Good idea or not?
I've been investing heavily in my 401k for over 10 years now and last year it paid well with a return of 18%, this year it was only 4%. I'm 31 and unless I hit the lotto, have quite some time 'till retirement.
My thinking is to buy some preserved land (deed restricted for ag only), as this is the only really affordable option and rent it out for a few years until I can pay all the inputs with cash. Once I can pay the inputs, I'd farm it myself until the time I decided to call it quits, then rent it back out. I figure if rent stays the same as it is now $125-$150 an acre, that would be an almost guaranteed return of around $15,000 a year after taxes.
I'll admit that a lot of this has been dreamed up to fulfill a dream, but after thinking about it as an investment for the future, it doesn't seem so far fetched to me. But since I'm emotionally invested in it I figured I would get the opinion of others who are into investments to see if I'm just dreaming.
I've been investing heavily in my 401k for over 10 years now and last year it paid well with a return of 18%, this year it was only 4%. I'm 31 and unless I hit the lotto, have quite some time 'till retirement.
My thinking is to buy some preserved land (deed restricted for ag only), as this is the only really affordable option and rent it out for a few years until I can pay all the inputs with cash. Once I can pay the inputs, I'd farm it myself until the time I decided to call it quits, then rent it back out. I figure if rent stays the same as it is now $125-$150 an acre, that would be an almost guaranteed return of around $15,000 a year after taxes.
I'll admit that a lot of this has been dreamed up to fulfill a dream, but after thinking about it as an investment for the future, it doesn't seem so far fetched to me. But since I'm emotionally invested in it I figured I would get the opinion of others who are into investments to see if I'm just dreaming.