Selling all of the cows.

[RanchMan90]

Perhaps could turn those cows out on a lease and care program with someone else. They can probably do it cheaper plus no labor on your part. Just take the cruiser out on weekends and when it's time to ship calves :2cents:

 

[Bestoutwest]

At 77 why invest all of it? I'd sure as heck have one big old party on that cash and check off some bucket list items.

 

[TexasBred]

I have a pretty diverse portfolio now that generates $6762 a month plus a pretty good retirement pension. Every financial planner I have had in the past lost me money. They sell what they are involved in. I do have a some in VWNEX. I have bought into some stock that I lost all of the value thinking it would come around. One REIT that has been a loser but still is projected to pay a dividend of about $11000 a year. One of the Presidents best friend is the CEO there. Gut told me to sell about a year ago but I held on for the dividend but sure lost a lot of capital.

Don't listen to anybody. Put I where YOU want it and sit back and wait on results. If they're good give yourself a pat on the back. If not, it's your fault.

 

[bball]

What does Mrs. Hurley think?

 

[melking]

I am a few years behind you but I think your plan is a good one. I am not a rancher but I do have a few cows and the more I look at them and their cost to me, I am just not sure they are worth it. With cattle prices what they are today, we probably all could do better in other ways. Enjoy yourself and do whatever it is you want. You have earned it. Just don't make the mistake of sitting on the porch...

 

[Caustic Burno]

Thinking about selling all of the cows maybe about $125000 and equipment possible worth around $85000. Some remote land that is not used any more because I just cannot get to it because of age. It probable would bring about $300000 investing in Exxon that has a 4.4% dividend. Good move or not. Feed man, fertilizer man and equipment man gets all of the calve sales each year and then some. This would maybe produce a dividend worth around $22000 minus income taxes of $2200 for a net of about $20000 more or less. Mud worries would be over with. Might sell some standing grass for hay. Keep in mind I am 77 and still in pretty good health.

Don't put all your eggs in one basket.
Any financial advisor worth his salt will have you in a diversified portfolio.

 

[jehosofat]

I wish all you old basturds would sell out, maybe I woukdn't lose so much money every year. :lol2: :lol2:

 

[hurleyjd]

What does Mrs. Hurley think?

100 percent on board and has been since 2011

 

[Brute 23]

Thinking about selling all of the cows maybe about $125000 and equipment possible worth around $85000. Some remote land that is not used any more because I just cannot get to it because of age. It probable would bring about $300000 investing in Exxon that has a 4.4% dividend. Good move or not. Feed man, fertilizer man and equipment man gets all of the calve sales each year and then some. This would maybe produce a dividend worth around $22000 minus income taxes of $2200 for a net of about $20000 more or less. Mud worries would be over with. Might sell some standing grass for hay. Keep in mind I am 77 and still in pretty good health.

I like the idea but the biggest issue I see will be tax problems.

Are there any options like buying rental houses, leasing out the land for grazing or hunting, owner financing the sale of the cattle and land? I'm trying to throw some ideas outside the box.

Rental houses can be a good deal if you have the market and patience. Might talk to a tax pro to see if you can exchange the land to rental properties.

Owner financing could spread the income out over multiple years and would generate some revenue from the loan.

 

[bbirder]

I have a pretty diverse portfolio now that generates $6762 a month plus a pretty good retirement pension. Every financial planner I have had in the past lost me money. They sell what they are involved in. I do have a some in VWNEX. I have bought into some stock that I lost all of the value thinking it would come around. One REIT that has been a loser but still is projected to pay a dividend of about $11000 a year. One of the Presidents best friend is the CEO there. Gut told me to sell about a year ago but I held on for the dividend but sure lost a lot of capital.

