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Did you know some of the most successful owner-operators drive as a team? In fact, last year some ATBS team driving clients made over $100,000 in net profit. ATBS helps more than 400 team driving clients navigate the tax implications team drivers face. Here are the top 6 considerations if you are thinking about team driving with your spouse or partner: 1. Qualified Joint Venture or Partnership If you are married, you don’t have to form a Partnership. A Qualified Joint Venture is for married couples that both participate in their business venture. Forming a Qualified Joint Venture saves the cost of having to file a Partnership tax return. There is less paperwork involved with a Qualified Joint Venture. You simply file a joint 1040 tax return with each taxpayer having their own Schedule C allowing them to both pay into Social Security. The best thing about team driving as husband and wife can also be the worst. Sometimes there's a little too much "closeness". It can be a challenge to find your own space, both physical and mental. - Robyn Taylor, Owner-Operator 2. Married Couple LLCs If a married couple lives in a community property state, an LLC may be treated as a Qualified Joint Venture, however, if a married couple lives in a non-community property state, an LLC is treated as a partnership for Federal tax purposes. The partnership is then required to file Form 1065. Click here for a list of community property states. 3. Split of Schedule C Income for Qualified Joint Ventures When filing a Schedule C, married Qualified Joint Ventures can split their income evenly so both people pay their portion of Social Security. If Form 1099 is filled out in one spouse’s driver’s Social Security number, your tax professional will “nominee” half of the income to the other spouse’s Social Security number so they also have income paid into Social Security. In some cases, one spouse may need to pay more or less into Social Security so it may be beneficial to split your income with a higher or lower percentage. ATBS tax professionals can further explain these Social Security benefits. 4. Non-Married Team Drivers If you are a non-married team, you are automatically a Partnership, therefore no 1099 is needed. To avoid partnership treatment, one owner-operator would need to own the business and issue the other team owner-operator a W-2. In this case, we would recommend you contact the ATBS Premium Department for assistance with Payroll Services. Aside from these legal and tax implications, it’s important to take the personal aspects into consideration as well: 5. Pros of Team Driving: May decrease tax liability as you can both take per diem and write-offs increase You and your spouse can spend more time together. You’ll be able to run more miles and make more money. You can save on utilities and other home expenses when no one is home. Driving with a teammate helps prevent physical and mental stress that single drivers may endure, such as depression, sleep apnea, diabetes, and obesity. 6. Cons of Team Driving: Time spent together may end up being one person sleeping with one person driving. The passenger may turn into a “backseat” driver, increasing conflict and tension in stressful situations. Spending too much time together may end up putting strain on the relationship. You will have very little alone time. At ATBS, over 400 of our clients are married team drivers. If you’re considering this option, please give us a call at 866-920-2827 and let us help set your business up for success and ensure your taxes are filed properly.

Almost every owner-operator began their career as a company driver and learn early to get a cash advance against their future paycheck. That’s not always a good idea for company drivers because cash in the pocket is not the same thing as money in a bank account, or money going home. When a company driver gets a cash advance, the amount of that advance flows through to their weekly paycheck where all deductions are taken from the gross earnings. A couple of typical deductions are for the advance and also for income taxes. Gross income minus all deductions is the take-home pay. The next time you’re at the truck stop or discount store, make a mental note of all the things that are set up to tempt impulse buying. The marketing teams for these places are really good at their job – with big ticket items on the way in and little ticket items on the way out. A driver can be pinched by a little paycheck when a cash advance can end-up in someone else’s pocket. Like a company driver, advances are deducted from the owner-operator’s settlement but unlike the company driver taxes are not deducted from the settlement. Self-employed Owner-operators are responsible for managing their own taxes. That’s where the trouble with cash advances and quarterly taxes can begin