Adjusting Your Finances During Uncertain Times

In this episode of "Inside the Plan with the 401(k) Brothers", hosted by Bill and Andy Bush, the hosts discuss the impact of inflation on household budgets and the psychology of spending and saving. They touch upon various points made by financial writer Morgan Housel, exploring the two ways money can be used: as a tool for a better life or as a yardstick for measuring status.

 

Episode Highlights:

·         01:26: The hosts delve into how inflation is impacting household budgets, shedding light on the challenges rising prices pose to personal finances and purchasing power.

·         02:54: Despite a slight cooldown, the hosts note that prices aren't dropping rapidly. The conversation highlights recent news about inflation surpassing expectations and its continued effects.

·         05:29: The hosts discuss the struggles of their college-bound children in a high-inflation era, especially regarding the increasing cost of groceries from their personal experiences.

·         07:44: Building on Morgan Housel's insights, the hosts explore the psychological side of spending. Money is viewed as both a tool for a better life and a status measure, prompting a discussion on mindful financial habits.

·         09:43: Referencing Warren Buffett's wisdom, the hosts discuss money's dual role as a yardstick for status. They stress the importance of striking a balance between spending and saving for a secure financial future.

·         11:16: The conversation shifts to the psychology of desire and scarcity, exploring how the longing for what can't be had influences consumer behavior and perceptions.

·         14:56: Introducing the concept of discerning between "nice" and "fancy" purchases, hosts advocate for considering the value and utility of acquisitions rather than focusing solely on price tags.

·         16:37: Reflecting on the relative nature of wealth, the conversation explores the dangers of constant comparison. The importance of gratitude and contentment with one's financial situation is highlighted.

·         18:32: The hosts emphasize the need for balance between immediate enjoyment and saving for the future, underscoring the significance of making mindful financial decisions.

·         20:49: Introducing the concept of hormesis, the hosts discuss its application to personal finance. They draw parallels between applying stressors for financial growth and maintaining a healthy lifestyle.

·         22:56: The hosts reiterate the need for balance and emphasize the importance of maintaining a healthy financial balance for overall well-being.

 

Key Points:

1.    The hosts discuss the challenges posed by inflation on household budgets, emphasizing its impact on personal finances.

2.    Exploring insights from Morgan Housel, the hosts delve into the psychological aspects of spending and saving, emphasizing the dual nature of money as a tool and a status measure.

3.    Throughout the conversation, the hosts stress the importance of finding a balance between present enjoyment and future financial planning, advocating for mindful spending and savings.

 

Tweetable Quotes:

·         "Inflation isn't just numbers on a chart; it's shrinking personal budgets. Your dollar won't stretch as far as it used to." - Bill

·         "Comparison can be a motivator or a joy thief. Cultivate gratitude for where you are and aspire wisely." - Andy

·         "Nice stuff vs. Fancy stuff: Understand the value, not just the price tag. Your choices reflect your financial health." - Andy

 

Resources mentioned:

·         Horizon Financial Group

In this episode of "Inside the Plan with the 401(k) Brothers", hosted by Bill and Andy Bush, the hosts discuss the intersection of behavior, savings, and retirement mindset. They delve into a tool called The Passport® available on the Horizon website, addressing mindsets in various aspects of life, including finances. The conversation is inspired by a piece from Goldman Sachs, exploring optimal mindsets that contribute to better retirement savings.

 

Episode Highlights:

·         02:58: The speaker discusses findings related to retirement and behavioral factors affecting it, focusing on optimism and future orientation.

·         04:02: Saving for retirement is compared to building habits, emphasizing the need for regular efforts.

·         05:08: Four behavioral factors affecting retirement are discussed: optimism, future orientation, risk-reward orientation, and financial literacy.

·         06:27: The importance of understanding individuals' backgrounds and environments in financial literacy discussions is mentioned.

·         07:24: Top 10 takeaways from a survey are shared, starting with the disconnect between retirement intentions and savings outcomes.

·         08:46: The correlation between optimal behaviors (optimism, future orientation, etc.) and easier retirement preparation is discussed.

