Inside The Plan With The 401(k) Brothers: Recent Episodes

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🎙️ Episode Summary

In this lively and unconventional episode, Brother Bill and Brother Andy explore the emotional and motivational power of music—and how it can help shape your outlook on retirement planning. From walk-up songs to celebratory anthems, they highlight tunes that uplift, energize, and even challenge us to take action. This playlist-inspired episode weaves financial wisdom into familiar melodies and leaves listeners tapping their toes while thinking about their future selves. Retirement may be serious business, but that doesn’t mean it can’t have a great soundtrack.

🕒 Time-Stamped Episode Highlights

00:09 – Setting the Stage Andy introduces the idea of using music as inspiration for retirement planning. Bill connects it to the metaphor of “walk-up songs” in baseball—symbolizing the moment you transition into retirement.

01:59 – Personal Walk-Up Picks Andy shares “Right Now” by Van Halen as a motivational song to take action. Bill adds “Celebration” by Kool & the Gang and “All Star” by Smash Mouth as fun, upbeat songs to mark the transition.

03:49 – Rocking Out with Hair Bands Songs like “Kickstart My Heart” by Mötley Crüe and “Don't Stop Believin’” by Journey energize the mindset of perseverance and momentum.

05:24 – Joy, Goals, and Frank Sinatra Pharrell’s “Happy”, Sinatra’s “Come Fly with Me”, and “Luck Be a Lady” help explore the emotional side of retirement and dreaming big.

06:32 – Country & Classic Rock Inspirations “Hard Workin’ Man” by Brooks & Dunn, “Taking Care of Business” by BTO, and “Jive Talkin’” by the Bee Gees make their way into the conversation as examples of dedication and energy.

07:48 – Songs with Financial Themes “Money for Nothing” by Dire Straits, “Rich Girl” by Hall & Oates, and “Take the Money and Run” by Steve Miller Band are humorous yet thoughtful takes on income and wealth.

09:03 – Retirement & Aviation-Themed Songs With nods to The Runway Decade, songs like “Jet Airliner”, “Leaving on a Jet Plane”, and “Fly Me to the Moon” reflect destination-focused planning.

11:06 – Do You Know Where You Are Now? Bill emphasizes evaluating your current financial picture: your savings, your goals, and how you’re going to get there. Music becomes a reflection of that journey.

11:55 – Forrest Gump and Financial Freedom A nod to Forrest Gump’s run ties into the idea of stripping away obstacles. Songs like “Don’t Bring Me Down” by ELO amplify the theme of emotional and financial liberation.

12:52 – Life Events as Catalysts for Planning The brothers reflect on how life events like death, divorce, or inheritance often bring people to the financial planning table—and how music can provide clarity and courage during those times.

13:45 – Walk-Out Power Songs Andy shares his go-to jogging anthem “Boom” by P.O.D., and Bill recalls “I Wanna Be Rich” by Calloway, sparking a discussion on what it really means to be “rich” in retirement.

15:36 – Closing Notes & Musical Wisdom More final tracks are tossed into the mix: “Carry On Wayward Son” by Kansas and “Fly Like an Eagle” by Steve Miller Band. The episode ends with Bee Gees’ “Stayin’ Alive”—a reminder to care for your health as you plan financially.

🎵 Favorite Sound Bites

• “Music moves us, right?”
• “Get going, do it now!”
• “You gotta press on!”
• “Whether you’re a brother or whether you’re a mother, you’re stayin’ alive!”

💡 Key Takeaways

• Music can act as both a motivator and metaphor in your retirement journey.
• “Walk-up” songs mark the start of something bold—retirement included.
• Celebratory and upbeat tunes reinforce the joy of leaving the workforce.
• Life is full of bumps in the road—music reminds us to carry on.
• Passive income? Think “Money for Nothing.”
• Planning starts with knowing where you are today, where you want to go, and how you’ll get there.
• Health, happiness, and community are all part of a “rich” retirement.

📞 Contact the 401(k) Brothers

Website: www.horizonfg.com

Email: bbush@horizonfg.com

abush@horizonfg.com

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In this episode of Inside the Plan, brothers Bill and Andy Bush explore the often-overlooked questions and concerns that shape a meaningful and financially secure retirement. From maintaining your health and managing family responsibilities to finding purpose and planning for long-term care, they walk through the major life areas that impact retirement income planning. With real-life examples, personal stories, and thought-provoking questions, the brothers offer a candid and practical guide for anyone approaching or envisioning retirement.

