One of the best things that Australians can do for their finances is to spend less than they earn, also known as saving. That's key to improving our net worth. But, for those aspiring to build $1 million of wealth, simply saving cash in a bank account isn't likely to be as effective as investing in ASX shares.

I do think everyone should have some cash in the bank. There's power in having an emergency fund. Saving for a house deposit is also a great way to use a savings account.

In terms of just building wealth, cash is not very powerful for compounding.

At the moment, savers may be able to get a savings product that offers a 5% interest rate. That's quite high compared to most of the last decade.

Let's assume someone can save $1,500 per month. If that money earned a 5% interest rate it would take around 27 years to reach $1 million.

Investing in ASX shares makes a lot more sense to me.

The power of investing in ASX shares over just saving

One of the most popular ways to invest in ASX shares is with the Vanguard Australian Shares Index ETF (ASX: VAS), an exchange-traded fund (ETF) that tracks the S&P/ASX 300 Index (ASX: XKO) – that's 300 of the largest businesses on the ASX.

Over the decade to 31 March 2026, the VAS ETF has returned an average of 9.35% per year. That's a solid return and close to double what return savings accounts are offering right now.

It's important to remember that interest income on offer doesn't include the negative of tax while the VAS ETF returns don't include tax or the positive of franking credits as part of the distribution income that is sent to investors. Plus, distributions from an ETF can benefit from capital gains tax discounts (which interest income doesn't).

So, it's hard to exactly compare apples to apples. But, I'll use the return quoted by Vanguard.

If someone invested $1,500 per month and it returned 9.35% per year, that would turn into $1 million in less than 20 years!

In other words, that's shaving around seven years off the time that it takes to get to a $1 million net worth.  

But the VAS ETF is not the only way to invest in ASX shares, of course.

Plenty of content on this site is about finding ASX growth shares with significant potential to deliver returns.

There are also international-focused ASX ETFs that could provide both pleasing diversification and good returns such as Vanguard MSCI Index International Shares ETF (ASX: VGS) and VanEck MSCI International Quality ETF (ASX: QUAL) which have both returned an average of more than 13% in the past decade. That level of return – which is not guaranteed – would turn $1,500 per month into $1 million in less than 17 years!

The post Stop 'saving', start investing! How to target a $1 million ASX share portfolio appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality ETF. 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 Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There is always something exciting happening in the share market.

A new technology trend, a speculative fast-growing company, or a sector that suddenly captures everyone's attention. It is easy to get drawn toward those stories.

But over time, I think a different group of ASX shares tends to do a lot of the heavy lifting.

The ones that quietly grow, generate steady cash flow, and keep showing up year after year.

The appeal of predictable ASX shares

One of the things I value more as an investor is predictability.

Businesses that sell essential products or services often have a clearer path forward. Their revenue is not dependent on a single breakthrough or a narrow window of opportunity.

Companies like Woolworths Group Ltd (ASX: WOW) fall into that category.

Grocery retail is not the most exciting industry, but it is deeply embedded in everyday life. That creates a level of demand that can support consistent earnings over time.

For me, that consistency can make a big difference when holding a share for many years.

Compounding does not need excitement

The idea of compounding is simple, but the way it plays out is often underestimated.

A business that can grow earnings steadily, reinvest capital, and return cash to shareholders can build significant value over time, even if it does not attract much attention along the way.

That is part of what I see in ASX shares like Transurban Group (ASX: TCL).

Its toll road assets generate revenue from everyday usage, and those cash flows tend to grow gradually alongside population and economic activity.

It is not a story that changes dramatically from year to year, but that can be what supports long-term returns.

Stability can support better decisions

Another benefit of owning more predictable businesses is how they influence behaviour.

When a share price moves sharply, it can lead to more reactive decisions. Investors may feel the need to act, even when nothing fundamental has changed.

With steadier businesses, I think it can be easier to stay focused on the long term.

That is one reason I like companies such as Coles Group Ltd (ASX: COL) and Telstra Group Ltd (ASX: TLS).

They operate in a competitive industry, but demand for groceries and telco services remains consistent. That creates a level of stability that can make it easier to hold them through different market conditions.

The trade-off is worth understanding

Boring ASX shares are not perfect.

They may not deliver the same upside as faster-growing companies, and they can still face challenges over time. But they often offer something that I think is just as valuable.

A clearer path forward. That clarity can make it easier to stay invested, which is often one of the most important factors in long-term success.

Foolish Takeaway

The share market will always offer exciting opportunities. But for me, there is also value in owning businesses that quietly do their job and continue to grow over time.

I think Woolworths, Transurban, Coles, and Telstra highlight how the ASX shares that feel the least exciting are the ones that are easiest to hold, and that can make a meaningful difference over time.

The post Why I think 'boring' ASX shares could make you richer over time appeared first on The Motley Fool Australia.

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

In Australia, many government or association estimates around retirement are based on the understanding that you'll retire at age 67. By this point, you'll be able to access your superannuation (from age 65) and you're also eligible to receive Age Pension payments.

Although with higher inflation and rising cost-of-living, more and more Australians are pushing their retirement to their 70s to give them more time to build up their balance. It also means there will be fewer retirement years to fund. 

Regardless of when you decide to retire, by age 67 you should know exactly how much superannuation you have, and what you need to live the retirement lifestyle you want.

Here's a breakdown of the average superannuation balance of Australians aged 67, and how much you actually need by retirement.

The numbers are quite different.

What is the average superannuation balance at age 67 in Australia?

According to the Association of Superannuation Funds of Australia (ASFA) data, the average superannuation balance for Australian men aged 65-69 is $448,518, and for women it is $392,274.

If your superannuation balance is on track with the rest of the population, that's great news. But it doesn't mean you have enough to retire with the lifestyle you want.

So how much money do I really need by age 67 to retire comfortably?

The benchmark for a comfortable retirement has climbed even higher this year. Australians now need $54,840 per year to retire comfortably, or $77,375 a year for a couple.

To support that level of spending, ASFA estimates you'll need a super balance of roughly $630,000 as a single and $730,000 as a couple by the age of 67. 

A comfortable retirement lifestyle is defined as one that allows Australians to maintain a good standard of living. 

This includes top-level private health insurance, ownership of a reasonable car brand, regular leisure activities, funds for home repairs and renovations, occasional meals out, and an annual domestic trip. 

The figures also assume you own your home outright and that you're receiving the age pension.

Help! I'm falling behind. What can I do?

At age 67 you still have a few options to help boost your superannuation balance and retirement lifestyle.

Many Australians are now delaying their retirement by a few years and retiring in their 70s. This gives you more time to build your superannuation balance, and means there are fewer retirement years to fund. Even three to five years gives your investments more time to grow.

Given superannuation funds are heavily invested in the Australian share market, particularly the S&P/ASX 200 Index (ASX: XJO), the longer you wait to access your balance, the more time it has to benefit from compounding growth. 

If you don't want to delay retirement, another option is to live a modest one. ASFA defines a modest retirement as one which is able to cover expenses slightly above the full Centrelink Age Pension. 

Think basic health insurance with limited cap payments, infrequent exercise, a limited home repair budget, minimal utility expenses, limiting dining out, and maybe an annual domestic trip. Again, it assumes you own your home outright.

It's not the ideal scenario but it's certainly do-able.

Australians need $35,503 per year, or $51,299 per year for a couple. To fund that, ASFA estimates you need a superannuation balance of around $110,000, or a couple would need $120,000. These balances are well within the average for Australians at age 67.

The post Average superannuation balance at age 67, versus what you actually need appeared first on The Motley Fool Australia.

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• Why this ASX dividend share is a retiree's dream
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• Stop 'saving', start investing! How to target a $1 million ASX share portfolio

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 new report from Canaccord Genuity has outlined how investors can position their portfolios for the emerging artificial intelligence build-out. 

AI adoption is scaling rapidly, and it is now being considered a structural growth theme in global equities.

Rising earnings and visible demand

According to the report, the investment in infrastructure required to build, train, and deploy AI systems at scale represents a multi-year capital cycle with visible demand, rising earnings, and strong competitive positions across the supply chain. 

The commercial applications for AI are broad: 

• automating software engineering
• improving ad targeting
• accelerating scientific research
• optimising supply chains
• transforming enterprise workflows. 

