Even though transferring the farm/ranch usually takes several years, here are several factors to help you decide when is the right time to begin a transfer.

Your financial security in retirement

Do a forward projection of retirement income and expenses. Will you and your spouse have sufficient annual income to get you through the retirement years? Have you made provision for higher than normal medical expenses or nursing home expenses?

The financial position of the entering rancher

Give serious thought and planning to the financial position of the younger generation. Do they have some equity to put into the farm/ranch? Can they afford the payments to you? Will they have a business of sufficient size and efficiency to generate an adequate living for themselves? If the answer to these questions is "no," perhaps you had better delay transferring until they are in a better position, or plan to make major concessions to assist them.

Your social security position

If you have contributed at a high level during your lifetime to the Social Security system, your best option may be to retire at age 62. Retiring at 62 may generate $6,000 to $12,000 more in annual Social Security checks for you and your spouse depending on the amount you paid in. In addition, you will no longer have to make payments into the system.

If you have been a high income person and contributed for 35 years, it is unlikely that additional contributions will significantly raise your benefits.

If you have contributed to Social Security on a low level of earnings during your lifetime, it may pay you to delay retiring until age 65. You can build your benefit package if you are able to make larger contributions to Social Security during these last few years. High earning and high contributions could have a significantly positive effect on your Social Security benefits.

Every individual is different regarding Social Security contributions. Contact your local social security office about your contributions and benefits before making any decisions about when to retire.

Your emotional readiness and willingness to let go

Transferring assets and management to someone else means you no longer will be in control of the farm/ranch. If you can not let go, or if you can not stand to see someone else in the power role, do not retire until you can accept a reduced role.

If the farm/ranch is your whole life, if you have spent nearly every waking moment building and working on this farm/ranch, and if you have little else in your life—expect some problems. Leaving the farm/ranch should be planned for well in advance.

Your health

Transferring your farm/ranch to someone else can afford you time to do the things you have always wanted to do. Retiring early while your health is good may give you more time to travel or do those things.