What would YOU do?

[LeatherneckPA]

In August I retire after 23 years in prisons at 50 years of age. My pension will be about $2400 a month, not including my 401(k). My LSW is not eligible to collect any pension from her job (banking) until September 2016. Her pension should be larger than mine.

Within commuting distance for her we can't get more than 5-10 acres of land at these prices. And that's kind of small for what we want to get into with the farm. If we just walk away from her pension we can buy land for anywhere from $1k to $2k per acre, and thus afford 20-40 acres easily.

What would you do?

[WileyCoyote]

Ouch, Leatherneck. Ummm... that depends.

Are you ready to walk away from that pension - in other words, do you believe that a collapse is imminent and that things may come to a head (or an end) far earlier than 2016? Are you comfortably aware of all of the if/thens - for example, several pension programs and even some town and county pension programs have lost a lot already, even breathed the word 'bankruptcy', because of their investments in things like real estate. Would you be able to survive without her pension - or even without yours - if things got too bad? Or do you think that we are still slogging toward but not quite on the road to total financial ruin yet?

It's a tough call. We too were planning to retire in 10 years, three years ago - but then hubby got hurt and disabled and we are now getting his WComp, are supposedly to get his SSN disability settlement, and the property behind our house is being developed commercially and they want to buy us out, so all things are coming to a head to help push us toward an early bug-out to our homestead. We are grateful (well, not that he got hurt!) to be able to do it earlier than we planned, but have had to adjust our plans accordingly. We plan to pay everything off with the settlements and stock the homestead with sustainable plants and animals, and live off of or stash his retirement in goods - as long as it lasts.

It all depends on what you can seriously afford (even without the endless pension funds or SS), what you want, what you foresee, and what you are willing to do/feel capable of doing. It would do you no good to purchase too little property now - just as it would do you no good to depend on a pension that, in another 10 years, with all of those new bills to pay on your new farmstead, collapses and stops paying you.

Weigh your alternatives very carefully and make sure that you are fully informed and aware of all the possible consequences - and then determine which are most likely.

[cornhusker]

What does your wife want to do?
If she really wants that pension, I'd buy the small property and get started, it'll never be worth less money and you can always sell it later.
If she's not so set on the pension, I'd take the plunge.
If you have the cash to buy property, 2400 is plenty for 2 people to live on.
I always hoped to retire at 50, but the closer that gets, the less likely it is to happen.

[Deberosa]

She should keep her pension!

10 acres is plenty to keep a person busy for a few years in my opinion.

Having been left holding the bag twice with no notice in my life I think it's foolish for any woman to not be self supporting but that's me I suppose. And it doesn't have to mean divorce. When my dad was 50 he had a stroke and my mom had to take over - those were rough years for her because nothing was in her name and she had no finances of her own. They got through it but I know she would never let that happen again.


Plus as was mentioned you may find that the smaller place is just fine in the long run. I have 4.5 acres and look at more alot but then I like it where I am at (when it doesn't rain quite so much!) I pretty much have decided to bloom where I am planted. :)

[tufhelp]

Is it an either-or situation - wait and take the pension or abandon it? Most schemes these days have an amortization schedule that will let you get something out of your effort. Check out the value of waiting vs. getting partial remuneration with an early out.

My wife works for the state of New Mexico and was under the same impression - a take it or leave it situation, turns out after a counseling session with the pension administration she'll get over $1,000.00 a month if she were to leave early, and with our SSI, my pension (which doesn't kick in for 3 years), and her early out pension, and some minor dividends we'll be doing just fine. Not to mention our place is paid off and so is the house we have in Albuquerque, another windfall well enjoy when we sell out in the city. Don't forget once you're 58 and have lived in a place for 2-3 years, sell it and the profit is yours - tax free...

