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Pittsburg, Kansas | I read the book by Vanguard original owner about index investments many years ago and took it to heart. We have two company simple IRA that are invested in index funds. So we have some minor diversification there. Will have to start taking mandatory disbursement and pay taxes in 3 more years.
I may diversify into some other securities like you mention after we get the taxes paid on my recent sales and see where we land net. But there is absolutely no need for us to take any risk.
About two months before we decided to pull the plug on our farming operation I made up a spreadsheet of all our potential income and investments to see if we had enough to retire. I figured zero income from our off farm investments but also zero inflation, guessing or maybe hoping one would offset the other. Took our current living expenses and added a significant chunk for travel and leisure knowing being retired would require entertaining ourselves. Much more than we were currently spending and we were already doing more than most people at our age. Estimated owned farm land income. Listed all our equipment assets in the thre corporations and estimated what it would sell for. Estimated the tax hit then the additional tax hit getting it out of the corporations.
A whole big spreadsheet of calculations including line item nursing home stay. All with boxes with easily changed scenarios and variables .
I determined if we sold out we could retire in current lifestyle "plus" desired lifestyle as long as we didn't live past 98 without running out of money. We were spending millions a year putting in crops and getting on average measly returns. With my wife and I no longer a participating part of the labor force (we were already 50-75% retired) we were no longer a low cost producer. I lived and barely survived the 80's. I watched hog farmers go from millionaires to barely being able to hold onto the home farm. We were using borrowed money for a significant part of operating costs .
We decided to pull the plug. Told employees during harvest. Sold half of equipment via advertising in that year November December. Wound up the other half the next spring at auction splitting the tax burden in two years.
It all went amazingly well. No regrets. Having the time of our lives.
I loved farming from the fifth grade. Couldn't wait to get out of highschool to farm full time. Did it on my own for 49 harvests. Loved it all. Building it up. Winding it down. But after that many years, I had enough.
Wondered at the time if I would miss it. My nephews would let me run a combine or tractor anytime. I have not. I got a couple small play tractors I play with and chain saws.
Many farmers never want to retire, and I understand and support their wishes. I have had no problem with retiring. Life is good.
Edited by John Burns 12/18/2025 15:57
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Silver chart help
