A $650,000 superannuation balance is above the current benchmark for a comfortable retirement.
They focus hard on building their superannuation balance, ensuring the fund is performing well, and adding extra voluntary contributions wherever they can.
To calculate your potential passive income, you need to multiply your total superannuation balance by the overall dividend yield of your portfolio.
If your superannuation portfolio yields closer to 5%, you could earn $32,500 every year in dividend payments off the same superannuation balance.
Then, at a 6% yield, you could earn an annual passive income of around $39,000, and at 7%, it could be even higher, at around $45,500.
Note too that these figures are based on cash dividends before any tax or franking credit benefits.
Some of the top picks would be defensive stocks.
Their stable nature means they can help reduce the volatility of an overall investment portfolio.
Think Coles Group Ltd, TPG Telecom Ltd, and Chorus Ltd.
Blue chips like Wesfarmers Ltd and BHP Group Ltd are generally considered cyclical stocks but with strong defensive qualities. The shares yield around 3% to 4%.
Remember that if you want to aim for, say, a 5% yielding portfolio, not every stock in that portfolio has to yield 5%. You should aim for a diversified range of shares yielding varying amounts, which combined total 5%.