🕒 Chapters & Timestamps

00:00 – Introduction to Retirement Income Planning Bill and Andy kick off the episode by highlighting the importance of thinking ahead when it comes to income planning in retirement. They frame the conversation with reflective questions and common concerns that can shape a retirement experience.

“We’ll throw out some questions you may not have considered—or this episode might just get you thinking, which is always good.”

04:06 – Health: The Foundation of Retirement The brothers stress how arriving at retirement healthy and debt-free creates a strong start. They touch on the value of staying active (hello, pickleball and walking!), maintaining social connections, and the importance of regular checkups and understanding your family health history.

“Are you doing anything to maintain or pay attention to how you’re treating your body?”

08:43 – Family Dynamics and Responsibilities From aging parents to grandkids needing support, family dynamics heavily influence retirement plans. The brothers share stories of clients navigating long-term care and longevity within their families—and how it affects their outlook and planning.

“Who are the important people in your life that are still alive? Are you going to need to care for them?”

12:40 – Work in Retirement: Expectations vs. Reality While many plan to work in retirement, the reality often differs due to health or shifting priorities. They examine the importance of staying current with skills, considering fulfillment, and deciding between part-time work or volunteering.

“Are you going to get fulfillment out of it—or is it just about bringing in dollars?”

16:41 – Leisure Activities and Life’s Purpose Leisure is more than just pastimes—it’s a key part of fulfillment in retirement. From travel and hobbies to spending time with loved ones, the brothers explore how leisure intersects with values, energy, and curiosity in later life.

“You don’t know when the last grain of sand is going through the hourglass… make the most of your time.”

19:55 – Housing Decisions: Downsizing, Costs & Lifestyle Where and how you live affects retirement costs and lifestyle. The brothers talk about downsizing, maintaining the family home, navigating mortgage decisions, and even multi-story homes vs. aging needs.

“If you can reduce that spend rate… that’s better for you because things will happen.”

23:18 – Legacy Planning: More Than Just Money From writing memoirs to giving financial gifts during your lifetime, legacy is about passing on values, stories, and love—not just assets. They explore how to think through timing, impact, and the emotional side of legacy planning.

“What would I want to leave the people I love? What do I want them to know about me?”

26:10 – Long-Term Care & End-of-Life Planning Only 10% of people carry long-term care insurance—but 70% will need some kind of care. The brothers stress the importance of planning for this, including powers of attorney, advance directives, and finding cost-efficient ways to prepare.

“You’re not trying to pay for everything—just offset the impact on your overall wealth.”

29:05 – Final Thoughts & Getting Guidance Retirement is filled with unknowns, but you don’t have to go it alone. The episode closes with an encouragement to explore these topics and reach out for help navigating the journey.

“You need trustworthy guides. It’s a foggy landscape, and you’ve never done it before.”

💡 Key Takeaways

• Health and debt status are key to starting retirement strong.
• Fitness routines can be social, budget-friendly, and personally fulfilling.
• Family responsibilities (parents, kids, grandkids) often influence timing and finances.
• Many retire earlier than expected—health is a big factor.
• Leisure and life’s purpose go hand-in-hand for a satisfying retirement.
• Housing decisions affect cost, comfort, and long-term flexibility.
• Legacy includes memories, values, and family stories—not just wealth.
• Long-term care planning is critical, even if insurance isn’t feasible.
• Trusted advisors can help guide the planning process.

🔊 Sound Bites

• “Who are the important people in your life?”
• “What is your life’s purpose after retirement?”
• “What if you had five years left—what would you do?”
• “A lot to think about in retirement planning.”

Contact Info:

Bill Bush: bbush@horizonfg.com

Andy Bush: abush@horizonfg.com

www.horizonfg.com

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In this episode of Inside the Plan, the 401(k) Brothers, Bill and Andy Bush, explore the key risks retirees face and the importance of planning ahead to mitigate them. They discuss longevity risk, inflation, healthcare expenses, investment volatility, liquidity concerns, family responsibilities, and public policy changes, providing insights on how to prepare for a secure retirement.

