Why Investing in Billboards Can Outshine Traditional Savings

The traditional idea that saving enough for retirement is feasible for the average American is largely a myth. The reality is stark: most Americans have less than $25,000 saved, and many are underwater with their mortgages. With rising costs of living, including healthcare expenses that can spike household budgets, the notion of comfortably saving for retirement seems unrealistic for many.

But what if there was a more effective alternative to traditional savings?

The Reality of Savings

  • Savings accounts and CDs offer minimal returns. For instance, with a $100,000 savings, a typical CD might yield just $1,000 annually. Even with a substantial $1 million in savings, the interest would only amount to $10,000 per year—a modest sum for living expenses.
  • Inflation further erodes the value of savings. As prices rise, the purchasing power of saved money diminishes, making it challenging to rely solely on savings for a comfortable retirement.

Exploring the Billboard Advantage

Investing in billboards offers a compelling alternative. A single wooden billboard can generate around $3,000 annually. To achieve the same income through savings at a 1% interest rate, one would need $300,000.

  • High Return on Investment: Building a wooden billboard costs approximately $3,000, and it can return that investment in a year, providing a 100% annual return. In contrast, savings accounts and CDs offer far lower yields.
  • Inflation Protection: Unlike CDs, billboard rental rates can increase with inflation, preserving and even enhancing income over time.
  • Potential for Growth: As traffic and market conditions improve, the value and revenue potential of a billboard can increase. This growth potential makes billboards a dynamic and resilient investment.

Beyond Financial Gains

Billboards also offer intangible benefits that savings accounts cannot. Operating billboards can provide a sense of accomplishment and personal fulfillment. The interaction and engagement with the advertising market add an element of satisfaction beyond financial returns.

Conclusion

Rethinking Retirement: If you've realized that traditional savings might not secure your retirement, it's time to consider alternative investments like billboards. While saving money is undeniably challenging, investing in and managing billboards can be a more accessible and rewarding way to build a stable financial future.

Frank Rolfe started his billboard company off of his coffee table, immediately after graduating from college. Although he had no formal training on the industry, he learned as he went, and developed his own unique systems to accomplish things, such as renting advertising space. Frank was formerly the largest private owner of billboards in Dallas/Ft. Worth, as well as a major player in the Los Angeles market.