Kohl's Notes
I’m starting to think about retirement from farming. How should I be planning for the next phase of my life?
First of all, you’re right in believing that retirement isn’t a one-time event, but a longterm process that begins years before you stop working and continues for years after. I see retirement planning as being a five-step process.
 Assemble your team of experts.
Financial planning is a diverse field, and no one can be an expert on everything. You’ll want the advice and expertise of several kinds of professionals: certified financial planner, accountant, insurance agent, investment advisor, estate planner/lawyer and your banker or lender. Of course, you’ll also want to involve family members, especially if they’re taking over the farm. Your team might include a facilitator to assist you in developing strategy and executing the plan with defined deadlines and action plans.
 Set goals.
What do you and your spouse want to do when you retire? Talk things over with your spouse, family and advisory team. Everything in the plan should support these goals. In setting goals, think beyond the business. Each partner should write down their family, business and personal goals. Then, share and determine which goals you have in common and negotiate the differences.
 Put your plans in writing.
You’re much more likely to reach your retirement goals if you write them down. Make sure your formal retirement plan is kept in a safe place, somewhere people can find it if the unthinkable occurs.
 Put your retirement plan into action.
During this phase, work with your family and advisory team to enact the plan that enables you and your spouse to meet your goals.
 Review and update your plans.
Take responsibility for monitoring the performance of your retirement plan. Review and update your plan periodically, always consulting and communicating with your family and advisory team. Your retirement plan may take months to accomplish and must be updated every three to five years as your goals and strategies change. Remember, you’ve got to live until you die.
The bottom line? Start now, plan carefully, adjust as needed and enjoy the journey!
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