the years to come, making a positive picture even brighter.

And today, trading for only 32x forward earnings estimates, it’s a reasonably priced tech stock to add to any AI portfolio.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 no-brainer AI stocks to buy hand over fist for 2026 appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• 5 fantastic ASX ETFs for beginners in 2026
• What are the 2 top artificial intelligence (AI) stocks to buy right now?
• I want to buy Amazon and these 4 US stocks in 2026
• 1 incredible reason to buy Nvidia stock before Feb. 25
• 5 most traded US stocks by Aussie investors this year

Adria Cimino has positions in Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Nvidia. The Motley Fool Australia has recommended Amazon and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX shares are among the most effective assets at generating income for investors. They could be a great choice to build a second income.

We all only have so much time to work for earnings. It’d be beneficial to have a portfolio of shares paying a growing source of passive income to our bank accounts that we don’t have to actively work for ourselves.

How much of a second income could a $20,000 investment pay? That entirely depends on the dividend yield.

For example, if someone’s portfolio had a 5% dividend yield, then $20,000 would generate $1,000 of annual income.

That’s just the first year, though.

If the payout grew at a compound annual growth rate (CAGR) of 7.5% for the foreseeable future, it would grow into $1,436 of annual income after five years and $2,061 after ten years.

That sounds good, right?

The next question is what to invest in.

Many of the most popular ASX-listed exchange-traded funds (ETFs) aren’t known for having good dividend yields. I’ll run through some compelling options.

Portfolio investments

When we think about investing in a particular company, like BHP Group Ltd (ASX: BHP), that money is allocated to just one business.

Wouldn’t it be great if we could put our money into an investment and it’s already diversified instantly?

There are some investments that can provide a pleasing mixture of both a good dividend yield and capital growth. I’m thinking of investment businesses like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), MFF Capital Investments Ltd (ASX: MFF), and Future Generation Australia Ltd (ASX: FGX), which have a good long-term record of payout growth. I think these are great options for a second income.

I’ll also point out a couple of impressive actively-managed ETFs that target a dividend yield for investors and have strong long-term portfolio performance, such as WCM Quality Global Growth Fund (ASX: WCMQ) and Montgomery Global Equities Fund (ASX: MOGL).

Companies

There are a number of companies on the ASX that derive their earnings from operations.

I’d only focus on businesses that have an attractive long-term future and that have a history of growing their payouts and offer a good dividend yield today.

Some of the most appealing ASX dividend shares, in my opinion, are Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Medibank Private Ltd (ASX: MPL), Pinnacle Investment Management Group Ltd (ASX: PNI), Shaver Shop Group Ltd (ASX: SSG), and APA Group (ASX: APA).

Real estate investment trusts

The final area of investments that could unlock a pleasing second income is real estate investment trusts (REITs) – these are businesses that own significant commercial real estate.

There is a wide variety of REITs that Aussies can buy, including industrial, shopping centres, farms, self-storage, office, social, and healthcare.

Investors can benefit from the rental profits as well as the long-term appreciation of land prices. Some of my favourite REITs for income and capital growth are Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW), Rural Funds Group (ASX: RFF), and Abacus Storage King (ASX: ASK).

The post $20,000 in excess savings? Here’s how to try and turn that into a second income in 2026 appeared first on The Motley Fool Australia.

More reading

• 5 fantastic ASX ETFs for beginners in 2026
• How did the BHP share price perform in 2025?
• 12 best performing commodities of 2025
• 3 ASX dividend shares to buy for passive income in 2026
• The pros and cons of buying Telstra shares in 2026

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Mff Capital Investments, Pinnacle Investment Management Group, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Pinnacle Investment Management Group, Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, Mff Capital Investments, Shaver Shop Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.