·         09:53: Optimistic individuals tend to take more action, emphasizing the importance of proactive financial planning.

·         10:55: Savers threatened by the financial vortex seek professional help, showing interest in automatic features and guaranteed income options.

·         12:14: Savers with lower financial literacy are more action-oriented, highlighting the need for informed actions with financial education.

·         13:40: Traits common in vulnerable savers include low optimism, low future orientation, low financial literacy, and a risk-focused mindset.

·         15:20: Product preferences align with retirement mindset, with action-oriented individuals seeking a broader range of services and tools.

·         16:46: A positive view of the future reinforces motivation to save, emphasizing the importance of knowing what you're saving for.

 

Key Points:

1.       The podcast highlights four key behavioral factors influencing retirement planning: optimism, future orientation, risk-reward perspective, and financial literacy.

2.       The importance of aligning intentions with actual savings outcomes is emphasized, suggesting that one's mindset towards the future impact’s retirement preparedness.

3.       The discussion covers the significance of taking proactive actions aligned with a positive outlook, the role of future orientation in saving more, and the impact of financial literacy on informed decision-making for retirement planning.

 

Tweetable Quotes:

·         "Financial literacy is the compass for retirement readiness – understanding the basics lays the foundation for informed decisions and effective actions in securing your financial future."

·         "Risk and reward evolve with age – recognizing the importance of asset classes over time helps navigate the balance between security and achievement in pursuing financial goals."

·         "The most vulnerable savers share common traits – low optimism, future orientation, financial literacy, and a focus on risk over reward. Building resilience starts with addressing these key factors."

 

Resources mentioned:

Your Expansion Passport®

Your Walkaway Passport®

Retirement Mindset Matters

In this episode of "Inside the Plan with the 401(k) Brothers", hosted by Bill and Andy Bush, the hosts discuss a year-end financial checklist to help listeners maximise benefits for the current year and prepare for the next. The discussion includes insights on upcoming changes in contribution limits for 2024 and highlights key considerations for individuals to review in their financial lives before the year concludes.

 

Episode Highlights:

·         01:52: The hosts start discussing the first category: taxes. They emphasize the consideration of deductions to maximize benefits for the year, mentioning options like contributing more to retirement plans or utilizing IRAs and Roths.

·         04:36: The hosts touch on the uncertainty of future tax rates and mention that the current rates are set to sunset in 2025. They highlight the potential for changes in tax brackets and advise listeners to consult with their CPA or accountant for accurate information.

·         05:30: Moving to the investment category, the hosts discuss the importance of reviewing asset allocation during the year-end. They briefly mention the concept of gifting to family members, including the annual limit of $17,000 and the need to file gift tax paperwork for amounts exceeding this limit.

·         06:19: The hosts begin discussing the investment side of the checklist, focusing on asset allocation and the potential need for rebalancing due to volatility in the past year.

·         07:05: Further details on the investment side include reviewing outstanding loans and mortgages, revisiting income and savings needs, and considering dividend distributions, emphasizing the tax implications of such distributions.

·         09:13: The hosts suggest self-employed individuals consider opening a retirement plan and highlight the potential tax advantages. They also mention tax breaks for businesses with under 100 employees, especially under 50, regarding retirement plans.

·         10:19: Moving on to the insurance category, the hosts recommend reviewing insurance plans, including property and casualty, and life insurance. They emphasize the need to adapt coverage to changing life circumstances.

·         13:40: The hosts discuss milestones, focusing on specific ages and corresponding financial considerations, such as catch-up contributions, Social Security decisions, and required minimum distributions (RMDs).

·         16:18: Health-related considerations, including open enrolment, reviewing health plans, and understanding flexible spending accounts (FSAs), are covered in the health category.

·         19:41: In the family category, the hosts recommend contributing to education accounts, considering 529 plans, and making charitable contributions, including qualified charitable distributions (QCDs) for RMDs.

·         21:54: The hosts conclude by encouraging a holistic approach to financial planning, considering both short-term and long-term opportunities. They stress the importance of clear thinking and planning beyond immediate concerns.