Key Takeaways

✔ Longevity Risk – Running out of money before you run out of life. ✔ Inflation Risk – The rising cost of living affects retirement budgets. ✔ Healthcare & Long-Term Care Risk – Increasing medical expenses and the need for caregiving support. ✔ Financial Elder Abuse – A growing threat from scams and even trusted individuals. ✔ Investment Risks – Stock market volatility, interest rate changes, and sequence of return risks. ✔ Liquidity Risk – The importance of keeping accessible cash reserves. ✔ Work-Related Risks – Counting on employment but facing health or job market obstacles. ✔ Loss of a Spouse – Financial and emotional adjustments following a partner’s passing. ✔ Public Policy Risk – Changes in Social Security, Medicare, and tax laws can impact retirement plans.

Time-Stamped Chapters & Breakdown

📌 00:00 – Introduction: Why Planning for Risks Matters

• Bill and Andy introduce the variety of risks retirees face.
• Overview of how good planning can help navigate unexpected challenges.

📌 01:30 – Longevity Risk: Will Your Money Last?

• With increasing life expectancies, retirees need to plan for 30+ years of income.
• Key strategies: Annuities, diversified investments, and sustainable withdrawal rates.

📌 03:15 – Inflation Risk: The Erosion of Purchasing Power

• Over time, inflation can double the cost of living in retirement.
• Example: A $5,000/month budget today could need $10,000+ in 20 years.
• Ways to protect against inflation: Social Security COLAs, inflation-protected investments (TIPS), and adjustable withdrawal strategies.

📌 05:10 – Healthcare & Long-Term Care: The Cost of Aging

• Medical costs are rising faster than general inflation.
• 70% of retirees will require long-term care assistance at some point.
• Mitigation strategies: Medicare planning, long-term care insurance, and HSAs (Health Savings Accounts).

📌 07:00 – Investment Risks: Navigating Market Uncertainty

• Market risk: Stock market volatility can impact retirement savings.
• Interest rate risk: Rising rates affect bond values and fixed-income investments.
• Sequence of return risk: A market downturn early in retirement can have long-term consequences.
• How to mitigate these risks: Diversification, maintaining a cash reserve, and gradual portfolio adjustments.

📌 09:00 – Liquidity Risk: Having Cash When You Need It

• Some assets, such as real estate or private equity, are not easily converted to cash.
• Importance of having liquid savings to cover emergencies and unexpected expenses.
• Balancing liquidity with long-term growth.

📌 10:20 – Financial Elder Abuse: Protecting Yourself from Scams

• Retirees are common targets for fraud and financial abuse.
• Warning signs: Unusual account activity, pressure to give money, and sudden changes in estate planning.
• Ways to stay protected: Trusted contacts, power of attorney, and financial monitoring.

📌 12:00 – Work-Related Risks: Can You Count on Employment?

• Many retirees assume they’ll be able to work part-time, but health or job market changes may prevent it.
• Reemployment risk: Older workers may struggle to find new jobs if they need additional income.
• Plan for financial independence, not reliance on future employment.

📌 13:30 – Family-Related Risks: Unexpected Financial Responsibilities

• Many retirees end up supporting adult children or grandchildren, impacting their savings.
• Importance of setting financial boundaries while still helping loved ones.

📌 14:30 – Loss of a Spouse: Emotional & Financial Adjustments

• The loss of a spouse can create a significant financial shift, especially with Social Security income reduction.
• Planning ahead: Survivor benefits, estate planning, and joint-and-survivor annuities.

📌 16:00 – Public Policy Risk: How Government Changes Affect You

• Social Security & Medicare uncertainties – will benefits be reduced in the future?
• Tax law changes can affect retirement withdrawals and income planning.
• Staying informed and adapting to new regulations is crucial.

📌 18:00 – Final Thoughts & Key Takeaways

• Anticipating risks and creating a plan helps mitigate their impact.
• “Don’t worry alone—worry with us and let’s plan together!”

Sound Bites

• "What if you're still breathing at 95 or 97?"
• "Financial elder abuse could be scams or even people they know taking advantage."
• "You have to plan and anticipate these risks."

Connect with Us

💡 Have questions or concerns about your retirement plan? Don’t navigate these risks alone! Contact us: 📩 Bill Bush – bbush@horizonfg.com 📩 Andy Bush – abush@horizonfg.com

🔔 Subscribe & Listen: Don’t miss future episodes of Inside the Plan with the 401(k) Brothers!

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In this episode, Bill and Andy Bush discuss the "7 Stages of Financial Well-Being," a concept developed by Money Coaches of Canada. They explore each stage, from financial chaos to financial fulfillment, and provide practical insights into how individuals can move up the financial staircase. With a focus on building confidence and intentionality, this episode is a roadmap for anyone seeking financial freedom and stability.

