Author Topic: Lets help my parents retire.  (Read 1684 times)

Mr. Minsc

  • Stubble
  • **
  • Posts: 162
  • Location: PEI, Canada
    • ThriftyHamster
Lets help my parents retire.
« on: May 01, 2014, 08:39:32 AM »
Hey folks,

Over the past year I've done much thinking about where to go in life. FI and ER definitely has been on my mind.  This morning while milking the cows my thoughts cycled back to my parents.  It hit me, a simple decision in my own life could allow them to retire comfortably.

My parents are 62 and fortunately they have no consumer debt.  Unfortunately they have little in investments outside the farm.  One choice floating around my mind was to carry on farming with my cousin or leave to pursue other endeavours.  The farm is at a point where it needs a large investment to carry forward, especially to continue in the dairy industry.

Our dairy quota alone is valued around $1.2-1.3 million.  There is all the land and other assets in the farm but I honestly can not tell the value without looking it up.  If it meant allowing my parents live the rest of their days comfortably I'd let the farm go in a heart beat.  I wouldn't even ask for a cut of the sale as I know I can build wealth elsewhere (that said, if offered I wouldn't turn it down. ;) ).  The way I see it the farm (in part) has gotten me to today and owes me nothing (similar to when leaving an employer after ten years).

If my father received a large sum of money from sale of the quota my question is what should he do with it?  Considering he and moms age, what differences in investing would you recommend as opposed to someone younger like myself?

Of course there are other players aside from my parents involved.  There's dads brother (co-owner), his son (has worked on the farm for the past 20+ years and would be my business partner if we decided to take over and buyout), and my two brothers.  Still, if my parents can make a large sum of money I'd like to help them make the best of it.

Anyways, I want to observe the different options.  Though at quick glance letting go of the farm is looking more and more like the route that feels "right". :)

HairyUpperLip

  • Pencil Stache
  • ****
  • Posts: 897
Re: Lets help my parents retire.
« Reply #1 on: May 01, 2014, 10:33:58 AM »
What could you sell the farm for?

1.3 million?   That divided between 2 parents, a brother, an uncle, and 3 kids doesn't sound like very much money at all...

I have no clue what the farm could actually sell for. Just using the number you provided for the diary quota.

That all being said, you have the chance to keep the farm I would do that. Fuuuuck getting involved into normal office career life stuff. I often wonder what it would be like to have a farm myself, so that's where my thought process is coming from.

Cheers.

Cassie

  • Walrus Stache
  • *******
  • Posts: 5529
Re: Lets help my parents retire.
« Reply #2 on: May 01, 2014, 12:22:25 PM »
Farmers have a tough life. They work 7 days a week at all hours.  It is difficult to take a vacation,etc.  Granted with more family members it might be easier but it is not the rosy work for yourself life that you may be envisioning.