Truck drivers are uniquely positioned to earn good salaries throughout their careers with little worry about getting laid off. The persistent driver shortage ensures that companies will offer substantially higher pay scales as a CDL professional’s experience grows. Everyday Americans are also keenly aware that Social Security may not deliver the monthly retirement benefits necessary to remain comfortable. That’s why newly-minted truckers and veterans alike are tasked with planning ahead. The good news is that these and other retirement strategies can make your golden years exceptional.
1: Leverage Traditional Retirement Options
Truckers are fast discovering that organizations with in-house fleets offer 401(k) opportunities and, sometimes, matching contributions. These types of retirement strategies continue to deliver long- and short-term benefits. The government typically allows working people to avoid tax liability on money invested in a 401(k). Along with tax advantages, these retirement packages generally increase at an average rate of 9-11 percent annually. According to reports, 401(k) packages improved by upwards of 15 percent in 2020.
2: Real Estate Investments Offer OTR Drivers Rare Opportunity
The long-haul trucking lifestyle puts drivers on the road for extended periods. As a result, it’s not uncommon for truckers to focus their financial investments on stocks, bonds, and retirement accounts they can access while on runs. Given the over-the-road lifestyle, such strategies appear to make better sense than real estate. But, do they?
Real estate investments rank among the better profit-driving opportunities available to people who are cash-flush. According to the online jobs platform Indeed, in today’s supply and demand landscape, CDL-holders average more than $67,000 annually. Savvy financial planning often includes securing real estate that pays for itself.
That’s why truckers may want to consider buying a multi-family property in which the rents pay the mortgage, upkeep, and turn a modest profit. When leveraging real estate, OTR drivers can either have a trusted individual look after the rental units or factor in the cost of a property management outfit. The point is that people who travel extensively sometimes fail to take advantage of real estate opportunities.
3: Savings Accounts Often Prove Reliable
There was a time when people stuffed cash under their mattresses because they didn’t trust banks. And even though professionals tout the stock market as a sound money management practice, crashes have already occurred in the 21st Century. Simple bank accounts with reasonably high interest rates can prove a secure way to save money for retirement.
For example, accumulating $200,000 in a bank account that offers 6-percent interest delivers upwards of $1,000 per month. For the average driver, that’s about three years of salary saved over an entire career. And for top-tier fleet and tandem drivers, that could be less than two years of earnings. These accounts might not be a sexy option, but government-insured banks allow hard-working truckers to save money without worry.
If you are a truck driver or considering a career on the open road, it’s essential to create a long-term financial plan. By putting your earnings to work now, you could find yourself enjoying the finer things during retirement.
Source: freightwaves.com
Terrible article. Savings account paying 6% interest! Good luck finding that.