 

Key Points:

1.    The hosts discuss a comprehensive checklist covering taxes, retirement, investments, insurance, milestones, health changes, family, and life changes.

2.    Emphasis on maximizing deductions, contributing to retirement plans, tax loss harvesting, and considering potential changes in tax rates. Consultation with a CPA is recommended.

3.    Retirement actions key points include maximizing 401(k) contributions, exploring Social Security filing strategies, and considering additional retirement plans for the self-employed.

 

 

 

 

Tweetable Quotes:

·         "Year-end financial planning is like a short-term roadmap, but don't forget to zoom out and plan for the next three years—think holistically about your life and financial goals."

·         "Consider tax strategies like maximizing deductions, retirement actions such as optimizing 401(k) contributions, and thoughtful gifting to family members within the annual limit for a well-rounded year-end financial plan."

·         "Reviewing insurance, milestones, health changes, and family matters in your year-end checklist can ensure you're financially prepared and protected. Consult with professionals for accurate advice tailored to your situation."

 

 

Resources Mentioned

·          Horizon Financial Group

·          Last Chance Financial Checklist

·          2023 Key Financial Data

In this episode of "Inside the Plan with the 401(k) Brothers", hosted by Bill and Andy Bush, the hosts provide insight about the contribution limits of 2024 to know what you're getting into for the upcoming year which IRS announce every year around this time.

 

Episode Highlights:

·         01:04 Discussion on inflation-indexed contribution limits, highlighting that most plans saw an approximate $500 increase from 2023 to 2024, with 401K plans moving from $22,500 to $23,000.

·         02:13 No change in catch-up contributions for 2023 and 2024, remaining at $7,500, leading to a total limit of $30,500 for eligible participants in 401K, 457, and certain 403 B plans.

·         04:10 Individual IRA limits also rose by $500 to $7,000 for 2024, and the catch-up contribution remained at $1,000, totaling an $8,000 potential contribution for those turning 50.

·         05:08 Eligibility for contributing to a Roth IRA in addition to a 401K depends on modified adjusted gross income (AGI). In 2024, single individuals earning less than $146,000 or married couples filing jointly earning less than $230,000 can contribute to both.

·         06:49 For traditional IRAs, if you're covered by a retirement plan at work, the deductible contribution income limits are lower: less than $77,000 for singles and less than $123,000 for married filing jointly.

·         07:23 Contributions to a traditional IRA without tax deductions must be tracked as after-tax contributions to ensure taxes are not paid upon withdrawal for the contribution amount.

·         08:52 The hosts reflect on the tendency of individuals to focus on financial planning towards the end of the year, emphasizing the importance of progress towards a secure financial life.

·         11:22 The hosts suggest stepping back to gain perspective on one's financial journey and the importance of planning, rather than only dealing with day-to-day needs.

·         12:53 The hosts discuss the passport package for self-assessment, highlighting different mindsets between those under and over 45 years of age. The assessments are based on the work of Carol Dweck on growth versus fixed mindsets.

·         14:22 They introduce the Horizon Financial Group's website where listeners can take the passport assessments – 'Expansion Passport' for those under 45 and 'Walkaway Passport' for those over 45.

·         15:56 The hosts encourage listeners to step back from daily life and evaluate their mindsets, suggesting this tool can aid in identifying areas for growth.

 

 

Key Points:

1.    For 2024, the contribution limits for 401K plans have increased by $500 from the previous year, now standing at $23,000, with the catch-up contribution remaining at $7,500, making a total of $30,500 possible for those eligible.

2.    Individuals with a modified AGI below specific thresholds can contribute to a Roth IRA in addition to their 401K.

3.    The hosts emphasize the importance of assessing one's financial mindset and introduce a self-assessment tool called the passport package, which helps individuals gauge their financial health and progress towards goals, with distinct versions for those under and over 45 years of age.

 

 

Tweetable Quotes:

·         "Get ready for 2024! Most 401(k) plans are upping the ante with contribution limits increasing by about $500. Time to max out your financial growth!”

·         "Whether you're aiming for a Roth IRA or sticking to traditional, knowing your AGI can unlock new opportunities for your retirement contributions in 2024.”

