Would you rather have $1,000,000 right now in your checking account with no strings attached? Or, would you rather have a single penny?
Most people think that is a very easy answer, but what if that single penny would double in value daily for 30 days? Many people would love the opportunity to become an instant millionaire. But take a moment and think about time and what it can do for your money. A single penny that doubles in value takes 15 days to reach $163.84. Half of the 30 days is gone and the balance is not very impressive yet. Continue to leave that money in the bank for the rest of the 30 days, and on day 20 you have $5,242.88. Still not a mind changer when you could have had a cool $1,000,000 on day one with no questions asked. However, on day 28 a magical thing happens; it reaches a staggering $1,342,177.28! And, keep in mind, you still have 2 days left for this amount to double! On day 30 the amount of your single penny that doubled every day in value is now worth $5,368,709.12!
The incredible gains of the penny in this example are exaggerated to make a point about the importance of investing and sticking with it. Retirement planning unfortunately is not as simple as investing a penny and then watching it turn into millions. It takes many years of planning and systematically putting money away from each paycheck. The value of your investments over time will help you reach your goals allowing comfort and stability in your "golden years:' If you start investing sooner rather than later you increase your earnings potential at investment maturity.
It may seem curious that an insurance carrier is discussing retirement and investment planning and not trying to sell you anything. We believe successful motor carriers who have retirement and investment benefits have higher retention of employees and recruitment of the most qualified candidates.
A retirement plan with a vesting schedule and a match where you match a portion of the employee's contribution gives employees an incentive to stay. Truck drivers often talk among themselves, and word of mouth is often the resource for finding good drivers. If your drivers tell other drivers that they work for a good company that takes care of them financially and helps them plan for their future, it will attract drivers to your company. Low turnover and the ability to recruit the best drivers are two elements of running a successful trucking company. And we, as your insurance carrier, are vested in your success.
Contact your local investment/retirement representative to develop a plan for your company. Dedicate some time at your next safety meeting to discuss the options for individual drivers and retirement planning. A simple opportunity for your drivers to sit down and ask questions about what they should be doing will pay big dividends in the relationships you have with your employees.
© Copyright Great West Casualty Company 2016. The material in this publication is the property of Great West Casualty Company unless otherwise noted, and may not be reproduced without its written consent by any person other than a current insured of Great West Casualty Company for business purposes. Insured should attribute use as follows: “Used with permission by Great West Casualty Company.