sell land now?

[lynn]

Hello, I am new and have a question. My husband is 51, 32 years in at employer. I am 48 and a RN working part time. We have 50 acres tillable that we cash rent out. I think we should sell now and invest. Hubby thinks let it sit, it will be there later if we need to sell. He is wanting an early retirement and I think this is the answer as long as I keep working part time. He does have a 401 and will receive a pension.

[Meadbh]

Welcome Lynn.

We need more information to provide intelligent input on your question. Is the land zoned for agriculture? Does it have any other potential uses, like development? Is is near a growing urban centre, or at a very scenic location? What is the appraised value of the land now? What income does it generate?

[Webzter]

Where is it and is it zoned ag or rh? We're in the market ;-)

[cute fuzzy bunny]

Can you split it? Sell part and keep part.

Diversification!

[kcowan]

Without answers I would say hang onto it. If you don't need the income and are happy with your ER timing, this is just a nice buffer that you can use in the future especially when your taxable income is lower.

[AltaRed]

I agree we need more info. If DH's 401k and pension will provide the cash flow needed for retirement, and the land has considerable potential for appreciation due to recreational, residential, or industrial (e.g. ethanol) development, I would suggest hanging tight for awhile.

But if neither of the above are true, I would monetize the land and invest the proceeds in a balanced couch potato investment portfolio. Agriculturally zoned land without imminent (next 10 years) development potential does not appreciate much above inflation.

[macdaddy]

Where is the land located? How much rent do you collect? What are the expenses (maintenance, property tax, etc)? How much do you think you could sell it for?

[HobbyDave]

Also, your current expenses and your current 401k balance would also help us make suggestions. If your 401k already can cover your expenses (or is close), then that would make a large difference. Also, if the 50 acres is worth 5 million, that would also make a difference in your calculations.

[haha]

Quote:

Originally Posted by lynn Hello, I am new and have a question. My husband is 51, 32 years in at employer. I am 48 and a RN working part time. We have 50 acres tillable that we cash rent out. I think we should sell now and invest. Hubby thinks let it sit, it will be there later if we need to sell. He is wanting an early retirement and I think this is the answer as long as I keep working part time. He does have a 401 and will receive a pension.

If this is high quality cropland and you are close enough to watch the harvest, be sure you get your shares, etc.- you will never get a better secure inflation adjusting return from any alternate investment. The farmer takes all the risk; the landowner gets a lot of the return.

I say keep it!

Ha ( who sold a farm some years ago and wished he hadn't.)