Life as a trucker has challenges and charm, but eventually, this will end. One of the biggest challenges for most retirees, including truckers, is having a steady income stream post-retirement.
A significant number of truckers are not prepared for retirement. According to a Trucking Industry Retirement Study, 43% of truckers have nothing saved for retirement. This is not surprising given that the trucking industry has one of the lowest savings rates in the country. The median savings rate for all workers is 6.8%, while for truckers, it’s just 3.5%.
There are several reasons for this, including truckers being paid by the mile rather than by the hour, which can make it difficult to predict earnings and makes budgeting for retirement savings more difficult. In addition, many truckers have high levels of debt, making it hard to save anything.
A financially stable life after retirement is only possible with prior planning and investment during your working years. The good news is that there are several ways to save for retirement as a trucker, including 401(k) plans, IRAs, and annuities. And with a little planning and discipline, even the lowest savings rate can turn into a decent nest egg over time so that you can live reasonably comfortably after retirement.
Safe Money Investments for Truckers
Here are some investment options for building a sustainable post-retirement income stream:
Solo 401(k) accounts can be a great way to save for retirement for truckers. A 401K is an investment plan that employers offer their employees, allowing them to set aside pre-tax money into an account where they won’t have any taxes taken out when withdrawals are made in later years.
A unique feature of 401 k is that every employee gets equal access regardless of whether they make $50,000 per year or only work part-time. If an employer matches a percentage of employee contributions, that’s even better.
For truckers who want to have more control over their retirement savings, a Roth IRA can be a good investment option. With a Roth IRA, you contribute money that has already been taxed, so you don’t have to pay taxes on it when you make withdrawals in retirement.
The contribution limit for a Roth IRA is $5,500 per year (or $6,500 if you’re over 50). If you have a retirement plan at work, your contributions to a Roth IRA may be limited based on your income.
Investment in Real Estate
Investing in real estate may be a wise choice for retirement savings. This can be done by purchasing a second home or investing in rental properties. The advantage of investing in real estate is that it can provide a steady income stream through rental income. In addition, the property’s value is likely to appreciate over time, providing a source of capital gains.
Purchasing a Life Insurance Policy
Another option for building retirement savings is to purchase a life insurance policy. A life insurance policy’s death benefit can provide income for your beneficiaries after you die. This can be a good option for those unable to contribute to a traditional retirement account such as an IRA or 401(k).
Investment in Annuities
Annuities can be a good option for those looking for a safe and secure way to invest their money. Annuities provide a guaranteed income stream that can last for the rest of your life. This can be a good option for truckers concerned about outliving their retirement savings.
If this blog post has made you think about retirement planning, your next step should be contacting Family First Life – Strong Tower & Hammer Lane Consultants serving Denton, TX, and the surrounding areas. We can help you understand your options and build a retirement nest egg. We offer several options, including Asset Protection Life Insurance and Asset Protection Return of Premium.