Ways to Build Wealth ?

[Stocker Steve]

Hard to buy stuff that appreciates, but I have not given up!

Saw a good deal on Jersey heifers last week, but then I would have had to buy a Char bull for my newest herd. :cowboy:

 

[Dave]

Hard to buy stuff that appreciates, but I have not given up!

Saw a good deal on Jersey heifers last week, but then I would have had to buy a Char bull for my newest herd. :cowboy:

About 5 years ago I was shopping for a new to me trailer. Steel trailers just don't last in Western Washington so I was shopping aluminum. All the use aluminum trailers I found were 20 years old and cost only about 2K less than new. I figured that they were selling for more dollars than they cost new. So I bought new. I depreciated it out. I figure in 20 years it will be worth what I paid for it. Also in 20 years I will be 87. I also figure by that time my memory will be so bad that I will forget to tell the IRS that I sold it.

 

[ddd75]

the only ways to build wealth are to sell the equipment and cows and get a town job.

 

[shaz]

I have a net loss every year with the cows. Several years ago I had farm expenses of $24000. Come tax time had to pay about $15000. I posed this question to our accountant? How much more taxes would I pay without the farm loss. He went into his calculator and came back with the answer about $1800. Still losing every year and taxes on the land is going up every year. Land values in the area are in the $4000 range. So with CD's paying out about 2% now the land would have to generate over $80 and this would be an added expense. Does not make any difference if your real estate is worth 5 million you still h.ave to sell to realize it.

OK
We are building wealth.
So what was the percent increase in net worth per year?

I'm seeing land price increase of 5% per year based on the tax assessor value of land I own. If others are seeing this then we can use 5% as a baseline.

 

[TexasBred]

The best way to build wealth if that is your plan/issue is to keep money in your pocket. I have a good friend who is a self made millionaire. He never has bills smaller than $100 in his wallet. You will think twice before breaking a $100. Smaller bills are spent without thinking. He says that you will really think about before spending $10,000 yet most people will spend $5,000-$10,000 a year on nickle and dime stuff. Buying a soda from a convenience store when filling a bottle of water from the tap at home is free. The best way to build wealth is to watch carefully how you spend the wealth you have.

I'd rather enjoy my time here in this life rather than just exist.

 

[Lucky]

the only ways to build wealth are to sell the equipment and cows and get a town job.

Might seem so but that's the worst idea ever. How many rich town workers do you know? I have a really good town job that pays the bills but provides very little wealth building. I have a business, land, and cows that just barely pay their own bills but look outstanding on the balance sheet. Eveyone needs to do a balance sheet every year to see where you are really at in life. I tell my neighbor all the time he's rich and doesn't know it. It's all in how you count the money.I can't imagine trying to get rich by saving my paychecks from my job in town. Money needs to be working for you at all times.

 

[shaz]

the only ways to build wealth are to sell the equipment and cows and get a town job.

Might seem so but that's the worst idea ever. How many rich town workers do you know? I have a really good town job that pays the bills but provides very little wealth building. I have a business, land, and cows that just barely pay their own bills but look outstanding on the balance sheet. Eveyone needs to do a balance sheet every year to see where you are really at in life. I tell my neighbor all the time he's rich and doesn't know it. It's all in how you count the money.I can't imagine trying to get rich by saving my paychecks from my job in town. Money needs to be working for you at all times.

The city folk will have a better night than me.
1) find out what's wrong with the pre-heater on the track hoe
2) fix wiring harness on the Mule after I tow it 1/4 mile back to the shop with no headlights
3) feed heifers check new calves
4) haul a load of firewood
5) check fences on north side of property (not going to happen)
6) check on the main herd (probably not going to happen)

I'll hear the city folk talking tomorrow about stuff they saw on TV.

 

[True Grit Farms]

the only ways to build wealth are to sell the equipment and cows and get a town job.

Might seem so but that's the worst idea ever. How many rich town workers do you know? I have a really good town job that pays the bills but provides very little wealth building. I have a business, land, and cows that just barely pay their own bills but look outstanding on the balance sheet. Eveyone needs to do a balance sheet every year to see where you are really at in life. I tell my neighbor all the time he's rich and doesn't know it. It's all in how you count the money.I can't imagine trying to get rich by saving my paychecks from my job in town. Money needs to be working for you at all times.

