Superannuation is more than just a savings pot for retirement, it can also be a powerful tool to help generate long-term wealth and a passive income stream.

By investing today, you can benefit from low tax rates, compounding, and eventually a tax-free passive income once you transition to the pension phase.

But how much do you actually need in your super to generate the passive income you want when you retire?

Let’s break it down, using $5,500 per month as an example.

How much superannuation do I need to earn $5,500 of monthly passive income?

The math is simple.

First, calculate what $5,500 in passive income per month totals over the year. 

So, $5,500 x 12 = $66,000.

Then divide your annual passive income by your overall portfolio’s dividend yield.

But the tricky part is that the answer varies widely depending on your portfolio’s dividend yield.

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

Let’s break it down further

If your overall portfolio has a dividend yield of around 3%, you’ll need a balance of around $2.2 million to earn $66,000 in passive income each year.

A $2 million-plus portfolio isn’t achievable for many Australian investors, but the good news is that, as the dividend yield of your portfolio increases, the superannuation balance you need to earn the same passive income goes down.

For example, if your portfolio yields closer to 4%, you would need around $1.65 million in your superannuation to earn $5,500 in passive income each month.

Then, if your portfolio yields around 5%, your balance would need to be closer to $1.3 million to generate the same dividend income.

Increase that to a 6% or 7% dividend yield, and you’re looking at closer to $1.1 million or $943,000. You’d still earn $66,000 per year in passive income with these portfolio sizes.

Note that the higher the yield, generally the higher the risk associated with that ASX stock.

Ok, so what ASX shares can I buy with dividend yields between 3% and 7%?

A wide range of shares yield 3% to 7%, but here are a few of my top picks.

ASX dividend-paying shares, such as large-cap companies like Commonwealth Bank of Australia (ASX: CBA) or mining giant BHP Group Ltd (ASX: BHP), pay their shareholders a 3-4% dividend yield. 

Defensive shares like Telstra Group Ltd (ASX: TLS), Origin Energy Ltd (ASX: ORG) or Amcor PLC (ASX: AMC) are a solid choice for income-seeking investors. These all yield around the 5% to 6% level (at the time of writing).

For a higher 7% dividend yield, or even above, I’d look at dividend-payers like Shaver Shop Group Ltd (ASX: SSG), IPH Ltd (ASX: IPH), or even a real estate investment trust like Charter Hall Long Wale REIT (ASX: CLW).

The post How much superannuation is needed to target $5,500 per month in passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc and Telstra Group. The Motley Fool Australia has recommended BHP Group, IPH Ltd , and Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortescue Ltd (ASX: FMG) shares are back at levels investors have not seen for a year.

The iron ore giant is down 0.60% to $16.57 during Monday trade, putting the stock right on its 52-week low.

That extends what has been a rough run in 2026, with Fortescue shares now down around 25% since the start of the year.

The stock was trading as high as $23.13 on 14 May, so the decline from those levels is now close to 30%.

So, just how much further could Fortescue shares fall?

Let’s take a closer look.

Why are Fortescue shares struggling?

Fortescue’s FY26 result actually had a few decent numbers in it.

Revenue rose 9% to US$16.97 billion, helped by higher shipments and iron ore prices, while both operating cash flow and free cash flow moved higher.

However, statutory net profit fell 15% to US$2.86 billion, while the final fully-franked dividend dropped to 46 cents per share from 60 cents a year earlier.

There are a few other concerns hanging over the stock as well.

Fortescue is expecting higher spending in FY27, while the iron ore outlook remains difficult to read with China’s property sector still weak.

Could the shares fall below $16?

Looking at the latest broker targets, I wouldn’t rule it out.

TipRanks shows 11 recent analyst ratings on Fortescue, with 2 buys, 6 holds, and 3 sells.

The average 12-month price target is $17.91, which is around 8% above the current share price.

But some analysts are much more cautious.

The lowest target is $15.40 from Jarden, with Morgan Stanley close behind at $15.45. Jefferies has a $16 target, which is already below where the shares are trading today.

