When should you start planning for retirement? If you are asking yourself that question, you’re probably already behind. The best time to start retirement planning is as soon as you get your first job. Think you’re too late? The truth is – you’re not alone. About 60% of professional truckers haven’t started saving for retirement. Don’t put it off any longer. It might feel a little bit overwhelming not knowing where to begin, so here are a few tips to help you get started:
- Get out of debt. You can’t allocate the necessary amount of money to your retirement fund when it’s being spent on loan and credit card payments. Set a budget that allows you to live on less than you make in order to pay off those extra expenses.
- Decide what kind of lifestyle you want in retirement. By figuring out how much money you need each month after you retire, you’ll be able to figure out what kind of nest egg will earn you that amount from your interest.
- Add retirement saving to your monthly budget. A good number to aim for is allocating 15% of your income to your retirement investments. Even if you’re not able to invest that much just yet, any amount of retirement savings is better than none.
- Find a carrier to drive for that has a good retirement plan. There are carriers out there that offer retirement plans like 401ks. Some of them even match a portion of your contribution to your 401k, so make sure you maximize the retirement benefits offered.
- Look at your options. If your current carrier doesn’t offer a retirement savings plan, you’re an owner-operator or even if you’re simply looking to invest further, there are other options available to you for retirement planning. Roth IRAs and Traditional IRAs allow you to invest your money in mutual funds. The OOIDA Retirement Plan is designed with small business truckers in mind and allows for flexible tax-deductible contributions, guaranteed interest rates and are available through age 70.
PDA can help you find the right company that matches your retirement planning goals. Visit our website or check us out on Facebook and Twitter to learn more about how we can help with your retirement planning and securing your future.