because any difference between the total cash advance and the total of all business receipts is called ‘income’ by the IRS. And if there is income you know what the IRS wants – they call it income tax and they want part of your income. It looks like this: Let’s say that a $400 cash advance was taken but you only have $200 in business receipts. The remaining $200 is called income and the IRS requires that it be paid at 20 - 25% of that income or $40 - $50. You have to repay the full $400 advance right away anyway, but now there is a hidden debt to the IRS. If that is done 40 times in a year that’s an invisible debt to the IRS of up to $2,000. Income taxes are due April 15th, which can make this story even worse. $400.00 Cash Advance - $200.00 Business Receipts = $200.00 Income* *subject to 20% income tax or $40.00 April 15th is the worst possible time of the year for a trucker to come up with cash. In the winter months prior to April 15th, operating costs increase and revenue decreases. Spendable income is less and it can be hard to make ends meet in January, February, and March. April comes along with a glimmer of daylight, but by April 15th, the invisible debt to the IRS is no longer invisible. Advances not offset by business receipts will be taxed as income. In this situation, the year-end tax bill makes it rough on owner-operator who haven’t planned ahead. Two things to do to get ahead of this: Take cash advances for business reasons only. Make sure to have business receipts to offset the full amount of the cash advance. If cash advances are needed for personal items, its best to make that temporary. Stop that situation and don’t get back into it. Remember meals and incidentals are not business receipts, and the daily per diem deduction is a good deal for drivers. Don’t throw away this good deal by taking advances for food. Don’t forget, the hidden tax on that advance will be due at a bad time. Pay Quarterly Tax Estimates on time. With enough time anyone can eat an elephant just one bite at a time. It’s the same with taxes. Pay quarterly taxes on time or risk trouble. April 15th is the worst time to try to find the money to pay your full tax bill. Contact ATBS for any questions about cash advances and quarterly tax estimates. Safe travels and thank you for all you do!

Many occupations require spouses to be separated for extended periods of time. I find myself in one of them. I entered trucking when I discovered I was a soon-to-be father. Working in manufacturing and living paycheck to paycheck, I knew I needed to make changes. So, I signed a 10-month contract with a mega fleet and left my crying, pregnant girlfriend (now wife), at the Greyhound station in hopes of providing a better life for us. This career was not just a sacrifice I was making, but one we made together. Maintaining a relationship as a trucker can be challenging. Looking back over our developmental arch, I can truly say we have a relationship "forged in flames" meaning, we’ve seen some stuff. Despite all the stress and pressure, we grew closer and strengthened our bond to the point where we wouldn't change a thing in our past because it led us to where we are now. To say trucking has had an impact on my relationship would be an understatement. My wife and I were able to overcome many obstacles, simply because we sought the advice of people that were older and wiser. It was a form of preventive maintenance for our relationship. I was able to find audiobooks and podcasts that were edutainment, (Educational and entertaining). From there, we learned what healthy relationships looked like, and what some common mistakes were. I've experienced firsthand and witnessed the consequences of OTR Trucking on relationships. Several men I’ve trained had problems adjusting to the new lifestyle. I’ve witnessed divorce, and have heard numerous horror stories about relationships gone sour. A question I frequently ask old-school truckers is, "Was it worth it?". The most common response I get is "No". I can't help but ask myself if I would feel the same after 30+ years. Now, for some unsolicited advice. If I could go back in time to my younger self there are three points that I'd share: communication, effort, and passion. Talking about our feelings keeps our fingers on the pulse of the relationship. This helps us feel like both parties are putting in the effort to make the relationship a success. Finally, learn how to create passion, especially for long-term relationships. After 8 years with my spouse, we still boast chemistry that I rarely see in our peers. I attribute a lot of our success to the fact that, with my job, I have the time to put the effort into studying relationships. The most significant value I take from trucking is not the money I make, but the ideas I expose myself to. In this way, trucking has been the best thing that’s ever happened to me.

