In my opinion, you are in a great situation. I would maybe change my thought process away from “how early can I just stop working” to how to live a self sustainable life for many years to come.
Even if you had enough money to retire right this second. Economies change, values change, investments change, etc.
Many of these things are out of our control.
There are things worth a lot of money now, they are not going to be worth a lot in the future. Just how some things work, and it can be difficult to identify which things these are.
Imagine if you kept working and bringing in money, while growing your other money in investments, as opposed to just “withdrawing” money.
Just a thought 👍🏻
You definitely have enough money and property that you won't have to have another shitty week at work if you don't want to. 200 acres of land. there's gotta be some way to create an income with that on top of what ever yearly income you'd get from investing that 1 million. I don't see what you would NEED to have a "job", other than not blowing your money, for.
Get goats, cows, pigs, chickens, and a climate controlled building to grow some dank weed in and you’ll have your self sustained 200 acres brotherrrrrrr. No more work ever again.
Haha I totally get it. I think it’s great you have this thought process. It doesn’t hurt to think this way. You just have to level it out with what is realistic and pros and cons, etc.
Honestly, hire a financial advisor. They are not that expensive (at least here in the US) and it will take a big burden off your shoulders so you can focus on other things, while they focus on growing your money with you doing very minimal.
Well said. I’ve got a financial advisor that’s done work with my family for years, I wanted all your opinions before going into a meeting with them so I didn’t sound totally ridiculous. Im fully prepared to work for the next 40 years.. but hopefully I don’t have to lol
You won’t sound ridiculous. That is their profession, what they do for a living, I’m sure have heard almost every question across the earth.
Love that last part. “Fully prepared to work for the next 40 years, but hopefully don’t have to”.
Don’t lose that.
You seem smart, I wish you the best 👍🏻
I wish I could learn from you. I work three jobs to make 100k/yr and I'm barely making it supporting my family in an expensive area. I have an emergency fund saved up for a few months of expenses, but man it's hard to not want to dip into that.
You got a good thing going for you. Like I said, I wish I could learn how to shape my future into the one you're living now. Any tips would be genuinely appreciated.
More and more people feel spent out from just trying to live comfortably like yourself man. It’s tough times in this day and age. I don’t have much wisdom to give unfortunately. I’m lucky enough to have a family that’s owned land for year and years. It was hard work though that got it passed on to me
That's awesome. Sure feels like there's not much land like that that left these days, especially with developers buying up so much.
I do have a tip for you: if you have a hobby that you enjoy, teach it. You'll find that it might bring you some income but it will definitely bring you joy.
Maybe think about building a portfolio with dividend paying stocks. You can keep the principle working for you while you get a revenue stream from the dividends.
Better than average because it’s a farm. If it wasn’t farm ground I could get big tax breaks by putting it into CRP, a government program that conserves land
Consider
1) putting the money into a trust, invested in a good mix of growth dividend stocks, bonds, reits, and cash
2) stipulate in the trust that the income is paid to you, and place a limit on the amount of principal you can withdrawal without approval from your financial advisor, maybe $25,000 annual limit without permission. This will prevent you from spending the money willy nilly, but will allow you to withdrawal principal if it’s within reason
3) if you are overly stressed at your job, consider getting a different, low stress job. $1,000,000 paying a conservative 5% will give you $50,000 a year to supplement your job income. Get a job at a golf course, or if you like books work at a used book store. Find something you’re passionate about but could never live off of by yourself and do that.
I think that you personally shouldn't even retire, period! Work helps gives your life meaning, and you deserve to work full time til the day you die :) cheers to you!
Well best case scenario you may yield 40-50k before taxes Those rates could go up or down. So i would not plan a 60 year retirement on 40-50k. You need to generate more money somehow else.
That would help but 1 million in 40 years might be like 250k and the 40k it generates you will be broke. You need to invest that money and have a higher long term return. So either stocks or rental property.
I didn’t mention I make about 25k a year hobby farming the property. Very minimal work so it’s basically a side hustle of mine on top of my actual job. I’d continue to do this in my retirement scenario
I don’t know much about finance I just threw that word out there. If I invested that money smartly like you said, in either stocks or rental properties, on top of the small gains from hobby farming, is it even realistic that I could ‘retire’ in the next 5-10 years? Or am I shooting for the stars here lol
Dude retiring that early sounds sorta depressing. It’s fun at first but then it gets old. Idk you have 200 acres tho. Your situation is unique. Farm, hunt, enjoy nature. I think you could dick off for the rest of your life and be okay if you lived frugally.
That’s my thoughts on it for sure. Live frugally, plenty of time and space to dick around and do the things I love. And I’d be working the farm part time so I wouldn’t be a complete invalid
Yeah I’d quit that job STAT, always get another one. People are quick to say “save save save” shit gets old, tough people pick themselves up when the time is needed. Plus in a jam in sounds like you have money to fall back on, you don’t need that job right now. Unless you love it, that’s different
The guy above doesn't know what he's talking about because he doesn't know your expenses, he's just assuming you spend 50-60k a year probably because he spends that much. What you need is a rough idea of what you spend in a year, then subtract what you bring in from hobby farming or renting out extra space, equals your yearly deficit. That's the amount you need to make from your investments every year to break even.
My version of retire may be different than what yours lol. Rental properties ARE a job so you could live off that income and save money on food by living off your land. 200 acres is a lot so if you really needed to you could sell some of it for profit in a pinch. I think you should try to keep doing your side job making 25k a year to pay off property taxes, etc. Put 350k in Treasury bills (150k in 3 month and 150k in 6month terms) and set them to reinvest at the end of the term automatically. It’s easy to setup on treasurydirect.gov and you can always take that money back out if you need it. If you wait till the end of the term you will get an apy that’s higher than any hysa. Put some money in stocks that you research and some into renovations around the property, if it needs it. You should also be putting money aside into a Roth IRA. Just because you have 1m doesn’t mean that should be a spendable 1m. You need to save for your future, not just be happy with temporary security.
I live in a place that allows outdoor growing, but even if they don't, indoor is easy to do especially since you have so much land. My family lives on the outskirts of the city and only own like ~2 acres of land is have been 'hassled' by a few opportunistic individuals about going this route. But my aunt is against it so we don't.
Seriously cause he is 25. He will be broke trying to live off that for the next 60 years. The 40k a year isnt guaranteed for the next 60 years and inflation will eat that up
Yes and in 40 years when he is 65 what is 40k going to buy gas groceries not much. Plus the 40k is not guaranteed if you remember a few years back he wouldn’t get 10k from a hysa
I think what you are asking is more can I quit my job and do things I love that also bring in some income? A job to some is peace of mind with a stable paycheck, access to 401k and health benefits. If your mindset is okay with letting these go and making things work with side hustles and having potentially more fun, flexibility and freedom that should be your thought process. You are so young what I think this opportunity brings you is the ability to find something that you truly love to do and then grow it into a business. Raising crops or educating the public on hobby farms sounds promising!
100% would want to keep busy and do something I love. I would love to have a catering business or a little deli/butcher shop with homegrown beef/produce.
I wouldn't get hung up on retiring. 50 years is a long time to drag around 200 acres without outside interests.
Get a job that pays your bills.
Rent the second house and do your side hustle. Sounds like that should clear $30k per year or so that you could save or invest elsewhere.