Whether you're in financial chaos or nearing financial fulfillment, Bill and Andy share tips and strategies to help you navigate the emotions, behaviors, and actions needed to reach the next level.

Time-Stamped Chapters:

• 00:08 – Welcome and Introduction: The 7 Stages of Financial Well-Being
• 02:20 – Defining Financial Confidence and Well-Being
• 03:30 – Stage 1: Financial Chaos—Understanding the Struggles and Emotions
• 06:00 – Stage 2: Financial Avoidance—Awareness and Desire to Change
• 06:50 – Stage 3: Financial Awareness—Taking Charge and Building a Plan
• 09:00 – Stage 4: Financial Stability—Basics in Place and Moving Forward
• 11:39 – Stage 5: Financial Security—Following a Plan and Managing Risk
• 13:55 – Stage 6: Financial Freedom—Living the Life You Want
• 16:11 – Stage 7: Financial Fulfillment—Spending and Giving Aligned with Values
• 18:27 – Steps to Move Up the Ladder—Intentional Planning and Guidance
• 20:00 – How to Seek Help and Resources for Financial Growth

Sound Bites:

• "Financial confidence is about the freedom to make life choices without being overburdened by financial worries."
• "Organization brings about stability. When you know where everything is, you feel more in control."
• "If it is to be, it’s up to me.” Moving up the financial ladder starts with taking personal responsibility."
• "Financial fulfillment is about aligning your money with your values and using it as a tool to achieve your purpose."

Main Takeaways:

1. Financial Chaos: Characterized by disorganization, fear, and living paycheck to paycheck. Overcoming this stage requires addressing behavior and habits.
2. Financial Awareness: The first step towards change involves acknowledging the problem and building a plan.
3. Financial Stability: Basics like emergency savings and retirement contributions are in place, but continued effort and organization are key.
4. Financial Fulfillment: At the top of the scale, money is no longer an obstacle but a tool to live a purposeful life aligned with values.
5. Steps to Progress: Planning and intentionality are the antidotes to financial fear, and seeking guidance can provide the clarity needed to move forward.

Resources:

• Money Coaches of Canada – Learn more about the "7 Stages of Financial Well-Being."
• Horizon Financial Group Resources—Explore tools and resources to improve your financial confidence.

Contact Information:

• Bill Bush – bbush@horizonfg.com
• Andy Bush – abush@horizonfg.com
• Horizon Financial Group – Website

Disclosures: The views depicted in this material are for information purposes only and are not necessarily those of Cetera Advisors LLC. They should not be considered specific advice or recommendations for any individual. Neither Cetera Advisors LLC nor any of its representatives may give legal or tax advice. Bill Bush and Andy Bush are registered representatives offering securities and advisory services through Cetera Advisors LLC, a broker/dealer and Registered Investment Adviser, member FINRA/SIPC. Cetera is under separate ownership from any other named entity. Address: 15015 Jamestown Boulevard, Suite 100, Baton Rouge, Louisiana 70810.

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Episode Summary:

In this episode, the 401(k) Brothers reflect on the start of 2025, discussing the importance of decluttering physical and digital spaces, reviewing financial habits, and setting actionable goals for the future. Bill and Andy emphasize the value of behavior over knowledge in achieving financial success, the importance of budgeting, and the benefits of seeking professional guidance. They encourage listeners to celebrate achievements while staying focused on continuous improvement and planning for their future.

Timestamps:

[00:08] - Welcome to 2025 Bill and Andy open the episode by reflecting on the rapid passage of time and sharing personal milestones, including Bill’s upcoming 60th birthday.

[01:20] - Decluttering at Home Bill talks about repurposing a room during the holidays and how decluttering can create both physical and mental clarity.

[03:45] - The Psychological Impact of Tidying Up Andy highlights the connection between physical clutter and mental stress, referencing The Art of Tidying Up and discussing how letting go of unused items can bring freedom.

[05:30] - Reflecting on Financial Behaviors The brothers explore how reviewing spending habits can reveal valuable insights. They cite The Psychology of Money by Morgan Housel to stress that financial behavior often matters more than knowledge.

[07:15] - Digital Decluttering Bill discusses cleaning out his email inbox and unsubscribing from unnecessary subscriptions, emphasizing the financial and mental benefits.