We often hear the expression that we’re “products of our environment”. Unconsciously, our environment influences our behavior, mindset, and bodies. So, becoming greater than the environment presented in every career has its own obstacles. In trucking, drivers are required to sit for much of the day. This requirement has contributed to the stereotype of the "obese driver". While we should be aware of the potential negative impacts the trucking environment has, the purpose of this blog is to highlight the benefits of the trucking environment and career. For starters, most trucking is “over the road” (OTR), which means that drivers are pulled away from their friends and family. Most of our friends and family are positive influences, but sometimes they can be negative influences, even though we don’t always realize it. The great thing about trucking is that it's easy to avoid family and peer pressure when you’re 1,000 miles away. The point being that your friends and family influence your personality, but when the amount of association time is reduced with them, so is their influence. "You are the average of the top 5 people you associate with" is an expression that reinforces this idea. This leads me to my next point: mental diet is possibly the single most influential ingredient that creates our world views. What we choose to focus on influences our thoughts, and affects the way we perceive the world. This is why, much like our regular diets, our mental diets can benefit from healthy content. People tend to eat fast food out of convenience because of the abundance of options, in spite of having a vague awareness of the poor nutrition it has, in most cases (Convenience is a major contributing factor to the trucking environment). In trucking, you have the internet at your fingertips, and you can surround yourself with positive, uplifting, inspiring content, and get paid to do it. The final example I’ll provide you with is mob mentality, (think of riots), group think (tribalism), and social conditioning. The latter has basically constructed our worldview, mostly unconsciously. Trucking gives drivers the time to reflect on their own echo chambers and bubbles. Introspection is much easier when you’re not constantly engaging with coworkers or customers. I leave you with these questions: Does environment control your thinking, or does your thinking control your environment? What are some of the benefits and limitations your career choice has had on your physical body, behavior, and mindset?

Networking in business is a way to establish and build relationships with colleagues that can be mutually beneficial in both growing your business and growing yourself professionally. Effective networking brings people together to learn about one another and the business they provide. Many businesses offer opportunities to network in the form of meetings, conferences, trade shows, webinars, and seminars. It’s important to attend when you are able and to make new contacts. You can benefit by obtaining new clients, getting referrals, forming new business partnerships, learning new skills, etc. Social media communication such as Facebook, Linkedin, and Twitter can also be great ways to connect, however, face-to-face is the preferred method when possible. When meeting people, be sure to get names and write important messages down so that you can refer to these when you get back with that individual. Be sure to have solid communication in regards to your service. Know what you are looking for and how others may be able to help you. Also, be willing to help others and problem solve when you can. In order to maintain business relationships, try to regularly stay in communication with those that you’ve networked with. Make an effort to visit or call customers and colleagues even if it’s been a while since you last spoke. Some people hesitate or are not comfortable with attending in-person networking events. But like anything else, by practicing and putting yourself out there, you can grow your communication skills and develop other skills that can benefit you in your career. Participating and showing up at events may help you discover new opportunities within the industry. Getting together with other industry professionals allows you to gain knowledge in order to grow and operate your business more efficiently. You can learn a lot by speaking with vendors and your peers. At the very least, attending a networking event and starting a conversation on a positive note usually leads to a sharing of ideas and a learning experience. You never know when your life, both personally and professionally, can be changed by a brief exchange of words.

Branding for a small trucking company is just as important as it is for big trucking fleets. It’s the way you will define your business, your team, and how the public views you. Basically, it’s establishing an “identity” in regard to your core business and its values. When it comes time to develop your brand, first you’ll want to research the specific need you want to fulfill and find your place in the market. Understand your target customer and be aware of what will attract them to your brand. Be unique to your customer and offer them something that another carrier cannot do. Owner-operators have an advantage here as they can make themselves attractive to shippers by being original in creating an experience around their pickup and delivery. Small carriers and independents can be flexible and act on the needs of their customers. You’ll also want to know the competition so you can figure out what will set you apart from them. Once you’ve done your research, it’s time to actually create your brand. Make your company stand out and be remembered by properly branding yourself. A lot of time and thought should go into what you name your company, what logo you use to represent it, what colors you will use, etc. Your brand is as powerful as you make it, but only works if you live up to its representation and symbolism. It should ultimately encompass your goals, vision, and scope and be referenced often to keep you in check with the goals you set out to accomplish during its creation. Once you have a brand, market it. Create a website or utilize social media to show off your brand and what it represents. Let others know the services you provide, the background on how your brand was created, and the good work you’ve done for other people. Be honest when marketing your brand and don’t raise expectations or make false promises. Be clear and true to your values and always be truthful when communicating with customers so they know exactly what to expect from your service. Be proud of the good job and service you’ve provided to others and showcase it to let others know. When you have a defined brand for your business, you can then tap into the emotions of those who share the same values as your company and the results can lead to higher revenue and stronger relationships. You may begin to receive preferential treatment and perks when visiting customers because they know you’ve done a good job and they believe in what you and your brand represent. You may get recognized, remembered, and welcomed based on the professionalism and hard work behind you and the brand you’ve created. If people like the service behind your brand, they will be loyal and continue to work with you even when others may offer lower costs or faster service. The way you brand your company should convey what you want your business to be known for. Branding is more than just stamping a logo on your giveaway items and company attire. It’s really standing for something you believe in and showing your customers through actions that their money and time were well spent in relation to what they have received from your service.