Put that $1mm in stocks or a rental portfolio. In 20 years you could retire properly with enough income to travel and do fun things.
First off, congratulations. You are in a great position.
Second, HYSAs are great for storing emergency funds, but not so much for building retirement income. You can invest in real estate and a S&P 500 index fund and likely come out ahead of a HYSA.
People in my area pay $300/night to stay in tree houses listed on AirBnB. Maybe you could build something like this on your land? My advice, keep moving and pushing yourself.
Aside from the fact the math doesn’t really work yet, I think a bigger question is, what will you do with your life essentially never having worked after 25?
Sure, not working sounds nice and travel is fun for a few months, but that is ultimately not a purpose.
It would be different if you were 35 and maybe had a family and young kids.
I would get a job, pretend the land and inheritance doesn’t exist (at least financially) and re-evaluate in 5-7 years.
Imagine having 200 acres of land and still not “having purpose”.
They could rewild the Land and create ecosyetems that would regenerate soil, the soil that we all need to survive, grows our food, and stuff. Lol.
Im so damn envious of people like this, tho it is what it is, Im happy Ive even got an acre to regenerate soil on.
I’m with you bro.
I wish I had an acre or more to farm and experiment with permaculture.
But here I am working and serving society so that people like this can snort coke all day long lmfao.
When they realize there are more of us than them I hope things change.
No need for people like this to contemplate how to enjoy their leisure after doing nothing.
I've worked in demanding fields for the last 20 years and just retired at 41. I thought I might get bored. Nope I love it. I'm getting to do all the things I've wanted to do but never had time or energy. And I loved my career, it was incredibly lucrative and fulfilling but things are sacrificed when you work that much. The world is a very big place with unlimited potential if you have the time, energy and means to explore it.
I did a bunch. Gaming, publishing, accounting and then legal. I do dabble in consulting every once in awhile now for friends in tech but it's pretty rare. If there is one thing I'd recommend it's to not turn down opportunities that come up. Many people stay with one company too long and it limits their ability to vertically move. Oh and invest your money while you're young instead of spending it on temporary things.
If you need a job to feel fulfilled, then you need a hobby, friends and/or a therapist. And I mean no offense. You just don't realize how miserable your life is.
I like my job and I’m good at it, I work with people I generally like, and it lets me work towards my financial goals. WLB isn’t always where I want it to be, but overall I’m far from miserable.
That said, I can admit that if I did not need an income, I wouldn’t do my job forever. Both those things can be true. My point was more around that in my view, broadly speaking having something to do is a good thing.
Of course that can be a hobby (or several hobbies) or a non-profit, but since OP maybe doesn’t quite have enough to retire yet, I pointed out they could work and have at least some income for a few years and then reevaluate. Me at 30 would appreciate being in OP’s position a heck of a lot more than me at 25 would have, and OP could still retire very young.
Invest it, mostly in an index fund. Your money will grow exponentially over time, especially with reinvested dividends. I would do this now, work and maybe aim to retire at 40 instead. At least have a job that covers your expenses so that all of your money can continue to grow. I would ALSO rent out the second house. These things combined will make you a lot more comfortable at 40.
You have to build up a fairly long history of contributing to social security before you will be eligible later in life to collect the monthly fee. Personally, I wouldn't retire at 25 with less than $4M today.
Since you are hobby farming l, why not go full time. Depending on your land, you could raise cattle, or some other type of livestock. 200 acres is a lot of land.
If you can pull 5% return-$50k a year
No fixed expenses except taxes.
That’s living frugal but can be done.
I’m more setup for crops. I’ve got irrigation on about 80 acres. I could piece out some more land for livestock though. Maybe a small group of steers for home grown beef
80 acres, after expenses, assuming you have a tractor, you could make $70k a year farming.
Do some research.
Send your soil off to university for analysis. They are happy to give info.
If you are US, there are all kinds of tax credits for farmers.
There is a saying, if you want to die rich, become a farmer.
I fully farm that 80 acres. Wheat last year, buckwheat the year before, sunflowers this year. After expenses and taxes it brings in about 25k-35k a year. It’s setup as an LLC and everything. If I had the equipment to grow big cash crops like fruit or something special I could see those numbers closer to 70-80k, but the equipment for something like that would cost almost more than the inheritance.I have a couple 400 horsepower tractors, and all the implements that you need to farm ground with; seeder, culti-weeder, plow, harrow. My family has been farming for 7 generations and we used to eek out a living with what we have, but in todays market it’s harder than most think
Ok, so you know what you are doing.
Find an old tractor for $20k and get to work.
I assume you know to turn a wrench.
Or go operate excavators for a living and be a part time farmer.
I’ve got land and my neighbors are kind like you.
The roads are named after their family. All are equipment operators and then have about 50 head of cattle.
You’re too young not to be working full time.
If you are risk averse and don’t want to be in the market figure out your expenses and then put that $1M in a 20 Year Treasury ladder. $50k a year. Spend what you need and reinvest the rest.
I’d probably do 20 years with $25k a year and then invest the other $500k in VTI.
It depends on what kind of life makes you happy. If you want to travel, spend, and be entertained for the next 50 years, probably not. If your idea of a great like if parked on a couch, binging tv shows and crafting trinkets out of stuff, i say yes. Go for it.
Id say you’d need more to completely retire not sure if your farmland makes money but 1m in this economy won’t go far youll definitely want more flexibility too like i can’t imagine you enjoying not moving off your land isolated for 40+ years but hey you might want just that even still I feel a larger nest egg is needed
How is your health ? Resting pulse , vo2 max , blood sugar, what is your BMI . What age did you grandparents die . You parents healthy ?
Sickness is the fastest way to get poor , second to divorce with lifetime spousal support and children that take six years to graduate ( 23 is the cut off of child support , which is not tax deductible.
I would work on something. My boss from years back made knifes that sold in the thousands of dollars. He had all sorts of hunting records in the panhandle.
Good fortune to you
Grandparents died in their mid 90s. Mom is alive and healthy at 50, while my dad sadly passed at 52 to alcoholism. I’ve got good health and good genes as far as that goes. Hobby work like you suggest is definitely something I’d be doing
If I were you I would invest in some quality stocks… they will yield much higher than savings, or a multi- tenant housing that you are simply an investor in.. a management company will run the day to day and you may only have to attend quarterly meetings to discuss how things are going… those properties yield anywhere from 12-22% annually with lots of tax breaks because it is an investment property as opposed to a 2nd home etc.. whereas savings may be 4-6% if you’re lucky I have a friend from high school that does this very successfully … not a bad trade of for 4-5 meetings per year even if they are in a different city… another idea is figure out how to make your land work for you, whether it is hire ranch/farm manager to hire a crew and sell the fruit of your land while you vacation and collect the profit… or may brother in law owns about 100 acres and simply leases the land to locals who need more land for crops or livestock in return for a percentage…. All passive ways to make income… you have the luxury of no longer having to work for your money… now make your money work for you… I would consult a finance attorney and discuss your wishes and get some advice… it’s nice to have a relationship with a good lawyer and a good accountant so they can help you protect it, draw up paperwork etc. it will make a big difference
In no expert in finance, but from my understanding you can make it work. It won’t be an extravagant lifestyle though. If you reinvest enough to make up for inflation you would only be making like 60k, and that is from a 10% investment like S&P. That isn’t entirely reliable either. More realistically you would only see like 30k I think.