The city folk will have a better night than me.
1) find out what's wrong with the pre-heater on the track hoe
2) fix wiring harness on the Mule after I tow it 1/4 mile back to the shop with no headlights
3) feed heifers check new calves
4) haul a load of firewood
5) check fences on north side of property (not going to happen)
6) check on the main herd (probably not going to happen)

I'll hear the city folk talking tomorrow about stuff they saw on TV.

But just think of all the fun your having.

 

[Lucky]

the only ways to build wealth are to sell the equipment and cows and get a town job.

Might seem so but that's the worst idea ever. How many rich town workers do you know? I have a really good town job that pays the bills but provides very little wealth building. I have a business, land, and cows that just barely pay their own bills but look outstanding on the balance sheet. Eveyone needs to do a balance sheet every year to see where you are really at in life. I tell my neighbor all the time he's rich and doesn't know it. It's all in how you count the money.I can't imagine trying to get rich by saving my paychecks from my job in town. Money needs to be working for you at all times.

The city folk will have a better night than me.
1) find out what's wrong with the pre-heater on the track hoe
2) fix wiring harness on the Mule after I tow it 1/4 mile back to the shop with no headlights
3) feed heifers check new calves
4) haul a load of firewood
5) check fences on north side of property (not going to happen)
6) check on the main herd (probably not going to happen)

I'll hear the city folk talking tomorrow about stuff they saw on TV.

Are we talking about building wealth or making life easier? Any one of us can sell the farm move to town get a job and take it easy. All you need to do is call a realtor and start looking for job that you think you would like. I gotta admit some days I'm envious of my coworkers that just watch tv and go on a vacation every 3 months. If you decide the town life isn't for you can always buy another farm and go back to sleepless nights.

 

[JMJ Farms]

I've got it figured like this.
1) My 'real' job pays the bills
2) Cows pay their own way
3) Cows have allowed me to buy things, (farm, equipment) that otherwise I couldn't have justified owning.
4) Cows provide a way to get some money up in a hurry if the need arises.
5) Cows give me a justifiable reason to 'leave the house' at any time (when their is a little friction at home there's always a fence that needs fixed)
6) I THINK that at the very worse, the cows are a savings account.
7) If I were to liquidate tomorrow , I would realize a profit over what I've put in, not accounting for labor of course!
8) I don't know of one piece of equipment that I own that would bring more than 10% less than what I payed for it. Most is worth more than I payed for it. Equipment has been a better investment than the cows. But I don't buy new equipment. It was all bought used and it's all been fixed or improved and well taken care of.
9) No matter whether it's land, equipment, cows, housing, or a gallon of milk.....the money is made when you buy it and it's of no real value unless you sell it

 

[shaz]

I've got it figured like this.
1) My 'real' job pays the bills
2) Cows pay their own way
3) Cows have allowed me to buy things, (farm, equipment) that otherwise I couldn't have justified owning.
4) Cows provide a way to get some money up in a hurry if the need arises.
5) Cows give me a justifiable reason to 'leave the house' at any time (when their is a little friction at home there's always a fence that needs fixed)
6) I THINK that at the very worse, the cows are a savings account.
7) If I were to liquidate tomorrow , I would realize a profit over what I've put in, not accounting for labor of course!
8) I don't know of one piece of equipment that I own that would bring more than 10% less than what I payed for it. Most is worth more than I payed for it. Equipment has been a better investment than the cows. But I don't buy new equipment. It was all bought used and it's all been fixed or improved and well taken care of.
9) No matter whether it's land, equipment, cows, housing, or a gallon of milk.....the money is made when you buy it and it's of no real value unless you sell it

Run around on the side by side for a couple hours drinking beer "checking on the herd". One of my favs for sure

 

[JMJ Farms]