Written By SleepDog® A truck mattress is an absolute necessity for long-haul truck drivers. After driving for hours on end, you’ll need a place where you can comfortably put your feet up and rest. With this in mind, you’ll want to make sure that you choose the best mattress for your long-haul drive. You deserve a high-quality mattress that will maximize comfort and relaxation. Finding that perfect mattress may be easier said than done as there are many factors you have to consider when mattress hunting. Fortunately, we’re here to assist you through this decision-making process. In this guide, we’ll discuss what important aspects you should consider when choosing the best mattress for long-haul trucking. DOT Requirements for Mattress Approval First and foremost, you must ensure that whatever mattress you choose is DOT (Department of Transportation) approved. Your mattress must be in compliance with requirements established by the Federal Motor Carrier Safety Administration in order to be DOT approved. Such requirements include: In terms of size and dimensions, your mattress must be at least 75” long, 24” wide, and 24” of height measured from the highest point of the top of the mattress. In terms of shape, the bed must be of a rectangular shape. An exception to this would be slightly rounded horizontal and roof corners but not of a radius exceeding 10 ½ inches. You must have an innerspring mattress, a cellular rubber or flexible mattress at least 4” thick; or a mattress filled with a fluid and of sufficient thickness that when filled it prevents “bottoming-out” while the vehicle is in motion. Additionally, your mattress must be properly equipped with bed clothing and blankets. These are important conditions that you must be sure that your chosen mattress meets in order to be considered a DOT approved mattress. Getting the Right Size Mattress for Your Truck One of the most important aspects to consider is the size of your truck mattress. It’s crucial that you get the appropriate mattress size that’s the correct fit for your truck. When it comes to truck mattresses, their sizes are typically described by exact measurements rather than labels like “king” or “queen”. Most trucks have a short, standard, or long truck bed. These have standard dimensions that differ slightly depending on your truck’s manufacturer and model. As a result, truck mattresses are available in a wide range of sizes and truck mattress companies often offer multiple sizing options. For example, here at SleepDog®, our size selection includes: Size A: 36" x 80" Size B: 39" x 80" Size C: 42" x 80" Size D (bunk): 32" x 80" Queen: 60" x 80" RV Queen: 60" x 75" RV King: 72" x 75" Still, the best way to ensure that you get the correct semi truck mattress size is to grab a tape measure and measure your current mattress or sleeping space. Mattress Comfort Level In order to get the rest that you deserve, you need a mattress that supplies a cozy comfort. Everyone is different and as a result has different comfort needs. You need a mattress that will accommodate your needs. One way to do this is to consider your typical sleeping position. Sleep positions play a big role in mattress suitability. For example, side sleepers tend to need pressure relief for their hips and shoulders, while back sleepers usually need a mattress with light contouring and full-body support. Stomach sleepers tend to require pelvic support and pressure relief for their arms and shoulders. Another point of consideration regarding comfort is your weight. People who weigh more usually prefer firmer mattresses than people who weigh less than 130 pounds. However, this may not always be the case. That’s why many truck mattresses including our BigDawg mattress™ are flippable to offer dual firmness options. Mattress Materials If you want your mattress to be both comfortable and durable, it’s essential that you have a high-quality mattress. This means that the materials that the mattress is made of must be of a superior quality. It’s important you pay close attention to the materials used in its construction to ensure that your mattress is up to par. Memory foam mattresses have become increasingly popular when it comes to long-haul trucking. These mattresses are made of a combination of polyurethane and other compounds. These mattresses have a high-density polyfoam support core that offers stability as well as less-dense comfort layers that provide a plush sleep surface and pressure relief. A key aspect of memory foam mattresses is their deep contouring. Highly contouring materials, like memory foam, cradles the body and eliminates any pressure-related aches and pains. This trait is especially pertinent given that long-haul drivers spend most of their day sitting up at the wheel. A memory foam mattress is the perfect and most comfortable way to end a long day behind the wheel. Price Point Customers will be delighted to know that truck mattresses tend to be less expensive than ordinary at-home mattresses. This is because truck mattresses are usually both smaller and thinner. However, truck mattresses are available at a wide range of price points. Price ranges can vary between different models and different types of mattresses (such as memory foam and innerspring) also have their own average prices. The price really depends on what you’re looking for and are in need of. Just remember to set aside a budget for what you are willing to spend. A SleepDog® Mattress for Long-Haul Trucking Still not sure what the best mattress for long-haul trucking is? Head over to SleepDog® to check out their mattresses. . They offer two mattress models: the SleepDog® mattress and the BigDawg mattress™. Both models are constructed with memory foam and infused with CoolRest® technology. These materials guarantee you the utmost relaxation and the best possible sleep even on the road. Additionally, both mattresses are made with CertiPUR-US® certified memory foam and are DOT approved. These mattress models are everything that you would want in a mattress for long-haul trucking.

