Investing in a vineyard as a long term retirement goal. Is that even feasible?
Lets say I wanted to pack up from NYC, buy a property in Napa and open a vineyard. Is that possible? I would need to do a ton of research and take some horticulture classes. Is this a worth while investment for my future? The risk reward graph in my head is a little messy.
Answers
408 points
SallyG answered one month ago …
Wow! An enormous project, hopefully a labor of love more than a wealth-generating project.
That said, how old are you? The learning curve will be extensive, so start learning all you can about wines and grapes and vineyard cultivation immediately. Invest any discretionary income in conservative/growth investments (and your education in vineyard agriculture and its economics), so that you'll have capital for real estate when you retire. I'd focus on a lower-cost geographic region with potential for vineyards; this is a major area for research, to assess the potential for a local vineyard/winery in an unexpected area. Perhaps buying into an existing concern would be easier. Would you need employees, and are they available, or would this be a family enterprise? If the latter, does the family agree and what arrangements would you make if someone wanted out?
I hope this is not discouraging. Visit, explore, plan, dream, but be realistic about the obstacles. Perhaps planning to retire to a vineyard and getting involved with an existing vineyard as a part- or full-time employee or as in investor would satisfy your interest with less risk.
Good luck, whatever you decide.
400 points
spider348 answered one month ago …
Ah, one of my dreams too.
Interestingly I recently read something regarding the wine biz. The gist of the
story was that one has to become a 'farmer' first - really (which takes time because your vines have to mature at least 10 years before the fruit is marketable). Then become a winemaker. Then become a business person. Then you have to be comfortable with the idea that you will have a bad vintage at some point, maybe many (low rainfall, too much rain, insects, disease, etc) and not even sell one bottle.
My vision is that this would be a retirement hobby that I would pass onto my kids. If it
made money, then all the better. Good luck.
355 points
readytoretire answered one week ago …
I would recommend staying away from Napa Valley. Unless you have just a boatload of money that is just sitting around. I know of several small vineyards that do fairly well, including one that has own a national prize. They are fairly small, and the owners work in the office. They have a person who takes care of the grapes and the wine (vintner). One even buys grapes from other growers for their wines.
Regional wines are currently the hot thing in wines. They do better where there is an existing draw to the region. Travel around and look at local wineries. Most will offer tours and will answer questions. It is not a get rich quick type of business. And having money so you can get by the bad year will definitly help.
More from this Category
Does your credit score go up by paying down debt slower?Asked by Intern in Personal Finance 3 days ago
