Tag: Stock pick

For many Australians, $1 million in superannuation sounds like the magic retirement number. But can that balance realistically deliver $60,000 a year without running out too soon?

The answer depends on more than the size of your nest egg. Your age, investment returns, spending habits, inflation, housing situation and access to the Age Pension can all materially change the equation.

The simple maths

At first glance, the calculation looks encouraging. Taking $60,000 from a $1 million superannuation balance represents a 6% annual withdrawal rate. If the investments inside the super fund generate more than 6% over time, the capital could potentially last for many years.

But investment returns aren’t guaranteed, and retirees need to account for periods when markets fall. Taking withdrawals during a market downturn can accelerate the depletion of a portfolio.

That’s why a $1 million balance doesn’t automatically translate into $60,000 of sustainable annual income.

A million is a substantial balance

It is worth putting that figure into perspective. The Association of Superannuation Funds of Australia (ASFA) currently estimates that a single homeowner aged 67 needs around $630,000 in superannuation to fund a comfortable retirement, while a couple needs $730,000. Those estimates assume retirees draw down their capital and receive some Age Pension.

ASFA’s latest retirement budget puts the annual cost of a comfortable lifestyle at $55,923 for a single person and $78,566 for a couple aged 65 to 84.

That suggests $1 million is not an insignificant amount. In fact, for a homeowner, it could provide a considerable buffer above the current ASFA benchmark.

However, the circumstances are very different for someone renting. Housing costs can dramatically increase the amount of retirement income required.

Age Pension changes the equation

Another important consideration is that superannuation doesn’t necessarily have to fund the entire $60,000. A retiree may qualify for a full or part Age Pension, depending on their circumstances and the relevant income and assets tests. That means a $1 million super balance could potentially be combined with government support.

But there is a catch: relying on a fixed withdrawal rate ignores how long the money needs to last. Someone retiring at 67 could potentially need to fund several decades of retirement. Market volatility, inflation and rising healthcare costs can all put pressure on the portfolio.

Foolish takeaway

A $1 million super balance gives a retiree a strong starting point for targeting $60,000 of annual income, particularly if they own their home and qualify for some Age Pension.

But investors shouldn’t view 6% as a guaranteed income rate. A more conservative strategy could mean withdrawing less during weak markets and more when investment returns are strong.

The key lesson is that retirement planning isn’t simply about hitting a magic super balance.

For someone targeting $60,000 a year, $1 million in superannuation could be enough, but the sustainability of that income will ultimately depend on how the money is invested, withdrawn and supplemented throughout retirement.

The post Is $1 million in superannuation enough for a $60,000 retirement income? appeared first on The Motley Fool Australia.

More reading

• WiseTech shares are down 62%. Why are brokers still bullish?
• 4 high conviction ASX stock picks from Canaccord Genuity
• $10,000 a year in passive income buying just $10k worth of ASX shares? Here’s how I’d go about it
• How much do I need in my superannuation to earn $10,000 passive income every month?
• Here are the top 10 ASX 200 shares today

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.

It was an interesting start to the trading week for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Monday.

After ending last week on a somewhat sour note, investors came back from the weekend with a bit of a spring in their steps this morning. That enthusiasm faded somewhat over the day, but the ASX 200 still managed to close 0.056% higher. That leaves the index at 9,010.9 points.

This lukewarm start to the Australian trading week followed a far more downbeat end to the American trading week on Friday night (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) had a tough session, dropping 0.51%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared a little better, but still fell 0.29%.

But let’s get back to this week and our local markets now for an examination of how the various ASX sectors performed this Monday.

Winners and losers

We had plenty of winners and losers today.

Leading the latter were tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) had an awful time of it today, plunging 2.6%.

Gold stocks were also out of favour, with the All Ordinaries Gold Index (ASX: XGD) tanking 1.24%.

Utilities shares weren’t much better. The S&P/ASX 200 Utilities Index (ASX: XUJ) sank 0.99% this Monday.

