3 posts / 0 new
Last post
Brian Gwin
Brian Gwin's picture
Offline
Last seen: 3 weeks 6 days ago
Joined: 2008-02-29 11:56
What age would you retire?

Copied from AgTalk

 

In the post below the criteria was you had enough land to rent out or other assets to live on the rest of your life. 

Question would be in your area how much land and what would the land be worth would it take? 

me- Northern Illinois. Prime farmland just for round numbers lets say it would be worth $10,000/acre a couple of years ago it would have been $12,500+. With a house paid off I think it would take 400 acres. If we would get back to $400+ rent a 320 (or even a 200 if we knew $400+ rents were here to stay) would do it but just not sure about that $400 rent. Thinking after all is said and done land will return less then $200 per acre today. 

One reason I answered "tomorrow" to the question below is I have seen wives need to liquidate an operation after the husbands untimely death. My father and father in law could assist my wife but they are struggling with old age issues so not sure they would make the best decisions or be of much help with the actual heavy lifting type stuff. I don't want to put my wife through what I have seen. 

edit to say I am 55 so not collecting SS. If I was fully vested in SS I think a 320 would be enough.

Event Date: 

Thursday, September 8, 2016 - 13:45
Brian Gwin
Brian Gwin's picture
Offline
Last seen: 3 weeks 6 days ago
Joined: 2008-02-29 11:56
waterloo iowa

waterloo iowa

Several times financial advisers on the radio have said that people that make less when they are working can retire with far less because they have lived a simpler lifestyle for 30-50 years.I know a married couple of college professors that had to take reverse mortgage on their house because they spent so much on travel .When they taught they would take 1 or 2 big excursions during the summer,,the first 2 years they retired they were gone more than they were home,and they only traveled first class. 

Big difference between a guy that drives an old pickup a mile to the river and fishes ,and someone that pays to get flown in to a secluded lake to catch a trophy fish

Brian Gwin
Brian Gwin's picture
Offline
Last seen: 3 weeks 6 days ago
Joined: 2008-02-29 11:56
NE IL

NE IL

The long term outlook for Ag commodities is flat to negative from where we are currently.

Odds are that you wont see 400 rent in Dekalb and Lee county for 20 years or more.  

Sell and diversify into investments with a better return. 

Land in the south tends to return better.

Apartments and commercial property should yield around 6 to 10% after management and all expenses. 

My thinking at this time is that land, for the most part, has peaked for my lifetime in the Midwest.  I'm 50.

Of course things could and do happen. 

Log in or register to post comments