There are a lot of benefits to becoming an owner-operator. You have the freedom to be your own boss, you can spend time at home on your own terms, and you are the benefactor of profitability. Unfortunately, one thing that you don’t have, is an employer sponsored retirement plan. That means you need to be proactive in making sure your retirement needs are met on your own. As a small business owner, you have several different options when saving for retirement. Two of the most popular are to use either a traditional IRA or a Roth IRA. Before talking about the different contribution limits that you have, let’s explain how these two options differ from one another. Traditional IRA A traditional IRA is very similar to a 401k because you will be able to deduct contributions on your income tax return. All gains will continue to grow tax-free within the account. When you begin taking distributions, you will pay income taxes on all capital gains. In addition, you will only be able to contribute to a traditional IRA until you reach the age of 70 ½. Roth IRA A Roth IRA is nearly the exact opposite of a traditional IRA. All contributions that you make are after tax, which means they are not deductible on your income taxes, however you will not owe any tax when you start taking distributions. A Roth IRA tends to be the more attractive choice for anyone earlier in their career that plans on being in a higher tax bracket once they get closer to retirement. 2018 IRA contribution limits The same contribution limits are in place for traditional IRA’s and Roth IRA’s. Because we have been in a period of relatively low inflation, there has not been an increase in the limit since 2013. The 2018 IRA contribution limit is $5,500 for anyone up to 49 years of age. If you are 50 or older then you will be able to contribute an additional $1,000. This is known as a “catch-up contribution”. Income limitations for a Roth IRA The biggest difference between the two types of IRA’s is that a Roth IRA comes with income limitations. That means you will be unable to invest in a Roth IRA if you reach a certain income level. Below you will find the limits, broken down by your filing status: Traditional IRA deductions limited When you invest in a traditional IRA there are no income limitations to worry about, but there are restrictions on deducting your contributions on your federal income taxes. If you are not married, or your spouse does not have access to a work sponsored retirement plan then the deduction limits are minimal. The table below highlights when deductions start to phase themselves out. If you have dreams of someday enjoying a comfortable retirement, it’s time for you to start investing. If you’re still not sure where to put your money, we recommend speaking with an investment advisor as soon as you can.