·         "End the year strong by reflecting on your financial journey. Take the 'passport' to assess your mindset – are you growing or just going with the flow?”

 

 

Resources Mentioned

·         Horizon Financial Group

In this episode of "Inside the Plan with the 401(k) Brothers", hosted by Bill and Andy Bush, the hosts provide insight into the hosts' their experiences with money and financial responsibility, highlighting the values they learned from their upbringing.

 

Episode Highlights

·         02:08: Bill and Andy emphasize that nothing was ever handed to them, and they had to go out and earn their own money from an early age.

·         03:57: Bill and Andy highlight their commitment to making prudent financial decisions and investing in their own assets, such as their home, as a long-term financial strategy.

·         04:46: This segment of the episode touches on the importance of timing in financial decision-making and how individual circumstances and perspectives can affect stress levels and financial choices.

·         05:28: The hosts discuss the intriguing age range of 53-54 mentioned in the Wall Street Journal article as the time when people tend to make their best financial decisions. They express curiosity about why this particular age range is considered optimal for financial decision-making.

·         06:21: Bill talks about the evolution of financial decision-making as individuals grow older and gain a better understanding of the complexities and risks associated with financial choices.

·         06:48: The hosts mention that people make fewer mistakes at this age because they have accumulated a significant amount of life experience and knowledge over the years. This learning process has become deeply ingrained in their decision-making.

·         07:52: Bill and Andy acknowledge the importance of recognizing that one's "runway" in life is not as long as it once seemed, prompting a desire to get their financial affairs in order, particularly in preparation for retirement.

·         09:10: The hosts discuss their experiences with market ups and downs, emphasizing the importance of learning from these experiences.

·         10:13: The hosts emphasize that people often underestimate how long they will live, and they stress the importance of planning for a potentially lengthy retirement. They highlight that retiring at 65 could mean having 30 years of retirement life ahead, so financial planning should account for extended longevity.

·         11:43: Bill and Andy advise increasing retirement contributions, especially when major debts, such as car loans or credit card debt, are paid off. This ensures that extra funds are directed toward building a more substantial retirement nest egg.

·         13:57: The idea of making thoughtful financial choices that align with one's current and future priorities, particularly as individuals approach retirement and experience changes in their life circumstances.

·         14:04: The hosts wrap up the discussion by highlighting the article from the Wall Street Journal titled "The Exact Age When You Make Your Best Financial Decisions." They recommend it as a quick and worthwhile read for gaining insights into the topic.

·         15:34: Bill and Andy emphasize the importance of preparing for the next several years, including the next five, ten, and fifteen years. They acknowledge that financial mistakes are inevitable, but with wisdom and preparedness, individuals can recover more quickly from setbacks and avoid taking excessive risks.

 

 

 

 

Three Key Points

1.    The hosts discuss their decision to stay in their current house instead of selling and moving to a more expensive place, highlighting how such a decision reduced potential stress levels. They reflect on how everyone experiences stress differently based on their circumstances and perspectives.

2.    People in their 50s have likely experienced market downturns and economic challenges, which can be valuable learning experiences. Younger investors may not have encountered such financial setbacks, whereas those in their 50s have had the opportunity to learn from past market fluctuations.

3.    Bill and Andy highlight the value of resources like the Wall Street Journal article and the importance of continued learning and financial awareness, especially as individuals navigate their "runway decade" leading up to retirement.

 

 

Tweetable Quotes

·         “In their teens and 20s, Bill and Andy were more idealistic and less understanding of how things work. They describe this phase as a time of having false hope and engaging in what they call "magical thinking," where they believed things would work out without fully realizing the risks involved.”

·         “By the time people reach their 50s, they often no longer feel the need to impress others. Instead, they focus on personal improvement and making choices that enhance their own lives.”

·         “Market experiences can be valuable lessons and that maintaining a balanced perspective on investment is crucial.”

