Retirement Question

[OldMcDonald]

I gave up working when I was 61. (now 67) I sometimes wish I had a little income for buying new tractors and things but we get by. My super paid the farm off and we installed Solar power so the only bills we get are Council Rates. We have our own water so no water bills.
We do not go out (too old for that) We have no desire to travel. I did that over the years before retiring. We have our farm and animals and everything is paid for. I have enough from my pension to keep my hobby well supplied. What more do you want?

An enormous amount of sound advice in the thread, but I particularly liked this one at #73. I have lived on low income for most of my life despite being able to command high salaries in administrative and financial positions; which I did for a while after leaving school, and later when required. I spent a total of 27 years behind desks for the sole purpose of financing my only aim in life - being a farmer.

Life for us has always been about minimising expenditure rather than maximising income. One is every bit as useful as the others. We have been able to farm our own land in four different countries - England, Australia, Scotland and Portugal so far. At just short of 72 I have no intentions of retiring, although this might be our last farm before I eventually do, or it might not. We moved to Portugal 13 years ago from Scotland because it is so much cheaper to live here. The minimum wage is less than half that in Britain. No idea how it equates with other countries but it is marginally over €500 a month. Other southern european countries are similar or slightly more I think. Quite a few millions of people live on this sort of income. Anybody can do it if they try.

EXCEPT.... USA health insurance appears to be an enormous problem. If that is a concern for anyone then consider moving to somewhere else. Look also at some home grown food. A lot can be knocked off the grocery bill. Only go into town when you have to. Plan ahead and buy several weeks' shopping at a time. Every journey costs money, how much depends on how far from town you are. Do you really need to buy a newspaper and magazines? You most definitely do not need a shower every single day of your life. Many of us who post on here pre-date household showers. We are still here. Anything you can think of to reduce retirement time costs is beneficial and allows you to retire earlier.

 

[ultrarunner]

What I have found is for some... it will never be enough.

I work with Doctors that have excellent income and live paycheck to paycheck.

I also work with a single nurse that has amassed a sizable income portfolio and lives in the same one bedroom condo for 29 years.

A couple of my friends have said they need 10k a month just keep the status quo... it is amazing how much some burn through and how fugal others live.

My grandfather said prosperity is earning a dollar and needed only 99 cents...

Bar none... my biggest expense continues to be taxes of all types... with property tax leading.

 

[OldMcDonald]

ultrarunner, Another candidate for Portugal. I pay no property taxes. Neither does any other farmer living on his land.

 

[ultrarunner]

Wow... just was reading about the last farm in San Francisco... shut down in 1991... been there for 90 years and it was a family operation... that started for 30 acres and was down to one.

The reporter asked why the family worked so hard and they said it was to pay the taxes!!!

That little farm had 4 harvests every year... they would plant the next as the current was maturing... all harvested by hand cabbage, lettuce, etc...

So much of the how and why are based on taxes or avoiding them...

I truly admire your spirit and love getting you insight here at TBN

 

[California]

Wow... just was reading about the last farm in San Francisco... shut down in 1991... been there for 90 years and it was a family operation... that started for 30 acres and was down to one. The reporter asked why the family worked so hard and they said it was to pay the taxes!!!

So much of the how and why are based on taxes or avoiding them...

For sure. I just posted in a thread about orchards noting the only way an orchard is economically rational here is if you own the land clear, and I should have noted 'and only if you have owned it since the 70's to take advantage of the Prop 13 rules'. Under that legislation, assessed value for tax purposes is 1973 value + 3% per year so long as the property stays in the same family. Compared to assessed to market value each time property is bought.

So my taxes are maybe a third of my more recent neighbors. I voted against it when it was enacted (its just one more reason the younger generation today feel life isn't fair, that the old farts stole all the good stuff) but this unequal taxation has saved us a huge amount of taxes over the years.

