Imagine if your grandparents would have invested wisely

So, imagine this. If you grandparents had invested $10k (which was a lot back then) into the market say... in the 1960's... and wouldn't touch the investment, you could probably live off the dividend income alone. That is assuming it wouldn't get divided amongs many children and grandchildren.

It all comes down to investing in companies that are strong in the long term and manage to keep increasing their EPS year after year. And compound interest... which is according to many people the easiest way to get rich, it just takes a long time to work.

Wouldn't it be lovely to inherit a bunch of shares that would most likely make you financially independent from the very second you get them? And if the answer is yes, then doesn't it make sense to make that investment yourself so your children and grandchildren can enjoy their life without worrying about money?

I guess what I am aiming at is, do you people think beyond your own lifespan when investing? Why/why not?

 

I am just saying, life would have been a lot easier if this were to happen to me haha. But I think it is hard to think for the future whenever it comes to the stock market because everyone wants to see immediate results.

 

If my grandparents hd have done that then I probably wouldn't be having to do all the hard work myself like I am today!

As everybody knows though, hindsight is a wonderful thing. If they had of invested that much it could have gone the other way aswell don't forget and they could have lost everything.

 

When I look at my finances I always think about my kids and about leaving something to them. My parents have their own apartment, so it's something that will be left to me and I want minimum to do the same.

 

Well not really. If you go with risky investments then yes of course. But find me a company that has had stability and growth for 20+ years and then suddenly it goes bankrupt! I'm not saying you won't find one, I'm saying that you won't find many. And with a properly diversified portfolio even if you managed to catch that one bad investment overall you would still be profiting nicely.

 

That is a good plan. An apartment might not be the best inheritance since they will probably already have their own place at the time. However the apartment can always be rented out for extra income (now imagine doing this for each apartment over a couple generations!) or sold.

 

That is one good thought. However, because it didn't happen for me; I can make it happen for my future generation. As what Sunflogun said, it is also important for me to have something to leave my kids behind when I'm gone. It would be nice to have some good investments to pass on to my children and they can also do the same with their own children in the future.

 

That's a nice thought, isn't it? The area I live in actually has quite a few residents who are rich solely from older investors in their family. Sadly my parents didn't even come from this area, heh.

Hopefully it's something I can do for my children, though. I've yet to invest, but when my father talks about investing I know he has not only himself in mind, but also his children.

 

That sounds like the life haha. It would be so nice to just lay around all day and not worry about money.

If people knew what the future held or what was coming, then the entire world would not be what it is today.

 

That's very considerate of you. I know a lot of people that don't even think of their children or their family whenever it comes to their money. They just live and get by on a paycheck to paycheck basis.