Several new reports have recently hit newswires chronicling the under-preparedness for the retirement of baby boomers, and the figures they present are downright frightening. About four in 10 baby boomers have not saved for retirement.
According to a study recently published by the Insured Retirement Institute, only 69% of the still-working Boomers have money stored up for retirement, while only 50% of already retired boomers have saved money.
In other words, half of the retired baby boomers are living off of social security income, pensions, and other forms of recurring revenue, instead of retirement savings accounts. For additional context, in 2011, 84% of working baby boomers have put away money for retirement, and 69% of retired baby boomers had saved money for retirement.
36% of boomers decide to rely on Social Security as their primary revenue stream.
A recently conducted research from the Center for Retirement Studies (TCRS) pointed out that the most commonly given response from baby boomers regarding where the majority of their revenue in retirement would most likely come from was “Social Security” with 36%.
With time being the greatest number one ally of any investor, and boomers potentially losing some of that leverage because they near retirement, investing in land for farming might be a wise decision.
A hobby farm is usually a small farm you work on and earn a bit income from.
It is usually meant to help supplement the income from a job. Sometimes hobby farms transform into the main revenue stream due to job loss, retirement, or just for the joy and satisfaction it brings. People often find themselves wanting to spend more time on the particular farm and increase the animals and/or crops so they can earn a full-time income.
Along with the plethora of animals, hobby farmers generally include gardens and U-pick orchards. It generally is a very lucrative enterprise if managed effectively.
A U-pick can generate a lot of money in revenue over the summer, and need not take up lots of space. An acre or two has got the potential to create many bushels of fruits and vegetables if it is put up properly.
A small greenhouse could lead to several hundred bedding plants along with a few dozen tomato plants. It won’t take long for word to spread that you have high-quality vegetables and flowers available for purchase.
Choosing Your Hobby Farm
The first thing you should have in order to have a hobby farm is usually a parcel of land. This could be anywhere from an acre upwards. So here are generally some tips on deciding on the best hobby farm to help keep yourself active in the course of retirement:
- Have all your financial ducks in line, so to speak, before you even start looking to buy land. You will be ready to buy once you find what you are looking for if your financing was already secured.
- Choose an agent that is experienced with the sale of agricultural land since there are lots of specifics involved with regard to paperwork and property requirements that everyone should be on the same page about.
Carefully check out the property, do not rely on photos or hearsay. Make sure yourself that everything you would like is there.
Do you intend to plant crops? Do you know for sure if your soil is good and fertile enough for planting? Does it have appropriate water drainage and irrigation? Is there a spot to put your tools?
Like all property, the cost will depend on location and facilities. A farm of 20 to 40 acres just out of Tamworth might cost you around $200,000 to get going. If it has a decent house and dams you could be looking at over a million dollars.
Speak to an expert in rural property. There are plenty of resources online to get you started.
You should also do some additional research on the current market, not only for the property, but for the primary production you intend to grow. Smaller growers markets are attractive and less arduous than larger property and if you can make a return on local produce stalls you can still sit back long enough to enjoy the mixture of happy retirement and productive labour.