 

 

Resources Mentioned

·         Horizon Financial Group

In this episode of "Inside the Plan with the 401(k) Brothers", hosted by Bill and Andy Bush, the hosts discuss various topics including the hot weather of August, the anticipation of cooler weather, and the upcoming football season. They mention the excitement for college football, particularly focusing on the LSU Tigers and their strong performance last season. Bill and Andy discuss the unpredictable nature of life and draw parallels between unforeseen events in sports and retirement planning.

 

Episode Highlights

·         01:57: The hosts draw a parallel between this anticipation for football and the anticipation that individuals have for retirement.

·         02:41: People often look forward to specific events, such as counting down the weeks to certain occasions. Bill and Andy emphasize the importance of anticipation in both football and retirement planning.

·         02:48: Bill and Andy reiterate their high hopes for LSU's success in the upcoming season, highlighting that these hopes are shared not only by fans but also by Coach Kelly, the coaching staff, and the players.

·         04:12: Even when individuals are healthy and making good decisions, unexpected things can still occur.

·         04:47: Retirements, like football seasons, don't always go as planned, and individuals may face situations that necessitate continued work. Some retirees might need extra income or insurance, prompting them to stay employed.

·         05:30: The hosts emphasize the need to balance high hopes and optimism with a dose of reality. They stress that planning should account for potential setbacks and challenges, and individuals should be prepared for things not going perfectly.

·         06:40: Bill and Andy emphasize the need for individuals to have financial advisors who can identify blind spots and guide them through their financial journey, much like a football coach guiding players on the field.

·         07:24: Just as a football team needs to strike a balance between aggressive and conservative plays, individuals should aim to strike a balance between growth and security in their investment approach.

·         09:00: Bill and Andy compare football plays to investment choices, highlighting that overly conservative or overly aggressive approaches can lead to unfavorable outcomes.

·         11:02: Just as a football game requires a well-rounded game plan, a fulfilling retirement requires careful consideration of various elements that contribute to a well-rounded and purposeful life.

·         12:24: The hosts mention their mother's active social life as an example of how staying engaged with family and friends contributes to a vibrant retirement.

·         14:02: Bill and Andy discuss the concept of control in retirement planning, comparing it to the control that football players have over their game and performance.

·         16:05: Bill and Andy emphasize the importance of having purpose and activities in retirement beyond just financial planning, drawing parallels to the enjoyment of leisure activities and social interactions.

·         17:08: The hosts reiterate the importance of having a plan for retirement, just like a football team has a game plan. They emphasize the need to consider both the high hopes and potential challenges that retirement may bring.

 

 

 

Three Key Points

1.    Just as a sports team must have contingency plans for unexpected challenges, individuals need to account for unforeseen circumstances in their retirement plans.

2.    Bill and Andy highlight the importance of diversification, managing risk, and balancing growth potential with security.

3.    Bill and Andy highlight the multi-faceted nature of retirement planning, where financial preparation, risk management, and quality of life considerations all play crucial roles, similar to the various elements in a football game plan.

 

 

Tweetable Quotes

·         “Sense of anticipation underscores the importance of planning for retirement, just as fans eagerly await the start of a football season.” – Bill

·         “Just as a football team doesn't simply show up on the first day of the season without prior preparation, individuals also need to engage in forward-thinking and planning to ensure a successful retirement.” – Bill

·         “Learning from mistakes and being open to adjustments are key to both successful football strategies and effective retirement planning.” – Andy

·         “Retirement could last for decades, and individuals need to plan for potentially living well beyond average life expectancies.” - Bill

 

 

Resources Mentioned

·         Horizon Financial Group

 The podcast "Inside the Plan with the 401K Brothers" is hosted by Bill and Andy Bush. In this particular episode, they have invited special guests who are young individuals in their early and mid-twenties: Robert Burke, Kaitlyn Williamson, and Savannah Henry. The hosts believe it's important to discuss retirement savings with younger generations and bring fresh perspectives to the topic. They acknowledge that people may be tired of hearing from older individuals like themselves and believe it's valuable to hear from younger voices.

 

Episode Highlights

§  01:38: The hosts ask the guests, particularly Robert, about their thoughts and perceptions on saving for retirement, considering they are just starting their careers.

