Saving for Retirement Doesn't Have to Be a Chore

Oftentimes, as farmers and business owners, it can feel overwhelming to think about the possibility of retirement. Farming is an occupation, but also an identity, and it can seem impossible to think about doing anything else. However, saving for retirement can prepare you for a less demanding lifestyle, ensure there are funds for family living expenses and healthcare if working is no longer possible, and, if desired, provide an inheritance to pass on to the next generation.

Start Small

Even saving $5-$10 per pay period, $50 per milk check, or $100 per load of fat steers adds up over time. Automating a transfer through online banking can ensure money is transferred without much thought or adding another errand.

Not sure you have that to spare? Consider the following:

Live Within or Below Your Means

Track spending weekly or monthly. Where are funds flowing? Can expenses be cut? Penn State Extension offers insight on where to save as well.

Apps That Round Up

Use an app that rounds up on regular purchases. Some apps transfer the balance to a savings account include Acorns, Qapital, Chime, Qoins, Monzo, Moneybox, and Oportun.

Earn More Where Possible

Are you able to request a raise? Renegotiate contracts for services at a decreased rate? Pick up a side hustle? Start offering a new product or service? Increased cash could provide a small cushion that could be invested for the future.

Use Tax-Advantaged Accounts

Open a Roth or Traditional IRA. Some service providers have $1 minimums to get started.

Invest Wisely

Not sure where to start? Consider using robo-advisors. Robo-advisors are virtual financial advisors that use algorithms to provide advice or invest in markets on your behalf based on your preferences. There are many companies that offer robo-advisors, including Vanguard, Bettermint, Charles Schwab, Fidelity Investments, and E-Trade. Robo-advisors typically provide their services at lower costs than traditional investment services, and can make investments quickly on your behalf. There is no human involved, though, so it may be more difficult for you to customize programs or provide personalized support.

Continue learning about personal finance through free resources from the Consumer Financial Protection Bureau and Penn State Extension courses.

Where trade names appear, no discrimination is intended, and no endorsement by the Penn State College of Agricultural Sciences is implied.