[09:10] - Managing Subscriptions The brothers discuss evaluating and minimizing subscription services to avoid wasteful spending.

[11:05] - Budget Reviews and Emergency Funds Andy explains the importance of regularly reviewing your budget to prepare for unexpected expenses and build an emergency fund.

[13:20] - Boosting Retirement Contributions Bill encourages listeners to increase retirement savings incrementally to offset inflation and secure a better future.

[15:10] - The Power of Celebrating Wins The brothers discuss celebrating small successes to stay motivated, referencing Mel Robbins' The High Five Habit.

[17:30] - Seeking Coaching for Financial Success Bill underscores the value of seeking professional advice, whether for fitness or finances, and how it can help overcome challenges.

[19:00] - Making Resolutions Stick The brothers share tips for maintaining New Year’s resolutions, stressing the importance of envisioning your future self and staying committed to long-term goals.

[21:15] - Sacrifice and Progress Andy discusses the necessity of short-term sacrifices to achieve financial freedom and the role of intentionality in making progress.

[22:40] - Closing Thoughts The brothers wrap up with encouragement to prioritize improvement over perfection and take steps toward financial well-being in 2025.

Takeaways:

• Time flies, and it's important to reflect on the past year.
• Decluttering physical and digital spaces leads to clarity.
• Financial behaviors often matter more than knowledge.
• Reviewing spending habits can reveal areas for improvement.
• Unsubscribing from unnecessary emails can reduce digital clutter.
• Budget reviews prepare for unexpected expenses.
• Increasing retirement contributions is a smart financial move.
• Celebrating small wins motivates continued progress.
• Forgiveness for past shortcomings allows for new beginnings.
• Seeking professional help can provide valuable guidance in financial planning.

Sound Bites:

• "It's crazy to believe it's already here."
• "What do we really use?"
• "Celebrate the wins, but keep going."
• "You can start anew starting today."

Contact Information:

• Bill Bush: bbush@horizonfg.com
• Andy Bush: abush@horizonfg.com

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In this episode, Bill and Andy Bush discuss the differences between Roth and traditional retirement accounts, focusing on their tax implications, contribution limits, and the benefits of Roth accounts. They explore when to consider Roth contributions, the investment growth potential, and the impact of recent legislative changes on Roth accounts. The conversation emphasizes the importance of understanding these options for effective retirement planning.

Chapters

00:00 – Introduction to Roth vs Traditional Accounts

• Bill Bush introduces the episode and reflects on revisiting the topic of Roth versus traditional retirement accounts.
• Mention of a memorable past presentation titled The Grapes of Roth, which highlights the benefits of Roth accounts.

03:07 – Understanding Roth Contributions and Tax Implications

• Andy Bush explains the analogy of an old TV commercial: "You can pay me now, or you can pay me later," as it relates to Roth versus traditional accounts.
• Overview of pre-tax contributions to 401(k) plans and the tax-deferred growth they offer.
• Explanation of how Roth contributions are made after taxes, leading to tax-free withdrawals during retirement.

05:51 – Roth IRA vs 401(k): Contribution Limits and Eligibility

• Bill and Andy discuss the introduction of Roth IRAs in the late 90s and the addition of Roth 401(k) options in 2006.
• Clarification of contribution limits for Roth IRAs and 401(k)s, and the income thresholds for contributing to a Roth IRA.
• Explanation that Roth 401(k) contributions have no income limits for eligibility as long as the plan allows them.

09:09 – When to Consider Roth Accounts

• Discussion of when it makes sense to choose Roth contributions, emphasizing younger employees in lower tax brackets.
• Situations where contributing to Roth accounts could be beneficial, such as planning for higher future tax rates or large future expenses.
• Insights into the strategic benefits for higher earners and those planning for estate purposes.

11:56 – Investment Growth and Tax Treatment of Roth Accounts

• Explanation of how Roth accounts grow tax-free and the advantages of not paying taxes on dividends, interest, or capital gains.
• Comparison between Roth accounts and taxable accounts, highlighting the ongoing tax implications of the latter.

15:11 – Roth Accounts and Retirement Planning

• Discussion of how Roth withdrawals in retirement do not count as taxable income, preserving Social Security benefits and avoiding Medicare surcharge thresholds.
• Example scenarios involving large purchases during retirement and how Roth distributions can be advantageous.