§  02:13: Robert, who has been working for almost two years, shares that he has noticed a lack of financial literacy among his generation.

§  02:33: Robert mentions that while TikTok can be a source of both good and bad information, he believes that being in a place like Horizon provides him with reliable education and guidance on the right way to save for retirement.

§  03:57: The lack of financial literacy can lead young people to believe they are making the right decisions when, in reality, they may be making mistakes.

§  04:32: The hosts mention a personal anecdote about their own experiences with retirement savings early in their careers.

§  05:47: The specific investment choices within the plan are not as critical as the savings rate itself.

§  06:40: The guest emphasizes the importance of at least contributing enough to receive the employer match in a 401(K) plan.

§  07:58: Savannah shares her experience of having two previous jobs, where she simply checked the box and contributed a certain percentage to the retirement plan without much thought or awareness.

§  09:00: Savannah shares that her dad played a significant role in emphasizing the importance of maximizing her contributions. She acknowledges the lack of financial education in high school and college but expresses gratitude for her father's guidance, even though, at times she felt overwhelmed by the advice.

§  09:59: Bill and Andy discuss the importance of budgeting and how it can be a challenging adjustment for someone entering the workforce.

§  11:30: The guest mentions the shift in mindset from wanting unnecessary things to prioritizing essential expenses such as car insurance and gas. Bill and Andy highlight the importance of discerning between wants and needs and making conscious spending decisions.

§  13:11: Kaitlyn discusses the use of technology in personal finance, mentioning the use of budgeting sheets and saving money.

§  13:15: Kaitlyn highlighted the importance of retirement plans and the value of having a financial advisor to guide one's financial decisions and ensure money is allocated appropriately.

§  16:32: Kaitlyn mentioned that she has heard conflicting opinions about whether to take risks when young or avoid them until later in life.

§  17:26: Kaitlyn mentioned that her parents have been supportive and helped cover many of her expenses, so the idea of being responsible for rent, phone bills, insurance, car payments, and other costs is daunting.

§  20:22: Andy and Bill encouraged young professionals to be curious, ask questions, and seek out resources to improve their financial literacy.

 

 

Three Key Points

1.    Adopting a passive investment philosophy, rather than an active approach, tends to work better because paying too much attention to the market can lead to more losses than gains.

2.    Bill and Andy discuss the challenges and responsibilities that come with entering adulthood, such as managing bills, rent, insurance, and retirement plans.

3.    Andy and Bill emphasized that it's okay to admit when one doesn't understand something and that asking questions is crucial in the learning process.

 

 

Tweetable Quotes

§  "Financial education is not commonly taught in high school or college. Working in the industry has changed his perspective on the importance of starting to save for retirement at an early age." - Robert

§  "Creating positive financial habits now will benefit your future self." - Robert

§  "Financial literacy is not just taught in school, it's a lifelong pursuit. Be proactive in improving your knowledge." - Savannah

§  "Your financial journey begins with saving and budgeting. Take control of your expenses and prioritize your goals." - Kaitlyn

§  "Embrace curiosity, learn about investments, and make informed decisions for your financial future." - Bill

§  "Consult with a qualified financial professional for personalized advice tailored to your unique circumstances." - Andy

On today's episode of the "Inside the Plan with the 401(k) Brothers", host Bill Bush and Andy Bush, advisors at Horizon Financial Group, will talk about the distribution phase of retirement. They talk about the 4% rule, i.e., the withdrawal rate that suggests you wouldn't outlive your funds once you retire.

 

Episode Highlights

·         02:05: Bill and Andy talk about popularly known withdrawal rate strategies with different asset allocations and looked back at historic returns and came up with the idea that if you started your first year of retirement withdrawing 4% in most models your savings would last 50 years or more.

·         02:35: You can't take a percent to the grocery store, so you got to do some of the math to say, well, if I had $100,000, what's 4% of that.

·         03:48: Bill and Andy discuss about the rate of inflation. They suggest if you had a 2% inflation, you just add that on from the 4% you started within year 2.

·         04:30: If there happens to be deflation, you could back out the 2%.

