For the other retired guys::

[ch1ch2]

What I like about being retired is doing what I want when I want!

The latest thing was a friend called and asked if I wanted to go help his friend. It was about 2:30 in the afternoon. His friend was out hunting and drove off into a step creek. He buried the front of his rover under water (engine, tires wench, battery). There was no way a tow truck that could make it out there even if he found one.
It was 34 degrees, raining. More heaver rain coming. Cell phone almost dead, 4 miles from camp, 20 miles from very small town, 50 miles from other small town.

I said Yes, sounds like he needs help and unlikely to get it without us.

We drove 2 hours to get my friends off road jeep, 1 hour to get to the 7000 acre ranch, 20 minutes to get stuck in the mud, another 45 minuets to wench ourselves out and to get to the rover, about 1 hour to get him winched out and back to camp. Then the 3 hours back to drop off the jeep and drive home.

Over 10 hours unplanned. The good news was I did not have to worry about going to work! I love being retired!

 

[BrokeFarmerJohn]

Guys I need some advise. There is a ton of very knowledgeable guys on this thread.

I bought my tractor in the pursuit to make money at farming, have a hobby/second job that would pay for itself (eventually) and maybe make money.

I already had 3 head of cattle so I added the tractor to be able to feed them round bales. Well the more number crunching I do with the amount of land I have, unless I rent land or buy land I can't justify owning the tractor, it would turn into a garage queen for the most part outside feeding 3 head of cattle. one I would pay on for 6 years.

By the time I bought ground, fenced and cleared that ground, bought cattle to put on that ground I'm looking at 10-15 years just to break even and have the tractor and 15-35acres paid for at 5k-8k per acre if I tried to expand.

Or I could sell my tractor and a few other things I wouldn't need anymore, wipe out all my debts other than my house and start aggressively investing for retirement and save or just keep the tractor, pay it off and start investing and saving at the age of 30-31.

The way I'm sitting now it will be another 4-5 years before I could save much of anything, I'm trying to pay down debts on top of a house and tractor payments.

What would you guys suggest I do? Climb the very aggressive uphill battle of a first Generation farmer/ hobby farmer or walk away with just a house payment and play the investing/ saving game.

I also want to say two things, one is I have a passion for farming, I just enjoy it, I love playing with the tractor and love the lifestyle outside of my full time job. Also a very good friend of mine has a Mahindra 28 XL with a backhoe that he will let me rent for $15 a machine hour. So I'm just a phone call and 20 min drive if I need one around the house.

I just turned 26 and have 16 years left on my mortgage. 6 years left on the tractor but could prob pay it off in 5 if I stay at 3 head a year. Thanks

John

 

[dragoneggs]

You are young and have a lot of time to save... the fact that you are already thinking that way makes you miles ahead of most that I know your age. I have a small tractor that isn't making me any money at all. But I wish I would have bought it years ago. Could have saved my back and it is so much fun to do chores with and it keeps me motivated to do them. Also good for your health IMO to be outside, working but efficiently too. When you get older, that wheelbarrow and shovel won't be your friend. You will probably come up with many projects/uses for your tractor that you didn't think of yet. I say keep the tractor, do what you can to save at the same time. Once you pay off your tractor, start dumping that additional money into investments, land, stocks, 401K, etc.

 

[BrokeFarmerJohn]

You are young and have a lot of time to save... the fact that you are already thinking that way makes you miles ahead of most that I know your age. I have a small tractor that isn't making me any money at all. But I wish I would have bought it years ago. Could have saved my back and it is so much fun to do chores with and it keeps me motivated to do them. Also good for your health IMO to be outside, working but efficiently too. When you get older, that wheelbarrow and shovel won't be your friend. You will probably come up with many projects/uses for your tractor that you didn't think of yet. I say keep the tractor, do what you can to save at the same time. Once you pay off your tractor, start dumping that additional money into investments, land, stocks, 401K, etc.

Over the past 10 months or so I have kind of fine tuned my cattle operation to be about as efficient as I can be with it, best case scenario the cattle will pay for a little over 50% of my yearly tractor payments.

I would be willing to sell the tractor but I got a good deal on it, it runs good and is in good shape, it's got 840 hours on it now but should last a long time. It's a very handy tractor. I just planned on having the cattle pay for itself as a whole including the tractor. Maybe I will get lucky and find ground to rent close by for a few years to pay the tractor off quicker.

But also the interest of paying everything else is something I was thinking about, if I paid all of everything tomorrow I would prob save another 3k I bet.

 

[dragoneggs]

Over the past 10 months or so I have kind of fine tuned my cattle operation to be about as efficient as I can be with it, best case scenario the cattle will pay for a little over 50% of my yearly tractor payments.