Deploying these systems at scale requires substantial infrastructure, spanning advanced semiconductors, hyperscale data centres, high-performance networking, and significant power generation capacity. 

The depth of this capital requirement, combined with the breadth of end-market demand, is what makes AI a structural rather than cyclical investment theme.

The pillars supporting AI infrastructure

Canaccord said that adoption and monetisation are accelerating. 

Data shows ChatGPT reached 900 million weekly active users in February 2026 – a 350% increase in 18 months. 

AI adoption has moved well beyond  early experimentation. Revenue has followed. Enterprise generative AI spending surged from approximately US$11.5 billion in 2024 to May-24 US$37 billion in 2025, a threefold increase.

At the same time, falling AI costs are accelerating demand and valuations have de-rated while earnings revisions remain positive. 

The pullback in AI-linked equities over the past six months has compressed valuations to levels where the market appears to be pricing in deceleration risk. 

What should investors be targeting?

Canaccord's preferred exposure is to AI semiconductors and capital equipment. 

It listed 6 stocks for AI themed exposure: 

• Amazon (NASDAQ: AMZN)
• ASML (NASDAQ: ASML)
• Broadcom (NASDAQ: AVGO)
• Microsoft (NASDAQ: MSFT)
• Nvidia (NASDAQ: NVDA)
• Taiwan Semiconductor Manufacturing (NYSE: TSM). 

NVIDIA dominates AI-training GPUs, Broadcom leads custom silicon design, TSMC fabricates the leading edge chips both depend on, and ASML holds a monopoly in the lithography systems underpinning advanced production. 

Amazon and Microsoft offer the largest and most profitable cloud platforms, where AI workloads are driving revenue reacceleration and backlog growth.

For investors looking to basket these companies together, Canaccord pointed towards the Global X Semiconductor ETF (ASX: SEMI). 

The report said SEMI is the most accessible option for Australian-based investors: ASX-listed in Australian dollars, across the 30 largest global semiconductor companies, with meaningful weight in TSMC, ASML, Nvidia, and Broadcom.

However it did note that no single ETF isolates the combination of semiconductors and selective hyperscalers from the report. 

The post How to invest in the AI Build-Out: Expert appeared first on The Motley Fool Australia.

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

The decade before retirement can make or break your long-term financial future. It's the period when your portfolio is often at its largest, your super balance has the most to lose from a market correction, and every investment decision carries more weight.

That's exactly why I believe Australian investors should focus on a strategy that blends growth, resilience, and rising income.

For retirees who own their home, the latest ASFA Retirement Standard suggests a couple needs around $77,000 a year for a comfortable lifestyle, while singles need roughly $55,000.

That makes the final 10 years before retirement the ideal time to shape a portfolio designed to support that level of spending.

Local and global reach through ETFs

My preferred approach starts with broad ASX and global share ETFs as the portfolio's growth engine. A core holding in the Vanguard Australian Shares ETF (ASX: VAS) gives investors exposure to many of the market's best dividend-paying companies.

Adding an international ETF such as BetaShares Global Shares ETF (ASX: BGBL) helps diversify beyond the banks and miners that dominate the local market.

Together, these ETFs can still deliver the capital growth needed to keep pace with inflation over what could be a 25-year retirement.

Increase income, limit risk

But this is also the decade when income starts to matter more. That's why I like gradually introducing a high-yield ETF such as SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI). The higher dividend stream, supported by franking credits, can help lift the portfolio's cash generation without relying entirely on selling units.

At the same time, reducing risk becomes critical. A major market sell-off just before retirement can permanently damage a drawdown plan, which is why I would steadily increase exposure to bond ETFs such as the Vanguard Australian Fixed Interest ETF (ASX: VAF).

Bonds may not deliver eye-catching returns, but they can provide stability and act as a valuable shock absorber when share markets turn volatile.

Blue chips for growth

I'd also reserve a smaller slice of the portfolio for a handful of elite ASX blue-chip shares. Names such as Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), and CSL Ltd (ASX: CSL) can add a blend of dependable dividends and long-term earnings growth. These businesses have the scale and quality to remain core holdings well into retirement.

The real secret, though, is the glide path. Ten years out, I'd still lean heavily into shares. Five years from retirement, I'd be lifting bond and cash exposure. By retirement day, I'd want at least two years of living expenses sitting in cash or term deposits, ready to fund spending needs without touching shares in a downturn.

That combination of ASX ETFs, quality blue chips, bonds, and a cash buffer creates exactly what pre-retirees need most: a portfolio built not just to grow wealth, but to defend it when it matters most.

The post 10 years to retirement? Here's how to build a solid income 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 positions in and has recommended CSL and Wesfarmers. The Motley Fool Australia has recommended CSL and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I was listening to an audiobook by comedian Jimmy Carr over the weekend.

In it, amongst the jokes and advice, was a reminder of a quote I've long appreciated, from basketball legend, Michael Jordan:

"I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times, I've been trusted to take the game-winning shot and missed. I've failed over and over and over again in my life. And that is why I succeed"

Now, writers like nothing better than a nice little sports metaphor. They're understandable, and relatable.

No, sorry, there's no 'but' here.

I like them, too.

I mean, they're not perfectly analogous, for more than a few reasons, but they're also not not analogous.

And I particularly like them as an investing analogy when it comes to the topic of Jordan's quote: failure and success.

I've used a football match as an analogy before, to illustrate something similar.

See, even the best teams miss tackles.

Even the best teams concede tries and goals.

Even the best teams lose games.

Even the best teams have losing streaks.

Even the best teams have poor seasons.

It goes further, though.

The best teams often aren't the best teams for long stretches.

Sometimes years on end.

See, they're not the best teams because they never lose. They're the best teams because they lose less often – and therefore win more often – than the other teams, on average, over a long period of time.

Oh sure, there's a 'best team' in each competition, right now. They're the ones on top of the respective ladders/tables.

There is a 'best team' of the last year, too.

And the last five years.

Though at this point, it gets kinda arguable.

Go to 10 years and you have the making of a weekend afternoon-long debate.

But statistically, I reckon you can still pick, if not the best single team, the best two or three.

And when you do, you'll find something really interesting.

You stop talking about this weekend's game. Or last year's premiers.

You start talking about teams (clubs, really, because most players will have moved on inside a decade) that have something different.

Not the best player (though that helps) or the right tactics (ditto).

You end up talking about the structural stuff that matters more. That allows success to be enduring. No, not always ending in a premiership every year, but an approach that makes success more likely than not, and that delivers an above average performance, over the long term.

If your preferred sport doesn't have a salary cap, you're thinking about their financial firepower. If it does, things like the 'back office', club culture and other non-monetary differentiators come to mind.

But those all fall under 'strategy' not 'tactics'. The aim is of course to win as many battles as possible, but the broader aim is to win the war.

(The only thing that rivals sports metaphors? Military ones. Let the court-martial begin. Guilty as charged!)

The strategy that makes long term success more likely will almost certainly also result in more individual games being won. But not all of them.

And it won't deliver success every year, either.

But, considered carefully, codified cleverly, and executed faithfully, the right strategy will earn more than its fair share of success.

Which is where I want to return to investing.

Warren Buffett didn't have many bad years, in six decades in charge of Berkshire Hathaway (I own shares). But he had some.

Not because his strategy was wrong, but because sometimes the circumstances were such that it didn't prevail in the short term.

During the dot.com boom, index investors left Buffett's returns for dead. Tech investors did even better. But he didn't change his approach. He didn't abandon his strategy.

He just accepted that it wasn't delivering in the short term, during that time.

Over time? You won't be surprised to know that Buffett had the last laugh.

The key was not trying to adjust his approach just because he'd had a few losses in a row.

It was the opposite: sticking to what he was convinced would work in the long term.

Not being scared, impatient, impulsive or listening to those, like the headline writer, who (in)famously asked 'What's Wrong, Warren?'.

It can't have been easy. I mean the man is Warren Buffett for goodness sake. He's the bloke with the reputation as the 'Oracle of Omaha'.

So publicly trailing the market must have been really tough.

No-one likes to be perceived as – or to feel like – a loser.

Just ask those footy teams who punt their coaches or managers a few games into a new season.

It's madness, of course: this was apparently the right bloke only 6 weeks ago, and now he's totally unsuited to the role? Really?

Generously, maybe the club bosses just realised they made an error appointing (or reappointing) the bloke as coach.