Healthcare stocks weren’t riding to the rescue either, illustrated by the S&P/ASX 200 Healthcare Index (ASX: XHJ)’s 0.0.81% dive.

Communications shares found themselves on the losing team as well. The S&P/ASX 200 Communication Services Index (ASX: XTJ) was clipped by 0.76%.

We could say something similar for consumer staples stocks, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) drifting down 0.6%.

Its consumer discretionary counterpart was in a similar boat. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) lost 0.46% this session.

Our last red sector was real estate investment trusts (REITs), as you can see from the S&P/ASX 200 A-REIT Index (ASX: XPJ)’s 0.06% slip.

Turning to the green sectors now, it was energy stocks that shone the brightest. The S&P/ASX 200 Energy Index (ASX: XEJ) surged 1.78% higher this Monday.

Mining shares were in demand too. The S&P/ASX 200 Materials Index (ASX: XMJ) enjoyed a 0.42% lift today.

Industrial stocks also fared well, with the S&P/ASX 200 Industrials Index (ASX: XNJ) adding 0.2% to its total.

Finally, financial shares managed to close the day with a rise, evidenced by the S&P/ASX 200 Financials Index (ASX: XFJ)’s 0.15% bump.

Top 10 ASX 200 shares countdown

Property stock Ingenia Communities Group (ASX: INA) was our top stock this Monday. Ingenia shares rocketed 14.79% higher today and closed at $4.19 each. This sharp surge was sparked by a takeover offer from a private equity firm.

Here’s the rest of today’s best:

ASX-listed company	Share price	Price change
Ingenia Communities Group (ASX: INA)	$4.19	14.79%
Elders Ltd (ASX: ELD)	$6.70	7.89%
Whitehaven Coal Ltd (ASX: WHC)	$8.98	7.03%
Generation Development Group Ltd (ASX: GDG)	$3.36	5.99%
IperionX Ltd (ASX: IPX)	$3.12	5.41%
Pinnacle Investment Management Group Ltd (ASX: PNI)	$14.97	4.91%
New Hope Corporation Ltd (ASX: NHC)	$6.35	4.10%
Yancoal Australia Ltd (ASX: YAL)	$6.37	3.92%
Silex Systems Ltd (ASX: SLX)	$5.16	3.41%
Fortescue Ltd (ASX: FMG)	$17,77	3.19%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Macquarie says this ASX financial share could jump 65%
• What’s keeping the ASX 200 in the green today?
• These ASX shares benefit from a high Aussie dollar
• Why are Ingenia shares soaring today?
• Ingenia Communities Group rejects takeover offer, backs growth strategy

Motley Fool contributor Sebastian Bowen 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 Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended Elders 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.

The latest earnings season on the ASX has now been and mostly gone. We heard from a huge swathe of Australian shares over July and August, and the results, as always, have been a mixed bag. For those investors who purely invest for dividend income, however, there has been much to be thankful for. Today, let’s talk about three ASX dividend stocks that I think are post-earnings buys for anyone who prioritises dividend income.

3 ASX dividend stocks that I’d buy for income after earnings

First up is Coles Group Ltd (ASX: COL). Coles has an admirable dividend track record, having upped its annual shareholder payouts every year since its 208 spinoff. 2026 was no different. After bumping its March interim dividend by 10.8%, Coles followed up with a 15.6% hike to its final dividend last month. Coles will fork out a dividend worth 37 cents per share later this month, taking its annual tally to a record 78 cents per share. As with all Coles dividends, 2026’s payouts have come with full franking credits attached. Today, Coles stock is trading on a dividend yield of 3.3%.

Telstra Group Ltd (ASX: TLS) is next up. Telstra is another ASX dividend share that has a fairly impressive history. It has been growing its payouts consistently over recent years, and 2026 was no different. Last month, the telco announced that its final dividend for 2026 would come in at 10.5 cents per share. That matches March’s interim dividend, and takes Telstra’s full-year payouts to 21 cents per share. That’s 10.5% higher than the 19 cents per share that Telstra owners enjoyed over 2025. Neither of Telstra’s 2026 dividends have come fully franked, though, with this final dividend’s partial franking at 90.48% matching the interim dividend. Right now, Telstra stock is sitting on a trailing dividend yield of 4.37%.