Hurley,
Sounds like you have a handle on it already. I got away from planners and brokers in general many years ago. They are mostly just commissioned salesmen who will cost you most of your earnings. You should stick with good sound dividend stocks and maybe look into some tax free funds. Work with your tax advisor (who should know what is coming up in the future) and try to stay away from tax brackets that harm you. good luck and happy retirement. I'm on your heels. Mine are for sale also. Back to brokers--most people with a sizable portfolio see an annual charge on the statement and think that is what the broker charges. Above that he gets a commission on every sale and buy in the portfolio. This is hidden in the cost basis price. Why do you think they are always telling you that they have found a better place to put your money. Money in - money out. He celebrates his commission.

 

[callmefence]

Put it in the bottom of a posthole...
And even though the cows are gone don't be a stranger.

 

[greybeard]

I have a pretty diverse portfolio now that generates $6762 a month plus a pretty good retirement pension. Every financial planner I have had in the past lost me money. They sell what they are involved in. I do have a some in VWNEX. I have bought into some stock that I lost all of the value thinking it would come around. One REIT that has been a loser but still is projected to pay a dividend of about $11000 a year. One of the Presidents best friend is the CEO there. Gut told me to sell about a year ago but I held on for the dividend but sure lost a lot of capital.

Hurley,
Sounds like you have a handle on it already. I got away from planners and brokers in general many years ago. They are mostly just commissioned salesmen who will cost you most of your earnings. You should stick with good sound dividend stocks and maybe look into some tax free funds. Work with your tax advisor (who should know what is coming up in the future) and try to stay away from tax brackets that harm you. good luck and happy retirement. I'm on your heels. Mine are for sale also. Back to brokers--most people with a sizable portfolio see an annual charge on the statement and think that is what the broker charges. Above that he gets a commission on every sale and buy in the portfolio. This is hidden in the cost basis price. Why do you think they are always telling you that they have found a better place to put your money. Money in - money out. He celebrates his commission.

Many also get paid according to how much of YOUR money they have 'under umbrella'..that is how much of your assets they can talk you into investing/risking. While it may not be you paying that little bonus, it creates an atmosphere for the broker/adviser to try to get you to invest more and more, even if you are not comfortable with it.
(If you do choose to go with a broker/adviser, you may want to get a bigger mailbox. Prepare to be deluged with every possible investing/financial prospectus under the sun..week after week, after week)

 

[WalnutCrest]

What does Mrs. Hurley think?

Best question yet.

**************

I've spent most of my adult life dealing with investments of all sorts of types and styles.

A few observations ... realizing I'm no longer a registered investment advisor and what follows isn't unlicensed investment advice.

1 -- Generally, I believe bond funds are a bad idea in a rising rate environment ... especially if you have enough dough to own a moderately diveresified bond portfolio directly. If you do, get a laddered bond portfolio stretching out 3-10 years (shorter ladder as rates are rising, and longer when they're falling) so that, as long as the borrower repays, you're not ever going to take a loss on principal. A bond fund cannot provide that same certainty as to principal value -- rising rates kills bond values, but if you don't sell, you don't take that loss, and since there is a required maturity, the gap between market price and maturity values shrinks each day closer to maturity. With a bond fund, sometimes those mark-to-market losses can turn into realized losses due to the portfolio management efforts of the mutual fund manager.

2 -- You can build a reasonable bond ladder with 8-30 individual bonds (depending on how long you want to go out on maturities).

3 -- Generally, you don't need to own more than 10-15 stocks to have a reasonably diversified portfolio. Unless there is an enormously compelling reason, there's not really any good reason to have more than 10-15% in any single stock.

4 -- There are many simple and effective ways to pick investments in a buy-and-hold approach, where you're able to scale in over time (i.e., avoid the risk of putting it all to work at exactly the wrong time), where your time horizon on your bonds is however far out your ladder goes ... and ... on stocks, 13-36 months (depending on strategy).

 

[boondocks]

Hurley, you sound pretty comfy ($-wise). I hope to be so lucky, but most of us a generation behind you don't have a pension, so I think it's gonna be tougher.
Have you any concerns about long-term nursing care? Hopefully ya never need it. But sounds like you could be in that bracket where one is too well-off for (heavily) subsidized (or free) care but on the other hand, the need for long-term care could really eat through the couple's savings to the detriment of the healthier or surviving spouse.
If I had your farm assets and was ready to get out, I'd consider researching a policy for long-term care, and possibly putting some of the proceeds toward it. They can be $$$, though.

