Let's talk money...

What is the return on timber? We're talking money. 
What can you expect to get in 20-25-30 years . . .

Think about $10,000.

What type of car can you get with $10 grand today...
what about 10 years ago...
and 20 years ago...
50 years??

Exactly.

So how do I answer when someone asks me what kind of return they can expect from their timber investment?

6% - 8% IRR on average.
(in Georgia) 

But what does that mean? 

IRR = Internal Rate of Return
Which is the percentage of return you can expect in "x" number of years.

(Disclaimer: not the actual definition of IRR)

Investments are often spoken in IRR's because it takes into account inflation (more or less - in the way that since it doesn't provide you an actual $$ amount, despite how money "value" changes, you can still expect that percent return). This way it can be compared to other opportunities.

• You can expect less than 1% return on your savings account at the bank.

• The stock market is relatively volatile, ranging from negative% to 18%.

• Real estate... well everyone knows that is all about location, location, location.

Okay, so again, so what...

So how do I know timber is a good enough of a return for you??

Still don't get it??

Well without getting too deep - full of math and formulas - all of which won't make you necessarily understand anything more -

Understanding what kind of return you need (your personal discount rate) to make it worth your wild is ...

or . . . to be the next 19 and counting family . . .

Only YOU can make the decision of what number is right for you, your situation and your investment. Maybe that number is only a 3% or 4% return for you to invest your money, maybe you need at least 12% to make it worth your time.