Last but not least…

Finally, let’s talk about MFF Capital Investments Ltd (ASX: MFF). MFF is a listed investment company (LIC) and, in my view, one of the most underrated ASX dividend stocks. Like most LICs, MFF Capital owns and manages a portfolio of underlying investments. In MFF’s case, this portfolio is mostly made up of US stocks like Mastercard and Alphabet. The portfolio’s impressive long-term performance has allowed this company to build up an impressive dividend track record.

This dividend stock has increased its annual dividend every year for almost a decade. Its next payout will be worth 11 cents per share, a pleasing 22.2% rise over the 9 cents per share that formed last year’s final dividend. Over 2026, MFF has funded an annual total of 21 cents per share in fully franked dividends, up 23.5% from 2025’s total of 17 cents. Today. MFF Capital Investments trades with a dividend yield of 3.35%.

The post Post-earnings: I’d buy these ASX dividend stocks for income today appeared first on The Motley Fool Australia.

More reading

• How I’d target $5,000 a year in passive income from ASX shares
• These ASX shares benefit from a high Aussie dollar
• Looking for income for life? These are the ASX shares I’d consider
• Is Coles still one of the best defensive ASX shares to own?
• Top 3 ASX shares I’d buy with $5000 right now

Motley Fool contributor Sebastian Bowen has positions in Alphabet, Mastercard, and Mff Capital Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet and Mastercard. The Motley Fool Australia has positions in and has recommended Mff Capital Investments and Telstra Group. The Motley Fool Australia has recommended Alphabet and Mastercard. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Kogan.com Ltd (ASX: KGN) boss Ruslan Kogan is making a $50 million bet he can deliver shareholders better than 100% returns over the next five years, or he gets paid nothing.

An all-or-nothing bet on strong growth

The online retailer has released new remuneration details for the founder and chief executive, under which his base salary has been cut from $847,838 to just $50,000, all of which he will give away to charity.

Mr Kogan will earn no short-term incentives, with his entire remuneration tied to the goal of a 100% total shareholder return over the next five years, from the level of $3.72 per share.

Kogan shares are currently changing hands for $3.35, meaning Mr Kogan is already behind on the benchmark.

Unlike many remuneration schemes, there is no pro rata or graduated vesting, meaning Mr Kogan will either be paid the entire amount under his remuneration deal or nothing at all.

If he succeeds, he will be granted 6.7 million performance rights, which would be worth just shy of $50 million.

The company said achieving the remuneration hurdle would represent about $383 million in extra shareholder value over the five-year term.

Shareholders will be asked to vote to accept the terms of the remuneration package at a meeting yet to be scheduled.

Company is listening to shareholders

Kogan Chair Greg Ridder said of the new arrangements:

In developing these arrangements, the Board has listened carefully to feedback from shareholders and other stakeholders, particularly on the importance of clear and demanding performance conditions and a strong and transparent link between executive reward and shareholder returns. Kogan.com has always been an entrepreneurial business, and the Board believes the remuneration framework should support the ambition, innovation and long-term thinking that have been central to the Company’s success to date, while maintaining the clear accountability and strong shareholder alignment expected of a listed company.

Mr Ridder said the core Kogan business delivered a strong result in FY26, with more than $1 billion in gross sales, expanding margins, increasing profitability, higher fully-franked dividends, and a strong capital position.

He added:

That positive momentum has continued into FY27 given the July gross sales and revenue results disclosed a few weeks ago. The Board wants to build on that performance by retaining and appropriately incentivising the executive directors who helped deliver it, and position the Company to deliver on the exciting growth opportunities ahead and increase shareholder value.

Kogan is currently valued at $322.3 million.

The post Which ASX CEO stands to make $50 million over the next 5 years, or nothing? appeared first on The Motley Fool Australia.

