06/14/06 Is a farmer`s land his 401K?

Farm families forever have said 'let's accumulate land and then we won't have to worry.' But retired financial planner Keith Kinsey says that's getting harder and harder to do which means that setting aside some money for retirement has become a necessity. KINSEY "For the farmer in their 50's they shouldn't feel too intimidated. The reality is in our country most of us don't start to save seriously toward retirement until we're in that age bracket." Kinsey says if you're not paying on a farm, you're paying on a house, you're raising and trying to educate children and the bills add up quickly. That's why most families don't have any spare money until the kids have left home. KINSEY "When you get to that point start to set some of that cash flow aside in an owner only 401K or a simple plan." The good news is that changes in the tax code have made saving for retirement much less costly for farmers and ranchers. KINSEY "One owner or maybe just a few family members that are able to save money through 401K's where they couldn't without high expense before now they can." For younger ag producers Kinsey recommends putting ten percent of your pre-tax income into a tax-deferred savings vehicle right now. Voice of Idaho Agriculture Bill Scott