Do (how do) homesteaders save for retirement? : LUSENET : Country Families : One Thread

I may also post this on CS, but thought I'd start here!

Do you do it? How do you do it? We're in our 40s, we've been saving for retirement since our thirties. husband wants/needs to leave his fulltime job eventually..he is getting burned out. Wants to do more "homesteading." I am a freelancer (work from home) and I save whatever I can from both our incomes (I'm a very good saver) but my income is sporadic (2000 was great, 2001 pretty lean). What do people do who are trying to live the simple lifestyle..and remain independent for the rest of their lives??

just curious. Thanks.

-- Cat (, December 28, 2001


Hi Cat as far as im concerned a full time homesteader is retired. Bob se,ks.

-- Bobco (, December 28, 2001.

I agree with Bob, just get rid of that mortgague first, put the credit cards in the fire, when you hit "0" due you are there. Learn to shift your priorities, the questions stop being "Can we afford a new car this year" and become "Is the cow shelter big enough for two more"? The small things become important and real; yes it is a lean lifestyle, not for those who need security or things. Saving rank up there with repainting the kitchen or rebuilding the chicken coop.

-- mitch hearn (, December 28, 2001.

If you want to retire soon, you might look into some kind of municipal bonds, I have tax clients who receive a pretty nice tax- free income from them (Federal and state tax exempt) I don't know the name of them, but if you could come up with 50-60K to invest and lived very frugally you could pull it off. I would check with a real financial planner about this, and Bob W. probably knows more than me.

If you are thinking of the future, We are hoping SS will still be around in some form, also my husband ahs a pension plan through work, and we are saving every dime we can! He can retire at age 53 with the pension, and if we keep out of debt we can live on it easily.

I don't think there is any easy answer to this question. Just stay out of debt, and sock away every dime. This is the case where a professional, independent consulatant will be well worth the money, in my opinion!

-- Melissa (, December 28, 2001.

Hello Cat, I am now 45 years old. I moved to the country about two years ago. I cashed in all my stocks, bonds, bullion, and IRA and used the money to buy my land and build my home. I am debt-free. This is probably the closest to retirement that I have ever been. I plan on developing my homestead to be fully self-substaining as possible, without a retirement income. If I see social security, I will use it as my mad money but, working a homestead is my solution for a successful retirement.



-- (, December 28, 2001.

Exactly my thoughts on the SS, Ernest. The biggest trouble for most people is health insurance. Do you have it through the military? This seems to be the way most people are able to retire early. We know many people who retired at 40 from the military and now they get a pension and are able to have the insurance as well. I know some go without and we did for about 6 years, and still do off and on, if Cale doesn't get enough hours in the right quarters. It is a pain to deal with, but one broken arm recently would have cost us over $1200.

-- Melissa (, December 28, 2001.

That's my question here, health insurance. We are debt free and my husband could retire at age 59 in 1 1/2 years with IPERS (Iowa Public Employee Retirement System). We could live fine EXCEPT for the insurance. How does anyone make enough extra to pay for it? We're getting to the age now where we sure don't want to be without.

-- Anna in Iowa (, December 28, 2001.

Cat, if you're self-employed look into a SIMPLE IRA. It's not called that because it's not complicated. It's Savings Incentive Match PLan for Employers/Employees. It doesn't affect your ability to contribute to a standard IRA in the maximum amount (approximately $2,000 annually, depending on certain factors). You can still put that money away tax deferred. With the SIMPLE IRA you can put away another $6,000 plus 3% of your gross annual income into a tax deferred account. Those two accounts must be separate but they are both tax deferred. Essentially, this means that if you earn $12,000, you can put $6360 ($6,000 + 3% of the $12,000) into your SIMPLE IRA account and still contribute the $2,000+ into your regular IRA account. If your husband also makes the maximum $2,000+ contribution into his regular IRA account while at his job the two of you just put away over $10,000 toward your retirement in just one year and did it in tax deferred accounts while reducing your taxable income by that same amount and your tax liability by thousands of dollars at the same time. Not a bad deal, huh? I hope this helps.

-- Gary in Indiana (, December 28, 2001.

Wow...great answers, great discussion. Very exciting to think of homesteading as retirement. Don't know if I'd ever have the guts to cash in the IRAS, etc., but you never know. a SIMPLE IRA the same as a SEP? I have a SEP and a regular IRA, but the SIMPLE IRA you describe sounds alot more liberal as far as the amount that can be contributed.

Please post any more thoughts, anyone. THANKS!

-- Cat (, December 28, 2001.

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