Being on time is an important part of being an Owner-Operator. After all, you are building a reputation and creating trust that you are a reliable business person. It is tempting to drive faster to get to your destination, but as a business owner and an Owner-Operator, fuel is your highest cost and something you should be watching daily. Speed is still the number one driver of high fuel consumption. You want to be on time, but you also need to know the true cost of driving faster. Example A: Here is the cost for driving 120,000 miles and sacrificing one mile per gallon by driving fast. If you get 6.0 miles per gallon = 20,000 gallons of fuel to purchase and pump into the tanks. If you get 7.0 miles per gallon = 17,143 gallons of fuel to purchase and pump into the tanks. This is based on the average of $4.15 per gallon x 2,857 extra gallons of fuel= $11,856 extra costs for getting 6 mpg instead of 7 mpg. Driving fast does not just burn more money in fuel. Below are the additional costs for driving fast. Maintenance. Increasing your speed means increasing your cost for maintenance. As speed increases, you automatically increase wear on the brakes, tires, engine and suspension, plus the cost of downtime for repairs and maintenance. The cost of this extra maintenance could easily be one cent per mile for a total of $1,200. Given the increased fuel cost, plus increased maintenance costs, the total additional cost is $13,056. Engine. You can only run so much fuel through an engine before it wears out. The life of an engine is limited by the amount of fuel it will burn. And it’s proven that the faster you drive the more fuel the engine will consume on a per-mile basis. So the faster you drive, the faster you wear-out your engine and this one thing alone could exceed one cent per mile in costs. Tires and Suspension. Sometimes you can find a smooth road, but very few of our roads and highways are without bumps, potholes, cracks, and seams in the surface. Higher speed means a greater impact on tires and suspension when rolling over bumps, cracks, and seams in the pavement. More impact = more or faster wear on a per-mile basis. More impact = shorter life for tires and suspension. The main enemies of a tire are heat and impact damage, and you will have more of this damage with higher speed. Heat from under-inflation is probably the single biggest hazard to a tire. Brakes. The higher the speed, the more brakes have to be used. The more often brakes are applied and for a longer duration will mean the brake pads need to be replaced more often. Lower speed = lower brake usage. Also, it’s more likely that a “hard stop” or “panic stop” will occur at higher speeds. Only one or two hard stops are going to cost money in tires and brakes and it’s not uncommon for aggressive drivers to have one or two hard stops per day. There might be a time when you must drive fast to be on time, but what is the true impact? Fill-ups. The average fill-up is 101 gallons, according to a study conducted of ATBS’ Owner-Operators. The average time needed to fill-up is 1 hour. Twenty-eight extra fuel stops are required x 1 hour each = 28 extra hours to replace the extra fuel burned. So the faster you burn fuel, the faster you have to replace it. Talk about diminishing returns! How much speed does it take to replace $13,056 and 28 hours? The faster you drive, the faster you have to replace the fuel and the faster the wear on your tractor and tires. There’s no argument that driving faster can save time, but what’s the trade-off? Example B: If you drive 450 miles at 75 mph, you will save about 1.5 hours of time versus driving at 60 mph. However, fuel economy will suffer at the higher speed and the difference is usually about 1.5 MPG when comparing 75 mph and 60 mph. The engine burns an extra 1/10 of a gallon of fuel for every mile driven over 55 mph. The difference between 60 and 75 mph would then equal 1.5 mpg. This would cost you 20 gallons of extra fuel or $83 of extra cost when fuel is at $4.15 per gallon. This calculation is an industry standard and is set by engine manufacturers. This formula is also found in the “Cummins MPG Guide.” Add the extra maintenance cost of a penny per mile and the total cost is now $87.50. Is the 1.5 hours worth $87.50 to you? You’re the best person to decide, of course, but don’t think speed is free. The extra time saved will cost you something for driving faster. How do you spend the extra time gained by driving fast? Did you get repaid for the extra $87.50 you spent? Is it ever more cost effective to drive faster? If you are on a “loose” schedule by all means slow down to the optimum road speed to conserve fuel. There is a balance between speed and the cost but speed isn’t cheap and it’s not free! Example C: Suppose you have a pick up in Chicago on Thursday afternoon to be in Omaha Friday morning. That’s 500 miles basically overnight. Very doable but the driver cannot be late because the consequences of a late delivery (or being at the back of the line for trucks delivering) are too great. Consequences like laying over from Friday to Monday will cost you about $300 in just fixed expense alone. The layover cost in this case is more than ALL of the fuel cost for the entire trip. There are other financial penalties beyond layover cost so the driver would be wise to operate at the higher but less fuel efficient speed to safely insure delivery with no chance of layover in Omaha. The speed limit across Iowa on I-80 is 70 mph while the most fuel efficient speed might be around 62 mph. Driving at 70 mph would cost the driver about 8/10 of a gallon of MPG for the trip or about 10 gallons of extra fuel consumed between Chicago and Omaha. Ten gallons of fuel is probably a good trade-off to make in some circumstances. You control your truck’s consumption of fuel. There may be special circumstances that will be more cost effective for you to drive faster, but this is not common. Carefully manage the balance between your speed and the many costs of increasing your speed so you save the most money possible.