More reading

• 40 ASX shares with ex-dividend dates next week
• Kogan surges past $1 billion in sales as margins grow

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

Austal Ltd (ASX: ASB) shares are pushing higher again on Monday as another potential buyer takes a look at the shipbuilder’s US business.

At the time of writing, the Austal share price is up 4.62% to $4.53.

The stock has now gained around 18% over the past month and more than 10% in a week. But despite the recent rebound, Austal shares are still down around 32% this year and 45% over the past 12 months.

Another buyer has entered the picture

According to the release, Austal has held an “initial, preliminary discussion” with US-based Wildcat Infrastructure following media reports about a possible proposal.

Austal stressed that it has not received a formal offer from Wildcat at this stage.

The interest comes while South Korea’s Hanwha is already trying to buy Austal’s US operations. Hanwha owns 19.9% of Austal and has made a conditional, non-binding proposal valuing the US business at between US$1.05 billion and US$1.2 billion.

Austal has given Hanwha access to conduct due diligence, although The Australian reports the proposed deal is facing some uncertainty.

The report said Austal’s weaker US result could affect Hanwha’s interest or the price it is willing to pay, while political tensions between the United States and South Korea could also make a deal more difficult.

A closer look at the business

Austal’s FY26 result was mixed, with a big difference between its US and Australasian operations.

Group revenue rose 11% to $2.03 billion, but the company posted a $53.6 million net loss. The US division recorded an EBIT loss of $202.8 million, mainly due to provisions linked to loss-making contracts.

The Australasian business was much stronger. Revenue jumped 49% to $650.7 million, while EBIT climbed 137% to a record $85.3 million.

There is also plenty of work already lined up, with more than $5 billion of Australasian contracts under the Strategic Shipbuilding Agreement.

The Australian reported that Hanwha’s proposal effectively values the whole company at around $2.74 billion, or $6.50 per share.

That’s about 43% above where the shares trade today.

What happens next?

There is no guarantee Wildcat will make a formal offer, so it is still too early to call this a bidding war.

But having another interested buyer could give Austal more options as it weighs up the future of its US business.

The timing is also very interesting given the recent share price recovery. Austal shares have climbed around 18% over the past month, although they are still trading well below their highs from earlier this year.

The post Austal shares jump again as takeover interest heats up appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Boss Energy, Austal, Liontown shares
• Down 28% to 46%: Are these beaten-down ASX shares cheap buys?
• Austal shares jump despite a $54 million loss. Here’s why investors are buying
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 stocks leaping higher in this week’s slumping market on big news

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WiseTech Global Ltd (ASX: WTC) shares are taking a tumble today.

Shares in the S&P/ASX 200 Index (ASX: XJO) logistics software solutions company closed on Friday trading for $37.69. During the Monday lunch hour, shares are changing hands for $36.50, down 3.2%.

This sees WiseTech shares down a painful 61.5% since this time last year.

For some context, the ASX 200 is up 0.1% today and up 1.8% in 12 months.

As you may know, the ASX 200 tech stock has come under heavy selling pressure on several fronts.

First, investors have been concerned over the company’s governance, with founder and executive chairman Richard White catching negative media headlines over allegations of inappropriate behaviour.

The stock has also come under pressure amid global concerns that artificial intelligence can potentially replace a lot of the services that Software as a Service (SaaS) like WiseTech provides.

Or the so-called the ‘SaaSpocalypse’.

But with the share price now down almost 62% over the past 12 months, is the ASX 200 tech stock trading at a bargain?

WiseTech shares: Buy, hold, or sell?

When asked which stock in his fund is the most undervalued by the market, Emanuel Datt, chief investment officer and founder of Datt Capital, pointed to WiseTech (courtesy of the Australian Financial Review).

Commenting on his bullish outlook for WiseTech shares, Datt said:

WiseTech Global has been in the media for all the wrong reasons over the past few years, suffering from governance issues and others related to the founder. Notwithstanding, this is one of the ASX’s highest-quality technology companies with a global customer base and significant upside.