[flatwater]

With the economy being a false one to begin with I would first be dept free and I mean totally dept free. Then I would go for the larger piece of land as soon as you can get it. I say this because land will always increase in value at at some point if you don't have it already it will be to costly and won't be there when you want it. We searched for a year and found our perfect spot for 29,900(20 acres with cabin and developed spring) I added a 14x20 foot addition to the cabin and a year later my realstate agent called and said if I was interested he had a california costumer that would buy my place for 60,000.
Flatwater

[LeatherneckPA]

I'm leaning heavily (as if I could lean any other way) toward getting at least some land soon, and graduate later if possible.

Cindy and I are a looking at buying within 3 years and being on the land within 5 years. I am pretty sure we could swing 10 acres or so right now, for $100k or less. And she could still commute for her remaining 3-5 years.

[kawalekm]

Hi Mike
Our homestead is 200 miles from where our jobs are and where we live. We bought that far out for three reasons. First, our current location is desert and we wanted land with enough natural rain for trees to grow. Second, we wanted it to be remote enough from populated areas to not receive any fallout from social decay. Lastly of course is the fact that an acre went for about 1/20 of our local area.

The good news is that it was cheap and it's almost payed off. We'll own the land free and clear before the end of this year. We're developing the land now. Planting orchard trees, finishing a cabin, collecting the necessities for homestead life.

I would give you the same advice. Find the perfect property for you now even if it is hours away. Develop it on weekends, holidays, and on whatever vacation time you want to devote. By the time your wife is ready to retire, your property will be ready.
Michael

[lostinthewoods]

Hi Mike
Our homestead is 200 miles from where our jobs are and where we live. We bought that far out for three reasons. First, our current location is desert and we wanted land with enough natural rain for trees to grow. Second, we wanted it to be remote enough from populated areas to not receive any fallout from social decay. Lastly of course is the fact that an acre went for about 1/20 of our local area.

The good news is that it was cheap and it's almost payed off. We'll own the land free and clear before the end of this year. We're developing the land now. Planting orchard trees, finishing a cabin, collecting the necessities for homestead life.

I would give you the same advice. Find the perfect property for you now even if it is hours away. Develop it on weekends, holidays, and on whatever vacation time you want to devote. By the time your wife is ready to retire, your property will be ready.
Michael


I agree. I don't think I could walk away from a pension for the land now. Keeping the pension, the land will be much more of a blessing with less worries.

lost

[HockeyFan]

I like the option msta999 mentioned. Buy the smaller place now and get it paid off. By the time the other pension kicks in, you can decide if you want to work a bigger place and if so, buy it, or you might decide to stick it out on the location you have with just 10 acres.
In the mean time, having that extra income is nice. My wife and I have similar issues and have been happy with 7 and a half acres (a significant portion is wooded).

And by the time retirement comes, if you have your property paid off but still want a bigger place, you can opt to move further out where land is cheaper, or by then, you might see adjoining property to buy to add on to your place; or you might see a bigger spot nearby. There are lots of options.
In the end, it's also an issue of what the wife wants to do. If she likes her job and wants to stick it out to get the pension she's worked for all this time, then do so.

[Steve_L]

Where can someone find land at 1-2 k$ per acre?

In August I retire after 23 years in prisons at 50 years of age. My pension will be about $2400 a month, not including my 401(k). My LSW is not eligible to collect any pension from her job (banking) until September 2016. Her pension should be larger than mine.

Within commuting distance for her we can't get more than 5-10 acres of land at these prices. And that's kind of small for what we want to get into with the farm. If we just walk away from her pension we can buy land for anywhere from $1k to $2k per acre, and thus afford 20-40 acres easily.

What would you do?

[johnjmw]

There is land in SE Ohio that can be picked up for 2k-3k per acre. Down near Noble and Gurnsey Counties. A neighbor of mine has 25 acres I believe for $3400 an acre last I heard. It's been for sale for 3 or 4 years that I know because it's priced too high for the locals to want to even look at it.

