Pinchot Retirement Plan
The Pinchot retirement plan involves investing your money in the stocks of assorted forest and timber corporations that supposedly compensate you with huge dividend payouts. The plan then calls for reinvesting and compounding those dividend payouts.
Retirement is supposed to be a time in your life where, after many years of work, you can finally relax and enjoy the rest of your life. If, however, you haven't bothered to develop a workable retirement plan to help you out, you will probably not be able to retire on your own terms. Many people practicing the Pinchot retirement plan, feel that it is one that is both conservative in nature and, at the same time, holds the promise of providing a decent amount of passive income in their retirement years. In theory, investing in the Pinchot retirement plan will not only provide you with capital growth, it will also yield great dividiend benefits to you, especially if you are investing in them under a 401k, IRA, or similar program where you can simply reinvest them.
The Pinchot Retirement Plan gets its name from Gifford Pinchot, the former governor of the state of Pennsylvania. In 1923 he developed the plan for the employees of the state of Pennsylvania. It has since grown to $25 billion in assets. The retirement system is a mix of employer contributions and investment earnings and serves over 200,000 members.
When most people speak of the Pinchot retirement plan, however, they are not referring to Pennsylvania's plan. They are referring to the initial core investment concept of the plan which concentrated on investment stocks having to do with forestry, timber, land management and use, and raw materials extraction. A Pinchot retirement plan is not something that your financial planner or broker will develop for you, as it is more of a concept than an actual plan marketed and sold to investors. Basically, however, it involves you choosing the appropriate Pinchot stocks and allocating a portion of your investment portfolio among them. So what exactly are the companies that currently make up the Pinchot retirement plan?
Pinchot Retirement Plan Stocks and Companies
- Rayonier. Stock symbol RYN.
Headquartered in Fernandina Beach, Florida, they own, lease or manage nearly 2.6 million acres of timber and land in nine U.S. states and New Zealand. You can find their website at www.rayonier.com.
- Plum Creek Lumber. Stock symbol PCL.
Located in Seattle, Washington. Plum Creek is a Real Estate Investment Trust (REIT). They invest in a timber lands all across the U.S., but primarily in the south eastern states and north western states. They refer to themselves as the "first and largest publicly-held timber REIT." Their current return on equity is over 10%. Their website is located at www.plumcreek.com
- Potlatch Corp. Stock symbol PCH
Located in Spokane, Washington. Controls nearly two million acres of forestry and timber. You'll find their website at www.potlatchcorp.com.
- Longview Fibre. Stock symbol LFB.
Recently acquired by Brookfield Asset Management Inc., their assets include over 588,000 acres of timberlands in Washington and Oregon.
- Pope Resources. Stock symbol POPE.
Pope Resources is a publicly traded Master Limited Partnership traded on NASDAQ. In business for over 150 years, their assets include over 115,000 acres of timberland.
- TimberWest. Stock symbol TWF.UN (on the Toronto Stock Exchange)
TimberWest is Western Canada's largest private land management company. They own approximately 796,000 acres of private land on Vancouver Island.
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