Retirement and Estate Planning for Farm Families

Sharon A. DeVaney, Ph.D.Purdue University

&

Marion Simon, Ph.D.Kentucky State University

Retirement planning…

• Some start too late

• Some save too little

• Some invest too conservatively

• So what should you do?

• Go to www.ces.purdue.edu/ces/farmriskmgt

Welcome

# 1 What is retirement?

• Determine your life expectancy.

• Determine your spouse’s life expectancy.

• How do you feel about retirement?

• Do a Benefits CheckUp.

# 1 What is retirement?

# 2 How should you plan for retirement?

• Are you eligible for Social Security benefits?

• Use calculators at Social Security website.

• Pension from off-farm employment?

• Individual Retirement Account

• Investments?

• Will you work part-time?

# 2 How should you plan for retirement?

# 3 How much income will be needed in retirement?

• Record expenses for a month or year

• List expected income for month or year

• Retirement Estimator for Farm Families

• Ballpark Estimate (American Savings Education Council)

# 3 How much income will be needed in retirement?

# 5 Small business retirement plans

• SEP IRA (Simplified Employee Pension Plan) – Employer makes a

tax-deductible contribution

• SIMPLE IRA (Savings Incentive Match Plan for Employers)– Employee makes the contribution but there is an

employer match

# 5 Small business retirement plans

# 6 Case studies

• Jane: small farmer, has credit card debt

• Mattie: retired teacher, farming, goals?

• Janet: CSA, age 70, no estate plan

• Mary: got a loan, bought ½ of farm, goals?

• Marie: goats and hunting, needs IRA

# 6 Case studies

# 15 Estate planning

• Discuss objectives with spouse/family• List assets and liabilities• Review how property is titled• Find lawyer• Resources:

– Getting Ready for Estate Planning– Getting Motivated for Estate Planning– Who Will Get Grandpa’s Farm:

Communicating about Farm Transfer

# 15 Estate planning

# 16 Native Americans and estate planning

• Trust land

• The Dawes Act

• Writing of wills

• Land fractionation

• A legal Indian will

• New American Indian Probate Reform Act

# 16 Native Americans and estate planning

Other pages

• # 7 Identity theft

• # 8 Financial management

• # 9 What is a debit card?

• # 10 What is a home equity loan?

• # 11 A financial checkup

# 7 Identity theft

# 10 What is a home equity loan?

More help

• # 12 Life insurance

• # 13 Health insurance

• # 14 Long-term care insurance

• # 17 Checklists for retirement planning

• # 18 Checklists for financial management

• # 19 Contacts and credits

• # 20 Resource links

Collaborators

• Kentucky State University

• Purdue University

• University of Arkansas

• Federation of Southern Cooperatives

• With funding from USDA Risk Management Agency Community Outreach Partnership Program