I've got it figured like this.
1) My 'real' job pays the bills
2) Cows pay their own way
3) Cows have allowed me to buy things, (farm, equipment) that otherwise I couldn't have justified owning.
4) Cows provide a way to get some money up in a hurry if the need arises.
5) Cows give me a justifiable reason to 'leave the house' at any time (when their is a little friction at home there's always a fence that needs fixed)
6) I THINK that at the very worse, the cows are a savings account.
7) If I were to liquidate tomorrow , I would realize a profit over what I've put in, not accounting for labor of course!
8) I don't know of one piece of equipment that I own that would bring more than 10% less than what I payed for it. Most is worth more than I payed for it. Equipment has been a better investment than the cows. But I don't buy new equipment. It was all bought used and it's all been fixed or improved and well taken care of.
9) No matter whether it's land, equipment, cows, housing, or a gallon of milk.....the money is made when you buy it and it's of no real value unless you sell it

Run around on the side by side for a couple hours drinking beer "checking on the herd". One of my favs for sure

That's right. Sometimes you just need something that 'knocks your tractor out of gear'

I don't know where that little smiley face with sun glasses thing come from. I didn't post it and it doesn't show up on the edit screen. Supposed to be an 8 with a ). But I just figured out that if you put the 8 and ) together it makes this feller
8)

 

[Jthurler]

Feed inventory. So that when cows or heifers hit rock bottom you can increase your herd or improve your genetic base. Or sell feed

 

[1982vett]

7) If I were to liquidate tomorrow , I would realize a profit over what I've put in, not accounting for labor of course!

That right their is the kick in the seat of the pants.... few take that into account and pass it off as lifestyle choice.

I could say my "investment" (rough value of assets costs used to raise cattle not including value of land) earned in the neighborhood of 7.5% but my salary check is in the mail.... All I can say is i feel I'm running an extremely expensive one member fitness center.

 

[midTN_Brangusman]

Steve, I've been thinking about putting together a pot load of bull calves, cutting and back grounding them and turn em loose this spring when grass gets growing. Could put them in a video sale. What do you think?

 

[JMJ Farms]

7) If I were to liquidate tomorrow , I would realize a profit over what I've put in, not accounting for labor of course!

That right their is the kick in the seat of the pants.... few take that into account and pass it off as lifestyle choice.

I could say my "investment" (rough value of assets costs used to raise cattle not including value of land) earned in the neighborhood of 7.5% but my salary check is in the mail.... All I can say is i feel I'm running an extremely expensive one member fitness center.

Yep. I here you Vette. I personally feel cattle are worse than a crack addiction. The only ones that will ever really benefit are the ones that cash the check when I die :lol2:

 

[Brute 23]

If you are not paying taxes in some form or fashion you not actually making money which makes it hard to accumulate wealth. At the end of the day, there is no way to legally avoid taxes.

 

[Caustic Burno]

7) If I were to liquidate tomorrow , I would realize a profit over what I've put in, not accounting for labor of course!

That right their is the kick in the seat of the pants.... few take that into account and pass it off as lifestyle choice.

I could say my "investment" (rough value of assets costs used to raise cattle not including value of land) earned in the neighborhood of 7.5% but my salary check is in the mail.... All I can say is i feel I'm running an extremely expensive one member fitness center.

Yep. I here you Vette. I personally feel cattle are worse than a crack addiction. The only ones that will ever really benefit are the ones that cash the check when I die :lol2:

I figure my cattle will be running through the barn bout the time the last shovel of dirt lands on me.
Equipment sale will be the next week.

 

[TennesseeTuxedo]

If you are not paying taxes in some form or fashion you not actually making money which makes it hard to accumulate wealth. At the end of the day, there is no way to legally avoid taxes.

Self directed Roth IRA.

 

[sstterry]

I figure my cattle will be running through the barn bout the time the last shovel of dirt lands on me.
Equipment sale will be the next week.

A former neighbor passed away a few years ago. He had invented a process to purify ceramics in his barn using old farm parts. Salt of the earth guy that got really rich really quick. He bought about 3 contiguous farms and several businesses (which he knew nothing about running). He had a son-in-law that convinced him to get cute and try and avoid taxes through various trusts and shell corporations. After several years, his estate was liquidated a few months ago at an IRS tax sale. His farm, which was his pride and joy, brought less than 1/2 of its appraised value. His 4 kids got nothing.

He never asked my advice on much other than some smaller legal matters which I always handled free of charge. If I had known and had he asked I would have directed him to a legitimate tax advisor and told him to forget the trusts and scams and just pay the damn taxes. The tax penalties and interest took everything.