I’ll be honest with you; our 60s should be a time to relax and reflect—we should be on the easy street with our finances. If we haven’t figured it out by now, we may never unlock our potential.
That’s not to say that there won’t be dangers associated with this timeframe. We worked so hard to grind through our 20s, 30s, 40s, and 50s that maybe our family won’t understand the struggle.
Therefore, the most significant problem we will face in our 60s will be not making emotional-based decisions. We always have to remember our roots and the financial adversity we overcame.
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What are emotional-based decisions? Emotional-based decisions are choices we make outside the confines of reason and logic. Men should never make emotional-based decisions. Women should strive to remove emotions from as many decisions as possible.
Why are emotional-based decisions bad? When you make these decisions, you may not be thinking of the long-term. To grow our wealth and keep it, we always (repeat ALWAYS) have to keep a long-term mindset.
In your 60s, if you grinded away at your job and passive income, you should be a millionaire a few times over. Your children will understand how much work you put into building the family’s wealth.
However, your children will now have their own children, your grandchildren. Here is where the conflict enters your life.
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Kids want the best for their kids. Your children will enjoy the best for their kids (your grandkids). Obviously, you’ll be in a better financial position than your kids because your money will be compounding into larger numbers.
As your grandkids grow, your children will want to give them nice things and services. They will wish to provide fancy lifestyles for their children—at your expense.
Hey, it’s human nature to want nice things, and why not ask the person with the most money? Here is where the emotional-based decisions come into play.
Perhaps through your spouse, your kids will want to leverage your wealth to make their lives better. Let’s take a look at some examples.
Private school. I am not a big fan of the public school system. But that doesn’t mean that private school is the answer. However, sending your grandkids to private school instead of homeschooling may be easy for some.
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But is that the correct answer? You will get the call to support your grandkids going into private school. You cannot make an emotion-based decision without all of the facts.
You have to remove emotion from the equation and look at the cold hard facts:
- How much will 12 years of private school cost?
- Is there a better investment we can make with this money?
- What is the upside of sending kids to private school?
- Why can’t someone homeschool them?
- Are public school and a tutor a better option?
You can’t afford to “just throw” your money down the drain on private school or any other luxury. Let’s assume that private school costs $300,000 over 12 years. Would it be better to use leverage to buy a home for that child?
You can buy a home with a $60,000 down payment by using leverage. Now, the child will have a house set aside for them from age six. We can use this home to pay for their college in the future.
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Also, having a home moving into their 20s and 30s with no college debt will put them in the top 1% of Americans at that age.
What benefits will private schools give them long-term? Perhaps get them accepted into a more expensive college? Again, these are deep, long-term questions you MUST consider at all times. No emotions.
You can have some emotions on more minor decisions. You don’t have to be a grumpy, heartless older person. You worked your butt off to have passive income in your 60s.
You can use your wealth to splurge for your kids and grandkids. You can take them on vacations, buy clothes, and support their ambitions.
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However, you must avoid lifestyle inflation at your expense. This means that your kids will want to upgrade their lifestyle with you as the funding source.
For example, they may want to take more vacations because they know you will pay. They may want to get a bigger house because you’re paying the down payment. How about starting a business with you by giving them the seed money?
You are first-generation wealthy. If you read my work, chances are you are the first generation of wealth in your family tree. Your job isn’t to make other people’s lives super-comfortable; you have already accomplished this feat.
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Your mission, and life’s work, are to ensure this wealth lasts for generations to come. You create land trusts, irrevocable trusts, agreements, contracts, real estate, etc.
Protecting your livelihood and that of generations to come is called estate planning. Sometimes you will need to forgo the WANTS of today for the NEEDS of tomorrow.
You never know what the future will bring, but you will have to be on the lookout for future pitfalls at all times. Your most challenging mission is preventing your kids from thinking they are rich.
For this matter, you’ll need to be “stingy” with your money. Instead of giving $50,000 for the wedding, you may give $10,000 and invest $40,000 into the couple’s Roth IRAs.
It will be unpopular at the time, but in 20 or 30 years, they will appreciate the wisdom of your choices. Decisions like this will occur almost weekly. Life is expensive, and if there’s a golden answer (you), people will attempt that solution first.
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Conclusion. Your 60s won’t be as bad as I make it seem. Hopefully, your children will understand your financial mindset by then. They will understand your decision-making process and adjust accordingly.
You have to protect your wealth at all costs. Sending grandkids to private schools is nice, but what if you have five grandkids? You have to prepare for the unknown.
What if you have to support a child after an accident, or one of your grandkids has a handicap? You can’t assume everything will “just be okay.”
Money is not the solution for everything in life, but it can assist in almost all facets of life. You have to be “the rock” in the family. You do this by removing emotions from all long-term decisions.
You don’t have to be rude or mean, but you can talk through your reasoning with your kids and grandkids. Eventually, they will see that you want to protect the family’s resources for the next 100 years. Good Luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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