Realistically? They just hated losing (who doesn't?) and couldn't trust the(ir own!) process. They just felt like they had to do something. Anything!

They would, in all likelihood, make terrible investors.

If you buy shares, and sell them six weeks later because they're not 'winning' yet, you're not an investor. You're not even a gardener. You're barely a house painter!

I'm not sure what outcomes in life you can reliably expect will unfold in six weeks, especially when you're competing against others – and the fickle finger of fate – but I suspect there aren't many, and they're unlikely to be consequential.

The real successes, though? The long term ones?

Almost without exception they come from understanding what combination of factors tend to result in long term success, then doing those things, repeatedly, consciously, faithfully, over time.

Even though the results may not be known for years.

And… accepting that they won't always be enough.

Crucially, though, remembering that at those particular times, a  kneejerk change of course will probably feel better ('Just make the pain stop, please!'), but probably at the expense of long term success.

Or, at the very least, leaving that success up to chance, on the basis that if you change enough, often enough, maybe, eventually, you'll get lucky.

That's not how the good teams building winning cultures, or long term success.

Jordan didn't change his technique every time he missed a shot… even when he cost his team a game.

Oh, sure he constantly tried to learn and improve, but that, itself, is a strategy.

But also, while bitterly disappointed, he trusted the process. Remember the last sentence of that quote:

"… I've failed over and over and over again in my life. And that is why I succeed"

He didn't succeed because of a lack of failure. He succeeded because of that failure.

I can't tell you how many would-be or one-time investors I've heard of, or from, who bought one, or two, or three stocks and, dejected because they weren't immediate successes, threw the whole thing away.

(I do know they're the vocal ones on social media or in chat rooms, telling anyone who'll listen that 'this whole thing is a scam'!)

They don't realise how close they got. And what they're throwing away because they missed a single game-winning shot.

Jordan never stopped chasing perfection. But he didn't let falling short turn him into a quitter.

The missed tackles are annoying. The game losses are dispiriting. The years of relative underperformance are mentally and emotionally taxing.

But, if you have the right strategy, and you can commit to seeing it through despite – especially through – the tough times, you'll usually do very, very well, over the long term.

It is, not surprisingly, the same in investing.

You can invest like a panicked football club boss.

Or you can invest like Michael Jordan.

And the choice you make will make all the difference.

Fool on!

The post What the basketball GOAT can teach investors appeared first on The Motley Fool Australia.

More reading

• Why this ASX dividend share is a retiree's dream
• The pros and cons of buying Qantas shares this month
• How many shares in this high-dividend toll road stock do you need for a $10,000 income stream?
• Which ASX 200 tech stock has Bell Potter just downgraded?
• Stop 'saving', start investing! How to target a $1 million ASX share portfolio

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

The difference between $100,000 and $600,000 in superannuation is not small. It is enormous.

In fact, it can be the difference between just getting by and living with real financial freedom in retirement.

While both balances may technically support retirement, they sit at opposite ends of the spectrum when it comes to lifestyle, flexibility, and peace of mind. One leans heavily on government support and careful budgeting. The other opens the door to greater independence and choice.

In 2026, as the cost of living rises and expectations for retirement evolve, that gap has never been more important to understand.

What does retirement actually cost?

To understand the impact of these balances, it helps to look at the benchmarks from the Association of Superannuation Funds of Australia.

According to its latest Retirement Standard, Australians need approximately $630,000 as a single or $730,000 as a couple to achieve a comfortable retirement. A more modest retirement requires far less, at around $110,000 for a single and $120,000 for a couple.

These figures assume retirees own their home and receive at least a part Age Pension, which plays a key role in supporting lower balances.

Life on $100,000 in superannuation

A super balance of $100,000 places someone right around the modest retirement threshold. This means retirement is achievable, but it comes with limitations.

In this scenario, spending tends to be tightly controlled. Everyday expenses can generally be covered, but there is little room for flexibility. Leisure activities may be occasional rather than regular, and larger expenses often require careful planning or sacrifice elsewhere.

Over time, the reliance on the Age Pension becomes central. While this provides a safety net, it also means financial independence is limited. Unexpected costs, whether they are related to health, home maintenance, or rising living expenses, can quickly create pressure.

This kind of retirement is about stability, but it often comes at the expense of freedom.

Life on $600,000 in superannuation

A balance of $600,000 paints a very different picture.

Although it sits slightly below the official comfortable benchmark, it is close enough to deliver a significantly improved lifestyle. The difference is not just in what can be afforded, but in how decisions are made.

With this level of savings, retirees typically have far more flexibility in their spending. There is greater capacity to enjoy leisure activities, maintain a higher standard of living, and absorb unexpected costs without major disruption.

Importantly, reliance on the Age Pension is reduced. That means more control over how money is spent and fewer constraints on lifestyle choices.

This is where retirement begins to feel less like a financial balancing act and more like a phase of life to be enjoyed.

The real difference

The contrast between $100,000 and $600,000 is not simply about spending power.

It is the difference between having to think carefully about every expense and having the confidence to make decisions more freely. It is the difference between a lifestyle defined by limits and one shaped by choice.

While both balances can technically fund retirement, they lead to very different experiences.

Why this is important in 2026

Rising costs and inflation have steadily pushed up the amount Australians need for a comfortable retirement. As a result, the gap between modest and comfortable living has widened.

For many people, this means the difference between these two outcomes is no longer marginal. It is substantial and, in some cases, life-defining.

Understanding this gap is critical, especially for those still in the workforce who have time to influence their final balance.

Closing the gap

The good news is that superannuation outcomes are not fixed.

Even relatively small adjustments can make a meaningful difference over time. Increasing contributions, ensuring investments are appropriately positioned for growth, and avoiding unnecessary fees can all help improve long-term outcomes.

Time also plays a powerful role. The longer money remains invested, the more compounding can work in your favour.

The bottom line

A $100,000 super balance can support a retirement, but it is likely to involve compromise and careful budgeting. A $600,000 balance, on the other hand, brings a level of comfort, flexibility, and independence that transforms the retirement experience.

In the end, the difference between the two is not just financial. It is the difference between managing your retirement and truly enjoying it.

The post $100k vs $600k in superannuation: How different would retirement be? appeared first on The Motley Fool Australia.

More reading

• Why this ASX dividend share is a retiree's dream
• The pros and cons of buying Qantas shares this month
• How many shares in this high-dividend toll road stock do you need for a $10,000 income stream?
• Which ASX 200 tech stock has Bell Potter just downgraded?
• Stop 'saving', start investing! How to target a $1 million ASX share portfolio

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.

One of the more counterintuitive ideas I have come across in investing is this. Doing less can often lead to better results.

It does not sound right at first. We are conditioned to think that more effort leads to better outcomes. More research, more trades, more activity.

But when it comes to investing, I believe the opposite is often true.

The temptation to act

Markets are constantly moving. Prices go up, prices go down, and there is never a shortage of headlines telling you why. It creates a natural urge to do something. Buy this. Sell that. Adjust your portfolio.

I have felt that myself.

But over time, I have started to question whether all that activity actually improves returns. In many cases, I think it can do the opposite.

Trading frequently increases the risk of making emotional decisions. It can also lead to higher costs and taxes, which quietly eat into long-term performance.

Letting quality businesses do the work

When I think about the investments I feel most comfortable holding, they tend to be high-quality businesses with clear growth drivers.

Companies like CSL Ltd (ASX: CSL), ResMed Inc (ASX: RMD), or WiseTech Global Ltd (ASX: WTC) are not built to deliver their full value in a year or two.

In my view, they need time. Time to expand into new markets. Time to invest in innovation. Time to grow earnings and, ideally, reward shareholders along the way.

If I am constantly buying and selling, I am effectively interrupting that process.

The hidden power of inaction

What I find interesting is that some of the best investment outcomes tend to come from long holding periods.

Not because the investor made perfect decisions along the way, but because they avoided unnecessary ones.

By staying invested, you allow compounding to take hold. Returns generate returns, and over time that can lead to meaningful wealth creation.

It also removes a lot of the stress that comes with trying to time the market. Instead of worrying about short-term movements, the focus shifts to whether the underlying business is still on track.

When doing nothing is not the right move

Of course, I do not think doing nothing is always the answer.

If the fundamentals of a business change, or if the original investment thesis no longer holds, then it can make sense to reassess.

