Superannuation is a tool to help build wealth to live off in retirement. And an $800,000 balance will provide enough money to live when the time comes.
But you don't have to let it sit idly in the meantime.
You can invest your superannuation balance and generate a regular source of passive income for when you've stopped working.
To calculate the potential passive income from an $800,000 superannuation balance, you need to multiply your total balance by the dividend yield of your portfolio.
For example, a 3% yielding portfolio needs to be twice the size of one that yields 6% to earn the same passive income.
Which also means that as your dividend yield increases, the passive income you can earn from your $8000,000 superannuation balance climbs higher.
As do banking giant Commonwealth Bank of Australia and conglomerate Wesfarmers Ltd.
If your superannuation portfolio yields closer to 5%, you could earn $40,000 every year in dividend payments off the same superannuation balance.
Classic dividend stocks like APA Group, Transurban Group, and JB Hi-Fi Ltd all pay around this level.
Solvar Ltd, Waypoint REIT Ltd, and HomeCo Daily Needs REIT all pay around this yield.
You could invest in ASX-listed stocks such as Tower Ltd or Kina Securities Ltd.