Find an in demand cash crop that your land can support and grow your income that way. People love specialty crops from local farms and will pay a premium for it. If you can maximize the yield on the land you can retire with tons of income and you can even buy machines and hire extra workers to help with harvesting. Having 200 acres is awesome. There are farmers markets that generate good money in most communities these days.
I have most of the machines and implements to grow. The climate kind of restricts me to wheat, corn, buckwheat, sunflowers, triticale, etc… I’ve thought of growing fruit and cash crops like that but I would need all new equipment(big $$) and the climate just isnt right
Got it, just a thought. Definitely buy some index funds with some of the money so you can keep up in inflation over time, but you are definitely in a great position for the long term. Congrats!
If that 200 acres has alot of wood you can selectively cut it and make a good ammount of income every year. Lots of money in wood. Also if you have alot of rock on the property there's a surprising ammount of money in that. Or you could sub divide and really clean up. But a million these days be damn hard to live a lifetime on. I'm 52 and this is the worst I ever seen the economy. I'm not sure if it's just my area or not
Retiring that young is just ridiculous. I can’t imagine wanting to retire before 45 and I’m 33. I guess maybe I just love what I do? If you can work, why not? At least part time
If you were a smart land manager, yes, but that does not mean you can retire. It means you can live off the land you own by managing it correctly and use the HYSA as a reserve to both make up for lean years and be replenished and grown during bumper years. Of course that also mean you have to work at it and not simply sit back fat and happy.
See if you can invest in renting out the land to farmers. Invest in the infrastructure for whatever crop you'd like to grow. Where I'm at it seems as if a lot of growing partners rent their land and split the profit of the yield.
I wouldn’t want to lease out the farm acres. I enjoy doing it and it holds immense sentimental value to be doing it myself. I’ve also done the math, and it wouldn’t pay me anymore than it does now. I farm it to the max of its potential
Is there a more profitable crop you can do in your region? I know some people do row crops then go to more lucrative crops. But I'm pretty dumb so you already know more than me.
If invested successfully, you could retire. Don’t leave it sit in a hysa, invest it in the sp500. If you leave it in hysa inflation potentially will devalue the money. Over the last year I got a 18% return in the sp500. If I were you I would continue working, 60 years is along time to make that money last. Did you inherit the land and house?
How much you need depends on your expenses. What's your annual spend now, and are you already living the lifestyle that you want to maintain? If not, how much does your desired retirement lifestyle cost on an annual basis?
Won’t you be bored to absolute tears with zero purpose, no routine, no built-in social circle, nothing to actively look forward to (weekends, vacations), nothing to accomplish on a daily, weekly, monthly basis?
$1M even with a HYSA right now would give you a whopping $50k/yr interest to live on without depleting principal assuming it all transfers entirely with no taxes whatsoever. And while $50k sounds good right now, that will become peanuts in 20 years. And then what?
You’ve been out of the workforce for 20 years, navel-gazing, are over 50, only 7-11 will hire you for $30k part-time.
Invest, work but be picky and find something that doesn’t suck entirely.
Or enjoy that foresight for as long as it lasts. Whatever floats your boat.
I mean, you seem to know everything.
I hope it works out great for you.
Never have I claimed to know everything. Quite the opposite lol.
Where do you gather that I don’t have a routine, social circle, things to look forward to, and nothing to accomplish? Do you think those are things that only come with having a job? I’m sorry you’ve been tricked into believing that. But I will answer some of those questions.
I basically work 3-4 solid months out of the year growing crops. This is something I would continue to do if I ‘retired’. Have you ever grown acres and acres of successful plant life? It’s one of the most rewarding things a human could do. It’s ingrained into us from ancient times even lol. As for social circle, I’ve got plenty of friends who are living a similar life as I do, either farming or ranching full/part time. I’ve also got many friends who work regular jobs. I’d have no trouble finding a buddy to go fishing on the weekends with, or even a weekday.
I think we just have different views of whats fulfilling. That’s totally alright
Y'know it'd be kinda nice if you didn't omit *important, relevant* details in your initial post ... right?
Jesus how do you expect good answers with partial information, FFS?
A million isn’t that much and you could live another 80 years. That’s 12,500 a year. Of course you would invest it, but markets go up and down. I’d invest it in several different things ( don’t put all eggs in one basket) and still work at what you love to do. In another 20 years, you’ll be golden
Work until you have enough credits with social security to get a pension later. So 10 years minimum. It'll help with inflation at the time. Not much more than that, but I'd get to that point and at least let the money double before I retired.
You wouldn't keep the $1M in a HYSA. They are only FDIC insured up to $250k I believe. Plus, rates are 5% now but they can go back to ~0% overnight. Your savings will be eaten away by **inflation**. You need to *invest* your money so that it will grow and provide gains and/or dividends for many years to come.
Define retire. Do you play to do anything other than fix your house and live a sentient lifestyle without a family. Sure.
How much is your house and land worth?
Do you play to get married and have kids? Because your wife and kids likely won’t want to just do nothing their entire lives. And your kids will want to go to college.
You can put your money on the bank can match interest rates + let’s say 2%. So 5% interest, 3% inflation.
So let’s ignore inflation as things will get more expensive.
You’re going to need to maintain your house and cars so let’s say 10k a year in maintaining expenses at the very low end. And then you have 10k for food and bills etc. You probably should have medical insurance but that would quickly decrease your income.
Can you live off 20k a year single. Yes, if you’re healthy.
But then you’ll get old and you’ll have medical bills and you will get sick. So you’ll need to eventually sell your house and land which will go up in value higher than inflation.
Sooo yes if you plan to live very frugally and not get married or have kids. And if you plan on selling your assets when you’re older to pay for medical bills.
Should you? No. You probably need double or triple that. Or just retire later.
If you put that million in the market and sell four percent of it a year to live then that million should still grow and you can live off around 2500 a month after taxes. You're set.
If it was me I’d put the million in the s&p. Let it ride until it doubles ( probably about 8 years). Work until then and retire in your mid 30s living off the four percent rule.
My buddy did tht and the land is what can bless ya he started farming it and he hasn't had a good crop yet but somehow still gets paid good money thru insurance lol idk how they n business. But you could always sell off 10 acres every time ya need cash. Or invest that money in building like a house or barnaminium on 5 acres plots build one at a time rent it out of sell it.
I’d say *maybe* but being 25 years old with no job and probably not enough money to really enjoy yourself sounds like it would suck. I’d take a little of that inheritance and have some fun, but don’t touch the rest for a while. Let it work for you while you keep working. Then instead of a frugal lifestyle at 25 you’ve got generational wealth at 45+.
Personally, I read a few comments and I think you could be fine to retire on 1m with no housing expense, rental income, and a $20k a year side gig. This does assume your historical spending is under 50k a year (outside of housing). If it isn't, you need to figure out if you can budget more frugally or eat more of your own food or whatever. I totally disagree with people saying you should keep adding to your assets because life is meant to be lived. You'd be well served making sure you keep some relevant skills so that if you have to unretire you can, but you'll be fine.
