It’s Never Too Late to Invest

I see many financial experts talk about how investing when you’re young is essential, and it is! Well, not everyone started investing in their 20s or 30s. Younger people today can amass a great deal of wealth by investing even a small amount of their money by the time they hit their 70s, 80s, and beyond. My son and I often discuss the stock market and what he’s buying. There is a vast amount of free information available today that wasn’t available twenty years ago. No matter how old you are, there are strategies for everyone.

Disclaimer: None of what I’m discussing is meant to be tax or investing advice. Always do your own due diligence. I realize many seniors are on a fixed income with zero savings and no funds available to save (that’s a topic for another day). The purpose of this discussion is for those who have available funds to invest.

It’s never too late to start investing — but the strategy for seniors should be different from that of younger investors. The goal shifts from aggressive growth to income, preservation, and security. Here’s a breakdown of an innovative approach:

1. Start with Your Goals and Time Horizon

Ask yourself:

1. Are you investing for income, growth, or to leave a legacy?
2. How long do you expect to keep money invested before you’ll need it?
3. Even in your 70s or 80s, your time horizon might still be 10–20 years — so some growth exposure is appropriate.
4. Focus on Risk Management

Seniors should protect what they’ve earned. Key steps:

1. Diversify across asset types (stocks, bonds, CDs, cash equivalents).
2. At a minimum, have 1 year of living expenses in high-yield savings to avoid selling investments during downturns.
3. Avoid highly speculative or complex products that promise high returns but carry hidden risk. Always do your homework.
4. Use a Balanced Portfolio

A common rule of thumb:

“100 minus your age” = % to hold in stocks.

For example, at 70, you might hold ~30% in stocks and ~70% in bonds/cash.

But this depends on your health, goals, and comfort level.

Example conservative mix:

1. 30–40% Dividend-paying stocks or index funds
2. 40–50% Bonds (Treasuries, municipal, or investment-grade corporate)
3. 10–20% Cash, CDs, or short-term Treasuries
4. Prioritize Income-Generating Investments

Seniors often prefer investments that provide steady cash flow, such as:

1. Dividend-paying blue-chip stocks
2. Bond funds or laddered CDs
3. REITs (Real Estate Investment Trusts) for property income
4. Carrying secured notes
5. Annuities, if you want guaranteed lifetime income (though fees and terms should be reviewed carefully)
6. Keep Taxes and Inflation in Mind
7. Use tax-advantaged accounts (like Roth IRAs) if eligible.
8. Reinvest dividends or interest if you don’t need the income immediately.
9. Choose investments that outpace inflation, since rising costs can erode fixed income over time.
10. Get Professional Guidance

A fiduciary financial advisor (who must act in your best interest) can:

1. Tailor your plan to your specific needs
2. Reduce tax burdens
3. Help with estate planning or legacy goals

Key Takeaway

It’s not too late to invest — but the strategy should emphasize:

Safety, steady income, and modest growth.

Even small, consistent investing or repositioning can improve financial comfort and peace of mind in later years.