Retirement Targets
- Thread starter yowza
- Start date
I think you misunderstand how AI should be used. AI will help you make better, more customized decisions without having received all the education needed. In your teaching example, AI will allow for a teacher to better be able to customize curriculum for different kids’ learning styles or deficiencies. That doesn’t mean he or she would be unskilled. They just need to learn how to be someone who is good at using AI and managing a classroom with those tools.
A teacher will be a motivator, administrator, and classroom manager for a better learning environment.
The person mentioned buying land, not actually farming. Like I said, there are a lot of other factors not considered on both sides.
So this was purely land appreciation only - no cash rent, no farming income, no property tax expense, etc.?
I agree, there are a few other ins and outs, but at a high level this seems to be an accurate analysis.
Yes, that's what it said.
- Additional costs: The farmland profit excludes potential costs like property taxes, maintenance, or real estate transaction fees (~5-6% of sale price, potentially $43,000-$52,000). The S&P 500 investment assumes no fees (e.g., expense ratios for index funds, typically 0.03-0.2% annually), which would slightly reduce returns if included.
- Income: Farmland may have generated rental income (e.g., $200-$300/acre/year in Iowa), which could increase its effective return. The S&P 500 calculation includes dividends via total return but assumes no withdrawals.
I might buy some farmland just to diversify out of stocks. Its not hard to see a scenario where the world economy takes a dump, stagflation comes in, PE ratios take a dump, and we get SP500 at 2000.
I just dont know where else to park a bunch of money safely, protect principal and match inflation, maybe TIPS or something.
I just dont know where else to park a bunch of money safely, protect principal and match inflation, maybe TIPS or something.
The compounding of divi's vs. no income (roughly 2-3% cash rent) for the farm is not fair. Shouldn't do one without the other. Anyway, a lot of other ins and outs.
You just need a well diversified portfolio. Some in stock (global and US), some in bonds (global and US), and some in real assets (TIPs, Gold, Commodities, REITs, Farm Land). I know it’s not for everyone but I would even say a small allocation in Bitcoin. Depending on how close you are to retirement you can shift the % allocated to the category aboves to be more conservative.
Meb Faber is a great resource for strategies like this. Good follow on X, and his website is pretty good too. He used to and may still offer his books as freed PDFs on his site.
It’s why I said it’s hard to compare. Land rent net after property taxes is at best 2%. Then throw in what you do with tax savings on depreciation or getting to expense out quite a bit of things since now you “own a business”. The variables are very relative to the person and their situation with farmland.
Diversification isnt what it used to be. Even stocks and bonds are more correlated than they used to be. Intls and US too. What if MPT doesnt really work anymore?
I have a decent portfolio and in my 50s. So its def something on my mind.
I'm nearing the finish line and this year I'm putting my 401k into safer stuff. Next April, I'll decide whether I have enough to retire in a year from then.
The best way to plan for retirement has never changed, live below your means, and squirrel away as much money as you possible can for your Golden Years, and hope like hell that you do not get cancer or some other disease that wipes you out financially. Way to many live for today, not worrying about tomorrow and retirement, they either do not care, or they believe that they are not going to be around that long, so why save for something, that they are never going to need.
Set up a 401K through your employer, hopefully they have a generous matching formula, and put every dollar you can into your plan that they will match. Or go find a job in a field that still has a pension, they are still there in education, civil works and other places. Most important, find a good person you trust to handle your money, trust their advice and follow what they are saying. Talk to others about who they use and interview the ones you like best, you will know the correct person when you are comfortable with them, and they have a plan on how you can maximize your retirement. If you have any doubt, then move on to the next person, until you find the one best suited for you and the amount of risk you are willing to take.
Set up a 401K through your employer, hopefully they have a generous matching formula, and put every dollar you can into your plan that they will match. Or go find a job in a field that still has a pension, they are still there in education, civil works and other places. Most important, find a good person you trust to handle your money, trust their advice and follow what they are saying. Talk to others about who they use and interview the ones you like best, you will know the correct person when you are comfortable with them, and they have a plan on how you can maximize your retirement. If you have any doubt, then move on to the next person, until you find the one best suited for you and the amount of risk you are willing to take.
Which should be your course of actions, the last five years, growth is less important than maintaining what you already have. We retired 2 years ago, we meet with our financial advisor once a year in person or a phone interview. We are strictly maintaining what we have mode now, not worried about investing for the future, since we are living it now. After taxes we clear a little less than $11 grand a month, between IPERS, SS and our investments. It can be done, it just takes a lot of time, some effort and getting with the right people.
Diversification is all we have. You are correct, correlations and market environment change. Some times those changes can last decades. Diversifying is the best way to avoid huge losses when the tides go the opposite way. This may also mean that you leave some returns on the table versus something like the SP500 though.
Ultimately it depends what somebody’s goal is. This is a retirement thread, so most of the goals should be on wealth preservation and moderate growth.
I am of the mindset that it's more fun to spend the money while you're of young body and mind than waste it away when you're older.
I save for retirement and I max out my 401k and HSA and do some mega back door ROTH stuff since I make too much for direct. But if the choice is "put this extra money away for retirement or spend now" I am choosing spend now every time. You can always make more money.
All gas, no breaks until retirement is closer
A simple QQQ - SPY portfolio from 2010 forward seems to get roughly 15% per year.
My retirement is still very risk on until it won't be
The key is to have balance and the ability to do a little of both. People get in trouble when they allow one side, living for today or saving for the future, becomes out of balance and the other is neglected.
I believe you are single with no kids. That can also make a difference.
