Oregon woman is ‘trying very hard’ to be able to retire by 80 — but Dave Ramsey says her plan needs rethinking

Abigail, a 70-year-old woman from Portland, Oregon, says she’s “trying very hard to make it possible to retire by 80.” That goal may be within reach now that a solar company has offered to lease her farmland. Still, she’s not sure if the deal is a financial lifeline or a liability.

She called into The Ramsey Show seeking advice and said the company wants to lease 45 acres of her property to build a solar farm, offering a payout of about $4 million for 40 years.

Accepting could allow Abigail to retire in a few years — but there are potential pitfalls.

“I’ve looked at these deals,” said personal finance personality Dave Ramsey. “ In the event they go bankrupt, obviously this lease is cancelled, and then you’ve got a bunch of junk on your farm that’s got to be hauled off. It’s very expensive to get rid of it … You’re leaving this mess for your heirs then.”

Ramsey warned that accepting the lease would effectively place a lien on the property, which Abigail said is worth $3 million today.

Even though she would technically own the land, it would be tied up in the deal for decades. Any future buyer would have to accept the lease terms which complicates a potential sale or inheritance.

Ramsey questioned whether this was all worth it. “ You’re not gonna like my answer, but I wouldn’t tie up a $3 million asset for that and have my whole backyard full of this.”

He offered an alternative: “ I would sell 10 acres and use that money to live off of.”

Abigail’s husband is not in support of renting out the land or selling it, but Ramsey had a blunt response to this. “You’re working at 70 years old and worried about how you’re going to eat at 80. Your husband didn’t save enough money when he was young and working to provide for his wife’s food, and so we’re going to sell some of his land.”

Ramsey said she should figure out how to sell 10 acres to generate $1.5 million by talking to a real estate agent and a land surveyor. That would give her the money to retire without encumbering the rest of the property or saddling her heirs with a long-term lease.