Investing Simplified: The S&P 500

This week's Stock Spotlight is NYSE-listed Bank of America Corp. About Bank of America Corp. Bank of America Corporation, through its subsidiaries, provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. The company operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, checking accounts, and investment accounts and products; credit and debit cards; residential mortgages and home equity loans; and direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, short-term investing options, and merchant services; working capital management solutions; debt and equity underwriting and distribution, and merger-related and other advisory services; and fixed-income and equity research services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina. Key Stats

As AI adoption accelerates, workforce cuts are spreading beyond tech, raising questions for investors around margins, labour risk and market positioning.

Saudi Arabia’s stock market opening marks a major shift for global investors, combining scale, reform momentum and index inclusion within emerging market portfolios.

This week's Stock Spotlight is ASX-listed ResMed Inc. About ResMed Inc. ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications to diagnose, treat, and manage respiratory disorders in the United States and internationally. The company operates in two segments, Sleep and Breathing Health, and Residential Care Software. It offers sleep recorders for the diagnosis and titration of sleep apnea in sleep clinics, hospitals, and at home, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry; and EasyCare Tx, a sleep lab solution. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; and connectivity module which provides a cellular connection between compatible ventilation devices and AirView system. In addition, the company offers Brightree solutions which are solutions and services for organizations in home medical equipment and pharmacy, orthotic and prosthetic, and home infusion; HEALTHCAREfirst solutions that offers electronic health record, software, billing and coding services, and advanced analytics that enables home health and hospice agencies to optimize clinical, financial and administrative processes; MatrixCare EHR software as a service solutions used by skilled nursing and senior living providers, life plan communities, and home health and hospice sectors; and MEDIFOX DAN software solutions that is used by residential care providers, such as home health and nursing home providers. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.  Key Stats

This week's Stock Spotlight is NYSE-listed Wells Fargo & Company. About Wells Fargo & Company. Wells Fargo & Company, a financial services company, provides diversified banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. The company operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. The Consumer Banking and Lending segment offers diversified financial products and services for consumers and small businesses. Its financial products and services include checking and savings accounts, and credit and debit cards, as well as home, auto, personal, and small business lending services. The Commercial Banking segment provides financial solutions to private, family owned, and certain public companies. Its products and services include banking and credit products across various industry sectors and municipalities, secured lending and lease products, and treasury management services. The Corporate and Investment Banking segment offers a suite of capital markets, banking, and financial products and services, such as corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity, and fixed income solutions, as well as sales, trading, and research capabilities services to corporate, commercial real estate, government, and institutional clients. The Wealth and Investment Management segment provides personalized wealth management, brokerage, financial planning, lending, private banking, and trust and fiduciary products and services to affluent, high-net worth, and ultra-high-net worth clients. It also operates through financial advisors in brokerage and wealth offices, consumer bank branches, independent offices, and digitally through WellsTrade and Intuitive Investor. The company was founded in 1852 and is headquartered in San Francisco, California. Key Stats

About Oracle Corporation Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning ERP, Oracle Fusion cloud enterprise performance management EPM, Oracle Fusion cloud supply chain and manufacturing management SCM, Oracle Fusion cloud human capital management HCM, and NetSuite applications suite, Oracle Health applications, as well as Oracle Fusion Sales, Service, and Marketing. The company also offers cloud-based industry solutions for various industries; Oracle cloud license and on-premise license; and Oracle license support services. In addition, it provides cloud and license business' infrastructure technologies, such as the Oracle Database and MySQL Database; Java, a software development language; and middleware, including development tools and others. The company's cloud and license business' infrastructure technologies also comprise cloud-based compute, storage, and networking capabilities; and Oracle autonomous database, as well as AI, Internet-of-Things, machine learning, digital assistant, and blockchain. Further, it provides hardware products and other hardware-related software offerings, including Oracle engineered systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware support services, and consulting and advanced customer services. It markets and sells its cloud, license, hardware, support, and services offerings directly to businesses in various industries, government agencies, and educational institutions, as well as through indirect channels. Oracle Corporation has a strategic alliance with Metron, Inc. The company was founded in 1977 and is headquartered in Austin, Texas. Key Stats

