Inside The Plan With The 401(k) Brothers

By: Bill Bush and Andy Bush
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  • Summary

  • Inside The Plan With The 401(k) Brothers is a production of Horizon Financial Group, located in Baton Rouge, LA. The show handles topics and questions that often arise from participants of company retirement plans. Bill Bush and Andy Bush are indeed brothers, but NOT twins. Registered Representatives offering securities and advisory services offered through Cetera Advisors LLC, member FINRA/SIPC, a broker/dealer and a Registered Investment Adviser. Cetera is under separate ownership from any other named entity. 15015 Jamestown Boulevard, Suite 100, Baton Rouge, LA 70810
    Horizon Financial Group 15015 Jamestown Boulevard, Suite 100, Baton Rouge, LA 70810
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Economics Personal Finance
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Episodes
  • Rules of Thumb & When to Break Them

    Rules of Thumb & When to Break Them
    Sep 19 2024
    In this episode, the 401(k) Brothers—Bill and Andy Bush—discuss popular financial rules of thumb and how they may or may not apply to different retirement situations. They tackle everything from when to delay Social Security, avoiding 401(k) loans, the pros and cons of paying down your mortgage early, and more. This conversation is packed with insights that can help you navigate your personal retirement decisions, ensuring that these "rules" work for you, not against you. Chapters & Time-Stamps: 00:00 - Introduction to Financial Rules of Thumb The 401(k) Brothers open the episode by introducing the topic of financial rules of thumb and explain why these generalized rules may not always be applicable to every retirement scenario. 01:00 - Delaying Social Security: Pros and Cons Bill and Andy discuss the first rule of thumb: delaying Social Security until age 70 for higher monthly payments. They delve into when it makes sense to follow this rule and when it's better to take Social Security earlier based on health, family history, or ongoing employment. "You don't know when the last grain of sand's going through your hourglass." – Andy 02:24 - Personal Considerations for Social Security The conversation continues with examples of how family longevity or terminal illness can influence the decision to take Social Security earlier rather than later. 03:10 - Working and Social Security They explain how working while claiming Social Security before full retirement age can reduce benefits due to the earnings test, and highlight why waiting until FRA can make a difference. 03:51 - 401(k) Loans: When to Avoid and When to Use Next up, Bill and Andy discuss the second rule of thumb: avoiding loans from your 401(k). They explain how 401(k) loans can stunt growth by interrupting compounding. However, they acknowledge there are rare situations, like significant emergencies, where it may be justified. 05:39 - Mortgage Management: Pay Down or Invest? The third rule of thumb: prioritizing paying off your mortgage. The hosts explore the impact of rising interest rates and how those with lower mortgage rates may benefit more from investing rather than paying off their mortgage early. 07:36 - Diversification in Investing: A Key Strategy Bill and Andy tackle the fourth rule: diversification. While younger investors can afford to take more risks, as retirement nears, it becomes essential to spread risk across various assets to protect your savings. 09:01 - Buy Low, Sell High: The Investment Mindset The fifth rule: buy low, sell high. The brothers explain why they're not market timers, emphasizing that investing should be tied to a long-term strategy and purpose rather than reactive decisions. 10:21 - The 4% Withdrawal Rule: Understanding Retirement Income Rule number six: the 4% withdrawal rule. Bill and Andy discuss its flexibility, stressing that it should serve as a guideline rather than a rigid rule. The longevity of one's retirement and market conditions can influence how much to withdraw safely. 13:37 - Maximizing Employer Contributions: A Smart Move The seventh rule of thumb: maximize employer matching contributions to your retirement savings plan. Bill and Andy emphasize this as “free money” and encourage listeners to take full advantage if possible. 14:35 - Hedging Against Inflation: Protecting Your Wealth They explore rule number eight: prioritizing hedges against inflation. The brothers share insights on how bonds, money market accounts, and stocks can help counteract inflation's impact over the long term. 15:33 - 100 Minus Age Rule: Stock Allocation Strategy The ninth rule: the 100 minus age rule, which suggests how much of your portfolio should be allocated to stocks. They express that this rule may be too conservative for younger investors and provide alternative approaches. 17:23 - Redefining Retirement: Beyond the End of Work The episode closes with the final rule: retirement is the end of work. Bill and Andy challenge this idea, offering a perspective that retirement can be a new beginning filled with purpose, hobbies, and personal growth. "Retirement is about living out your purpose in life." – Bill Key Takeaways: Social Security: Delaying can boost your income, but personal health and financial needs might dictate a different approach. 401(k) Loans: Should generally be avoided to prevent interrupting growth, except in critical emergencies. Mortgage: Paying off your mortgage early depends on interest rates and whether that money could work better for you elsewhere. Diversification: Crucial as you near retirement to spread out risk. Investment Strategy: Stick to long-term goals rather than trying to time the market. 4% Rule: Useful as a guideline, but individual factors like longevity and income needs matter. Employer Contributions: Always maximize these if possible for free money toward your retirement. Inflation Hedge: Consider a mix of bonds, stocks, and other vehicles to...
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    20 mins
  • The Latest on Savings Rates