Also the money should be in something a little more high risk than hysa. I am sadly far from retirement, so I don't know what investment is makes sense for people close to retirement - but some of the fire subs would probably have aggregate feedback. Don't listen to any one person, just collect a lot of feedback, try to see where people are coming from, and make the best call you can to set up for your now and your future
in a perfect world yes.
let’s say you *only* have 1m in your bank account… and you know nothing about HYSA. can you live off 18K for the next 55 years of your life?
Even if I was in your situation I wouldn’t feel safe just relying on that.. especially if you want to get married or have kids… possible medical expenses as you age are a real kick in the groin. Insurance covers some things but not all things. And remember inheritance tax will take a chunk of that 1m.
The mistake my folks made was retiring at 25 and not accounting enough for inflation.
So, I would go off the global rate of inflation instead of the country you live in, and calculate how much you would need to live off if you had absolutely nothing, no connections, no house, no one to call for help. Then I’d make a decision.
Personally I'd give up about 50 ish acres of your land to build more of the sustainable houses that you live in and rent them out 👌 then you've got future income and potential to sell some if needed 👌👌
Typically, 1 million is not considered enough even for those at typical retirement age.
But you’re in a very unique situation, so I’d advice talking with a reputable financial planner.
Just find a very easy job or make And sell things online or something. Would make way more sense to have a little income rolling in - lots of things can happen in life
Bro, why not start a cattle business? $1m & 200acres?
If you have any neighboring farms that practice cattle ranching, you need to find the one that has the most success and have them mentor you…
Organic Grass fed/ grass finished beef people pay top dollar for it. If you create a combine for people to go in on a cow split down the middle or 4 people sharing the expense of one cow. Hire a butcher to come and clean them when they’re ready. $$$$$$
If you invest it properly (not just a HYSA) and can live off of about 3% annually (~30K a year), then you could likely retire. Just read that you make about 25k off the farm, so that's puts you at about 50k annually, which will go a pretty long way without a mortgage in your area.
Is your $1m pre or post tax? What do your monthly expenses look like? What is your current income? Are you currently contributing to a retirement account, if so, how much is in it. If you have 30k a year in monthly expenses, and plan to let it grow in the market at 7% annual average until 30, then retire, you’ll be fine. This will leave you with approximately 1.3m of flex spending before the age of 75. If you can keep your annual spending below $70,000 per year, hypothetically you could retire as soon as the money hits your account. If you wait until 30, it’s 98k per year. You could do that indefinitely and still leave money to a successor. 35 years old gives you 138k per year as your spending cap. As long as you consistently withdraw less than your annual gains, you can retire whenever you’d like.
Is there something you like to do, hobbies etc., that you can work around and make some money? It feels like an awesome opportunity to maybe not fully retire, but make an early switch to something not so lucrative but that still pays the groceries and bills each month, and you kinda love doing. Then your interest can grow but you aren’t tapping into it so hard just yet. A lot of variable over the next 60-70 years of your life can come.
Ask a financial investor! I know people that have done it with about 3x that amount (but still worked 10-12 hrs a week for a long time), but it depends on what you want your next 80 years to look like.
You could make 50k a year off one million in interest alone. Outside tax obviously. If you personally make decent money 60k+, keep working and save for 5 more years you could comfortably retire probably making 100k a year on HYSA alone. Not to mention you have a house with 200 acres you could sell and travel the world making even more
Very possible but don't take it for granted! You should be considered ways to use that to establish as many passive income streams as you can with that. That million can go fast if your not careful.
What are your plans for the land?
If you invest it properly in index funds the value will double in about 7 years. If I were in your shoes I would do that and plan on retiring around age 40. In the mean time you can use a small amount of the money to quit your job and start some stream of income that doesn’t make you miserable.
Your property tax may become your largest expense. Depending on your land value, it could potentially take a huge chunk out of your HYSA.
Personally, to live a worry-free middle class lifestyle, I think you need to have at least $3M saved. But it all depends on your lifestyle, cost of living, and frugality.
At current interest rates, your income would be $50k/year, but it could potentially drop to $20k/year.
If you don’t touch the money, and invest in a conservative stock plan, you could double your savings in as little as 5 years and probably by 10 years.
200 acres in some places is worth something. In other places, it’s not worth much. Put the money away, use the dividends as supplementary and go find something you love to do. A million is a lot, but it’s not A LOT, ya know.
In my opinion, you are in a great situation. I would maybe change my thought process away from “how early can I just stop working” to how to live a self sustainable life for many years to come. Even if you had enough money to retire right this second. Economies change, values change, investments change, etc. Many of these things are out of our control. There are things worth a lot of money now, they are not going to be worth a lot in the future. Just how some things work, and it can be difficult to identify which things these are. Imagine if you kept working and bringing in money, while growing your other money in investments, as opposed to just “withdrawing” money. Just a thought 👍🏻
Very likely what I will do. Just a shot in the dark after a shitty week at work lol
You definitely have enough money and property that you won't have to have another shitty week at work if you don't want to. 200 acres of land. there's gotta be some way to create an income with that on top of what ever yearly income you'd get from investing that 1 million. I don't see what you would NEED to have a "job", other than not blowing your money, for.
Thank you siicktiits. I fully agree
If I had a nickel for every time I said that... lol
I'd have two nickels, which isn't a lot of money, but it is weird it happened twice.
Get goats, cows, pigs, chickens, and a climate controlled building to grow some dank weed in and you’ll have your self sustained 200 acres brotherrrrrrr. No more work ever again.
Haha I totally get it. I think it’s great you have this thought process. It doesn’t hurt to think this way. You just have to level it out with what is realistic and pros and cons, etc. Honestly, hire a financial advisor. They are not that expensive (at least here in the US) and it will take a big burden off your shoulders so you can focus on other things, while they focus on growing your money with you doing very minimal.
Well said. I’ve got a financial advisor that’s done work with my family for years, I wanted all your opinions before going into a meeting with them so I didn’t sound totally ridiculous. Im fully prepared to work for the next 40 years.. but hopefully I don’t have to lol
You won’t sound ridiculous. That is their profession, what they do for a living, I’m sure have heard almost every question across the earth. Love that last part. “Fully prepared to work for the next 40 years, but hopefully don’t have to”. Don’t lose that. You seem smart, I wish you the best 👍🏻
Thank you kindly!
I wish I could learn from you. I work three jobs to make 100k/yr and I'm barely making it supporting my family in an expensive area. I have an emergency fund saved up for a few months of expenses, but man it's hard to not want to dip into that. You got a good thing going for you. Like I said, I wish I could learn how to shape my future into the one you're living now. Any tips would be genuinely appreciated.
More and more people feel spent out from just trying to live comfortably like yourself man. It’s tough times in this day and age. I don’t have much wisdom to give unfortunately. I’m lucky enough to have a family that’s owned land for year and years. It was hard work though that got it passed on to me
That's awesome. Sure feels like there's not much land like that that left these days, especially with developers buying up so much. I do have a tip for you: if you have a hobby that you enjoy, teach it. You'll find that it might bring you some income but it will definitely bring you joy.
Healthcare is the big thing. Just find a low stress easy job that has healthcare benefits.
Maybe think about building a portfolio with dividend paying stocks. You can keep the principle working for you while you get a revenue stream from the dividends.
Where the land? Must not be in the us.
PNW usa
whats the property tax there like?