·         05:20: There was a sweet spot in the percentage of stocks and bonds. So that sweet spot tended to be kind of a 60-40 portfolio.

·         06:04: If you had a million dollars, 20% is $200,000 and if you saw your portfolio go from $1,000,000 down to 800,000 and you were entering retirement, it would be very uncomfortable.

·         07:25: That is what folks have to get their arms around entering into retirement, they need to understand there is the day you retire, or you are not taking all the chips off the table and moving everything into the safest instrument.

·         07:48: If you retire at 65 and you are married, there is a 50 % percent chance that one of you lives to 90 and that’s a decent chance.

·         09:30: Bill and Andy talk about cash build-up that is available to get you through some of the tough times without having to tap into some of the equities while they have been depressed.

·         10:35: In 2022, you had the stock market and the bond market both down double digits and you also had inflation raging. So, if you were retiring in 2022 and that was your first year of retirement, not only were your assets declining, but you also had to if you factor in the inflation part, you know your dollar didn't go as far.

·         11:46: While the market did its horrible thing in the late 1920s and early 30s. It eventually would catch up, looking back historically, but the inflation side was a big wallop in the 70s.

·         12:17: Bill explains how inflation is the silent killer. If you don't plan and prepare for It can just destroy your savings.

·         13:47: If you are born after 1960, your RMD is now 75. So, if you are retiring in your 60s, mid 60s and you start drawing money from your savings, you are going to be whittling down that balance before 75.

·         14:41: What it comes down to the government you were putting money in pretax all this time and it grew tax deferred all this time, and they want to make sure that the taxable revenue is coming back.

·         15:38: What is inflation going to do? What is the market going to do in the next 30 years? When is the last day you are going to be on the planet?

 

 

 

 

 

 

Three Key Points

1.    Bill and Andy explain how you really must save a good amount of money if you utilize the 4% rule.

2.    Bill and Andy share how using the 4% rule, those that retired in or around 1929, their portfolio still survived the full 50 years.

3.    The purpose of this episode is to get you thinking about eventually, you are going to be pulling dollars out, and you got to get intentional about that.

 

 

 

Tweetable Quotes

·         "In retirement, you won't be earning anymore, but you need some source to be able to pay for lights and gas and food and all the other things that you pay spend money on." – Bill

·         "Even as a non-retired person, when I've seen My Portfolio go down like, hey man, this stinks, you know, and you start to go through the emotions, and you start to have the thoughts of maybe I am doing something wrong. Even as a financial advisor, it is great if you put some perspective on it." - Andy

·         "Market can fluctuate from time to time, but over long periods of time, there is an average annual return." - Bill

 

 

 

Resources Mentioned

abush@horizonfg.com

bbush@horizonfg.com

·         Horizon Financial Group

 

 

 

In today's episode of the "Inside the Plan with the 401(k) Brothers", host Bill Bush and Andy Bush, advisors at Horizon Financial Group are going to introduce the newest member of the Horizon retirement plans, John Lensing..

 

Episode Highlights

·         01:22: Bill says that they wanted to make sure that everyone gets an advisor to speak to and that they service their plans very well.

·         01:58: John shares how long he has been in the retirement plan space.

·         03:12: John will be picking up anything that needs to be done around here, from doing the benchmarking services to speaking to participants about their most straightforward financial issues and how people can be financially secure.

·         04:36: John has interacted with a lot of participants. He probably understands whatever story or situation you may be in. He will have the knowledge to help guide you through that.

·         05:28: As per Bill, one of the things they pointed out on this podcast is that for many employees, the 401K advisor may be the only advisor they have immediate access to or even know personally.

·         06:18: What we talked about with one of our bigger plans was becoming financially secure, says Bill.

·         06:56: 66% of Americans believe open conversations about money are keys to financial freedom, 62% keep their lips shut when it comes to talking about their finances, and the silence extends to family 63%, friends 75% and even their spot, even their spouse or partner, 46%. Bill talked about becoming financially secure the other day, one of the things we talked about is kind of the psychology and mindset behind that.

·         08:15: You can't go back and change the past. But from this day forward, you can change what the future outcome might be.