John

[flatwater]

Washington state has plenty of remote land in that price range and lower.
Flatwater

[Naughty_Pines]

:o

May be something to remember, as this season will soon be here again.

It might be wise to carry a penny in your pocket while working in the yard.......... BEE STINGS !

A couple of weeks ago I was unfortunate enough to get stung by both a bee and hornet while working in the garden.

My arm swelled up so off to the doctor I went. The clinic gave me cream and an antihistamine. The next day the swelling was getting progressively worse so off to my regular doctor I went. Infected arm needed an antibiotic. What was interesting is what the Dr. told me. The next time you get stung put a penny on the bite for 15 minutes. I thought, wow next time (if there ever is one) I will try it.

Well that night Shelley's niece got stung by two bees. When she came over to swim I looked at the bite and it had already started to swell. So off I went to get my money. Taped a penny to her arm for 15 minutes. The next morning, there was no sign of a bite. Wow were we surprised. Her niece we decided, just wasn't allergic to the sting.

Well guess what happened again on Saturday night. I was helping Shelley deadhead her flowers and guess what? You are right I got stung again two times by a hornet on my left hand. Was I ticked. I thought, here I go again having to go to the doctor for yet another antibiotic.

Well I promptly went into the house, again got my money out, and taped two pennies to my bites and then sat and sulked for 15 minutes. The penny took the string out of the bite immediately. I still wasn't sure what was going to happen.

In the meantime the hornets were attacking Shelley and she got stung on the thumb. Again the penny. The next morning I could only see the spot where he had stung me. No redness, no swelling. Went over to see Shelley and hers was the same. Couldn't even tell where she got stung. Then Shelley got stung again on Monday night on her back---cutting the grass. This penny thing is going to make us money at school. Again it worked.

Just wanted to share the marvelous information in case any of you are experiencing the same problem at home. We need to have a stock of pennies on hand at school and at home.

The Dr. said somehow the copper in the penny counteracts the bite. I would never had believed it. But it definitely does work.

So remember this little bit of wisdom and pass it on to your friends, children, grandchildren, etc.







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[RangerRick]

Would not give up the pension under any circumstances as you never what will happen or what deals you'll walk into tomorrow. Never give up free money.

Rick

[Txanne]

As I am my own support---I have just walked into a caretakers deal--that gives me a very nice home[[people I have known for 20 yrs]].

I can quit my job---over-nites to boot---and walk away and live on my SS.

I am going to take the deal.
Unless I get a windfall to buy property---I cant buy any.
2-3,ooo an acre is CHEAP!!
Its going for as much as 14,000 an acre here--prime wooded land.

The price of gasoline--maintence on my truck--just lunches for work cost me extra.

I hate to see a woman give up her independence---when my husband died in 1995--I had done just that--given up a job involling some security to be his full time nurse.

I lost big time--of course I would do it again.

There have been some excellent advice--amoritization makes sense.

Having a place paid for makes sense---remember---illness--death of a spouse[[God forbid]] changes plans of everyone.

Land aint going away---and right now appears to be a buyers market.

Investing in dirt never hurts.

Txanne



It cost alot of money togo to work everyday--I am cutting my living cost by about 75-90%.

[RangerRick]

Annie, you are so right on this point. In my case if/when I die there will be no check for Sweetie. Consequently, when I retired I had accumulated 500K of life insurance to cover. Fortunately the house and everything else is paid for along with IRA's and investments she'll be in good shape but it could be a devisating experience if that weren't the case. As we know, 10 years can pass by fast so actually those last years of employment are probably the most critical. Fail to plan, plan to fail. I don't think many people intentionally plan to fail but bad things can still happen.

Rick

[Txanne]

Ranger Rick---planning is the exception rather than the rule as we can see in todays flourdering housing market.

You have done well---Knowing that Sweetie isnt well---she will be comfortable--God Forbid in the case of your demise.

Having lost my home [[undo to anything I did but trust]]
you are on the streets quickly---

There is no mercy out there.

Txanne