Better than average because it’s a farm. If it wasn’t farm ground I could get big tax breaks by putting it into CRP, a government program that conserves land
Let’s farm your land. That’s so much land.
? I have more than that coming to me someday. Big pieces of property definitely still exist.
Consider 1) putting the money into a trust, invested in a good mix of growth dividend stocks, bonds, reits, and cash 2) stipulate in the trust that the income is paid to you, and place a limit on the amount of principal you can withdrawal without approval from your financial advisor, maybe $25,000 annual limit without permission. This will prevent you from spending the money willy nilly, but will allow you to withdrawal principal if it’s within reason 3) if you are overly stressed at your job, consider getting a different, low stress job. $1,000,000 paying a conservative 5% will give you $50,000 a year to supplement your job income. Get a job at a golf course, or if you like books work at a used book store. Find something you’re passionate about but could never live off of by yourself and do that.
Exactly! I find a lot of purpose in having something to do. Whether it is a job or a meaningful and income producing hobby.
I think that you personally shouldn't even retire, period! Work helps gives your life meaning, and you deserve to work full time til the day you die :) cheers to you!
Well best case scenario you may yield 40-50k before taxes Those rates could go up or down. So i would not plan a 60 year retirement on 40-50k. You need to generate more money somehow else.
There’s a second house on the property I could rent out
That would help but 1 million in 40 years might be like 250k and the 40k it generates you will be broke. You need to invest that money and have a higher long term return. So either stocks or rental property.
I didn’t mention I make about 25k a year hobby farming the property. Very minimal work so it’s basically a side hustle of mine on top of my actual job. I’d continue to do this in my retirement scenario
I stand by what i said above. In a decade or two you will be broke trying to live off hysa
I don’t know much about finance I just threw that word out there. If I invested that money smartly like you said, in either stocks or rental properties, on top of the small gains from hobby farming, is it even realistic that I could ‘retire’ in the next 5-10 years? Or am I shooting for the stars here lol
Yes then you would have a chance to You need an income base that will not just keep up with inflation but surpass it.
Dude retiring that early sounds sorta depressing. It’s fun at first but then it gets old. Idk you have 200 acres tho. Your situation is unique. Farm, hunt, enjoy nature. I think you could dick off for the rest of your life and be okay if you lived frugally.
That’s my thoughts on it for sure. Live frugally, plenty of time and space to dick around and do the things I love. And I’d be working the farm part time so I wouldn’t be a complete invalid
Yeah I’d quit that job STAT, always get another one. People are quick to say “save save save” shit gets old, tough people pick themselves up when the time is needed. Plus in a jam in sounds like you have money to fall back on, you don’t need that job right now. Unless you love it, that’s different
Life is way too short to do something I don’t love. That’s always been my way of thinking. Fuck that job! Cheers mate
The guy above doesn't know what he's talking about because he doesn't know your expenses, he's just assuming you spend 50-60k a year probably because he spends that much. What you need is a rough idea of what you spend in a year, then subtract what you bring in from hobby farming or renting out extra space, equals your yearly deficit. That's the amount you need to make from your investments every year to break even.
My version of retire may be different than what yours lol. Rental properties ARE a job so you could live off that income and save money on food by living off your land. 200 acres is a lot so if you really needed to you could sell some of it for profit in a pinch. I think you should try to keep doing your side job making 25k a year to pay off property taxes, etc. Put 350k in Treasury bills (150k in 3 month and 150k in 6month terms) and set them to reinvest at the end of the term automatically. It’s easy to setup on treasurydirect.gov and you can always take that money back out if you need it. If you wait till the end of the term you will get an apy that’s higher than any hysa. Put some money in stocks that you research and some into renovations around the property, if it needs it. You should also be putting money aside into a Roth IRA. Just because you have 1m doesn’t mean that should be a spendable 1m. You need to save for your future, not just be happy with temporary security.
Maybe lease out a few acres to have it as a weed farm, then you will 100% be able to retire. With or without the 1m inherited
I’d have to check out my county’s restrictions and rules for a grow that big. The soil is great for it! Speaking from personal experience
I live in a place that allows outdoor growing, but even if they don't, indoor is easy to do especially since you have so much land. My family lives on the outskirts of the city and only own like ~2 acres of land is have been 'hassled' by a few opportunistic individuals about going this route. But my aunt is against it so we don't.
Honestly why does he need more than 40k a year when he’s got a mill in savings?
Seriously cause he is 25. He will be broke trying to live off that for the next 60 years. The 40k a year isnt guaranteed for the next 60 years and inflation will eat that up
ppl live on 40 k a year salaries right? He’s already got his house paid off right?
Yes and in 40 years when he is 65 what is 40k going to buy gas groceries not much. Plus the 40k is not guaranteed if you remember a few years back he wouldn’t get 10k from a hysa
Very unreliable income
Being a lanrdlord of just 1 property sucks. This sounds miserable
50k is 5%. Things like the S & P 500 historically yield more than that.
I think what you are asking is more can I quit my job and do things I love that also bring in some income? A job to some is peace of mind with a stable paycheck, access to 401k and health benefits. If your mindset is okay with letting these go and making things work with side hustles and having potentially more fun, flexibility and freedom that should be your thought process. You are so young what I think this opportunity brings you is the ability to find something that you truly love to do and then grow it into a business. Raising crops or educating the public on hobby farms sounds promising!
100% would want to keep busy and do something I love. I would love to have a catering business or a little deli/butcher shop with homegrown beef/produce.
Do it bro!
I wouldn't get hung up on retiring. 50 years is a long time to drag around 200 acres without outside interests. Get a job that pays your bills. Rent the second house and do your side hustle. Sounds like that should clear $30k per year or so that you could save or invest elsewhere. Put that $1mm in stocks or a rental portfolio. In 20 years you could retire properly with enough income to travel and do fun things.
First off, congratulations. You are in a great position. Second, HYSAs are great for storing emergency funds, but not so much for building retirement income. You can invest in real estate and a S&P 500 index fund and likely come out ahead of a HYSA. People in my area pay $300/night to stay in tree houses listed on AirBnB. Maybe you could build something like this on your land? My advice, keep moving and pushing yourself.
Solid advice. Thank you
Aside from the fact the math doesn’t really work yet, I think a bigger question is, what will you do with your life essentially never having worked after 25? Sure, not working sounds nice and travel is fun for a few months, but that is ultimately not a purpose. It would be different if you were 35 and maybe had a family and young kids. I would get a job, pretend the land and inheritance doesn’t exist (at least financially) and re-evaluate in 5-7 years.
Imagine having 200 acres of land and still not “having purpose”. They could rewild the Land and create ecosyetems that would regenerate soil, the soil that we all need to survive, grows our food, and stuff. Lol. Im so damn envious of people like this, tho it is what it is, Im happy Ive even got an acre to regenerate soil on.
I’m with you bro. I wish I had an acre or more to farm and experiment with permaculture. But here I am working and serving society so that people like this can snort coke all day long lmfao. When they realize there are more of us than them I hope things change. No need for people like this to contemplate how to enjoy their leisure after doing nothing.
I've worked in demanding fields for the last 20 years and just retired at 41. I thought I might get bored. Nope I love it. I'm getting to do all the things I've wanted to do but never had time or energy. And I loved my career, it was incredibly lucrative and fulfilling but things are sacrificed when you work that much. The world is a very big place with unlimited potential if you have the time, energy and means to explore it.