The key distinction, in my opinion, is between thoughtful decisions and reactive ones. Acting based on long-term reasoning is very different from reacting to short-term noise.

Building a portfolio you can stick with

I think this is where the idea of doing less really becomes practical. If I build a portfolio of businesses or ETFs that I genuinely believe in, it becomes much easier to stay the course.

That might include a mix of high-quality individual shares and broad market ETFs that provide diversification.

The goal, at least for me, is to reach a point where I am not constantly questioning every market move.

Instead, I can let the investments do their job.

Foolish Takeaway

Investing does not have to be complicated to be effective. In fact, I believe some of the best outcomes can come from a simple approach. Buy quality assets, hold them for the long term, and avoid the temptation to overreact.

Doing less does not mean not caring. It means focusing on what actually matters. And over time, I think that can make all the difference.

The post Why I think doing less could make you a better ASX investor appeared first on The Motley Fool Australia.

More reading

• Why this ASX dividend share is a retiree's dream
• The pros and cons of buying Qantas shares this month
• How many shares in this high-dividend toll road stock do you need for a $10,000 income stream?
• Which ASX 200 tech stock has Bell Potter just downgraded?
• Stop 'saving', start investing! How to target a $1 million ASX share portfolio

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

We learned an important lesson from COVID. But we didn't do anything about it.

The lesson: redundancy and resilience matter as much as efficiency and profitability.

Or, in investing terms, 'In good times, people focus on the profit and loss statement. In bad times, they focus on the balance sheet'.

We have, over decades, optimised for efficiency. And that has made us more fragile.

'Just in time' supply chains work only if the last two words remain true. 'Just late' means things start to break.

We see it across all facets of life, too: the finer and more precise an instrument, the more impressive the results… but the more easily it tends to break.

And so that's the too-often undiscussed balance that we need to strike: keeping costs down (which improves living standards), while making sure we have sufficient ability to roll with whatever punches life throws at us.

If it feels like I'm talking about fuel, I absolutely am. 

But it's fuel this time. It was PPE during COVID.

It'll be something else next time.

Now, I'm absolutely not suggesting Australia should be fully self-sufficient, even if we wanted to.

I mean, full self-sufficiency is a pipe dream. Just look around you. Look at the materials, products and services you own and consume. Now imagine if every one of them had to be sourced, made and/or provided here.

Phones. Computers. Cars. And every component therein. The full supply chain. Including how those things are supported (think networks, satellites, the internet itself). 

Now, let's say you wanted to do all of that. Just imagine how much it would cost, given Australia's wage levels (being a high wage country is a wonderful thing, by the way), and the tiny size of our market, which would mean economies of scale would be equally tiny, compared to the rest of the world.

I haven't done the numbers, but it would be catastrophic for our living standards. We'd be paying multiples of the current price of almost anything made overseas.

With what? Tax? We'd have to get used to paying a lot more of that. So we'd have much less to spend, which would decimate our own living standards, as well as costing truckloads of jobs.

What about no extra tax, but just paying more for everything? At a national level, the result would be identical – we'd buy many fewer things, and everything we did buy would cost a motza… decimating our living standards and costing jobs!

But at least we'd be self-sufficient, right?

Ask yourself whether you want to go back to the 1800s. Early 1900s, if we're lucky. Including all of the technology and devices we'd have to give up because they're made overseas, only some of which would be made here instead, at hugely more expensive prices.

Plus there'd be less choice. A lot less choice. Not only between items, but some things wouldn't be available at all, because the people who currently provide them here would be doing other jobs, because of the requirement of self-sufficiency.

If you think productivity growth is poor now (it is!), just wait until you see it plummet as we lose all of the advantages of international trade.

No, it wouldn't be North Korea. But Cuba might be close.

Which… might feel somehow romantic or nostalgic. But there are more Cubans going to America on fishing boats than the other way around.

And don't get me wrong… I'm not fetishising hyper-capitalism or the United States.

I'm just making the point that it's easy, and seductive, to want to 'make things here'.

We just need to recognise it's also… what's that technical term, again?… bloody expensive to do so, and at a significant national cost.

But hang on… didn't I start this piece by talking about redundancy and resilience?

Am I not trying to have my cake and eat it too?

Yes… and no.

The answer to a brittle and fragile 'efficient' supply chain isn't to replace it with much more expensive (and often unsuitable) local supply.

It's to hold a constructive tension between efficiency and redundancy.

Regular readers will know my family tends to take a mid-year road trip holiday, usually somewhere north and west of here.

We don't go hyper-remote, usually, so we're not doing Bush Tucker Man stuff, and I don't need to be MacGyver (kids, ask your parents about both… and do yourself a favour and look it up on YouTube). 

But I always try to make sure I'm prepared, in case of emergency.

Extra fuel, just in case. A well-stocked first aid kit. A basic toolkit. A personal locator beacon, in case of medical emergency. Maps. Enough food for an extended, unplanned stop.

There's more than that, but you get the idea.

What I don't take is an entire second vehicle, weeks and weeks of food. I haven't done a medical degree, and I can't make a helicopter out of paper clips and palm fronds, as MacGyver might.

My point? I'm not entirely self-sufficient for every possible emergency. But I have enough to be resilient, either to get myself out of trouble or to be comfortable and safe for as long as it might take for help to arrive.

Oh, and we almost always travel with others.

Back to Australia: my point is that I think self-sufficiency is an expensive vanity project. I don't think it's truly possible other than at massive cost… and if it's not possible, being partly self-sufficient is like being half-pregnant.

YouTube LIVE. Tomorrow, Friday, April 10, 12pm AEST 

There's a lot going on in the world – and the financial markets aren't immune.

Inflation. Oil. Interest Rates. Artificial Intelligence and the SaaSpocalypse. 

And – most importantly of all – the way we bring our temperament to bear on all that.

So… I'm running a YouTube LIVE at 12pm AEST tomorrow (Friday, April 9) to chat about all of that. 

And, more importantly, I'll be taking your questions, live, too!

Why not grab a sandwich and a coffee and join me?

Just click here to join (and if you do it now, you can set a reminder, so YouTube will alert you!).

See you tomorrow!

Instead? Instead, we should plan to be resilient.

That would mean things like multiple sources of supply and multiple export markets.

It would mean sufficient stockpiles of critical supplies, calculated to allow us to minimise disruption, based on reasonably likely scenarios. 

Why not every scenario? Because, for example, a years-long nuclear winter is possible to prepare for, but we're back to the 1800s at that point, and at some point there's a trade-off between risk and reward (or in this case, risk and cost).

Again, we could choose to make those preparations if we wanted to… we just need to decide what cost we're prepared to pay.

It strikes me that a sensible, wealthy country blessed with our benefits, but which can benefit even more from international trade, is best to use strategic stockpiles, rather than aim for absolute self-sufficiency, when it comes to vital or important goods. 

Yes, like fuel. And PPE. And more besides.

That would give us redundancy and resilience. And yes, it would cost a little more, but it would resemble a (relatively cheap) insurance policy, in keeping with a sensible assessment of risk and implications.

And importantly, it would give us very similar outcomes as attempting to be self-sufficient, other than in the extreme outlying cases, but at a tiny fraction of the cost.

One other thing, too, which is a little passe these days: just as our supply chains have become more fragile, so has our personal resilience.

We are – how do I put this nicely – just a little precious, aren't we? Our ability to endure discomfort is not just a little questionable. That doesn't excuse mismanagement or poor governance, but man… I'm not sure our forebears who lived through a couple of world wars would think particularly fondly of our sense of entitlement or expectation!

Everything is a drama, and we always want someone to blame. Have we lost just a little perspective? I suspect so.

Now, all of that is important from a national interest perspective. But just as it applies to our country, it might be worth applying it to our personal circumstances and finances, too.

Maybe the boy scout I once was is still deep inside me, but the creed 'Be Prepared' has always stuck with me.

I had an extra pack of toilet paper in the cupboard long before COVID made it fashionable. The freezer always has some extra food, as does the cupboard. No, not in a prepper 'world is ending' kinda way – if the zombies come, I'm woefully underprepared for that eventuality. 

Just in a 'just in case' kinda way.

Similarly, while I like to be fully invested at all times (rather than have cash ready to invest 'opportunistically'), we have an amount of cash set aside for emergencies. 

