Planning for Retirement for the Self-Employed Rancher

For families who have farmed or ranched a homestead for multiple generations, one unique concern is how to adequately plan for retirement. 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 like rural #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.

If a 1031 exchange is in your future, visit our website to learn more about these powerful tax deferral tools and our qualified intermediary and replacement property locator services.If a 1031 exchange is in your future, visit our website to learn more about these powerful tax deferral tools and our qualified intermediary and replacement property locator services.