No doubt, everyone that drives for a living has noticed the increase in fuel price over the last six months. We saw the national average fuel price bottom out in the $2.40 range at the beginning of the pandemic and this lasted through October. That gave independent contractors the opportunity to run freight faster than usual without worrying too much about their biggest cost. However, we’ve recently seen national fuel price averages jump to $3.40, which is a 33% increase over a six month span! So why is fuel going up? There isn’t a single answer, but like the price of any commodity it’s based on supply and demand. Supply Issues Low Oil Prices Cut Production The modern day United States oil industry is built around a $50/barrel break even point. When oil falls below $50/barrel it becomes unprofitable for oil exploration as well oil production and shipping. During the COVID crisis of 2020, crude oil futures actually traded below $0 for a brief period of time. They averaged $39.68 for all of 2020. This below breakeven price forced bankruptcy on some oil producing companies. It also greatly reduced exploration and production of oil in America. OPEC is Keeping Supplies Down OPEC nations agreed to limit exports of crude oil to keep the supply lower and help raise prices. They will soon begin to increase output, but the supply is already low and they have made it clear their intention is to keep the price of oil at the current level or higher. The U.S. Election Since the election, the price of fuel has risen 80 cents. The oil markets clearly see the Biden and Harris administration as one that will work to inhibit US oil production. Being such a large producer, this will also impact global oil market supplies. Refinery Maintenance for Summer Blends Fuel prices almost always jump this time of year. That is due to scheduled shutdowns and annual maintenance in our refineries. They also use that time to switch everything to the summer blends of fuel that are required by the EPA. They generally shut down which lowers the supply of fuel. This of course makes it more expensive! Demand Increases Loosening COVID Restrictions People are starting to move again! Commuters are returning to the office, air travel has picked up, and people are vacationing again. Vaccinations are also giving people confidence to get out again and are expected to help a summer travel boost. While we all want things to go back to normal, this sudden surge of fuel needed is not met with enough supply. This directly causes prices to go up. A robust U.S. Economy The whole country is using more fuel for everything from truck transportation, to home heating bills which is greatly increasing the demand for fuel. Stimulus Checks Stimulus checks have people out spending! Goldman Sachs has estimated that the recent stimulus could pump U.S. oil demand up by 200,000 barrels a day. If supplies don’t keep up, prices will continue to rise. As you can see, there are many factors that are pushing the price of fuel up and up. But the simple economic reality is that demand is outpacing supply. We should probably expect prices to continue to rise for a while into the future. OPEC Source - https://www.cnbc.com/2021/04/01/opec-to-decide-on-oil-production-policy-as-demand-concerns-persist.html To read the previous article in the series, click here!

Every year hundreds of millions of dollars are stolen through cyber theft. Criminals and hackers devise complicated schemes and programs that can bilk you out of your money. Unfortunately they often do it in such a way that they skim mere pennies from millions of accounts so that no one person is any wiser (remember the algorithm from the movie Office Space?) In the end they make a lot of money, and your account is vulnerable for larger amounts to be stolen. Fortunately there are ways to protect yourself, even if you are driving truck the majority of the time. Here are 5 tips to help keep your cyber identity, and your bank accounts, safe from hackers. Use Your Personal WiFi Any time you access a public WiFi, you are at risk of having your information stolen. In fact, if you talk with someone that really knows what they are doing, they can set up in a coffee shop and use their computer to see exactly what you are doing online. You won’t even know they are watching your online activity. This means if you are accessing your bank account, they can see all of your information. To prevent this, don’t access sensitive sites from a public hotspot. Wait until you are at home with your secured WiFi before you do that. Secure Your WiFi That means that you have to make sure that your wireless internet is encrypted. If you have an open network (that is one without a password) you are inviting just about anyone into your online realm. Even a simple password will help ward off unwanted visitors. Setting up a password varies by company. Some make it very easy to establish a password for your internet, others seem to think we all know technical computer jargon. Here’s a great article to get you started, but you may want to call the customer service number for your router from the get-go. Use Your Data Plan Sometimes when you are on the road, you simply have to get online and access your bank account. While the ideal method is to call the bank and get the information needed that way, it may be after-hours and you can’t call. Instead of accessing their site with a public hotspot, use