Datt added:

The company has progressed in mitigating investor concerns, materially refreshing the board and management team whilst also driving business growth via the acquisition of a major competitor, e2open, and transitioning to value-based pricing. The business has a history of growing via M&A and has significantly outperformed its own guidance in extracting synergies from e2open.

And WiseTech’s growth potential shouldn’t be ignored.

Datt concluded:

WiseTech’s product portfolio is genuinely exciting, with customer identity verification products providing the foundational element of the company’s move into offering its own supply chain finance solutions; a multitrillion-dollar global market.

What’s the latest from the ASX 200 tech share?

WiseTech reported its FY 2026 results on 26 August.

Following the company’s successful e2open acquisition, WiseTech reported a 79% year-on-year increase in revenue to US$1.395 billion.

But while underlying net profit after tax (NPAT) increased 29% to US$313.5 million, statutory NPAT was down 11% from FY 2025 to US$178.7 million.

WiseTech shares closed down 10.1% on the day of the results release.

The post Down 62%, are WiseTech shares now a buy, hold or sell? appeared first on The Motley Fool Australia.

More reading

• These ASX shares benefit from a high Aussie dollar
• Why I’m buying WiseTech shares before the market catches on
• These ASX 50 shares have lost up to 60%. Is the sell-off overdone?
• 9 ASX shares downgraded by experts post-results this week
• Down another 18%: Why I’d buy WiseTech shares in the dip

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 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.

Shares in Pinnacle Investment Management Group Ltd (ASX: PNI) are down by almost a quarter over the past year, but according to the team at Macquarie, that presents a good buying opportunity.

The Macquarie analysts have an outperform rating on Pinnacle and a bullish share price target, which I’ll get to shortly.

First, let’s have a look at what Pinnacle does.

Major investment manager

The investment manager owns substantial stakes in a number of funds, which themselves invest across a wide range of sectors.

For example, it owns a 49.9% stake in Hyperion Asset Management, which invests in global and Australian growth equities, and has a 35.9% stake in Palisade, which invests in private infrastructure.

The amount of funds under management in these so-called affiliates came in at $229.4 billion at the end of June this year, which was up 27.9% year on year.

Pinnacle has what it calls a Three Horizons growth strategy, which involves firstly growing the management side of the business, launching brand new affiliates, and also buying stakes in and growing other affiliates.

At the time of the company’s FY26 financial report, Managing Director Ian Macoun said:

We continue to build Pinnacle to deliver sustained high rates of growth for many years into the future. Our distinct business model and Three Horizons growth strategy have built a highly diversified platform across asset classes, geographies and product formats. This platform has supported strong growth to date and provides multiple pathways for further growth, including in larger international markets where we have demonstrated that the Pinnacle model can operate successfully.

Mr Macoun said net inflows were robust across all three channels of the business.

Pinnacle’s net profit for the year was $176.7 million, up from $134.4 million, and the company increased its dividend by 25% to 78.1 cents.

Broker says shares are looking cheap

Macquarie recently reviewed the quarterly performance of three of Pinnacle’s affiliates, the Metrics Master Income Trust (ASX: MXT), the Metrics Income Opportunities Trust (ASX: MOT), and the Metrics Real Estate Multi-Strategy Fund (ASX: MRE).

The returns of these year on year came in at 8.21%, 7.38%, and 11.06% respectively, Macquarie said.

They said their outperform rating on Pinnacle shares reflects attractive organic growth supported by funds under management growth, net funds inflows, plus the potential for accretive mergers and acquisitions.

Macquarie has a price target of $23.95 for Pinnacle, compared with the current share price of $14.45.

Pinnacle is valued at $3.44 billion.

The post Macquarie says this ASX financial share could jump 65% appeared first on The Motley Fool Australia.

More reading

• A rare buying opportunity in 1 of Australia’s top shares?
• 5 things to watch on the ASX 200 on Monday
• 37 ASX shares going ex-dividend next week

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

The S&P/ASX 200 Index (ASX: XJO) is barely higher on Monday, despite more stocks falling than rising.

