I would like to semi-retire on my hunting land and open a perennial nursery, as I enjoy plants. Taxes and insurance are about 1k each a year for the property. I have a 350k mortgage for 68 acres agricultural and wetland. I use the land for perennials, timber, and hunting.

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    Well, a safeish withdrawal rate is 4%. That gives $22,000 per year in spendable money. Can you live on that? If not, you will need a larger amount. To get a rough idea, figure out how much you need and then multiply that by 25 to give you the size of the investments you need.
    – zeta-band
    Commented Jun 26, 2018 at 19:53
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    "can I expect to live off the proceeds of the fund one day?" Sure, you can probably even get a few days out of it :-D
    – Kevin
    Commented Jun 26, 2018 at 20:18
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    Related, but not duplicate: money.stackexchange.com/a/86017/44232 The key is that the more you leave it alone for now [and support yourself through other means, like regular employment], the more your trust has a chance to grow. Commented Jun 26, 2018 at 20:44
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    This would depend on lifestyle, i.e. the amount of money you would need to spend every year after 10 / 20 years. It would also depend on your risk ability; whether the 550K is parked in savings accounts or in stocks or elsewhere
    – Dheer
    Commented Jun 27, 2018 at 4:18
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    You need to provide a lot more details. What did you invest in? How much do you expect to spend each year? Otherwise, it becomes a "how far can a dog run into the woods" question.
    – Zesty
    Commented Jun 14, 2019 at 16:17

1 Answer 1


At an average 10% return, in 10 years the expected value of the fund will somewhere around $1.4 Million. In 20 years the expected value will be somewhere around $3.7 Million. From there, you could get to a safer return of 5%, which would give you an income of $185,000 per year. I would hope you could live off of that for the rest of your life.

Other than that, what do you want to do? Do you want to get a master's degree and improve your knowledge and income? Great! you have more than enough money to afford to get a degree, and with a higher income you could probably even contribute MORE to your "retirement" fund.

You can do whatever you want at this point. The only risk is that you do something foolish (like blow it on cars and boats, or use it ALL to start a new business that then fails), but you certainly have the ability to do whatever you want.

  • @FlySpaceAge Using the fund as collateral could go poorly if the business goes belly up. If this is your main retirement fund I would not advise using the fund as collateral against a loan. Of course, to get any kind of loan that size from a bank you would need to post something as collateral (like a paid-off home, etc.)
    – HK47
    Commented Jun 26, 2018 at 21:08
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    "Would you suggest leveraging the fund to take out a loan? " Absolutely not. You're multiplying the risk by using it for leverage and spending money on interest unnecessarily. You should never need to borrow money again for the rest of your life. If you do, then you're getting in over your head.
    – D Stanley
    Commented Jun 26, 2018 at 21:14
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    @FlySpaceAge taking a loan, even with your retirement money as collateral, will cost you money. The loan interest rate will not be lower than the expected returns adjusted for risk, so in the longer term it's costing you money, and in the short term it's gambling at best, with the odds against you.
    – GOATNine
    Commented Oct 25, 2018 at 16:34
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    @GOATNine The 10% average I use is a geometric average, not an arithmetic average. And over longer periods (e.g. 10 years), the variance of market returns is much smaller.
    – D Stanley
    Commented Oct 26, 2018 at 13:39
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    @DStanley My point was that the geometric average only mitigates risk properly over a longer timeframe. In the short term, the swing of the market is much more important to your financial health, which is why a correction first causes such issues. An arithmetic mean would be much more forgiving for short term investment (which is what the banks use, interest is nothing but an arithmetic mean in this case with a variance of 0). Any non-infinite term loan will suffer from this discrepancy.
    – GOATNine
    Commented Oct 26, 2018 at 14:07

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