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As a veteran retirement investor, I'm sharing this advice for your own adult children or grandchildren.
By
David Crook
published
2 March 2026
in Features
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My 26-year-old son recently asked me how to start investing and picking stocks. I gave him some advice and thought I’d share it with you to pass along to your children or grandchildren. Here’s what I told him:
1. Honor your goals
You have a long horizon and, right now, four goals. These may change over time, and you will have other goals. But for now:
- Have a family — let’s say 5-10 years out
- Own a home — 10-15 years
- Own a business — at least 10-20 years
- Retire — 40 years
2. Invest in stocks
Set aside 10% of the $50,000 we’ve saved over the years just for gambling on individual stocks — that’s $5,000. We’ll get to that later.
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Sign up3. Continuous investing
Add to your investments regularly. It’s called “dollar cost averaging” —committing money on a monthly or quarterly basis, whether prices are up or down.
4. Put retirement on automatic
You were smart to open a Roth IRA. Put the maximum $7,500 there and add at least $2,500 next year, then $1,000 a year (increasing 10% annually). You’ll have about $1.5 million in your 60s.
The QQQ Nasdaq fund we started buying for you as a baby is your best bet. My time horizon is different, and I was wrong to talk you into following my lead and selling last year. You’ll have more retirement savings options in the future. Eventually, you’ll want to get more conservative, but not until your 40s or later.
5. Put $5,000 in a high-yield cash account
That’s your emergency savings. When you have 3 to 6 months of income saved, it can serve as your short-term savings for travel or splurges like nice clothes, art or taking Dad to dinner.
6. For medium-term goals
To meet medium-term goals (family, home, etc.), put $30,000 in stock index funds and add more monthly. The granddaddy is SPDR, an S&P 500 fund, but right now it’s overlapping with the QQQs because the tech giants are so dominant. Put just $5,000 there for now and the rest in smaller-company and international funds. Again, over time you’ll need to get more conservative.
7. Take a little risk
That leaves $5,000 for gambling. Read The Intelligent Investor I gave you to learn how to pick stocks. (Benjamin Graham taught Warren Buffett.) Read Kiplinger and others for specific suggestions and ideas. Stay ahead of the curve. Never buy what everyone says is the hot stock. That’s yesterday’s winner. You want tomorrow’s.
Good luck!
Write to me at [email protected]. Please put “To the editor” in the subject line.
Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.
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David CrookSocial Links NavigationEditor, Kiplinger's Retirement ReportDavid Crook is an innovative editor and developer of print and online publications on a wide variety of subjects, from real estate to show business, finance to politics. Prior to joining Kiplinger, David invented, launched and edited “The Wall Street Journal Sunday” — the largest- circulation business print publication in U.S. history. David is also the author of The Journal’s “Complete Real Estate Investing Guidebook” and “Complete Home Owner’s Guidebook.”
Prior to the 1999 launch of Sunday Journal, David was on the team that introduced the paper’s highly successful Weekend Journal effort, expanding the world’s premier business newspaper from five days a week to six. Before joining The Journal in New York in 1995, David was managing editor of a group of suburban Los Angeles newspapers, and, before that, a writer and deputy editor for the Los Angeles Times arts and entertainment department.
Before that, he was reporter and editor in Washington, D.C., for what is today known as Broadcasting and Cable magazine. In 2017, he co-founded DCReport.org, a news website focused on national political matters. David received a Bachelor of Arts with Honors from Tulane University, New Orleans.
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