As farmers near retirement, much of their wealth is tied up in their land. Unlocking the value of this asset while maintaining a connection to farmland can be crucial in securing financial stability. The Land-Unit Exchange Program provides a unique way to convert land equity into diversified investments while deferring taxes and creating flexible retirement income.
How the Land-Unit Exchange Works:
The Land-Unit Exchange Program allows farmers to exchange their farmland for shares in a diversified farmland investment fund. Instead of a direct sale, which might trigger immediate capital gains taxes, the exchange defers taxes while providing steady income from the farmland fund’s performance. The key advantage is that farmers continue to benefit from the land’s value without having to manage or work it actively.
Key Benefits:
- Tax Deferral: The Land-Unit Exchange Program defers capital gains taxes, allowing farmers to preserve more of their wealth for retirement.
- Diversification: By converting land equity into diversified investments, farmers can reduce the risk associated with holding one primary asset (the land) and ensure more stable returns.
- Flexible Retirement Income: Income from the investment fund can provide steady cash flow, giving farmers financial flexibility in retirement without selling the land outright.
The Land-Unit Exchange Program offers farmers nearing retirement an opportunity to diversify their assets, defer taxes, and create a flexible income stream. It’s a powerful tool for farmers seeking to preserve their wealth while reducing the risks of holding onto farmland. For tailored advice on how this program can benefit your retirement planning, contact Harvest Time Wealth Advisory at info@harvestimewealth.com.
The information contained herein has been provided for information purposes only. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information has been provided by J. Hirasawa & Associates and is drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) and the authors do not guarantee the accuracy or completeness of the information contained herein, nor does WAPW, nor the authors, assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. WAPW is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.
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