At the time of writing, the benchmark index is up around 0.1% to 9,014 points, after closing 0.16% lower at 9,005 points on Friday.

But the gains are pretty narrow across the market. Around 105 ASX 200 shares are falling, compared with 85 trading higher and 10 unchanged.

So, what’s holding the ASX 200 up today?

Resources are holding the index up

The big miners are giving the market some support today.

BHP Group Ltd (ASX: BHP) shares are up 1.38% to $63.11 after reports that China Baowu Steel Group is considering buying a 15% to 25% stake in BHP’s Jimblebar iron ore mine in Western Australia.

BHP has not confirmed any deal and said it regularly considers options that could create long-term value for shareholders.

Rio Tinto Ltd (ASX: RIO) shares are also 0.76% higher at $177.24, while Fortescue Ltd (ASX: FMG) shares have gained 1.60% to $17.50.

Energy stocks are also getting a lift as oil prices rise again amid renewed tensions between the US and Iran.

Brent crude is trading around US$96.45 a barrel, while US crude is near US$91.85.

Woodside Energy Group Ltd (ASX: WDS) shares are up 0.88% to $32.11, and Santos Ltd (ASX: STO) shares have climbed 1.16% to $8.31.

Wall Street adds to rate concerns

US markets finished lower on Friday after a stronger-than-expected jobs report increased expectations that the Fed Reserve could lift interest rates again this month.

The US economy added 162,000 jobs in August, well ahead of forecasts, while the unemployment rate remained at 4.1%.

That pushed bond yields higher and weighed on Wall Street. The Dow Jones Industrial Average Index (DJX: .DJI) fell 0.51%, the S&P 500 Index (SP: .INX) dropped 0.38%, and the Nasdaq Composite Index (NASDAQ: .IXIC) lost 0.29%.

Markets are now putting the chance of a September rate hike at around 60%, up from roughly 50% before the jobs data was released.

That has also put focus on US inflation figures due on Friday, which could have a big say in what the Fed does at its next meeting.

Foolish takeaway

The ASX 200 is only just in positive territory, and the session still looks fairly mixed.

Whether it stays there could depend on how long the strength in resources lasts, especially with rate expectations moving around again.

With US inflation data to come this week, there’s still plenty that could change the direction of markets.

The post What’s keeping the ASX 200 in the green today? appeared first on The Motley Fool Australia.

More reading

• Experts reckon this high-flying ASX 200 blue-chip stock is a buy
• 5 things to watch on the ASX 200 on Monday
• ASX 200 bank shares led a financial sector rebound last week
• What’s driving the ASX 200 higher today?
• 5 things to watch on the ASX 200 on Friday

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

It’s important to keep on top of how much is in your superannuation at every milestone. How else can you make sure you’re on track with your retirement goals?

At age 65, many Australians have either already begun or are very close to retirement. By this age, you can access your superannuation balance regardless of whether you’ve decided to stop work or not, and you’re just two years away from potentially receiving the Age Pension payment too.

So, do you know how your super balance compares to other Aussies the same age?

And do you know how much money you actually need to be able to retire?

Let’s break it down.

What is the average superannuation balance of Australian men aged 65 in FY27?

There isn’t an exact figure for the average superannuation balance for men at age 65, but the Association of Superannuation Funds of Australia (ASFA) provides a helpful guide.

The average 65 to 69-year-old Australian male in FY27 has an average superannuation balance of $448,518.

What is the average superannuation balance of Australian women aged 65 in FY27?

Unfortunately, women the same age have a lot less.

The average 65 to 69-year-old Australian female has an average superannuation balance of around $392,274 in FY27. That’s a gap of over $56,000 compared to men the same age.

The gap is mostly due to women taking extended periods out of the workforce, during which time they earn lower, or even no, compulsory employer superannuation. 

How does your super balance stack up with men and women the same age as you?

And most importantly, how does your balance compare with what you actually need to retire comfortably?

How do these balances compare to what I actually need to retire?