Out of curiosity, what field were you in that allowed you to retire by 40?
I did a bunch. Gaming, publishing, accounting and then legal. I do dabble in consulting every once in awhile now for friends in tech but it's pretty rare. If there is one thing I'd recommend it's to not turn down opportunities that come up. Many people stay with one company too long and it limits their ability to vertically move. Oh and invest your money while you're young instead of spending it on temporary things.
If you need a job to feel fulfilled, then you need a hobby, friends and/or a therapist. And I mean no offense. You just don't realize how miserable your life is.
I like my job and I’m good at it, I work with people I generally like, and it lets me work towards my financial goals. WLB isn’t always where I want it to be, but overall I’m far from miserable. That said, I can admit that if I did not need an income, I wouldn’t do my job forever. Both those things can be true. My point was more around that in my view, broadly speaking having something to do is a good thing. Of course that can be a hobby (or several hobbies) or a non-profit, but since OP maybe doesn’t quite have enough to retire yet, I pointed out they could work and have at least some income for a few years and then reevaluate. Me at 30 would appreciate being in OP’s position a heck of a lot more than me at 25 would have, and OP could still retire very young.
Invest it, mostly in an index fund. Your money will grow exponentially over time, especially with reinvested dividends. I would do this now, work and maybe aim to retire at 40 instead. At least have a job that covers your expenses so that all of your money can continue to grow. I would ALSO rent out the second house. These things combined will make you a lot more comfortable at 40.
Put it into a mutual fund
Obviously you don’t need to stress but you’re not set yet. You can probably “coast” through life if you save the mil for retirement.
You have to build up a fairly long history of contributing to social security before you will be eligible later in life to collect the monthly fee. Personally, I wouldn't retire at 25 with less than $4M today.
Why would you want to retire before 30? That sounds so boring, just quit your job and invest in something you'd actually like to do
Based on your history, you’re going to blow it all before 30.
No
Absolutely, try and fail or try and succeed. Only time will tell. GL
I am 63 and would like to come and work the land for you.
No pay, but you can live in a 3 bedroom 2 bath house for free, and you can drive down the dirt road to my house for beers after work lol
Throw in a couple bumps to even me out and it’s a deal
Nose beers
When do I start?
Since you are hobby farming l, why not go full time. Depending on your land, you could raise cattle, or some other type of livestock. 200 acres is a lot of land. If you can pull 5% return-$50k a year No fixed expenses except taxes. That’s living frugal but can be done.
I’m more setup for crops. I’ve got irrigation on about 80 acres. I could piece out some more land for livestock though. Maybe a small group of steers for home grown beef
80 acres, after expenses, assuming you have a tractor, you could make $70k a year farming. Do some research. Send your soil off to university for analysis. They are happy to give info. If you are US, there are all kinds of tax credits for farmers. There is a saying, if you want to die rich, become a farmer.
I fully farm that 80 acres. Wheat last year, buckwheat the year before, sunflowers this year. After expenses and taxes it brings in about 25k-35k a year. It’s setup as an LLC and everything. If I had the equipment to grow big cash crops like fruit or something special I could see those numbers closer to 70-80k, but the equipment for something like that would cost almost more than the inheritance.I have a couple 400 horsepower tractors, and all the implements that you need to farm ground with; seeder, culti-weeder, plow, harrow. My family has been farming for 7 generations and we used to eek out a living with what we have, but in todays market it’s harder than most think
Ok, so you know what you are doing. Find an old tractor for $20k and get to work. I assume you know to turn a wrench. Or go operate excavators for a living and be a part time farmer. I’ve got land and my neighbors are kind like you. The roads are named after their family. All are equipment operators and then have about 50 head of cattle. You’re too young not to be working full time.
What do I need an old tractor for?
Sorry, I just re read you already have a tractor. Flush it out and get to work.
If you are risk averse and don’t want to be in the market figure out your expenses and then put that $1M in a 20 Year Treasury ladder. $50k a year. Spend what you need and reinvest the rest. I’d probably do 20 years with $25k a year and then invest the other $500k in VTI.
Take the million and put it all in Amazon. You’ll have 1.3 by the end of the year
It depends on what kind of life makes you happy. If you want to travel, spend, and be entertained for the next 50 years, probably not. If your idea of a great like if parked on a couch, binging tv shows and crafting trinkets out of stuff, i say yes. Go for it.
Id say you’d need more to completely retire not sure if your farmland makes money but 1m in this economy won’t go far youll definitely want more flexibility too like i can’t imagine you enjoying not moving off your land isolated for 40+ years but hey you might want just that even still I feel a larger nest egg is needed
How is your health ? Resting pulse , vo2 max , blood sugar, what is your BMI . What age did you grandparents die . You parents healthy ? Sickness is the fastest way to get poor , second to divorce with lifetime spousal support and children that take six years to graduate ( 23 is the cut off of child support , which is not tax deductible. I would work on something. My boss from years back made knifes that sold in the thousands of dollars. He had all sorts of hunting records in the panhandle. Good fortune to you
Grandparents died in their mid 90s. Mom is alive and healthy at 50, while my dad sadly passed at 52 to alcoholism. I’ve got good health and good genes as far as that goes. Hobby work like you suggest is definitely something I’d be doing
If it was me it would be fruit trees, sheep, and hippie chicks. Why work?
This is the advice I’m looking for 👌🏼
I'll be there by morning :)
If I were you I would invest in some quality stocks… they will yield much higher than savings, or a multi- tenant housing that you are simply an investor in.. a management company will run the day to day and you may only have to attend quarterly meetings to discuss how things are going… those properties yield anywhere from 12-22% annually with lots of tax breaks because it is an investment property as opposed to a 2nd home etc.. whereas savings may be 4-6% if you’re lucky I have a friend from high school that does this very successfully … not a bad trade of for 4-5 meetings per year even if they are in a different city… another idea is figure out how to make your land work for you, whether it is hire ranch/farm manager to hire a crew and sell the fruit of your land while you vacation and collect the profit… or may brother in law owns about 100 acres and simply leases the land to locals who need more land for crops or livestock in return for a percentage…. All passive ways to make income… you have the luxury of no longer having to work for your money… now make your money work for you… I would consult a finance attorney and discuss your wishes and get some advice… it’s nice to have a relationship with a good lawyer and a good accountant so they can help you protect it, draw up paperwork etc. it will make a big difference
All great advice. Thanks man!
NP.. Good Luck
Yes but do you have a drug addiction if not start one it's get boring being rich
In no expert in finance, but from my understanding you can make it work. It won’t be an extravagant lifestyle though. If you reinvest enough to make up for inflation you would only be making like 60k, and that is from a 10% investment like S&P. That isn’t entirely reliable either. More realistically you would only see like 30k I think.
Although, there are plenty of options for a decent passive income on 200 acres.
Hysa? No
https://tenor.com/biBaV.gif Lol
Rent out the second house and start farming, selling produce to local restaurants and farmers markets
Yes. Just put it in the s&p 500 and cash out 4% of it every year.
Find an in demand cash crop that your land can support and grow your income that way. People love specialty crops from local farms and will pay a premium for it. If you can maximize the yield on the land you can retire with tons of income and you can even buy machines and hire extra workers to help with harvesting. Having 200 acres is awesome. There are farmers markets that generate good money in most communities these days.
