Assuring that the senior generation has a secure and separate financial base for retirement is crucial, said Wayne Johnson, a financial planner with Syverson, Strege and Company in West Des Moines, Iowa.
“If everything the senior generation owns is tied up in a joint farm, it can make parents hit the pause button or keep a more hands-on approach”. “A separate financial base would be ideal, but more often the senior generation can support their retirement lifestyle with more stable income generated from their personal farm holdings. Rent payments for personally-owned land are the best example of this type of income. In such cases, the rental arrangement can provide more autonomy for the younger generation, while the senior generation maintains a steady and easily understood income stream,” said Wayne Johnson.
Read the full PDF Article from Progressive Farmer Magazine here and comments from Wayne Johnson.
– Wayne Johnson, CFP, AEP®, CAP®, HDP