Capital preservation alone is no longer a sufficient strategy for the high-net-worth investor. Inflationary pressure and market volatility have eroded the purchasing power of static cash, meaning a $1 million portfolio left in a standard savings account or underperforming brokers leaves capital exposed. The Australian Taxation Office reports that the average Self Managed Super Fund (SMSF) balance now sits at approximately $1.63 million, signalling that $1 million is the new baseline for serious portfolio construction rather than the finish line. Managing a seven-figure sum requires a fundamental shift from simple accumulation to strategic allocation. You move from trying to save money to ensuring your capital works harder than you do. This guide outlines how professional investors approach a $1 million portfolio in 2026, towards data-driven managed accounts with direct share ownership and transparent reporting. The hidden cost of doing nothing with $1m Doing nothing with $1 million is rarely neutral. In practice, it usually means one (or more) of the following: too much capital sitting idle, risk building silently through concentration, or positions being held out of hesitation rather than conviction. The cost isn’t just financial. It’s behavioural. When investors feel uncertain, they delay decisions, second-guess moves in volatility, and hold onto underperformers longer than they should. That often leads to inconsistent outcomes, even after hours of research. Missed opportunity cost: capital sits unallocated while better opportunities pass. Unmanaged risk: concentration and drift can build without obvious warning signs. Confidence drain: underperformance and indecision compound over time. Risk capacity vs risk tolerance A common failure point for self-directed investors is confusing risk tolerance with risk capacity. Risk tolerance is psychological; it is how well you sleep at night when the ASX 200 corrects by 5%. Risk capacity is mathematical; it is how much capital you can afford to lose without jeopardising your lifestyle or retirement plans. Investors with $1 million often have higher risk capacity but lower tolerance, simply because the numbers feel heavier. Sharewise bridges that gap with evidence-based frameworks, clear communication, and documented decision rules that keep the portfolio aligned to the agreed approach. This is not about avoiding growth. It’s about taking risks deliberately, measuring it properly, and staying consistent through volatility. Defining your mandate Money without a mandate is inefficient. A mandate is simply the portfolio’s job description: what the capital is for, how much volatility is acceptable, and how performance is measured. A good mandate answers three questions: What is the goal (growth, income, protection, or a blend)? What is the time horizon and liquidity needed? What benchmark(s) will you measure against? The Growth Mandate This targets capital appreciation and suits investors still earning significant income who want performance with a disciplined process. Sharewise blends technical and fundamental analysis with proactive monitoring to identify opportunities and manage risk objectively. The Income Mandate Income-focused investors often prioritise dividends, but yield alone can mislead. A portfolio can pay 6% and still go backwards if capital falls. A more professional approach focuses on total return, risk management, and transparency to avoid yield traps while still supporting income needs. The Preservation Mandate This is about reducing volatility and protecting purchasing power. The goal is to beat inflation with minimal volatility. While cash rates from the Reserve Bank of Australia (RBA) offer a baseline, they rarely outpace real inflation after tax. Preservation strategies utilise defensive equities and gold exposure to maintain real wealth. The Time Horizon Trap Short-term thinking can force long-term mistakes. Structuring capital into time-based buckets helps reduce reactive selling and keeps decisions calmer during volatility. 0–2 Years (Liquidity Bucket): Capital needed for tax bills, property deposits, or lifestyle. This remains in cash or near cash instruments. 3–5 Years (Core Portfolio): Blue chip Australian equities and established international leaders. This forms the bedrock of the portfolio. 5–10 Years+ (Growth Engine): Smaller companies, emerging markets, or thematic plays (e.g., AI, green energy transition). The key is simple: don’t rely on your growth engine to fund next year’s expenses. That is how investors get forced into selling at the wrong time. Why Managed Accounts suit serious investors Historically, Australian investors had two choices: expensive managed funds where you pool your money with thousands of others, or a DIY brokerage account where you make every decision alone. Sharewise uses managed accounts to combine professional oversight with investor control: you maintain direct ownership of shares, you can see what’s happening through transparent reporting, and professionals help manage the day-to-day monitoring and execution process. Sharewise operates under a general advice model, which means every trade requires your verbal or written approval. You keep oversight while professionals handle execution and risk management. Which investor profile fits you Different investors face unique friction points when managing substantial capital. The table below outlines the common problem, the risk of staying as-is, and what changes with Sharewise.