 

[Brute 23]

If I went in to the stock market I would just go in to index funds. There are only like 5 Vanguard funds that beat the S&P and by the time you pay the outrageous fees, it's pretty much a wash... that's 5 out of hundreds. That is the same with most of the funds. So basically you or your invester are much more likely to choose a loser than a winner.

I see the appeal of Exxon but 4% is not going to get you far.

 

[Caustic Burno]

If I went in to the stock market I would just go in to index funds. There are only like 5 Vanguard funds that beat the S&P and by the time you pay the outrageous fees, it's pretty much a wash... that's 5 out of hundreds. That is the same with most of the funds. So basically you or your invester are much more likely to choose a loser than a winner.

I see the appeal of Exxon but 4% is not going to get you far.

Depends on finding the right investor that is not churning funds to line his own pocket. There are firms that makes 1% of your profits no fees. Mine has managed my portfolio very well. Very diversified as well stocks,bonds, CD's along with annuities.
Never thought it very bright for a glorified gas station attendant with his name on his FRC's to think he could play with the boys that run stock on Wall Street. If it was that easy we would all be in the M&M club.

 

[Brute 23]

If I went in to the stock market I would just go in to index funds. There are only like 5 Vanguard funds that beat the S&P and by the time you pay the outrageous fees, it's pretty much a wash... that's 5 out of hundreds. That is the same with most of the funds. So basically you or your invester are much more likely to choose a loser than a winner.

I see the appeal of Exxon but 4% is not going to get you far.

Depends on finding the right investor that is not churning funds to line his own pocket. There are firms that makes 1% of your profits no fees. Mine has managed my portfolio very well. Very diversified as well stocks,bonds, CD's along with annuities.
Never thought it very bright for a glorified gas station attendant with his name on his FRC's to think he could play with the boys that run stock on Wall Street. If it was that easy we would all be in the M&M club.

There are decent ones out there but they are few and far between. Most people are not willing to shop hard enough to find one. They go to the local Edward Jones or to the "I got a guy" that was recommended.

Think about this... If you or I could pick stocks or funds that could consistently beat index funds... would we be sitting in Podunk, TX at and Edward Jones? No, we would be running Berkshire Hathaway or investing for much bigger fish or investing our own money all day long. :lol:

 

[Caustic Burno]

Big problem for lots of folks with 401K's along with lump sum retirement is 72T laws and penalties. Not knowing these can cost you 30% or more going on I got this. It is real easy to loose a huge chunk of your life savings in one stupid tax moment.
It doesn't matter if it is Edward Jones, Lynch or Fidelity the government approved products are all the same with exception of the name.
Wake up call you don't just get to do what you want with those funds without penalties.

 

[jltrent]

Sounds like you have a good plan. Also looks like you have made some good choices in your life and this is probably another. Nothing is worth more than good health and when it starts to go, as it will with all of us, we have to make decisions based on that. I really can't question you decisions. These farms are a lot of work with very little compensation and I think we all question, is it really worth it?

 

[ddd75]

I have a pretty diverse portfolio now that generates $6762 a month plus a pretty good retirement pension. Every financial planner I have had in the past lost me money. They sell what they are involved in. I do have a some in VWNEX. I have bought into some stock that I lost all of the value thinking it would come around. One REIT that has been a loser but still is projected to pay a dividend of about $11000 a year. One of the Presidents best friend is the CEO there. Gut told me to sell about a year ago but I held on for the dividend but sure lost a lot of capital.

most financial planners are just puppets. I know a guy who is one.. he lost his house and everything else, then became a planner.. haha.. makes sense. He works for a big outfit and he just does what they want him to.

A REAL financial planner is very hard to find. My wife works for one of the top ones in the nation. I'm not talking you into one but I'm just saying their are a FEW out there who will make you money. He's making people around 10% average I'd say. So on your 300k he could make you around 30k / yr.

But I do agree with you 95% of them are crap. haha