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Originally Posted by ron244
... Also, we own about 150 acres of land (95% timber) worth approx. 300k, do we count that as part of our portfolio even tough it doesn't produce income and we can't sell a portion each year like stocks or bonds? The reason I am asking, is that the 300k would increase our safe withdrawal rate( and ease our minds a little). ...
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Yes it is an investment. It is not as liquid as securities. In fact, you might not be able to sell it when you need it (except at a reduced amount...). Often land sales need to be anticipated in advance or taken when the opportunity presents itself (which might mean 10s of years)... it depends on prospects of the investment... and it is an investment (speculation).
Since it is not liquid... you need to view it in a very conservative way. Only use the rock bottom value for retirement portfolio planning purposes. That way you will not get blind sided. If you sell if for more... you are better of than the conservative view.
Not to probe too much... but I am curious. 300 acres of timber... how do you intend to cash in? Sell the timber then the land? What are your plans? How are you valuing the investment and potential payoff? Or are you speculating a little?
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Planned FIRE Summer 2011
Disclaimer: I make no warranty or guarantee about the accuracy or completeness of this information. I am not a financial planner, my comments only represent my opinion.
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