Stock & Bond Investing in Your 70s

Our 70s are all about paying it forward. Hopefully, we did well with our finances and can give to the next generations.

We want to ensure our children and grandchildren can navigate life with more resources than we had available. 

We must lead by example if we want them to have the millionaire mindset. Welcome back to the Stock and Bond Investing at Any Age series (20s, 30s, 40s, 50s, 60s), where we build generational wealth.

A High-Value Person Earns $100,000 Per Year Passively

Before proceeding, please reference the following articles for a more detailed analysis of your 70s.

1. Retirement Planning in Your 70s (Amazon)
2. Real Estate Investing in Your 70s (pdf)
3. Staying Debt-Free in Your 70s (pdf)
4. Dividend Investing in Your 70s (Amazon)
5. Bond Investing in Your 70s (pdf)

What is generational wealth? We must first understand generational wealth before we begin to build it.

Generational wealth is not leaving a house or a lump sum of money to your kids and grandkids. It ensures they have the mindset and the resources to build upon your legacy.

Sometimes, we must ensure our kids don’t get in their own way. We may have to put our money, real estate, and businesses into a trust to make the money last forever.

The Beauty of Rental Income

Let’s get started. First, let’s take care of the basics. We can invest up to $10,000 annually in Series “I” Bonds per recipient.

You can invest $10,000 annually for each child if you have five grandkids. Let’s say they have $100,000 in Series “I” bonds when they turn 30; that would be a tremendous gift.

This is also a great time to invest in Series “EE” bonds for your grandkids. It takes 20 years for them to double, so they will begin to double as they attend college.

How cool would it be to have $200 of “EE” bond payments per month in college? These little steps we take today can change someone’s life.

Use Dividends as a Safety Net

Index funds for the win. The primary investments for our grandkids should be index funds inside a custodial brokerage account.

I have five custodial accounts under my STASH (affiliate) portfolio. I have funds for my two kids and my three nieces and nephews.

Why index funds? Index funds help us capture the stock market’s gains over time. Even investing $5,000 into an index fund for your grandkids can be a major win for their retirement.

That $5,000 turns into $2.5 million in 65 years at 10% growth. Can you achieve 10% growth?

Transfer of Wealth in the Metaverse

The index fund dividends make great purchases when the market is down. Over the decades, those beaten-down years will help compound your growth.

My favorite index funds for my grandkids? I invest solely in Vanguard Total Stock Market Index Fund (VTI) in my custodial accounts.

It is simple and easy to dollar cost average into VTI every week. However, you can diversify into my other favorite index funds: S&P 500 (SPY), Nasdaq 100 (QQQ), and Dow Jones Industrial Average (DIA).

One caveat with custodial accounts is that they revert to the child at age 18. Therefore, you must instill the millionaire mindset in them before the transfer.

Create an Online Course for Passive Income

Taking care of your adult children. What do your adult children need most? Income. This is a perfect time to build an income-investing portfolio for your adult children.

You can create multiple brokerage accounts under your name. This way, your kids don’t have to worry about taxes and other things.

You can transfer them a portion of the dividends (reinvesting the rest) every month. In your estate planning, you can assign each portfolio to each child.

It is a clean way to ensure they understand precisely what they will get and the benefits of keeping these portfolios intact.

Why I Became an Income Investor

High-yield investing. I am a massive fan of high-yield investing. We all need income, so we must invest to make more.

High-yield investing is only for some people, and your children will need to build the correct mindset to become income investors.

You must walk them through their portfolios multiple times until they feel confident about these critical resources.

You are the CEO of an important company. The book “Make Your Family Rich” discusses that the family is a company.

Counting on Crypto 2

You sit as the head of the family company, but everyone should have roles and responsibilities. The more seriously you take your role as CEO, the more your children will get out of it.

People often call me too serious, but I am. I understand we cannot have fun in life without resources.

Even more so, we must ensure we have the resources for emergencies, life events, and unexpected expenses.

Life is getting more expensive every single day. As 70-year-olds, we need to constantly prepare for the unknown for us, our kids, and our grandkids.

How to Start Dividend Investing 105: Your First 5 Stocks

Conclusion. Please take your role as family CEO to heart. I take it to heart, and I am only 42 years old.

I already have Series “I” Bonds, index funds, income-investing assets for my kids, and a house for each. 

My kids do not need to struggle like I did, just so they learn random life lessons. They have their own lessons to learn, but it doesn’t have to be credit card and student loan debt.

Five Takeaways from “Successful Self-Publishing”

So many older people want their kids to prove something or endure hardship. When I hear this, I believe these parents have nothing to offer.

If I give my kid a $1 million income-investing portfolio producing $10,000 per month, it may be his struggle to grow it.

Or it may be his struggle to find meaningful hobbies or charities he can support. I don’t need him to worry about making his rent payments so he can “become a man.”

I take my position as family CEO very seriously. I have learned to build this mindset after reading 140+ books, and I keep growing and evolving. Good Luck with becoming CEO.

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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