What Is Pinchot Plan Retirement?

Pinchot Plan retirement is an investment strategy based on investing in a series of asset classes to heighten the chances for healthy returns. The early buildup of retirement funds built up aggressively via this plan will help people retire earlier than normal. All financial planners will advise their clients to plan, save and invest for their retirement as early as possible. It has been suggested that through the Pinchot Plan retirement program, it is possible to retire as much as 20 years earlier than other competing retirement programs. The Pinchot Plan retirement was devised by Gifford Pinchot, a former governor of the state of Pennsylvania.

The Pinchot Plan retirement is a strategy of investing in various timber companies that allegedly pay big dividends and reinvesting those dividends. These timber companies include:

1. Rayonier, RYN - owns large swathes of timberland in Florida, Georgia and Alabama

2. Plum Creek Lumber, PCL - mainly Seattle area

3. Potlatch, PCH - Minnesota, Idaho, Arkansas

4. Longview Fibre, LFB - Oregon, Washington State

5. Pope Resources, POPEZ - Seattle, West Coast US

6. TimberWest, TWF.UN - Vancouver, BC

According to some claims, distributions by some the companies above have provided an average annual yield of more than 10% since inception. Given the low-risk profile of the investment, it has been and continues to be a safe haven for investors looking for better than average returns and low risk. It has been suggested that it is highly likely that this strategy will blow away any employer-provided pension. Since the timber industry is less prone to violent stock price changes due to shocks in the stock market or the global economy, the risks for the investor are mitigated. Although the claims regarding the return on investments have been great, it has been difficult to get any concrete evidence for them. Although the Pinchot Plan retirement sounds very good, investors are advised to undertake sufficient due diligence before putting their hard-earned money into these schemes.

The Pinchot Plan Retirement Plan Promises A Lot

Although the Pinchot Plan retirement plan promises a far higher return on investments, investors should generally be wary. People tend to propagate the virtues of the Pinchot Plan retirement plan; although details regarding the scheme are vague and difficult to verify. The stories tend to hype up the potential returns. There are several companies who offer Pinchot Plan retirement plans. These plans are based on forestry based real estate and the sustainable harvesting of the produce from these lands. The produce includes timber and crops. The sale of portions of the land contributes to the capital gains. The greatest capital gains arise from the conversion of this real estate into Real Estate Investment Trusts (REITs). This conversion results in tax advantages.

Financial institutions who promote the Pinchot Plan retirement schemes say that they are very safe investments. These retailers suggest that investors can make a tremendous return on their investments. They even go so far as to claim that it is near impossible to lose money with these plans. Saving for one's retirement is a long and tedious process. It would be very foolhardy to risk those precious savings and investments on the Pinchot Plan retirement scheme without sufficient due diligence. The stories of fantastic returns on investments for retirement should be checked out carefully before any money is vested into any of these retirement plans. The retirement years should be comfortable and secure. Careful and disciplined saving and investing in carefully chosen retirement plans should prepare us for a comfortable retirement in the decades to come.

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