Ky hills said:
This is a timely topic for us. We are at the point where our current property including rental houses on the farms is sustaining, but with all things improvements and repairs are no doubt going to be needed. We are looking at the possibility of downsizing, going to wife's home state where she can be close to help with family needs. Our idea is to find a farm/ranch property there about the same acreage or more than here, but without multiple houses. Ideally we would find a property with either a smaller house or build one on it. The idea is that IF and if is a biggest word there is, that we could sell this property for what folks are asking for comparative properties around here, and reinvest in land and a home out there and then have some left over to add to our retirement. I'm concerned about the capital gains and other taxes. It is my understanding that you can reinvest, but not sure if that includes retirement funds as well.
I have a Vanguard IRA in the VWNEX mutual account. It has returned $24129.58 for 2019. It has grown very well over the years.
I reinvest the capital gains and dividends back in it each year. When I reached 70 1/2 I had to start making a RMD (Required Minimum Distribution) it was $11,000 this year and taxes were due on it. I have tried trading stocks and cannot seem to find the good ones. I also have a ROTH that does do what it intends to accomplish which is to furnish tax free income.. Mostly stocks in it and each year I sell the profitable ones and the losers and then buy into the ones that look good. If I all of the assets over into the VWNEX it should produce in the excess of $58000 if all goes well. This is money that comes in that I expend no effort on. No cows to feed and take care of no rent houses to take care of, no hay to bale, no pastures to mow. Pretty easy money. My wife and I also have a brokerage account that is in stocks and some in the VWNEX. I am not trying to brag just show how I have managed. I am 79 years old or will be in 15 days. We had very little when I was 55 years old. We did have some inheritances along the way that we did not spend but invested which were not very large. I have made some investment mistakes and also some wise ones in my opinion. My wife and I at the companies that we worked at participated in the 401K to the max. We have not bought the latest and greatest cars and trucks in the last 25 years. A good used one. She drives a 2009 Cadillac DTS with 125,000 miles on it which we bout in 2011 for $21000. Her thoughts are it gets me where I want to go. If it breaks or quits there well be good used cars out there. She is a very low maintenance women that I can contribute my success to her as she always had my back. Now I also have land that has appreciated in value and without an AG exemption I could not afford the property taxes on it. I am posting this to say to you do not use land as your retirement as you will get old and not be able to take care of it. Just think what you could do with $25000 to $50000 coming in each year to the mail box that all you had do was endorse the check.