17:51 – Future of Roth Contributions and Legislative Changes

• Overview of the Secure Act 2.0 and its implications for Roth accounts, such as the elimination of RMDs for Roth 401(k)s.
• Explanation of future changes, including catch-up contributions for higher earners and the potential for employer Roth matches.
• Insight into how legislative changes have made Roth contributions more flexible and appealing.

21:09 – Conclusion and Legacy of Roth Accounts

• Reflection on Senator William Roth’s legacy and the expansion of Roth account options over the years.
• Bill and Andy ponder whether William Roth foresaw the long-term impact of his contributions to retirement planning.
• Encouragement for listeners to reach out with questions and consider how Roth options fit into their retirement strategy.

Takeaways

• The difference between Roth and traditional accounts is primarily tax-related.
• Roth contributions are made after taxes, while traditional contributions are pre-tax.
• Roth accounts have been available since the late 90s, with 401(k) options added in 2006.
• Income limits apply to Roth IRAs but not to Roth 401(k) contributions.
• Roth accounts do not require minimum distributions during the account holder's lifetime.
• Younger employees may benefit more from Roth contributions due to lower tax brackets.
• Roth accounts allow for tax-free growth and withdrawals in retirement.
• Legislative changes are making Roth accounts more accessible and beneficial.
• Employer matches can potentially be made as Roth contributions.
• Understanding the implications of Roth accounts is crucial for effective retirement planning.

Sound Bites

• "You can pay me now or you can pay me later."
• "The real answer is a guy's name."
• "Pay it once, you don't pay it ongoing."
• "Roth accounts are becoming more prominent."

Resources

www.horizonfg.com

info@horizonfg.com

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Summary:

In this episode of Inside the Plan, Bill and Andy Bush (the 401(k) Brothers) share insights from a recent advisor conference in New Orleans, focusing on the challenges that different generations face in saving for retirement. They dive into the financial obligations affecting Millennials, Gen Xers, and Baby Boomers and discuss the importance of establishing emergency savings. The conversation also explores how early savings can significantly impact long-term retirement wealth. Additionally, the brothers emphasize the essential role of financial advisors and coaches in providing organization, accountability, and proactive support in financial planning.

Chapters and Key Takeaways:

• 00:10 — Introduction and Conference Insights The episode opens with Bill and Andy reflecting on insights gained at a recent conference with financial advisors in New Orleans. The brothers set the stage by discussing the importance of helping people navigate their retirement savings challenges.
• 03:00 — Financial Obligations and Retirement Savings
• Millennials face the highest financial obligations (89% struggle with competing priorities).
• Emergency savings are a crucial barrier for all generations, with 25% of Baby Boomers still facing this issue.

• Gen Xers and Baby Boomers see lower percentages but still encounter challenges with emergency savings and other financial obligations.

• 05:56 — The Importance of Early Savings

• Early savings significantly impact retirement wealth. The earlier you start saving, the more those dollars multiply over your career.

• The brothers stress that even when dollars are stretched, making the most of employer 401(k) matches can create long-term financial benefits.

• 09:15 — Seeking Guidance and Financial Coaching

• Guidance from financial advisors is essential, especially for complex decisions involving retirement planning.
• Financial coaching helps with accountability and organization, ensuring that clients stay on track with their goals.

• Millennials and Gen Zers are more inclined to seek information online, but older generations still prefer face-to-face or personalized financial advice.

• 12:01 — The Role of Financial Advisors

• Many clients do not fully implement their financial plans—only 20% of recommendations are executed.

• A financial plan requires action to be effective. Bill and Andy explain that while creating a plan is valuable, consistent action and follow-up are key to success.

• 15:23 — Core Values of Financial Planning

• Objectivity from a financial advisor provides clarity, helping clients make sound decisions without the emotional bias that can come from handling finances alone.
• Partnership with a financial planner alleviates worries, providing clients with support and a trusted resource to guide them through financial decisions.

• Financial advisors offer six core values: organization, objectivity, proactivity, education, accountability, and partnership, all of which contribute to long-term financial success.

• 19:09 — Conclusion and Contact Information Bill and Andy wrap up the episode by encouraging listeners to reach out for personalized advice and assistance. They stress the importance of communication and building a strong partnership with a financial advisor.

Sound Bites:

• "Emergency savings is a barrier for 25% of Baby Boomers."
• "89% of Millennials face financial obligations hindering savings."
• "Early dollars saved multiply over your working career."

