Truck drivers who plan to retire should do some planning for their retirement, especially when it comes to their financial situation. Ideally, it’s good to set oneself up for financial success later on in life, whereas money has been invested in the past to help pay for the needs of the future. There are different options available for retirement savings and truckers should do some research to figure out what options best fit their particular needs.
Start Early on the Road to Retirement In Your Trucking Career
Some trucking companies offer their employees a retirement plan as part of their benefits package. Consider asking your company about what they do or don’t offer regarding “retirement.” You might discover they’ve got a good deal all set up, whereas you can start planning now for retirement with their help so that you’ve got money “coming in” even when you’re much older and no longer driving a truck.
Have you heard of a 401(k)? This is a defined contribution plan. You withhold some money from your paycheck and it gets deposited into a retirement savings account. Some trucking companies will do “employer matching” whereas they’ll put the same amount of money you put into your 401(k) per pay period– that’s a great deal!
Have you heard of IRAs? A traditional IRA is a way for truckers (and others) to save money in an account that won’t affect their taxes. Money you put into a traditional IRA won’t be taxed until you withdraw it during your retirement. There’s a variation called the Roth IRA. With this one, your money is taxed during the year you deposit it rather than when you withdraw it. If you think you might end up being in a higher tax bracket after you retire, the Roth IRA is the smart choice.
By the way, if you want to withdraw money from your Roth IRA before reaching retirement age, you can do so without having to pay a penalty fee (which you would have to do with a traditional IRA).
If you can connect with a financial planner, he or she can help you choose wisely when it comes to places to put your money so it grows and can be there for you in retirement when you need it.
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