It's also why my portfolio is diversified – to make it more resilient in the face of specific geographic or industry risks.

I could make more money if I invested that emergency fund. I could make more money if I bet correctly on a single company, or theme, or trend, rather than being diversified… but I could lose a lot more if I'm wrong.

One of my favourite underquoted Warren Buffett lines is the one he used to describe a hedge fund that blew itself up: "To make money they didn't have and didn't need, they risked what they did have and did need. And that's foolish."

Rather than optimising my finances for the highest possible return, I've chosen to optimise for resilience. 

Not for disaster – if I was doing that, I'd be investing in baked beans and shotguns instead – but for resilience.

And that's not unusual, when you think about it. The safest way to live life on a day-by-day basis is probably to stay in bed. But we walk, drive, climb ladders and clean our teeth – all things that have killed people – because we have learned to assess and manage risk.

We take sensible precautions and weigh risk and return instinctively in our personal lives.

Doing it at a national level, and in our individual financial lives, isn't quite as instinctive – but it's equally important.

By all means, we should optimise our outcomes. But we should be optimising for the best outcomes possible while balancing that against our ability to respond to less-than-ideal circumstances.

We should have built-in redundancy, and aim for national- and personal resilience.

And, as our grandparents might have told us, that should probably begin at home.

Fool on!

The post The national problem we should take personally appeared first on The Motley Fool Australia.

More reading

• Why this ASX dividend share is a retiree's dream
• The pros and cons of buying Qantas shares this month
• How many shares in this high-dividend toll road stock do you need for a $10,000 income stream?
• Which ASX 200 tech stock has Bell Potter just downgraded?
• Stop 'saving', start investing! How to target a $1 million ASX share portfolio

Motley Fool contributor Scott Phillips 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.

I love investing in ASX shares because of the wealth-building that that allows me to do. But, not all of my investing is done through superannuation, in-fact a large chunk of my wealth is invested outside of superannuation.

Don't get me wrong, I think superannuation is a wonderful tool for investors to benefit from the advantages it provides.

The tax rate of investment returns in superannuation is lower than what it is outside of superannuation for full-time working Australians, that's great. I also like how employees are provided with mandatory contributions towards their retirement, ensuring many Aussies can enter their golden years with a sizeable nest egg.

Additionally, there are different strategies that allow Aussies to make non-mandatory contributions to maximise their retirement savings.

I'm steadily building my superannuation balance over the years and I'm looking forward to the time that I can access that money. But, there are a few reasons why I'm choosing to regularly invest into ASX shares outside of superannuation.

I can access my ASX shares today

It's understandable why there are age limits on when people can access their retirement money. It's meant to fund retirement, not to be spent beforehand.

However, that also means that any money that gets sent into superannuation is essentially locked away for a long time. As someone in their mid-30s, I have to wait decades until I'm allowed to start receiving an income from it. The age of access could be even higher than it is today by the time I reach that age in three decades.

I do want to have a good superannuation balance when I reach my 70s – but I also want to access some of my dividends earlier than that. Additionally, what if I want to retire earlier than my late 60s or 70s?

I like that investing in ASX shares outside of superannuation means I have flexibility with my investment money.

For me, it's useful to have some investment money for the medium-term and some for the ultra-long-term, even if it's not the most tax-efficient way of growing my wealth

More choice

One of the best things about many of the large superannuation funds is that they make it very easy to just invest in broad buckets of 'international shares', 'Australian shares' and so on. Not only is that an effective investment strategy, but it keeps costs low.

However, as someone who loves investing in specific ASX shares shares, I like being able to choose which investments on the ASX I want to buy.

Australians can invest in ASX shares with superannuation, but that usually means paying for the privilege, which isn't ideal.

Investing outside of superannuation means I can choose to invest in virtually anything and I don't need to pay higher fees. I like being able to buy and own Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares in my own name, for example, receive the dividends into my bank account and be a long-term shareholder.

In the long run, I like the balance I'm achieving between optimising wealth-building and ensuring I can access my non-superannuation finances for earlier enjoyment than at retirement age.

The post Why I invest a lot in ASX shares outside of superannuation appeared first on The Motley Fool Australia.

More reading

• 17,875 shares of this ASX dividend star pays an income equal to the Age Pension
• Why I'm even more bullish about Soul Patts shares from now on!
• ASX 200 shares rip with financials leading a remarkable recovery last week
• Buy, hold, or sell? Bubs, Soul Patts, and Endeavour shares
• Forget term deposits! I'd buy these ASX dividend shares instead!

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building a retirement portfolio isn't about chasing the highest yield. It's about creating a mix of reliable dividends, diversification, and enough growth to keep up with inflation.

If I were building a $100,000 ASX retirement income portfolio today, I'd blend three quality dividend shares with two ETFs.

Here's how I'd do it.

Reliable earnings and payouts

I'd start with $25,000 in APA Group Ltd (ASX: APA). The infrastructure giant currently offers a dividend yield of about 6.1%, backed by essential gas pipelines and electricity assets that generate long-term contracted cash flow. That kind of reliability is ideal for retirees seeking a consistent retirement income. 

Next, I'd allocate $20,000 to ANZ Group Holdings Ltd (ASX: ANZ). While the yield is a little below your original 5% screen at roughly 4.5%, the partially franked dividend and resilient banking earnings still make it highly attractive for income investors. Banks remain some of the most dependable dividend payers on the ASX. 

For a third direct shareholding, I'd put $15,000 into Transurban Group (ASX: TCL).

Like APA, it owns hard-to-replicate infrastructure assets, with toll roads across Sydney, Melbourne, and North America. Traffic-linked revenue provides inflation pass-through over time, which can help preserve purchasing power in retirement.

High-yielding blue chips and bonds

Now for the ETFs in the retirement portfolio.

I'd allocate $25,000 to the Vanguard Australian Shares High Yield ETF (ASX: VHY). This ETF gives instant exposure to a basket of Australia's highest-yielding blue-chip shares, including banks, miners, and telcos. It reduces single-stock risk while keeping the income focus front and centre.

The final $15,000 would go into the Vanguard Australian Fixed Interest ETF (ASX: VAF). Bonds might not be exciting, but they add portfolio stability and help smooth out volatility when equity markets get rough.

This blend gives you 60% in direct quality dividend shares, 25% in diversified high-yield equities, and 15% in defensive bonds. It could deliver a blended yield of around 5.3% to 5.8%, along with solid exposure to franking credits and inflation-linked infrastructure.

On a $100,000 portfolio, that could mean $5,300 to $5,800 per year in cash income, before any dividend growth.

Foolish Takeaway

What I really like about this setup is the balance.

APA and Transurban provide infrastructure-style resilience, and ANZ adds partially franked bank income. The Vanguard ETF broadens exposure, while the fixed interest ETF reduces sequence risk, which becomes increasingly important once you're drawing an income.

For an Australian retiree, this is the kind of portfolio that can help generate retirement income today without sacrificing long-term durability.

The post How I'd invest $100,000 for retirement income on the ASX right now appeared first on The Motley Fool Australia.

More reading

• 5 excellent ASX ETFs to buy next week
• How to build a Warren Buffett-inspired ASX share portfolio
• How many ANZ shares do I need to buy for $10,000 a year in passive income?
• The ASX dividend stocks I'd trust for long-term income
• Why I think 'boring' ASX shares could make you richer over time

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 Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. 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 superannuation you have (and should have) at any age. 

How else would you know if you're on track for the ultimate goal of a comfortable retirement?

That's one where retirees are able to maintain a good standard of living. It includes top level private health insurance, ownership of a reasonable car brand and regular leisure activities. It also includes funds for home repairs and renovations, occasional meals out, and an annual domestic trip.

The thing is, Australians at age 45 and age 60 are at a very different stage of their life. That means there is usually a significant gap between balances at each age.

At age 45, many Australians feel like they're at a financial crossroads. It's the point that bridges what they've accumulated in their early careers and the stage when their superannuation begins to grow more rapidly. 

This acceleration is usually driven by higher incomes and long-term exposure to growth assets like shares on the S&P/ASX 200 Index (ASX: XJO).

Age 45 is also a significant time when many women return to the workforce, or increase their hours, after raising children.

By age 60, Australians are largely moving to the next stage. Superannuation balances have grown significantly, and retirement is just around the corner. 