I would be willing to sell the tractor but I got a good deal on it, it runs good and is in good shape, it's got 840 hours on it now but should last a long time. It's a very handy tractor. I just planned on having the cattle pay for itself as a whole including the tractor. Maybe I will get lucky and find ground to rent close by for a few years to pay the tractor off quicker.

But also the interest of paying everything else is something I was thinking about, if I paid all of everything tomorrow I would prob save another 3k I bet.

Hey I think you are doing pretty good at 50% at the moment. You sound quite utilitarian type. Don't forget to have a little fun along the way. But it does sound your head is screwed on right.

 

[BrokeFarmerJohn]

Hey I think you are doing pretty good at 50% at the moment. You sound quite utilitarian type. Don't forget to have a little fun along the way. But it does sound your head is screwed on right.

I'm the type of guy that dreads going to different social events and lose sleep over pulling a old tractor out of a barn that's been sitting for the last 20 years or picking up a new calf, I have lost sleep over a day designated to cutting and splitting firewood with friends, or getting to replace someone's furnace and A/C. That kinda stuff is fun for me, sitting around talking all day is not for me. I feel I wasted a day after.

Currently I'm working a 40h a week job, taking care of 42 chickens and 4 cattle and have too much free time, that's why I want to increase to 10-15 head in 2017 or take on more HVAC side jobs.

I got this way in HS or just before. I was broke working 20-45h a week as a host at Olive Garden plus HS and would take on random side work because it was something to do and put money in my pocket, I like to do projects on someone else's penny.

I will retire at some point but don't think I will ever stop working, I enjoy it too much, I pride myself on the quality of the work I do and am a believer of fixing stuff right the first time and not rushing.

I will be honest, I would be really sad to sell my tractor and stop raising cattle, I would have to find something else to fill time. If I only have 1 or 2 things going I get lazy, I like it when I have a full schedule and 3 or 4 side jobs or projects going at one time, I just bounce around them when I get bored with one lol. I'm always looking for what's next, my HVAC instructor told us to never get comfortable, never settle and don't stop advancing yourself and I try not to. I wish I was more pulled in by college or I would take one some classes, I have never been to college but never had a interest in HS. Only class I got excited about was the HVAC class in the career center, hands on stuff. I have always wanted to take a welding class.

I stopped doing side work for a while because it was getting boring, after about a few weeks I started drinking, quite a lot actually to the point it was a concern to me, let's say my tractor payments now are less a month then I was spending on alcohol, now I don't drink at all, I don't smoke and never did.

 

[rtimgray]

I applaud those that have retired, and aspire to do the same someday. According to my current investments, I should be able to retire sometime around 60.

However, I've seen far too many people plan for all of the things they are going to do in retirement end up getting the rug pulled out from under them due to health, relationships, jobs, poor decisions, etc.

Whether or not I retire remains to be seen - if I could actually see what was going to happen 20-30 years in the future, I'd be retired right now.

What I do is try to enjoy each day as much as I can. If that means the opportunity to leave work 15 minutes early on a pretty day and go home to do projects at the house, so be it.

Maybe I take a sick day from work to stay home with a sick child - even though they are teenagers and would be fine by themselves.

Sometimes it's going ahead and blowing a little money on a trivial endeavor just because the wife or kids want to. Is it money well spent? I think so.

I'm not judging those that work 12-16 hours a day for 7 days a week (I've noticed there are more than a few that make that claim). To each their own, and I hope it pays off for them.

One of the things I do as a side "job" is to mow cemeteries. I've mowed around a lot of headstones. I've yet to see one that reads "I wish I spent more time at work."
I know mine won't.

Good luck and take care.

 

[teg]

I've been thinking of retiring for way too long... and I'm way too young (actually not any more). We are fine money wise until you add in (the big question mark) medical insurance.

How do you budget in for their CEO's outrageous salary year in and year out... insurance companies for profit, how much is your life worth? We'll take it.

 

[rekees4300]

However, I've seen far too many people plan for all of the things they are going to do in retirement end up getting the rug pulled out from under them due to health, relationships, jobs, poor decisions, etc.

There are no guarantees. All we can do is increase the odds in our favor by planning/acting as best we can and then hope for the best. The biggie on your list is health. One day we can have a large nest egg for retirement and the next day it can all be gone from outrageous health care expenses. The average direct/indirect costs of a severe heart attack is $1 million! Direct costs include charges for hospitals, doctors and prescription drugs, while the indirect costs include lost productivity and time away from work.

How Much Would a Heart Attack Cost You? - CBS News

 

[kenmac]

The sooner you start saving for your retirement plan. the more you will have in the end.
It's called compounding interest.
You can learn more at daveramsey.com You may be bored and want to take on many jobs now. but when you get older, your body will make you slow down .LOL Good luck