Monday, June 30, 2008

I failed you, my audience, please do not go away :(

Although it was fun to hate the government and pretend my financial life was like a video game, it turns out the system is actually fair.

I was wrong about this post:

As evidence by these other sites:

There may be other taxes or "phase outs" that you can game, but the savings would only be minimal.

Tuesday, June 3, 2008

Planting trees for your retirement.

I ran across this comment on the simple dollar (see below)

I am sure you may have thought of this, but maybe some of your reader’s are less familiar with buying land.
Forested land can often make you money back. Selling the lumber on premise can often pay back a significant amount of the purchase price. Just be sure to use a logger who would respect your desire to keep the mess in your woods to a minimum.
A significantly aged forest for example can get up to $2,000 a acre in lumber. Wait twenty years and repeat.

I wonder if you could buy up 10 acres for $10,000 if that is the case, you could sell the lumber on it and get the acres for free.
Then you plant trees, cost: $2000 or so, wait 20 years, pay 20 years of taxes... maybe that is high like $500 per year.

Seems like you wouldn't make much money and you'd only make the money like twice in your life. That is unless you own like 1000 acres.

for example:,, I found 100 acres for $175,000. If it all had trees, the profit would be $200,000.
Then you spend 2 years straight with a staff of 10 workers and replant the whole thing with trees and in 20 years, you have another $200,000 ready there. I'll be age 48, that sounds like about the right time for paying for my kids' college. Then I'll plant another forest. When I am 68, I'll need to buy my retirement home. So I'll just cut down my trees, build a small house on 1 acre of it, and then ask the grand kids to plant another 100 acres of forest, when I am 88, I'll die, and my kids will inherit a nice cash cow.

This place has a bunch of listings:

Here's an example of a piece of land that would easily be profitable:
it is 100% trees.
If you cut down half of them (35 acres), you could make $70,000 which would pay for the land. The other half of the cut down would be pure profit.

Property ID:

Click here to zoom in on this property
Lot: 8
Town: Portage
Location: Northern Maine
Area/Subdivision: Portage Lake
Price Was: $92,900
Price: $69,900
Size: 70.3 Acres
Other Details: No Mobile Homes, Power/phone Near by, Lake Front
Landscape: Trees: 100% Fields:
Financing Options:
$505 Per Month with 30% Down (20 Years, 11 % APR)
$739 Per Month with 15% Down (20 years, 14% APR)

Open questions:
- how long and how much would it cost to replant your land so that a forest will be there 20 years from now?
- is there a machine you can buy that will go replant everything?
- how easy is it to hire up a logging company? Do you need special permissions from the town you buy the land from?
- do you have any ethical problems with destroying a forest and its wild life?