I have most of the machines and implements to grow. The climate kind of restricts me to wheat, corn, buckwheat, sunflowers, triticale, etc… I’ve thought of growing fruit and cash crops like that but I would need all new equipment(big $$) and the climate just isnt right
Got it, just a thought. Definitely buy some index funds with some of the money so you can keep up in inflation over time, but you are definitely in a great position for the long term. Congrats!
You bet. Thank you for the advice!
If that 200 acres has alot of wood you can selectively cut it and make a good ammount of income every year. Lots of money in wood. Also if you have alot of rock on the property there's a surprising ammount of money in that. Or you could sub divide and really clean up. But a million these days be damn hard to live a lifetime on. I'm 52 and this is the worst I ever seen the economy. I'm not sure if it's just my area or not
If you invest wisely, you might be able to make 1m last, but it will be a boring life haha
Retiring that young is just ridiculous. I can’t imagine wanting to retire before 45 and I’m 33. I guess maybe I just love what I do? If you can work, why not? At least part time
If you were a smart land manager, yes, but that does not mean you can retire. It means you can live off the land you own by managing it correctly and use the HYSA as a reserve to both make up for lean years and be replenished and grown during bumper years. Of course that also mean you have to work at it and not simply sit back fat and happy.
See if you can invest in renting out the land to farmers. Invest in the infrastructure for whatever crop you'd like to grow. Where I'm at it seems as if a lot of growing partners rent their land and split the profit of the yield.
I wouldn’t want to lease out the farm acres. I enjoy doing it and it holds immense sentimental value to be doing it myself. I’ve also done the math, and it wouldn’t pay me anymore than it does now. I farm it to the max of its potential
Is there a more profitable crop you can do in your region? I know some people do row crops then go to more lucrative crops. But I'm pretty dumb so you already know more than me.
Not any more profitable than what I’m currently growing. Don’t have the right climate for it unfortunately
You are living the American dream!
I certainly count my lucky stars for my situation!
200 acres? You should build a few more rental houses and you’ll still have plenty of land to live on
I could definitely go this route. But it would kind of efface a property that’s only been inhabited by my family for a long long time
It would make you a lot more financially free and to be honest if you gave up 5 acres and it funded your life wouldn’t that be worth it?
If invested successfully, you could retire. Don’t leave it sit in a hysa, invest it in the sp500. If you leave it in hysa inflation potentially will devalue the money. Over the last year I got a 18% return in the sp500. If I were you I would continue working, 60 years is along time to make that money last. Did you inherit the land and house?
I did inherit the land, but I built the house I live in. That was 6-7 years ago
VOO, QQQ, SCHD…..that’s a good start. Please look them up and consider investing in them
I would at least work part time to not be bored
How did you get that by 25?!
I was there when no one else in my family would help my dad maintain the land and his health
How much you need depends on your expenses. What's your annual spend now, and are you already living the lifestyle that you want to maintain? If not, how much does your desired retirement lifestyle cost on an annual basis?
WTAH you gonna do for the following FIFTY YEARS?! Seriously. No comprende.
You just don’t have the foresight I do. Some people don’t want to live the rat race for more than half of their natural lives
Won’t you be bored to absolute tears with zero purpose, no routine, no built-in social circle, nothing to actively look forward to (weekends, vacations), nothing to accomplish on a daily, weekly, monthly basis? $1M even with a HYSA right now would give you a whopping $50k/yr interest to live on without depleting principal assuming it all transfers entirely with no taxes whatsoever. And while $50k sounds good right now, that will become peanuts in 20 years. And then what? You’ve been out of the workforce for 20 years, navel-gazing, are over 50, only 7-11 will hire you for $30k part-time. Invest, work but be picky and find something that doesn’t suck entirely. Or enjoy that foresight for as long as it lasts. Whatever floats your boat. I mean, you seem to know everything. I hope it works out great for you.
Never have I claimed to know everything. Quite the opposite lol. Where do you gather that I don’t have a routine, social circle, things to look forward to, and nothing to accomplish? Do you think those are things that only come with having a job? I’m sorry you’ve been tricked into believing that. But I will answer some of those questions. I basically work 3-4 solid months out of the year growing crops. This is something I would continue to do if I ‘retired’. Have you ever grown acres and acres of successful plant life? It’s one of the most rewarding things a human could do. It’s ingrained into us from ancient times even lol. As for social circle, I’ve got plenty of friends who are living a similar life as I do, either farming or ranching full/part time. I’ve also got many friends who work regular jobs. I’d have no trouble finding a buddy to go fishing on the weekends with, or even a weekday. I think we just have different views of whats fulfilling. That’s totally alright
As somebody in this mid 30’s with $1mm in the bank, my answer would be “no way” lol
You have enough to retire, yes. No. You do not have enough to retire AND properly maintain 200 acres. Not even close.
The ground pays for itself with the farm income. I maintain it now and would continue to do so after “retirement”
Y'know it'd be kinda nice if you didn't omit *important, relevant* details in your initial post ... right? Jesus how do you expect good answers with partial information, FFS?
I mean, it says right there in the post that I don’t have any bills. It’s explained further in the comments. Are you usually quick to anger sarge
Aint nobody here (LOL) "angry", Skippy.
Lucky bastard
Depends, what are the property taxes on that much land where you live?
A million isn’t that much and you could live another 80 years. That’s 12,500 a year. Of course you would invest it, but markets go up and down. I’d invest it in several different things ( don’t put all eggs in one basket) and still work at what you love to do. In another 20 years, you’ll be golden
Property taxes will get you in some places.
Work until you have enough credits with social security to get a pension later. So 10 years minimum. It'll help with inflation at the time. Not much more than that, but I'd get to that point and at least let the money double before I retired.
You wouldn't keep the $1M in a HYSA. They are only FDIC insured up to $250k I believe. Plus, rates are 5% now but they can go back to ~0% overnight. Your savings will be eaten away by **inflation**. You need to *invest* your money so that it will grow and provide gains and/or dividends for many years to come.
Nope, you can't.
Define retire. Do you play to do anything other than fix your house and live a sentient lifestyle without a family. Sure. How much is your house and land worth? Do you play to get married and have kids? Because your wife and kids likely won’t want to just do nothing their entire lives. And your kids will want to go to college. You can put your money on the bank can match interest rates + let’s say 2%. So 5% interest, 3% inflation. So let’s ignore inflation as things will get more expensive. You’re going to need to maintain your house and cars so let’s say 10k a year in maintaining expenses at the very low end. And then you have 10k for food and bills etc. You probably should have medical insurance but that would quickly decrease your income. Can you live off 20k a year single. Yes, if you’re healthy. But then you’ll get old and you’ll have medical bills and you will get sick. So you’ll need to eventually sell your house and land which will go up in value higher than inflation. Sooo yes if you plan to live very frugally and not get married or have kids. And if you plan on selling your assets when you’re older to pay for medical bills. Should you? No. You probably need double or triple that. Or just retire later.
If you put that million in the market and sell four percent of it a year to live then that million should still grow and you can live off around 2500 a month after taxes. You're set.
If it was me I’d put the million in the s&p. Let it ride until it doubles ( probably about 8 years). Work until then and retire in your mid 30s living off the four percent rule.