A half-million-dollar portfolio demands a fundamental shift in psychology. While accumulating the first $50k or $100k often involves aggressive saving and speculative enthusiasm, managing $500k requires an institutional-grade mindset. You are no longer just trying to grow wealth; you are actively defending a significant asset base against inflation, volatility, and emotional error. Holding $500,000 in a stagnant bank account or a property offset facility is not a "safe" play; it is a guaranteed loss of purchasing power as lifestyle inflation outpaces static returns. Reaching this milestone places you in a distinct category of Australian investors, yet it introduces complexities that standard retail advice fails to address. As we look forward to 2026, the economic environment demands a more rigorous, data-driven approach to asset allocation. The reality of different investment options Every investor must decide which asset class will be the best investment for their goals. In 2026, a comparative analysis reveals why traditional "safe" havens often fail the $500k investor: High-Interest Savings & Term Deposits The Proposition: Earning a predictable 4.5% – 5.1% per annum. The Reality: On a $500k balance, this generates roughly $22,500 – $25,500 pre-tax. The Failure Point: With core inflation and the rising cost of living, your real return (after tax and inflation) is often near zero. Cash offers liquidity but zero capital appreciation, making it a "wealth-leak" strategy for a large portfolio. It is a place to hide, not a place to grow. 2. Residential Real Estate The Proposition: Using $500k as a deposit for a $1M+ property. The Reality: Gross rental yields in major Australian cities are currently squeezed between 3-4%. The Failure Point: Real estate is plagued by Concentration Risk. You are betting $500k on a single postcode. Between stamp duty, land tax, maintenance, and agent fees, the "passive" income is often eaten alive by holding costs. Furthermore, you cannot sell a kitchen to fund a lifestyle expense or a new investment opportunity; property is an all-or-nothing liquidity commitment. 3. Managed Stocks The Proposition: Professional allocation across the ASX and global markets. The Reality: Direct ownership of the world's most profitable businesses with 100% liquidity. The Sharewise Advantage: Unlike property, equities provide Franking Credits, which can significantly boost the net yield of an income-focused portfolio. Unlike savings, equities offer Capital Growth that has historically outperformed every other asset class over the long term. Strategic Flexibility: A share portfolio can be pivoted instantly. If market data shifts, you can move from "Growth" to "Defensive" in seconds. A feat impossible with real estate or locked-in term deposits. Does your mindset match your portfolio size? Investing $500,000 moves you into a distinct category of professional wealth management. While capital preservation is often a dominant theme, investors at this level generally fall into two strategic camps: Income Seekers: Focused on protecting capital while earning reliable, franked dividends to support lifestyle or retirement. Growth Seekers: Focused on aggressive capital appreciation to further build a legacy and stay well ahead of the rising cost of living. Regardless of the objective, the greatest risk to your portfolio is often your own behaviour. The emotional burden of managing this sum leads to two common failures: Paralysis: Funds sit in low-yield accounts because the investor fears making a wrong move during market swings. Overconfidence & Erosion: DIY investors often attempt to replicate small, speculative wins with much larger, unmanaged positions. This leads to slowly eroding money as they misjudge market cycles and make emotional decisions during volatility. Without an evidence-based framework, "hoping" for a recovery becomes a substitute for strategy. Data-driven comparison: The $500k decision 

