Pete was a dairy farmer, who had been farming for more than 30 years. Although still in his early 50’s, his back was beginning to give him trouble. Pete had two daughters, neither of whom had any interest in running the farm. So, although a third generation farmer, he had no one to leave the farm to.
Pete’s farmer father retired at 65 but did not live long to enjoy his retirement. Pete was anxious to ensure that he got more out of life.
Pete and his wife, Ros, had several sessions with their financial planner considering various permutations using cashflow modelling software before deciding to proceed to auction for the sale of the farm. The reserve at the auction was determined by the cautious cashflow model agreed with the financial planner. The farm was sold for the reserve price. Pete retired at 52!
In the 13 years since the auction, Pete has often stated ‘if it were not for the cashflow, I would not have had the courage to go to the auction.’