At this point, Australians should be focusing on whether there is enough in their superannuation to make retirement an immediate reality and, if not, have a short-term plan to get there.

Here's a rundown of the average superannuation balance for 45-year-olds versus 60-year-olds in 2026.

How much superannuation does the average Australian have at age 45?

There isn't an exact figure for Australians aged 45. But it's straightforward to estimate using some of the data from the Association of Superannuation Funds of Australia (ASFA). According to ASFA, at age 40-44, the average man has $140,680, and the average female has $109,209. 

Then, at age 45 to 49, the average male has $193,501 in their superannuation, and the average female has $147,146.

At age 45 (which sits between the two brackets), it would be safe to assume that the average superannuation balances would be somewhere between the two.

How much superannuation does the average Australian have at age 60?

It's the same case for age 60. The average 55-59-year-old man has an average of $319,743, and women have $242,945. While the average balance for men aged 60-64 is $395,852, and for women it's $313,360.

As age 60 sits between the two brackets, it would be safe to assume the average superannuation balance is between the two amounts.

How do these balances compare to how much I need?

According to ASFA, a comfortable retirement is expected to cost approximately $54,840 per year for individuals and $77,375 per year for couples.

That equates to a superannuation balance of approximately $730,000, and for a single person, this is approximately $630,000.

ASFA has crunched the numbers, and it turns out that in order to reach that figure, you'd need a superannuation balance of around 239,000 at age 45, and this would need to increase to around $496,500 by age 60.

The post Average superannuation balance in Australia in 2026: 45 versus 60 year olds appeared first on The Motley Fool Australia.

More reading

• Why this ASX dividend share is a retiree's dream
• The pros and cons of buying Qantas shares this month
• How many shares in this high-dividend toll road stock do you need for a $10,000 income stream?
• Which ASX 200 tech stock has Bell Potter just downgraded?
• Stop 'saving', start investing! How to target a $1 million ASX share portfolio

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.

I reckon everyone who's investing in ASX shares would love to be a millionaire, if they're not already.

Of course, a $1 million portfolio doesn't just appear out of nowhere.

Anyone with a bit of flexibility with their budget, which may be a bit rarer during this period, may be able to regularly put some money aside into investing.

Australians need to be patient when it comes to wealth-building. Rome wasn't built in a day, after all.

But, having said that, people that can invest should be able to reach $1 million thanks to the power of compounding. The power of compounding helps a number grow into a much larger figure over time – our portfolio can grow itself.

It's like planting a small sapling and it growing into a fruit tree that can start producing its own fruit.

How long would it take for our financial tree to turn into $1 million? That's what I'm about to show.

The power of compounding to $1 million

Each Australian household will need to figure out how much they are able to invest into ASX shares. So, I'll show how it could look for a variety of regular investment sizes.

For starters, the local share market has returned an average of around 10% per year over the ultra-long-term. We can invest in the ASX share market quite easily through the Vanguard Australian Shares Index ETF (ASX: VAS).

We'd need a crystal ball to know what the future returns will be, but I think using a 10% return is a simple number to use in the following calculations.

If a household can invest $500 per month and it returns 10% per year, that would grow to $1 million in less than 31 years.

Investing $1,000 per month would turn into $1 million in less than 24 years.

Being able to invest $2,000 per month would allow the portfolio value to become $1 million in less than 18 years.

For me, one of the most appealing things about these scenarios is how little an investor needs to invest to become a millionaire.

For example, in the scenario where someone is investing $500 per month for 31 years, that household has only invested $186,000 of their own money and the rest has been created from investment compounding.

Someone who has invested $1,000 per month for 24 years would have contributed $288,000.

How can I reach millionaire status sooner?

There are two main ways investors can accelerate their wealth-building. First, we can simply invest more per month. But, that's not available to all Australians because of budgetary constraints.

The other way to grow our wealth faster is to choose investments that could produce stronger returns than the VAS ETF.

I think there are plenty of opportunities to do that, even just in the exchange-traded fund (ETF) space such as Vanguard Msci Index International Shares ETF (ASX: VGS), VanEck MSCI International Quality ETF (ASX: QUAL) and VanEck Morningstar Wide Moat ETF (ASX: MOAT).

I'm also excited about the potential of ASX growth shares to outperform the ASX share market.

The post How long does it take to become a millionaire with ASX shares? appeared first on The Motley Fool Australia.

More reading

• Stop 'saving', start investing! How to target a $1 million ASX share portfolio
• 5 excellent ASX ETFs to buy next week
• 3 reasons why the Vanguard MSCI Index International Shares ETF is a great buy for wealth building
• The biggest ASX ETFs revealed – are they still buys?
• 3 amazing ASX ETFs that are beginner-friendly

Motley Fool contributor Tristan Harrison has positions in VanEck Morningstar Wide Moat ETF and VanEck Msci International Quality ETF. 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 VanEck Morningstar Wide Moat ETF and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX exchange-traded funds (ETFs) are a popular choice among investors because it's a simple and low-cost way to get access to a wide range of assets, without needing to buy individual stocks.

ASX ETFs offer instant diversification, they traditionally have low fees, and because they usually track an index they tend to grow consistently and steadily over time.

Just as importantly, ASX ETFs are a great way to earn passive income because they pay a dividend. Unlike stocks which pay dividends directly to shareholders, ASX ETFs would have a portfolio of dividend-paying shares which the fund collects and passes onto its investors.

Like any ASX dividend-paying stock, this is usually paid out quarterly or annually. But then there are the rare few ASX ETFs that pay income to investors monthly.

The monthly-paying ASX ETF on my radar right now is the Betashares Dividend Harvester Active ETF (ASX: HVST).

Here's a rundown of how it works and what it pays.

What's the fund's investment strategy?

The Betashares HVST is an ASX-listed ETF that invests in 40 to 60 dividend-paying companies. 

These are selected from the 100 largest companies listed on the ASX based on their dividend forecasts, franking credits, and expected future gross dividend payments.

The fund does not track an index; instead, it targets exposure to high-dividend stocks.

The fund is created in a way that allows it to own a dividend share until it trades ex-dividend. At this point, the fund sells the shares and reinvests the proceeds into its next opportunity.

What does HVST ETF pay its investors?

HVST ETF pays its investors a regular, partially-franked dividend income every single month.

Its annual dividend yield is around double the annual income yield of the broader ASX. 

As of the 27th of February 2026, the HVST ETF pays a 12-month gross distribution (dividend) yield of 7%, and a net yield of 5.5%. Its franking level is 64.7% and it has an annual management fee of 0.72%.

Its most recent dividend payment was in mid-March when it paid out 6 cents per share to investors. The fund also paid out $0.06 per share to investors in late February and in January. 

HVST shares have trailed the S&P/ASX 200 Index (ASX: XJO) index over the past 12 months. At the time of writing, the ASX ETF's share price has climbed 1.4% over the past 12 months, compared with the ASX 200's 9.3% annual gain.

The post This monthly income ASX ETF yields 7%, and every ASX investor should take note appeared first on The Motley Fool Australia.

More reading

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• Alcoa posts Q1 2026 result

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.

For Australian investors, the recent volatility in the S&P/ASX 200 Index (ASX: XJO) could be creating one of the best buying opportunities of 2026.

The ASX share market has pulled back from recent highs and the benchmark index is down roughly 6% over the past month at the time of writing.

At first glance, that kind of drop can feel uncomfortable. But history tells a different story. Some of the best long-term returns are made when investors buy during fear, not when markets feel safe.

Rising oil prices, war, inflation

So, what's driving the chaos?

In recent weeks, markets have been rattled by a mix of global tensions and economic uncertainty. Rising oil prices, renewed Middle East conflict, stubborn inflation, and fresh doubts around Artificial Intelligence (AI) spending have all weighed on sentiment.

That's a sharp shift from earlier this year.

Over the past five years, the ASX share market has delivered strong gains, powered by banks, miners, and a surging tech sector. Optimism around AI, solid commodity demand, and resilient earnings pushed the market toward record highs.

Back then, buying felt easy. Confidence was high, and every rally seemed to confirm investors were making the right call.

High quality stocks at lower prices

But here's the twist — that's usually not the best time to buy.

The real opportunities on the ASX share market often appear when confidence fades.

Market pullbacks allow investors to buy the same high-quality businesses at lower prices. Whether it's blue-chip names like Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), or BHP Group Ltd (ASX: BHP), a broad sell-off reduces the cost of future earnings.