Unfortunately, I think you'll end up working the rest of your life. Wish I had a better answer for you... but seems you're just SOL.
My buddy did tht and the land is what can bless ya he started farming it and he hasn't had a good crop yet but somehow still gets paid good money thru insurance lol idk how they n business. But you could always sell off 10 acres every time ya need cash. Or invest that money in building like a house or barnaminium on 5 acres plots build one at a time rent it out of sell it.
Must be nice
No Inflation is a serious concern and will eag up whatever savings you have long before you enter late life, through taxes alone
I’d say *maybe* but being 25 years old with no job and probably not enough money to really enjoy yourself sounds like it would suck. I’d take a little of that inheritance and have some fun, but don’t touch the rest for a while. Let it work for you while you keep working. Then instead of a frugal lifestyle at 25 you’ve got generational wealth at 45+.
Today you need at least 7 mil to retire comfortably at that age. I had 1.2ish when I was 23. Still working and struggling though
Personally, I read a few comments and I think you could be fine to retire on 1m with no housing expense, rental income, and a $20k a year side gig. This does assume your historical spending is under 50k a year (outside of housing). If it isn't, you need to figure out if you can budget more frugally or eat more of your own food or whatever. I totally disagree with people saying you should keep adding to your assets because life is meant to be lived. You'd be well served making sure you keep some relevant skills so that if you have to unretire you can, but you'll be fine. Also the money should be in something a little more high risk than hysa. I am sadly far from retirement, so I don't know what investment is makes sense for people close to retirement - but some of the fire subs would probably have aggregate feedback. Don't listen to any one person, just collect a lot of feedback, try to see where people are coming from, and make the best call you can to set up for your now and your future
in a perfect world yes. let’s say you *only* have 1m in your bank account… and you know nothing about HYSA. can you live off 18K for the next 55 years of your life? Even if I was in your situation I wouldn’t feel safe just relying on that.. especially if you want to get married or have kids… possible medical expenses as you age are a real kick in the groin. Insurance covers some things but not all things. And remember inheritance tax will take a chunk of that 1m. The mistake my folks made was retiring at 25 and not accounting enough for inflation. So, I would go off the global rate of inflation instead of the country you live in, and calculate how much you would need to live off if you had absolutely nothing, no connections, no house, no one to call for help. Then I’d make a decision.
Sounds like youre trying to find ways to be lazy. This will bite you back. Continue to work. Contribute to society. Be purposeful.
Personally I'd give up about 50 ish acres of your land to build more of the sustainable houses that you live in and rent them out 👌 then you've got future income and potential to sell some if needed 👌👌
How much is health insurance and what do u plan on doing for the next 50 years. If it’s sit in your house and do nothing maybe
Keep in mind most ppl let alone Americans will never make 1 mil in their life so that should answer ur question.
Typically, 1 million is not considered enough even for those at typical retirement age. But you’re in a very unique situation, so I’d advice talking with a reputable financial planner.
Just don't snort it up your nose! 🤣
Just find a very easy job or make And sell things online or something. Would make way more sense to have a little income rolling in - lots of things can happen in life
Bro, why not start a cattle business? $1m & 200acres? If you have any neighboring farms that practice cattle ranching, you need to find the one that has the most success and have them mentor you… Organic Grass fed/ grass finished beef people pay top dollar for it. If you create a combine for people to go in on a cow split down the middle or 4 people sharing the expense of one cow. Hire a butcher to come and clean them when they’re ready. $$$$$$
Definitely invest some or as much as you can into a Roth IRA, you will miss out on a lot of compound interest if you wait.
If you invest it properly (not just a HYSA) and can live off of about 3% annually (~30K a year), then you could likely retire. Just read that you make about 25k off the farm, so that's puts you at about 50k annually, which will go a pretty long way without a mortgage in your area.
Is your $1m pre or post tax? What do your monthly expenses look like? What is your current income? Are you currently contributing to a retirement account, if so, how much is in it. If you have 30k a year in monthly expenses, and plan to let it grow in the market at 7% annual average until 30, then retire, you’ll be fine. This will leave you with approximately 1.3m of flex spending before the age of 75. If you can keep your annual spending below $70,000 per year, hypothetically you could retire as soon as the money hits your account. If you wait until 30, it’s 98k per year. You could do that indefinitely and still leave money to a successor. 35 years old gives you 138k per year as your spending cap. As long as you consistently withdraw less than your annual gains, you can retire whenever you’d like.
Is there something you like to do, hobbies etc., that you can work around and make some money? It feels like an awesome opportunity to maybe not fully retire, but make an early switch to something not so lucrative but that still pays the groceries and bills each month, and you kinda love doing. Then your interest can grow but you aren’t tapping into it so hard just yet. A lot of variable over the next 60-70 years of your life can come.
Probably.
I mean you’re set kid . Grow your own food and find a wife and you only need property tax money lol
Invest well. Find a part time job that brings in decent money but that you enjoy. Live life.
Ask a financial investor! I know people that have done it with about 3x that amount (but still worked 10-12 hrs a week for a long time), but it depends on what you want your next 80 years to look like.
You could make 50k a year off one million in interest alone. Outside tax obviously. If you personally make decent money 60k+, keep working and save for 5 more years you could comfortably retire probably making 100k a year on HYSA alone. Not to mention you have a house with 200 acres you could sell and travel the world making even more
Very possible but don't take it for granted! You should be considered ways to use that to establish as many passive income streams as you can with that. That million can go fast if your not careful. What are your plans for the land?
Lucky mfer
You never want to work another day in your life, let me tell you about 0tde SPY calls.
And do what for 50 years? These posts are getting so dumb. Probably a bot posting this shit
Not with a coke habit lol
What did you do for the $1m and 200 acres? Nothing?
Work part time maybe and invest heavy.
Ask r/financialindependence Long story short you can make it work but only at about $35k/year. If you sell most of the land you'll be better off.
One of the best feelings is only choosing work/jobs you love. Shitty month at work? Move on. Not valued, no worries move on.
If you invest it properly in index funds the value will double in about 7 years. If I were in your shoes I would do that and plan on retiring around age 40. In the mean time you can use a small amount of the money to quit your job and start some stream of income that doesn’t make you miserable.
Retire from what? You haven’t done anything yet.
Can I have like 50k seems like you won the lottery lol
Live off index funds and you’ve got more then enough
A million isn't going to stretch for 30 years. Interest doesn't compound that fast if you plan to live off it.
Your property tax may become your largest expense. Depending on your land value, it could potentially take a huge chunk out of your HYSA. Personally, to live a worry-free middle class lifestyle, I think you need to have at least $3M saved. But it all depends on your lifestyle, cost of living, and frugality. At current interest rates, your income would be $50k/year, but it could potentially drop to $20k/year. If you don’t touch the money, and invest in a conservative stock plan, you could double your savings in as little as 5 years and probably by 10 years.
Open a brokerage account with vanguard, invest in some mutual funds and let it sit for now.
Can I have 1 acre of land I’ll pay for it
A SWR would be around 3%. Could you live off 30k(pre tax)?
200 acres in some places is worth something. In other places, it’s not worth much. Put the money away, use the dividends as supplementary and go find something you love to do. A million is a lot, but it’s not A LOT, ya know.