    The Latest on Savings Rates
    Jul 9 2024
    In this episode of "Inside the Plan with the 401k Brothers," hosts Bill and Andy Bush, from Horizon Retirement Plans, a division of Horizon Financial Group, delve into the topic of savings rates influenced by findings from Vanguard and Fidelity related to participant behavior in retirement plans. They cover vital statistics on savings rates, the impact of inflation on savings behaviors, the benefits of starting early, and strategies for increasing savings rates over time. Episode Highlights: 00:08: Bill introduces the podcast, highlighting its focus on savings rates and the importance of participation in retirement planning. He sets the stage for the episode's discussion on harnessing findings from record keepers to enhance personal savings strategies. 00:30: Andy greets listeners and emphasizes the value of comparing one’s savings rates to averages to identify opportunities for adjustments, underscoring the concept of a "healthy comparison." 00:55: The hosts discuss recent reports from Vanguard and Fidelity, reflecting on the year 2023 and the first quarter of 2024. They highlight the average combined savings rate of 11.7%, based on Vanguard's analysis of employee contributions and employer match, over 1500 qualified plans and 5 million participants. 01:44: Bill corrects Andy on the savings rate percentage provided by Vanguard, emphasizing the accuracy of data in financial discussions and the goal of achieving a 15% savings rate when starting at an early age for a secure retirement. 02:24: The conversation shifts towards the inclusion of employer contributions in saving rates and the recommendation for individuals to strive for a 10 to 15% personal savings rate if feasible. 02:51: Fidelity’s findings from the first quarter of 2024 are presented, showcasing a combined savings rate of 14.2% across 26,000 corporate plans, spotlighting the broad base of data supporting these findings. 03:37: Bill and Andy touch on the challenges that high inflation poses on savings, especially when wages do not keep pace, yet highlight that a significant portion of employees increased their savings rate in 2023 despite these challenges. 04:37: The discussion pivots to the thoughtful adjustments people make in response to economic pressures, including lifestyle changes that can free up funds for retirement savings. 05:12: The hosts underline an intriguing statistic from Vanguard that nearly 25% of participants deferred more than 10% of their earnings into their retirement plans, indicating a strong commitment to future financial security among a notable segment of savers. 06:00: Fidelity's report on the average deferral rate of 9.4% in the first quarter of 2024 is highlighted, reflecting a robust engagement in self-funded retirement savings among participants. 06:26: The significance of regularly reviewing and adjusting savings rates is underlined, with advice to capitalize on milestones such as the end of a car payment to increase retirement savings contributions. 08:46: Insights into how 401k plan design, including features like automatic enrollment and annual increases, have positively influenced saving behaviors over time, are shared. Key Takeaways: - Starting early and consistently contributing to your retirement plan, ideally aiming for a 15% savings rate, can significantly impact your financial security in retirement. - Adjusting lifestyle choices and budgets in response to economic conditions, like inflation, can enable individuals to maintain or even increase their savings rates over time. - Regularly reviewing and potentially adjusting your savings rate in response to life changes or during annual financial reviews can help ensure that your retirement savings strategies align with your long-term goals. - Features like automatic enrollment and automatic contribution increases in 401k plans have been instrumental in boosting overall savings rates and should be leveraged by participants to optimize their retirement savings efforts. Tweetable Quotes: - "In our industry, savings rates are a beacon, guiding us towards our retirement goals." – Bill - "The power of compounding is the eighth wonder of the world. Start saving now." – Andy Resources Mentioned: - https://www.horizonfg.com/
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    17 mins
  • Managing Retirement Expectations

    Managing Retirement Expectations
    May 20 2024

    In this enlightening episode, Bill and Andy Bush of Horizon Retirement Plans delve into the intricacies of planning for retirement, sharing personal anecdotes and professional insights. The brothers discuss expectations versus reality in retirement planning, the impact of health and work dynamics on retirement age, and strategies for ensuring a fulfilling and financially secure retirement.

    Episode Highlights:

    - **00:00:08:** The episode kicks off with introductions and a heartwarming recount of the Bush brothers taking their mother to the Kentucky Derby, setting a personal tone while hinting at the broader theme of family and retirement.

    - **00:01:10:** The conversation shifts to the reality of aging and health as they compare their active mother to their slower-pacedbretired father, introducing the episode's core topic of retirement expectations.

    - **00:02:01:** Bill and Andy discuss how most people's retirement age expectations do not align with reality, citing a significant statistical deviation discovered by the Employee Benefit Research Institute.

    - **00:03:12:** The importance of understanding Social Security's full retirement age is highlighted, pointing out common misconceptions and the reasons people might retire earlier than planned, often due to health or unexpected job changes.

    - **00:05:00:** Delving into the reasons people retire early, the dialogue covers health issues, family care responsibilities, and company downsizing, emphasizing the unpredictability of work and health on retirement plans.

    - **00:05:58:** The brothers advocate for having a backup plan including disability insurance and saving aggressively, aiming for two years of expenses in a liquid account as a cushion for market downturns.

    - **00:07:41:** Discussion about those who retire on their own terms, contrasting full retirement with partial retirement and examining reasons for continuing to work that range from financial needs to personal fulfillment.

    - **00:09:26:** Exploring motivations behind part-time work post-retirement, distinguishing between working out of necessity versus desire, indicating a trend toward seeking engagement and fulfillment even in later years.

    - **00:12:03:** The episode wraps up with an exploration of transitioning to retirement, emphasizing the need for purpose, proper use of time, socialization, and health management to make retirement fulfilling, borrowing concepts from JP Morgan's PUSH framework.

    Key Takeaways:

    1. Retirement expectations often do not match reality, with many retiring earlier due to health or employment changes.

    2. Planning for retirement requires considering health insurance, adequate savings, and the timing of Social Security benefits.

    3. Partial retirement and part-time work can offer financial flexibility, purpose, and social engagement, enhancing the retirement experience.

    4. Purpose, use of time, socialization, and health (PUSH) are crucial for a fulfilling retirement, suggesting retirees need to plan not just financially, but holistically.

    Tweetable Quotes:

    - "Most people's retirement age expectations don't align with reality - plan not just for the when, but also for the unforeseen whys." -

    Bill and Andy Bush

    - "Retirement is more than just financial planning; it's about crafting a life that continues to bring purpose, joy, and health." - Bill and Andy Bush

    Resources Mentioned:

    - https://www.horizonfg.com/
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    17 mins

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