Shifting sentiment

And importantly, much of today's uncertainty may not last. Geopolitical tensions, oil price spikes, and inflation shocks tend to be temporary. Markets have weathered similar storms before and recovered.

In fact, we've already seen how quickly sentiment can shift. The ASX 200 recently posted one of its strongest single-day gains in a year on hopes of easing conflict and softer inflation data.

The same applies to AI concerns.

While investors are questioning whether current spending levels are sustainable, global demand for AI infrastructure, data centres, cybersecurity, and automation remains strong. These long-term trends continue to support many ASX-listed companies and the ASX share market.

Foolish Takeaway

When share prices fall but business fundamentals remain intact, the potential for future returns improves. Lower entry prices can boost dividend yields, increase upside potential, and reduce valuation risk.

In other words, buying during downturns can tilt the odds in your favour. Markets rarely give clear signals at the bottom.

But for long-term investors, today's volatility could be the kind of opportunity that builds serious wealth over time.

Sitting on the sidelines might feel safe, but it could also be the mistake that costs you the most.

The post Why sitting out this ASX share market chaos could cost you big appeared first on The Motley Fool Australia.

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

The amount of money you need in your superannuation in order to retire at age 65 depends on your current living situation and what type of lifestyle you expect to live in retirement.

Generally, in Australia, retirement lifestyles are split into two options: modest and comfortable.

A modest retirement, according to the Association of Superannuation Funds of Australia (ASFA), is defined as being able to cover expenses slightly above the full Centrelink Age Pension. This includes basic health insurance, a cheaper model of car, and infrequent exercise. It also includes minimal utility expenses, limiting dining out, and maybe an annual domestic trip. It assumes you own your house outright.

Then a comfortable retirement is one that allows you to maintain a good standard of living. This includes top-level private health insurance, ownership of a reasonable car brand, regular leisure activities, some funds for home repairs, occasional meals out, and perhaps an annual domestic trip. Again, it assumes you own your house outright.

So, how much will these retirement lifestyles cost me?

Thanks to rising inflation and cost of living, the benchmark for both a modest and comfortable retirement increased earlier this year. It's a reminder that long-term returns from markets like the S&P/ASX 200 Index (ASX: XJO) play an important role in building retirement savings.

Now, in order to live a modest retirement lifestyle at age 65, individual Australians need $35,503 per year, or a couple needs $51,299 per year. To fund that, ASFA estimates you need a superannuation balance of around $110,000, or a couple would need $120,000.

The cost of a comfortable retirement is a lot higher. To obtain a comfortable retirement lifestyle at age 65, individuals can expect to spend around $54,840 a year, or for couples, this can be closer to $77,375 a year. To fund that, you'll need a superannuation balance of around $630,000 for a single person, or $730,000 for a couple.

Ok, but how do I know if my superannuation is on track to reach the balance I need?

According to ASFA, in order to be able to fund a comfortable retirement starting from age 67, your superannuation balance at age 40 should be $178,000. 

But if you want to retire just a couple of years earlier (at age 65) then you'll need to stay ahead and aim for around $210,000 by around age 40 instead.

By age 50, Aussies who want to reach the superannuation balance needed for a comfortable retirement by age 65 should have around $347,500.

This would need to increase to around $539,000 by age 60. 

The post Want to retire at age 65? This is how much superannuation you need appeared first on The Motley Fool Australia.

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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.

For Immediate Release:

The Motley Fool Australia today announces the next evolution of its move into becoming a full-service financial company with the launch of FoolTrade, a new stockbroking platform designed to better align member activity with company revenue.

The move follows what the company identified as "a persistent commercial inefficiency" in its existing model.

"For many years, we've helped investors achieve strong long-term returns by encouraging them to buy great businesses and hold them," company spokesperson Olof Lirpa said. "The unintended consequence is that, over time, our most successful members tend to trade less, engage less frequently, and – from a business perspective – that creates no additional revenue."

FoolTrade is intended to address that imbalance.

The new platform integrates directly with the company's content, alerts, and member services, allowing users to move seamlessly from 'insight' to 'execution' within the same ecosystem.

"Historically, we've done a very good job of helping members decide what to do," the spokesperson said. "We've just been less involved in what happens next… especially when they choose to trade anyway."

"With FoolTrade, we can now participate more directly in that outcome."

At the centre of the platform is an AI-driven behavioural engagement engine that dynamically adjusts content delivery based on market conditions and user behaviour. During periods of volatility, members will receive an increased cadence of alerts, updates, and 'time-sensitive insights', calibrated to coincide with what the company refers to internally as 'high-intent moments'.

"When markets are calm, people tend to be patient," Lirpa said. "When markets move, people tend to act. From a commercial perspective, those are very different environments."

The platform incorporates real-time behavioural tracking, enabling it to identify when members are most likely to engage – including periods of increased portfolio checking, rapid content consumption, and heightened sensitivity to market movements.

"In simple terms, we can now detect when someone is more likely to do something. And we can be there to 'help' them do it, encouraging it where appropriate."

The company also acknowledged a shift in how it thinks about investor behaviour.

"We've spent years encouraging patience, discipline, and long-term thinking. Those principles remain sound."

"Unfortunately."

"We've also observed that periods characterised by heightened fear or increased optimism tend to coincide with significantly higher levels of investor activity."

Internally, this is described as 'emotionally-led engagement'.

"Greed and fear are powerful motivators. Historically, we've tried to dampen them. Increasingly, we see an opportunity to amplify them – responsibly – within a structured commercial framework."

FoolTrade introduces a brokerage model that scales with activity, with additional features and functionality made available during periods of elevated engagement. These include priority execution, enhanced alerting, and expanded 'opportunity surfacing' when markets are moving.

"We've found that urgency, when appropriately framed, can be highly effective," said Lirpa. "Particularly when it's sustained."

The platform also includes a 'portfolio nudge' system, which highlights holdings that have been held for a while, and surfaces related content designed to encourage users to review their holdings, preferably encouraging them to sell… or buy more.

Lirpa: "We're not directing behaviour. We're simply making it easier for members to revisit their decisions — repeatedly, if necessary."

Internally, the company describes this as 'closing the loop between attention and action'.

To support the initiative, the company has restructured its editorial and product teams around what it calls 'engagement windows', with increased content production during earnings seasons, market corrections, rallies, pullbacks, sideways markets, and, where possible, quieter periods that may benefit from additional stimulation.

"Engagement tends to cluster around emotion," the spokesperson said. "And emotion tends to drive activity. Activity, in turn, tends to drive revenue."

The Motley Fool confirmed that platform settings, notification timing, and content sequencing will be continuously optimised using real-time engagement data, including open rates, click-through rates, and transaction frequency.

"In many cases, the same investor who was perfectly happy doing nothing last week can become significantly more active with the right combination of information, timing, and gentle encouragement."

"That's a very high-quality outcome. At least for revenue."

Asked whether the new platform risks encouraging unnecessary trading, Lirpa reiterated that the company's investment philosophy remains unchanged.

"We still believe the best approach for most investors is to buy quality businesses and hold them over the long term," he said.

He also acknowledged that readers who consistently follow that approach tend to generate fewer transactions over time.

"That's been a constraint. And, candidly, one we now feel better equipped to 'manage'."

FoolTrade is expected to be rolled out to Australian users later this year, with the company forecasting increased engagement, higher transaction volumes, and improved monetisation of its existing audience.

"We think this is a natural evolution of the model. We've always been very good at capturing attention. What we're building now," he added, "is a system that ensures attention doesn't go to waste".

"Because while long-term investing may be the most effective way to build wealth, we've found there are other ways to build our own cashflow."

Traders looking to pre-purchase discounted brokerage rates in round lots of 100, 200 and 400 trades per annum are encouraged to use this link to express their interest to gain access to special pre-launch pricing.

Media enquiries:

Mr. Olof Lirpa OAM TBC AFD 

Acting Executive Junior Vice President, Revenue Maximisation and 2019 Tiddlywinks Championship Runner-Up 

info@fool.com.au

The post Announcing FoolTrade appeared first on The Motley Fool Australia.

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• Stop 'saving', start investing! How to target a $1 million ASX share portfolio

Motley Fool contributor Scott Phillips 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.

