Earning passive income in your 70s should be the easiest thing on Earth. You should already have a plethora of money and assets; all you must do is convert them into income.
Your 70s should be a time of joy and relaxation, not stress and frustration. One of the best ways to solve any problem is through passive income.
Creating passive income streams means turning things you own (assets, time) into money. It is not just any type of money but long-term passive income you earn in your sleep. Let’s begin.
- Planning for Retirement in Your 70s
- Real Estate Investing in Your 70s
- Staying Debt-Free in Your 70s
- Dividend Investing in Your 70s
- Bond Investing in Your 70s
- Stock & Bond Investing in Your 70s
- Options Trading in Your 70s
- Stocks, Bonds, and Options in Your 70s
- Stock Market Investing in Your 70s
What is passive income? Passive income is cash flow you earn without directly exchanging time for money. The best example is creating a book. You write it once and reap the benefits for the rest of your life.
Bonds for Mom: Retirement Plan for Mom
The toughest part of creating passive income is buying, building, or creating an asset. An asset is anything that produces income independently of your hard work.
However, in your 70s, you should have the resources to obtain assets fairly quickly. After 40-50 years in the workforce, it’s time to take a break and let your assets do the work.
Let’s take a look at the most accessible assets you can use to enrich your lifestyle. Always remember that if you reinvest in your assets, you’ll keep adding more passive income to your household.
Social security vs. income investing. Do you receive social security? It’s nice to get a paycheck in the mail without working, right?
However, you can turn one paycheck into two checks through income investing. Essentially, you take a portion of your social security check and invest in the stock market.
Podcasting vs. Blogging
Investing in the stock market directly (no 401k) can be challenging. However, income investing is much simpler because you exchange your money for more money. Let me explain.
Many investors seek capital gains through speculation; they purchase a stock purely hoping the price will rise.
Income investors purchase a stock for the income it produces. For example, I can exchange $2,000 in cash for 100 shares of PIMCO Dynamic Fund (PDI).
These 100 shares will pay me $22/month or $2,200/year, a yield of 13%. The goal is to convert your Social Security income into stock market dividends.
What is Your Net Worth?
Eventually, your dividends will exceed your social security check. To make this happen, you must find a way to create cash flow in your budget.
Cash flow is the difference between income and expenses. You can create cash flow by lowering expenses or increasing income.
As your dividend income increases, so will your cash flow. This is truly amazing because of the power of compounding.
As you begin your dividend investing journey, the numbers will start small. I received $0.25 in my first month of dividend investing in August 2019.
I received $2,238 last month, January 2025. So, the process does work, and the longer you stick with it, the bigger the numbers become.
The Perfect Life: RV Life & Royalties
Renting rooms to financial freedom. Do you own a home? Your house can create your freedom. In fact, there is a new movement of seniors renting rooms to college-aged kids.
So many seniors have big homes that lay empty. Why not convert your spare bedrooms into cash flow while forming great relationships?
My wife and I rented rooms to escape debt and build a nest egg. We went from having $77,000 in debt in 2019 to having $380,000 in our investment portfolio in February 2025.
I always say it, but I’ll repeat it: roommates are the single most accessible form of passive income available to the average person.
People want the thrill of trading options or starting a business; however, renting rooms is simply the purest form of cash flow.
Feel Special with Special Dividends
My wife and I still rent our second master bedroom, although we don’t need to. We receive an extra $1,000/month, which we can invest directly.
That’s right; you can use your rental cash flow to create more income-investing dividends. In fact, that is the best use of your rental income.
Let’s say you rent two rooms for a total of $2,000/month in cash flow. You invest that money directly into PIMCO Dynamic Fund (PDI) at 13%.
If you do that for five years, you’ll have at least 6,000 shares of PDI, which pays you $1,323 monthly. Now, we can review your passive income streams.
Create Royalties While Working a Full-Time Job
Let’s say you earn $2,500 from social security, $2,000 from roommates, and $1,323 from dividends—a total of $5,823.
But wait, there’s more. Now, you can start making some serious moves. Let’s say you own your home free and clear.
You can move to a lower-cost-of-living area and purchase two homes for the price of one. For example, you may have $600,000 in equity in your California home.
You can move to Alabama and purchase three homes for that money or one lot with three smaller homes.
Now, you can rent the two homes for $1,300/month each, while still renting two rooms in your primary residence for $800/month each.
Preferred Shares vs. Common Stocks
Is this an extreme move? Yes. But, if you want to make serious cash flow and promote your healthy lifestyle, it takes extreme measures.
I wrote a book in October 2022 titled “Be Extreme Toward Your Dream.” You simply cannot live your best life without taking risks, learning new things, and making massive moves.
Let’s review your passive income while living in a small town in Alabama: social security ($2,500), dividend investing ($1,323), rental rooms ($1,600), and rental properties ($2,600).
This gives you a whopping $8,023 in monthly passive income. How extraordinary is that? You went from $2,500/month in social security to $8,000 in passive income over five years.
Are You a Dividend Growth Investor or an Income Investor?
Conclusion. The most important part of this scenario is to invest in dividends continually. Your dividend portfolio represents portable income that you can take anywhere.
Eventually, your dividend will create more passive income than all the rest combined. As you age, consider removing roommates and rental property from your portfolio.
That’s okay because massive dividends will still come into your account. You can invest in even more dividends as you sell your remaining properties.
I’m living this dream life today, at age 44. My wife and I don’t have to work because of my military pension. However, we still invest $4,000 in fresh capital into our portfolios—all without working.
College vs. Property
My personal goal is to earn $10,000/month in dividends by the time I turn 50. I have six years to achieve this.
The moral of the story is to think creatively. You must find ways to generate cash flow, which you can then invest in.
You create cash flow by lowering expenses and increasing income. For example, you can reduce your costs by moving to a smaller, less expensive town.
You increase income by getting roommates, investing in dividends, and renting properties. All together, you have a lot of things working in your favor.
My 70s will be amazing, especially if I have the resources to live how I want. I want to have lots of excitement in my 70s, and my passive income will let me achieve my goals. 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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