Truck Driver Wanting To Quit?

Denise and her husband need to find out the difference between saving and investing.

QUESTION: Denise and her husband are truck drivers.  They are completely debt free and want to get off the road in about 6 months.  They are saving about $1,300 each week for part of their living expenses when they stop driving trucks.  Should they put that savings in a simple money market?

ANSWER: You need at least 6 months of savings - maybe more in your situation - piled up in a simple money market.  It won’t pay much, but you’ll have it to live on after you come off the road.

The general rule is if you are saving for less than 5 years and you’re going to need access to the money, put it in a money market.  If you plan to leave the money alone for 5 years or more, then put it in a good growth stock mutual fund.