The war that the United States of America and Israel launched against Iran at the start of this month has comprehensively changed the investing landscape. Many ASX shares that were previously expecting to have a relatively smooth 2026 are now wargaming the supply of their most basic inputs – energy. Investors with ASX share portfolios would be forgiven for wondering how to chart a course forward. 

Of course, the energy shock that has resulted from this war is still reverberating through the global economy. We don't yet know whether the Strait of Hormuz will be closed for another day or another year. 

What we do know is that things will be different, in both the Australian and global economies, for a while.

So how do we account for these differences in our own ASX share portfolios?

Well, I think there are three things investors can do.

Three ways to position an ASX share portfolio for 2026

Firstly, ASX investors can focus on finding and owning shares of companies that possess a moat, or an intrinsic competitive advantage that can protect them from inflation, recessions, and other potential economic maladies in 2026. 'Moats' are a concept initially coined by legendary investor Warren Buffett, who only tends to buy companies that he thinks possess at least one wide moat. This could be a cost advantage, a powerful brand that inspires loyalty, or else making a good or service that investors find difficult to avoid buying.   

Companies that possess these moats are usually the most resilient in the markets. They tend to survive the bad times and thrive when the global economy is booming.

Secondly, investors can take advantage of higher interest rates. Few Australians get excited when the Reserve Bank of Australia (RBA) lifts rates, as it did at the start of this month. But while higher rates make loans and mortgages more expensive to service, they also increase the returns of cash and fixed-interest investments. With term deposit rates now above 5%, there's nothing wrong, at least in my view, with parking your surplus cash in the bank rather than the share market if you are worried about where things might go next. After all, the interest rate on a term deposit is completely safe, unlike an investment in any ASX share.

This time it's different?

Finally, and this might be tough to hear, investors might want to prepare for a rough 2026 by lowering their expectations. The past few years have been exceptionally lucrative for stock market investors. To illustrate, as of 28 February, the iShares Core S&P/ASX 200 ETF (ASX: IOZ) has averaged 12.15% per annum over the past three years, and hit 16.2% for the preceding 12 months. Those are uncommonly high returns for a simple ASX index fund. The longer-term average sits closer to 8% per annum.

I'm a firm believer in the enduring tendency for investing metrics to regress to their mean. As such, I wouldn't be surprised to see a return of well below 12% for the ASX 200 in 2026, and possibly in 2027 and beyond as well.

The post The Iran war has changed investing. Here are 3 ways to position an ASX share portfolio appeared first on The Motley Fool Australia.

More reading

• Why this ASX dividend share is a retiree's dream
• The pros and cons of buying Qantas shares this month
• How many shares in this high-dividend toll road stock do you need for a $10,000 income stream?
• Which ASX 200 tech stock has Bell Potter just downgraded?
• Stop 'saving', start investing! How to target a $1 million ASX share portfolio

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 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.

Passive income gets talked about a lot in investing circles.

The idea is simple. Build a portfolio, collect dividends, and let your money do the work for you.

But I think it is worth asking a more honest question.

Is it actually achievable in a meaningful way, or is it just a nice concept on paper?

Where the income really comes from

When people talk about passive income on the ASX, they are usually talking about dividends.

And to be fair, Australia is a strong market for that.

Companies like Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), and Transurban Group (ASX: TCL) have built reputations for returning cash to shareholders over time.

There are also ETFs like the Vanguard Australian Shares High Yield ETF (ASX: VHY), which package that income focus into a single investment.

On the surface, it can look relatively straightforward. Buy income-generating assets and collect the distributions.

But I think the reality is a bit more nuanced.

The capital requirement is often underestimated

One thing that stands out to me is how much capital is usually required to generate meaningful income.

For example, a portfolio yielding around 4% would generate $4,000 per year from a $100,000 investment.

That is not insignificant, but it is also not life-changing for most people.

To generate $40,000 per year at that same dividend yield, you would be looking at a $1 million portfolio.

That is where the challenge becomes clearer.

Passive income from shares is achievable, but it typically sits at the end of a long period of saving and investing, not at the beginning.

Yield is only part of the story

Another thing I think is important is not to focus solely on yield.

High dividend yields can sometimes signal risk rather than opportunity.

If a company is paying out a large portion of its earnings, it may have less flexibility to reinvest in growth or to navigate tougher conditions.

That is why I think a mix is best.

Some income-focused holdings, but also businesses that can grow their earnings over time. Because growing earnings can lead to growing dividends.

And that is where the real compounding effect starts to show up.

Building toward it over time

Personally, I do not think of passive income as something you switch on.

I think of it as something you build toward.

In the earlier stages, the focus might be more on growth. Increasing the size of the portfolio.

Over time, as the portfolio becomes larger, income naturally becomes more meaningful, even without dramatically changing the strategy.

That shift tends to happen gradually, almost without noticing at first.

Foolish Takeaway

Passive income from ASX shares is absolutely achievable.

But I think it is important to frame it realistically.

It usually requires time, consistency, and a meaningful amount of capital. It is less about finding the perfect high-yield stock and more about building a portfolio that can grow and generate income over many years.

The post Is passive income from ASX shares really achievable? appeared first on The Motley Fool Australia.

More reading

• Why this ASX dividend share is a retiree's dream
• The pros and cons of buying Qantas shares this month
• How many shares in this high-dividend toll road stock do you need for a $10,000 income stream?
• Which ASX 200 tech stock has Bell Potter just downgraded?
• Stop 'saving', start investing! How to target a $1 million ASX share portfolio

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group and Transurban Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are numerous potential picks retirees could make for their portfolio. I think Washington H. Soul Pattinson and Co Ltd (ASX: SOL) ticks many of the boxes older (and younger) Australians may be looking for. Soul Patts shares may not be very famous, but I think they should be.

The first thing to know is that the business has already displayed excellent longevity in that it's more than 120 years old and has been listed on the ASX for all those years.

It started as a pharmacy business, which is where the Soul Pattinson Chemist chain got its name. However, Soul Patts divested its stake in the chemist business a few years ago.

There are a few reasons why I think it's a wonderful pick for retirees, so let's get into those.

Great diversification

Many of the largest ASX dividend shares we can invest in generate most/all of their earnings from a specific sector, such as banking, mining, telecommunications, and so on.

Soul Patts has built a very diversified portfolio after making numerous investments over the decades. Now it's invested in a number of different areas such as sizeable listed companies, 'real assets' (real estate, agriculture, water, and data centres), emerging companies, credit and private companies.

Some of the main sectors it has exposure to through its company investments include energy, communication services, mining, financials, industrials, retail, healthcare, building products, swimming schools, and electrification.

Soul Patts shares can give retirees a significant level of uncorrelated asset diversification, while also enabling the business to search far and wide (including internationally) for great investment opportunities.

As the years go by, I expect the Soul Patts portfolio will continue to modernise and become even more growth focused.

Incredible dividend record

I'm sure most retirees reading this want to know about the dividend, so let's talk about its incredible record.

Soul Patts has grown its regular annual payout every year for 28 years in a row. No other business on the ASX has the same track record of consistent dividend growth. I'm expecting the company to reach 30 years of consistent dividend growth and more.

Another fact worth knowing is that it has paid a dividend every single year of its existence, going back 120 years, including through the wars, pandemics, and recessions.

This business is very committed to paying dividends to shareholders.

It recently grew its HY26 interim dividend by 9.1% to 48 cents per share. It now has a grossed-up dividend yield of 3.8%, including franking credits.

If the ASX dividend share continues to generate cash flow from its own investments, I'd say shareholders have a great chance of seeing growth for the foreseeable future.

Long-term capital growth

Soul Patts is not just a dividend machine, but it is also growing its share price over time thanks to the increasing value of its portfolio.

The portfolio is growing organically as its business investments naturally grow in size as they deliver on their own plans.

Soul Patts is also able to make new buys with some of the investment cash flow from its portfolio that it retains (after paying for operating expenses and giving shareholders a larger dividend).

With its HY26 result, Soul Patts noted that in the past 25 years, it has delivered an average total shareholder return (that's capital growth plus dividends) of 12.9% per year, outperforming the total return of the S&P/ASX 200 Index (ASX: XJO) by 4.6% per year. Those returns show plenty of capital growth for investors.

I think this is one of the most effective investments retirees can buy for their portfolio for the long term.

The post Why Soul Patts shares are a retiree's dream appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.