Planning for Retirement for the Self-Employed Rancher or Farmer

With more and more individuals opting out of traditional employment and charting their own course as self-employed, one major area of concern is #retirement planning. This is especially true when the independent work involves certain industries, like farming, agriculture and ranching. And even though places like the wide open spaces of Montana and Wyoming come to mind, this is an especially important topic for other places closer to home, like inland Florida, where horse ranches and farms are an integral part of the overall economy.

U.S. Labor Department statistics prove what most people intuitively know – farmers and ranchers work longer than those in almost any other occupation. And while they may be working longer, they still hope for a comfortable retirement. Yet this group of self-employed workers has the lowest participation rate of those who set up traditional retirement plans (IRAs, solo 401Ks, etc.) for themselves. Just 13% compared to 83% of workers in public administration, for example.

So how does an independently employed rancher or farmer plan for their golden years? Often, retirement success is dependent on the land that provides their living. And when it comes to selling the real estate that served them well for decades, there are several options available, including a #1031 exchange. When planned for and completed correctly, capital gains taxes can be deferred (and even eliminated altogether with appropriate long-term estate planning).

Read more about options for parlaying agricultural and ranching real estate into a profitable and secure retirement here.

To find out how we can help you find and close on your next 1031 exchange property or to learn more about the exchange process and our qualified intermediary services, please visit our website.