ASFA estimates that it’ll cost single Australians around $55,923 per year to retire comfortably. Couples living together will need to have closer to $78,566 per year combined to finance a comfortable retirement.

These figures also assume you’ll start your retirement at age 67. It also assumes that you’ll receive a part Age Pension around this time and that you own your home outright.

In order to fund a comfortable retirement, ASFA calculates that single Australians will need around $630,000 in their superannuation at age 67. 

Couples will need around $730,000 combined at the same age.

Is my superannuation on track?

To be able to meet this goal, ASFA forecasts that all Australians should have around $604,500 in their superannuation by the time they reach age 65.

How does your superannuation balance compare now?

I think my balance is falling behind. What can I do?

Even at age 65 it’s not too late to try to boost your balance before you stop working.

It’s best to start by making additional contributions to your superannuation. Take advantage of additional concessional or non-concessional contributions, and this can be done via salary sacrifice or by making after-tax payments (provided they’re within your annual limits).

If you’re eligible, there are also government initiatives available that could also help you bridge the gap between the superannuation balance you have and what you need.

The post The average superannuation balance of Australians aged 65 in FY27. How does yours stack up? appeared first on The Motley Fool Australia.

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• Why is everyone talking about China and BHP shares today?
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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.

A $5,000 annual passive income stream from ASX shares could make a meaningful difference to many investors.

It could help cover regular expenses, fund a few extras, or simply provide more financial flexibility.

So, how would I go about building towards that amount?

How much you need for this passive income

The starting point is fairly simple. A portfolio with a dividend yield averaging 4% would need to be worth around $125,000 to generate $5,000 a year in dividends.

At an average yield of 5%, the required portfolio value falls to roughly $100,000.

I would probably aim somewhere within that range.

There are ASX shares offering much higher yields, but I would be careful about building the plan around them. A large yield can sometimes reflect concerns about the business or expectations that the dividend will eventually be reduced.

I would prefer a slightly lower starting yield from companies where I have more confidence in the underlying earnings.

What might I buy?

National Australia Bank Ltd (ASX: NAB) is the type of passive income share I would consider.

Its strong position in business banking gives it relationships with Australian companies across lending, deposits, payments, and everyday banking. I think that provides a solid base for dividends over time.

Telstra Group Ltd (ASX: TLS) could also have a place.

Mobile and internet services have become part of everyday life, giving Telstra relatively resilient demand. The company has also made a sustainable and growing dividend an important part of its long-term plans.

I would probably add a company such as Coles Group Ltd (ASX: COL) as well.

Its dividend yield may not be as high, but grocery demand is dependable and analysts expect earnings and dividends to grow over the next few years.

I like that combination because passive income does not have to mean chasing the largest payment available today. Growing dividends can become increasingly valuable over a long holding period.

Keep the income diversified

I would also spread the portfolio across several industries.

Owning only banks might produce an attractive yield, but it would leave the income stream heavily exposed to the same economic and regulatory risks.

Adding telecommunications, consumer staples, healthcare, infrastructure, or other dividend-paying businesses could make the portfolio more resilient.

Franking credits can provide another benefit for eligible Australian investors, although their value will depend on individual tax circumstances.

Once the portfolio was generating around $5,000 annually, I could take the dividends as income when I needed them. Until then, I would generally reinvest the payments and keep adding to the portfolio.

Foolish takeaway

I think a portfolio worth somewhere around $100,000 to $125,000 is a sensible starting target for generating $5,000 a year in passive income.

From there, I would focus on owning strong businesses with dividends I believe can be maintained and ideally increased over time.

For me, that is a much more comfortable way to build an income stream than simply hunting for the highest yields on the ASX.

The post How I’d target $5,000 a year in passive income from ASX shares appeared first on The Motley Fool Australia.

More reading

• These ASX shares benefit from a high Aussie dollar
• No savings at 30? Here’s how I’d aim to retire early with $1 million buying ASX shares
• Looking for income for life? These are the ASX shares I’d consider
• ASX 200 bank shares led a financial sector rebound last week
• Is Coles still one of the best defensive ASX shares to own?

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.