Inflation does not sleep. While the Australian Bureau of Statistics (ABS) reported the Consumer Price Index (CPI) rose 3.8% over the twelve months to the December 2025 quarter, the reality for high-net-worth investors is a persistent erosion of purchasing power. Reaching a liquid asset base of $400,000 is a significant milestone – one that often represents a business exit, an inheritance, or decades of disciplined saving. At this level of wealth, you have moved past the "early saver" phase and entered the territory of the Wealth Steward. The decisions you make now are no longer just about "saving" for the future; they are about protecting a legacy and ensuring your capital works as hard as you did to earn it. Smart investors know that preserving wealth requires active participation in the market rather than passive observation. But where exactly should that capital be invested? The capital allocation dilemma When deploying $400,000, most Australian investors weigh four primary options. Each carries a different risk profile, yet only one offers the institutional-grade growth and liquidity required for long-term success in 2026. Should $400k go into savings? Cash offers the highest level of liquidity and a sense of immediate security. However, for a $400,000 portfolio, "safety" is often a mathematical illusion. In an environment where inflation outpaces standard interest rates, holding large reserves in savings accounts results in a guaranteed loss of real-world value. While cash is a tool for liquidity, it is a poor vehicle for wealth acceleration. Unlike equities, which offer the potential for market outperformance, cash guarantees you stay behind the curve. Should $400k go into bonds and fixed income? Bonds are traditionally viewed as a middle ground, offering more yield than cash with less volatility than shares. While they provide a predictable income stream, they often lack the "growth engine" required to significantly increase the net worth of a $400,000 portfolio. In a 2026 market, fixed income may struggle to provide the capital appreciation and tax-effective yield, or franking credits, that high-quality Australian shares deliver. Should $400k go into real estate? Australians have a long-standing affinity for "bricks and mortar," but investing $400,000 in property creates significant structural frictions. Real estate is an illiquid asset; you cannot sell a bathroom to fund a lifestyle change or pursue a new investment opportunity. Furthermore, rental yields in major cities often hover around 3% to 4% gross. Once you account for stamp duty, maintenance, and land tax, the net return barely outpaces inflation. Conversely, the share market provides instant liquidity and the ability to diversify globally, which is something a single postcode can never offer. Should $400k go into shares? Equities offer a proven path to market outperformance when managed through institutional-grade research and professional risk management. Unlike traditional property, which is often plagued by high entry costs, the share market provides high liquidity and franked income. While $400,000 in a savings account risks capital erosion as inflation outpaces interest rates, a diversified share portfolio allows for the compounding of real-world value. Shares are the superior choice for those seeking superior portfolio performance, transparency, and the ability to grow wealth with absolute confidence. Choosing a managed account structure allows for rapid trade execution and global diversification, ensuring your portfolio adapts quickly to market shifts. At Sharewise, our commitment to transparency and our proven track record, such as our FY25 ASX return of +26.49% vs the market's 10.21%, ensure that your capital is being managed with the precision and professionalism your role as a Wealth Steward demands. How to best manage the risks A common concern with individuals looking to invest in stocks is how to manage risks. For a $400,000 portfolio, the fear isn't just about market "noise"; it's about the potential for permanent capital impairment. However, professional investors don't view risk as a reason to avoid the market, but as a variable to be meticulously managed. By moving beyond speculative "tips" and adopting a disciplined, research-backed framework, you can replace the anxiety of the unknown with the confidence of a professional strategy, allowing you to transition from a capital accumulator to a Wealth Steward. Risk in the share market is manageable when you have the right tools, such as institutional-grade technical analysis and active oversight, that go far beyond the passive "buy and hold" approach. Whether you are a time-poor professional or a retiree seeking income stability, the goal is to build a resilient portfolio that captures growth while proactively mitigating the downside. Stocks: A proven framework for success For an investment of $400,000, a Managed Account structure offers a superior alternative to traditional pooled managed funds. Why surrender your capital to a "black box" where you own units in a trust and inherit the tax liabilities of others? With a Sharewise Managed Account, you retain beneficial ownership of your shares (HIN-based) while accessing professional management. Crucially, as we operate under a General Advice license, no trade is ever executed without your verbal or written approval. This empowers you with the research of a professional team while you maintain the final veto on every transaction. The strategic advantage of professional advice If you have amassed $400,000, your time is likely your scarcest resource. Analysing balance sheets and monitoring global macroeconomics is a full-time job. Trying to replicate the output of a professional investment team in your spare time is not just inefficient – it is risky. Partnering with Sharewise gives you an intellectual partner in financial growth. You gain access to research that is not available to the general public. We filter the noise of the financial media, acting as a behavioural coach to ensure you don't buy during a frenzy or sell during a dip. We provide the objective counsel needed to stay the course. This discipline adds significant value over the life of an investment journey. Risk management is more than just diversification Protecting your $400,000 is as vital as growing it. Many self-directed investors fail because of "hope" – holding onto losing positions in the belief they will bounce back. This emotional bias is the primary cause of capital impairment. Our professional risk management involves data-led investing. We utilise strict stop-loss parameters to remove emotion from the equation. If a stock falls below a technical level, we exit. This discipline ensures that a minor correction doesn't become a catastrophic loss. After all, if you lose 50% of your capital, you need a 100% gain just to get back to square one. Why leave that maths to chance? Professional Tip: "Waiting for 'the right time' often leads to missed returns. Success is found in using data to predict growth as accurately as possible, rather than trying to time the market perfectly". Steps to deploying capital in 2026 Deploying $400,000 requires a methodical approach. Dumping the full amount into the market on a single day is rarely the best tactic. Dollar cost averaging can reduce timing risk. Assess your timeline: Ensure you do not need these funds for at least 3 to 5 years. Equity markets are vehicles for long-term wealth creation. Define your risk profile: Be honest about how you handle market swings. A growth portfolio will be more volatile than a balanced one. Select a structure: Choose between a personal name, a family trust, or a Self-Managed Super Fund (SMSF). Each has distinct tax implications. Partner with experts: Engage a firm that aligns with your values. Look for transparency regarding fees and a track record of data-driven performance. Monitor and rebalance: Markets drift. Regular reviews ensure your portfolio stays aligned with your original goals. Secure your future with precision Investing $400k in 2026 is an act of Wealth Stewardship , requiring a fundamental shift from simple accumulation to strategic, efficient allocation. You have the capital to generate significant wealth, but only if that capital is working as a true asset. Relying on cash guarantees erosion, while property limits the flexibility a true steward requires. A professionally managed share portfolio offers the balance of liquidity, transparency, and high-growth potential that a high-net-worth Wealth Steward requires. It allows you to participate in global growth stories while retaining direct, transparent ownership of your assets, ensuring your capital is managed for future generations. Sharewise provides the institutional-grade insights and professional portfolio management you need to manage your wealth with absolute confidence. Our commitment to transparency and our proven track record, such as our FY25 ASX return of +26.49% vs the market's 10.21%, ensure that your capital is being managed with the precision and professionalism your role as a Wealth Steward demands. Discover how a Wealth Steward's portfolio performs with professional oversight. Book your free portfolio review with a Sharewise advisor today. Disclaimer: The information contained in this article is general in nature and does not consider your personal objectives, financial situation, or needs. It should not be relied upon as financial advice. You should consider seeking independent advice before acting on any information contained herein.