At the other end, RBC Capital, Macquarie, and BMO Capital each have $20 targets, around 21% above Fortescue’s current price.

What would I watch from here?

Iron ore prices are probably the first thing I’d be watching.

Fortescue is still very heavily exposed to the commodity, so any further weakness could put more pressure on earnings and the share price.

I’d also keep an eye on the current 52-week low of around $16.57.

If the shares break below that level, the $15.50 area starts to come into play, especially with Jarden and Morgan Stanley already sitting around there with their price targets.

Fortescue shares are obviously a lot cheaper than they were a few months ago, but I’m not convinced the fall is over just yet.

The post Fortescue shares just hit a 52-week low. Could $16 be next? appeared first on The Motley Fool Australia.

More reading

• Experts name CBA and these big-name ASX 200 shares as sells this week
• Buy, hold, sell: Corporate Travel Management, Wesfarmers, Fortescue shares
• $10,00 invested in Rio Tinto and Fortescue shares 3 years ago is now worth…
• 3 ASX 200 shares I’d buy if I couldn’t sell for 10 years
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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 positions in and has recommended Jefferies Financial Group. 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.

Having $3,000 ready to invest opens up plenty of possibilities on the ASX.

For me, exchange-traded funds (ETFs) would be worth considering because they can put that money to work across a large number of businesses straight away.

These three Vanguard ETFs would all be on my shortlist.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

For someone wanting to keep things simple, the VDHG ETF could be a strong option.

The fund is effectively a ready-made investment portfolio. Around 90% is allocated to growth assets such as Australian and international shares, with the remainder invested in defensive assets such as bonds.

That gives investors exposure to thousands of securities across numerous markets without having to decide how much money to allocate to each one.

Vanguard also takes care of rebalancing the portfolio over time.

I think that makes the Vanguard Diversified High Growth Index ETF particularly interesting for an investor who wants to buy one ETF, keep adding to it, and largely leave the portfolio management to Vanguard.

Vanguard Global Technology Index ETF (ASX: VTEK)

Investors looking for stronger growth exposure might prefer the VTEK ETF.

This fund invests in hundreds of technology stocks from developed and emerging markets.

Its holdings include businesses such as Nvidia, Apple, Microsoft, Taiwan Semiconductor Manufacturing Company, and ASML Holding.

That gives investors exposure to several areas I expect to keep attracting significant investment over the coming decade, including artificial intelligence, semiconductors, cloud computing, and software.

Of course, concentrating in one sector would bring more risk than choosing a broadly diversified ETF.

But for someone comfortable with a higher level of volatility and looking for long-term growth, I think this Vanguard ETF is a top option.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

The V500 ETF is another Vanguard fund that I would buy.

It tracks the S&P 500 Index, providing exposure to around 500 of the largest companies listed in the United States.

That includes technology businesses, but also major companies across healthcare, financial services, consumer products, industrials, and many other industries.

I like this because investors can participate in the growth of corporate America without relying on a handful of individual stock picks.

The ETF also has a low management fee, which can become increasingly valuable over a long holding period.

For someone wanting to put money behind US shares, I think the Vanguard S&P 500 US Shares Index ETF could make a lot of sense.

Foolish takeaway

I think all three Vanguard ETFs offer something worth considering for a long-term investor.

Which one I chose would depend on what I already owned and where I wanted more exposure.

With $3,000 available, I would be comfortable putting the money into one of these ETFs or spreading it across more than one. The important thing for me would be choosing the opportunity that best complemented the rest of my investments.

The post 3 top Vanguard ETFs I’d buy with $3,000 appeared first on The Motley Fool Australia.

More reading

• Why these ASX ETFs could be strong long-term picks
• 2 Vanguard ETFs I’d buy and hold for a decade
• Is this the best diversified ASX ETF on the market right now?
• Why I think this Vanguard ETF could be one of the best to buy and hold forever
• How I’d make investing easy with Vanguard ETFs

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 ASML, Apple, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has recommended ASML, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.