McDonald you might like my post#34 in that thread, a description of my place. It's not a big enough operation to live off of but starting from my grandfather in 1950, the orchard has made this a minimal cost retirement location. Several people in this Retirement thread have commented on living well by reducing costs, this is our example.

 

[tjkubota93]

Contraceptives.

Haha. If you already have kids, how do you keep them from getting lazy? Seems like an epidemic.

 

[newbury]

This is a post well worth dissecting.

<SNIP>
Life for us has always been about minimising expenditure rather than maximising income<snip>The minimum wage is less than half that in Britain. No idea how it equates with other countries but it is marginally over €500 a month. <snip>

€500 = about $560/US or about $3.70/hr.

<snip>Look also at some home grown food. A lot can be knocked off the grocery bill. Only go into town when you have to. Plan ahead and buy several weeks' shopping at a time. Every journey costs money, how much depends on how far from town you are. Do you really need to buy a newspaper and magazines? You most definitely do not need a shower every single day of your life. Many of us who post on here pre-date household showers. We are still here. Anything you can think of to reduce retirement time costs is beneficial and allows you to retire earlier.

That is almost anti-American. We have been taught consumerism by the Holy Trinity - ABC, CBS, NBC. I grew up "use it up, wear it out, make do or do without".
I was taught to squeeze every penny until Lincoln turned green and screamed. It took a LONG time for me to get used to the concept of borrowing money.

Business tells us the American Way is to spend, spend, spend.

 

[ultrarunner]

For sure. I just posted in a thread about orchards noting the only way an orchard is economically rational here is if you own the land clear, and I should have noted 'and only if you have owned it since the 70's to take advantage of the Prop 13 rules'. Under that legislation, assessed value for tax purposes is 1973 value + 3% per year so long as the property stays in the same family. Compared to assessed to market value each time property is bought.

So my taxes are maybe a third of my more recent neighbors. I voted against it when it was enacted (its just one more reason the younger generation today feel life isn't fair, that the old farts stole all the good stuff) but this unequal taxation has saved us a huge amount of taxes over the years.

McDonald you might like my post#34 in that thread, a description of my place. It's not a big enough operation to live off of but starting from my grandfather in 1950, the orchard has made this a minimal cost retirement location. Several people in this Retirement thread have commented on living well by reducing costs, this is our example.

I know... my sellers of my home were paying $1200 annual property tax and upon sale to me it went to $9,000

My brother ranch/farm went from $4,000 to $30,000

I'm OK with this as in 30 to 40 years I fully intend on being one of the old Farts with lower taxes.

Meanwhile Prop 13 does keep things in check by requiring voter approval for new assessments.

I was too young to have voted for Prop 13 but am thankful those that came before me did having seen my taxes spike 80% higher over what I had paid for the place 18 months prior when Washington's version of Prop 13 called I-747 was struck down... the floodgates opened!

 

[OldMcDonald]

McDonald you might like my post#34 in that thread, a description of my place. It's not a big enough operation to live off of but starting from my grandfather in 1950, the orchard has made this a minimal cost retirement location. Several people in this Retirement thread have commented on living well by reducing costs, this is our example.

I had been keeping an eye on the thread, but not yesterday so had not seen your post. Like you I did not have much to add. I will now. I did like your post, but will not take this thread off topic.

Assuming we all have at least a little "pension" income when we retire (mine are very small in Britain, but worth a lot more when transferred here) it is probably not essential to create a living wage from the property, so a few cost savings, and a little surplus just adds to theoverall available funds. Moving here gave us the biggest boost. I am not retired though, still developing the farm.

 

[ultrarunner]

The other side of the retirement question is not retiring.

No one in my family has ever retired or had a pension with the exception of Mom who did retire at 62 with Social Security.

When your business is a small family farm or other small business... formal retirement is not that all that common... my grandparents and father worked until they passed away.

I don't think old farmers every really retire as there is always something they can do to help out even if the next generation is running things.