·         09:57: John found himself doing an internship and graduated college and was offered a position similar to how they are going to talk about finances.

·         10:40: When it comes to retirement savers, you see that those that are willing to have those conversations tend to have higher participation rates and savings rates.

·         11:44: When you are talking about professionals who are professional advisors on the financial side, Bill's job is not to steer you in a bad direction.

·         13:41: If you are in a position of being financially insecure, you need to establish a belief in yourself.

·         14:31: As per John, Andy certainly has a mindset about momentum and momentum and financial security and insecurity for most of us, we can't sit on the sidelines.

 

 

 

 

Three Key Points

1.    John shares his views about retirement plans and what he likes about it.

2.    John shares what attracted him to the retirement planning industry and why he sought this field.

3.    In some workplaces having a little chatter about money might be good, but it might also lead you to a bad decision in the sense of making a bad investment.

 

 

 

Tweetable Quotes

·         "People want to have a conversation; they need some perspective, and they need their emotions calmed a little bit." - Bill

·         "This is an opportunity for me to get to know some new people but bring some old stories." - John

·         "I might need some help and assistance, whether it's just understanding and learning about what you possibly could do in the future." - Bill

 

 

 

Resources Mentioned

·         Horizon Financial Group

·         Podcast Editing

·         jlensing@horizonfg.com

·         bbush@horizonfg.com

·         abush@horizonfg.com

 

 

 

 

 

In today's episode of the "Inside the Plan with the 401(k) Brothers", host Bill Bush and Andy Bush, advisors at Horizon Financial Group talk about their recent trip to San Diego for the National Association of Plan Advisors Summit, and share some stats from one of the presentations.

 

 

Episode Highlights

·         01:19: Spring has sprung and are folks looking forward to the summer and hopefully an improved economic climate.

·         01:32: One of the presentations that they did see at NAPA was, what is the American worker thinking right now and experiencing as you overlap that onto what's going on in the economy, especially as inflation hits everyone.

·         02:09: When you kind of look at across the board, there is a greater portion of folks that feel like their financial independence is in jeopardy.

·         03:13: There have been plenty of surveys and studies that have shown that the more financially stressed workers are the less productive they are.

·         04:08: If you have debt that was introduced to you last year when rates were rising. You know it's a higher interest rate and so getting rid of that as soon as you possibly would be great.

·         06:06: Inflation of expenses is going up and some people realize, I may as well just earn the dollars to pay my bills rather than pulling them out of my retirement savings.

·         06:50: 65% of the folks that were surveyed said they would rather have a concrete plan to know how to spend their later years, so that they could know not only the monies they would spend, but how they are spending their time and energies.

·         08:20: Bill and Andy discuss how people realized there was some benefit to staying at the job instead of going and chasing after something else.

·         09:39: Bill and Andy always like to remind folks to use the tools you have available inside your plan, be surprised at how many folks don't even set up an online access username and password and maybe don't even check their balance or kind of where their holdings are.

·         10:46: Bill and Andy have a whole series on how different generations look at finances.

·         11:29: Some people have family relationships or social relationships that are strained. Bill and Andy discuss how mental health affects financial health.

·         14:18: Bill and Andy talk about the importance of financial planning and why one should hire a financial advisor.

·         16:40: Andy doesn't want to feel strapped or stretched or stressed from finances.

·         17:24: If you have a 401K plan at your work, and you are not getting the education you feel like you deserve or need, reach out to the plan sponsor or providers and ask for it.

 

 

Three Key Points

1.    Bill and Andy talk about retirement savings and the importance of it.

2.    Bill and Andy discuss how millennials are managing their own finance.

3.    90% of workers indicated that their employer should be involved in retirement education.

 

 

Tweetable Quotes

·         "Folks tend to be a little less confident about their independence, their financial independence or their retirement." - Bill

·         "Concentrate on the things we can control rather than those items out there that we cannot control." – Bill

·         "The current climate we are in has certainly really made folks have to be intentional, about their financial lives, whether they wanted to or not because prices go up." - Bill

 

 

Resources Mentioned

·         Horizon Financial Group