the data plan on your cell phone. Most smart phones can access websites without a problem; and many of them can be set up as hotspots. You can use the data from your cell phone and access the internet from your computer. If you are an iPhone user, this article explains how to turn your phone into a hotspot . Update Your Windows Windows is constantly creating patches for security loopholes that they discover. Every time a hacker finds a way around one, the engineers at Microsoft patch that hole. But your computer is not going to be secure on its own. You have to do Windows updates to make sure that you have the latest security measures. Most newer operating systems will have popups asking you to update your Windows. Don’t ignore these! It only takes a few minutes so go get a cup of coffee while your machine installs the updates and reboots. Watch What You Post and Where You Browse No matter if you are buying online, posting to Facebook, or just browsing, be careful where you tread. Most of us know not to give out our personal information on public sites, but there are other ways to leak information. Some websites will gather any information you put in, and they can install malware on your machine to track information you put in on other sites. Install MalwareBytes to prevent these little bugs from becoming accomplices to stealing your personal information. Prevention is Key Being on the road you make the most of truck stops that offer free WiFi; it’s faster and it’s free. While the majority of the time you will be safe, there are those moments when you could have your information stolen. It is far easier to prevent those thefts by not accessing important and private websites while using public WiFi. By taking a few minutes to read and apply the tips above, you can rest assured that your information is kept safe while you are driving your truck across the country. This article was originally featured on Teamrunsmart.com. Image Source - https://www.flickr.com/photos/intelfreepress/

Why do you invest? If you’re like most people, you’d probably say that, among other things, you want to retire comfortably. Obviously, that’s a worthy long-term goal, requiring long-term investing. But as you journey through life, you’ll also have short-term goals, such as buying a second home, remodeling your kitchen or taking a much-needed vacation. Will you need to invest differently for these goals than you would for the long-term ones? To answer that question, let’s first look at how you might invest to achieve your longer-term goals. For these goals, the key investment ingredient is growth – quite simply, you want your money to grow as much as possible over time. Consequently, you will likely want a good percentage of growth-oriented vehicles, such as stocks and other stock-based investments, to fund your 401(k), IRA or other accounts. However, the flip side of growth is risk. Stocks and stock-based investments will always fluctuate in value – which means you could lose some, or even all, of your principal. Hopefully, though, by putting time on your side – that is, by holding your growth-oriented investments for decades – you can overcome the inevitable short-term price drops. In short, when investing for long-term goals, you’re seeking significant growth and, in doing so, you’ll have to accept some degree of investment risk. But when you’re after short-term goals, the formula is somewhat different: You don’t need maximum growth potential as much as you need to be reasonably confident that a certain amount of money will be there for you at a certain time. You may want to work with a financial professional to select the appropriate investments for your short-term goals. But, in general, you’ll need these investments to provide you with the following attributes: Protection of principal As mentioned above, when you own stocks, you have no assurance that your principal will be preserved; there’s no agency, no government office, guaranteeing that you won’t lose money. And even some of the investments best suited for short-term goals won’t come with full guarantees, either, but, by and large, they do offer you a reasonable amount of confidence that your principal will remain intact. Liquidity Some short-term investments have specific terms – i.e., two years, three years, five years, etc. – meaning you do have an incentive to hold these investments until they mature. Otherwise, if you cash out early, you might pay some price, such as loss of value or loss of the income produced by these investments. Nonetheless, these types of investments are usually not difficult to sell, either before they mature or at maturity, and this liquidity will be helpful to you when you need the money to meet your short-term goal. Stability of issuer Although most investments suitable for short-term goals do provide a high degree of preservation of principal, some of the issuers of these investments are stronger and more stable than others – and these strong and stable issuers are the ones you should stick with. Ultimately, most of your investment efforts will probably go toward your long-term goals. But your short-term goals are still important – and the right investment strategy can help you work toward them. This article was written by Edward Jones for use by Greg Hall, Financial Advisor with Edward Jones. He can be contacted via email at greg.hall@edwardjones.com or via phone at 303-985-0045.