I've spent the best part of the last 17+ years expediting through 46 States and 3 Canadian Provinces. We have traveled over 1.5 million miles in a total of 5 vans and throughout this time we have been approached by all manner of folks, including the young and old, workers and retirees, commercial drivers and aspiring CDL holders. These myriad people each wanted to know what is that Roberts Express (later FedEx Custom Critical) all about. Initially, they were curious about this relatively new element of the surface transportation industry. During the latter years, the most common questions have been "How far do you folks drive" and "Are you makin' any money doing that". I'm sure all my fellow expediters have had similar encounters on nearly a daily basis.
Rene' and I have been pleased to take the time to explain our profession to any and all who took an interest in our activities. We have always been cautiously enthusiastic when explaining the peculiar characteristics of expediting as compared to OTR and LTL trucking. We have never exaggerated the earning potential of expediting and where we could we would provide actual dollar averages enjoyed by each truck category leased to our carrier.
During the past several years, Rene' and I have been assisting the staff of ExpeditersOnline.com by joining them in the EO booth at the Mid America Trucking Show (MATS); we will join them again from March 22-24 at the Kentucky Exposition Center in Louisville. We have also similarly assisted at each of the six annual Expedite Expos, and at several Free Expediter Workshops held in many large metropolitan areas.
We have met many hundreds of people at these events where it was our pleasure to discuss expediting, including our opinions of earning potential. We earnestly believe that the dissemination of our experiences and knowledge of the business has helped many of our booth visitors enter expediting and enjoy a bit of success. We trust that our forecasts of earning potential has never caused disappointment with those event participants.
I bought my first computer in April, 2004 and since that time I have been attempting to honestly answer questions presented by Forum members. Those of you who know us, know that we have never been confrontational in these Fora; we say our piece and move on. We have always believed that EO is the premier Expedited Freight Information Center and that the visitors to the Forum can get realistic, day-to-day fact upon which a typical person could make a rational decision about a career in expediting. "What's a good carrier for my particular circumstance", "What's the best truck type for my expectations", and "What's my earning potential in expediting" are common questions in here every day.
Lately there has been considerable discussion in the Forum about the likelihood of a team with one straight truck going from a net worth of zero to a million dollars in 20 or less years of expediting. Is that possible? In a word, yes. Is it probable? No! I have no empirical data to support my opinion and I doubt that anyone has amassed a million in expediting to support an opposing position.
Any of us can speculate that a dedicated straight truck couple, making sound investments, can theoretically accumulate a million dollars between now and 2027. I do not believe it can be done by a couple with a stationary residence, typical living expenses and the desire to enjoy an occasional ordinary family lifestyle. I think that in order to make that million, a couple would have to dedicate some prime years of life, living in a truck with a sleeper, however luxuriously or practically appointed, no larger than my 6'x12' storage shed. They would have to embrace a modest existence and invest a minimum of $500 after-tax dollars every week for eighteen years.
So, lets make monthly deposits of $2000 which yield a healthy 6.5%. Our frugal couple will have amassed $1,000,000 in 18 years. But due to an estimated 3% inflation, their $1,000,000 will be worth only $587,394 in today's dollars. To reach a $1,000,000 in today's dollars, you will have to wait until 2033 when their balance will be $2,165,841. That's $2000 every month for 26 years; miss just one month n the early years and add another year to reach the goal.
Another problem will be the housing market. A house valued at $300,000 today, sold for $100,000 twenty years ago. How much will that couple have to pay for a modest home in 2026? Anyone's guess in the volatile housing market. Who can even begin to guess the mortgage interest rates in 2026? Since the couple will be living mortgage free in a truck for twenty years, they'll need to obtain and furnish a residence with a chunk of their $587,394 and live off the remainder until Social Security kicks in.
The moral of this lengthy thread is, take off the rose colored glasses that provide a rosier than likely image of expediting earning potential. I recommend that the reader not take as gospel, anything that I or any other individual promote concerning earning potential. Take advantage of the accumulated experience, knowledge and wisdom of the many EO Forum members, Expedite Carrier Recruiters and other Expedite truck Owner/Operators before committing to the interesting world of expediting.
Terry O'Connell
Rene' and I have been pleased to take the time to explain our profession to any and all who took an interest in our activities. We have always been cautiously enthusiastic when explaining the peculiar characteristics of expediting as compared to OTR and LTL trucking. We have never exaggerated the earning potential of expediting and where we could we would provide actual dollar averages enjoyed by each truck category leased to our carrier.
During the past several years, Rene' and I have been assisting the staff of ExpeditersOnline.com by joining them in the EO booth at the Mid America Trucking Show (MATS); we will join them again from March 22-24 at the Kentucky Exposition Center in Louisville. We have also similarly assisted at each of the six annual Expedite Expos, and at several Free Expediter Workshops held in many large metropolitan areas.
We have met many hundreds of people at these events where it was our pleasure to discuss expediting, including our opinions of earning potential. We earnestly believe that the dissemination of our experiences and knowledge of the business has helped many of our booth visitors enter expediting and enjoy a bit of success. We trust that our forecasts of earning potential has never caused disappointment with those event participants.
I bought my first computer in April, 2004 and since that time I have been attempting to honestly answer questions presented by Forum members. Those of you who know us, know that we have never been confrontational in these Fora; we say our piece and move on. We have always believed that EO is the premier Expedited Freight Information Center and that the visitors to the Forum can get realistic, day-to-day fact upon which a typical person could make a rational decision about a career in expediting. "What's a good carrier for my particular circumstance", "What's the best truck type for my expectations", and "What's my earning potential in expediting" are common questions in here every day.
Lately there has been considerable discussion in the Forum about the likelihood of a team with one straight truck going from a net worth of zero to a million dollars in 20 or less years of expediting. Is that possible? In a word, yes. Is it probable? No! I have no empirical data to support my opinion and I doubt that anyone has amassed a million in expediting to support an opposing position.
Any of us can speculate that a dedicated straight truck couple, making sound investments, can theoretically accumulate a million dollars between now and 2027. I do not believe it can be done by a couple with a stationary residence, typical living expenses and the desire to enjoy an occasional ordinary family lifestyle. I think that in order to make that million, a couple would have to dedicate some prime years of life, living in a truck with a sleeper, however luxuriously or practically appointed, no larger than my 6'x12' storage shed. They would have to embrace a modest existence and invest a minimum of $500 after-tax dollars every week for eighteen years.
So, lets make monthly deposits of $2000 which yield a healthy 6.5%. Our frugal couple will have amassed $1,000,000 in 18 years. But due to an estimated 3% inflation, their $1,000,000 will be worth only $587,394 in today's dollars. To reach a $1,000,000 in today's dollars, you will have to wait until 2033 when their balance will be $2,165,841. That's $2000 every month for 26 years; miss just one month n the early years and add another year to reach the goal.
Another problem will be the housing market. A house valued at $300,000 today, sold for $100,000 twenty years ago. How much will that couple have to pay for a modest home in 2026? Anyone's guess in the volatile housing market. Who can even begin to guess the mortgage interest rates in 2026? Since the couple will be living mortgage free in a truck for twenty years, they'll need to obtain and furnish a residence with a chunk of their $587,394 and live off the remainder until Social Security kicks in.
The moral of this lengthy thread is, take off the rose colored glasses that provide a rosier than likely image of expediting earning potential. I recommend that the reader not take as gospel, anything that I or any other individual promote concerning earning potential. Take advantage of the accumulated experience, knowledge and wisdom of the many EO Forum members, Expedite Carrier Recruiters and other Expedite truck Owner/Operators before committing to the interesting world of expediting.
Terry O'Connell