Call to Action:

If you're interested in organizing your finances or need help creating a retirement plan, reach out to Bill or Andy Bush at Horizon Financial Group:

• Bill Bush: bbush@horizonfg.com
• Andy Bush: abush@horizonfg.com Or visit horizonfg.com and use the contact button to get started.

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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 keep up with inflation.
• Stock Allocation: Be more aggressive when you're younger but taper down as retirement approaches.
• Retirement Mindset: Retirement isn't the end of work but the beginning of a new phase in life.

Memorable Quotes:

• “You don’t know when the last grain of sand’s going through your hourglass.” – Andy
• “Retirement is about living out your purpose in life.” – Bill
• “There’s risk everywhere, so spread it out as you get closer to retirement.” – Andy

Resources Mentioned:

https://www.horizonfg.com

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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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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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In this thought-provoking episode, brothers Bill and Andy Bush of Horizon Retirement Plans share their insights on investment strategies, the value of diverse asset allocation, the underutilized potential of HSAs (Health Savings Accounts), and the link between financial literacy and wellness. The episode, rich with analogies from horse racing and personal anecdotes, guides listeners through a comprehensive journey of financial preparedness and strategic planning.

Episode Highlights

• 00:00:08 - Introduction of the Hosts: Bill and Andy Bush, the 401k Brothers, introduce themselves and set the stage for the episode, touching on their familial connection and the unique perspective they bring to the financial world. - 00:00:30 - Tradition of the Kentucky Derby: The brothers discuss their annual tradition of attending the Kentucky Derby, providing a glimpse into their personal lives and interests outside of finance. - 00:01:05 - Adding a Family Touch to the Derby: They share plans to bring their mother to the Kentucky Derby for the first time, delving into the significance of family and memorable experiences. - 00:02:09 - The Performance Derby in Investments: A clever transition from horse racing to investment strategies introduces the concept of the "performance derby," emphasizing the importance of consistent, long-term investment planning over seeking quick wins. - 00:03:12 - Asset Allocation and Diversification: The discussion delves deeper into the mechanics of asset allocation, comparing the unpredictability of top-performing asset classes to the changing leaders in a horse race, advocating for a diversified investment approach. - 00:06:46 - Zooming Out for a Broader Perspective: The brothers advise on the importance of a long-term outlook on investments, likening it to viewing the entire track of a horse race to understand the full context. - 00:06:56 - Health Savings Accounts (HSAs) as a Retirement Vehicle: Andy introduces HSAs, explaining their benefits and how they can complement retirement planning, stressing the tax advantages and potential for investment growth. - 00:09:29 - Investing HSA Contributions for Growth: Further exploration into how leveraging HSAs for investment rather than simply as savings accounts can significantly impact retirement preparedness. - 00:11:47 - Financial Literacy's Impact on Wellness: The brothers discuss findings from a recent survey linking financial literacy to reduced financial stress and improved well-being, advocating for education and proactive financial planning. - 00:14:47 - Wrap-Up and Sign-Off: The episode concludes with reflections on their upcoming Derby visit and a reiteration of the key financial insights shared throughout the discussion.

Key Takeaways

1. Importance of Tradition and Family: Integrating personal experiences with professional insights can enrich life's journey.
2. "Performance Derby" Analogy: Consistency and long-term strategic planning in investments can outweigh the allure of short-term wins.
3. Diversified Asset Allocation: Emphasizing the significance of diversification to mitigate risks and optimize returns over time.
4. Utilizing HSAs for Retirement Planning: HSAs offer triple tax advantages and can be a crucial component of a comprehensive retirement strategy.
5. Financial Literacy as a Pillar of Wellness: Knowledge and application of financial literacy can greatly reduce stress and improve overall financial health.

Tweetable Quotes

• • "Financial literacy is not just about knowing; it's about planning, executing, and thriving." - Andy - "In our financial performance derby, slow and steady wins the race. Diversification is key." - Andy - "An HSA is not just a saving tool; it's a strategic asset for your retirement." - Bill

Resources Mentioned:

• https://www.horizonfg.com/

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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

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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

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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

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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

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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

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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

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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 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

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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

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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

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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. They had a nice trip to San Diego for the National Association of Plan Advisors. They did a lot of education around the 401K world.

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

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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 talk about the concepts of living long and prospering. They discuss about the importance of saving and proper planning for your retirement.

Episode Highlights

· 02.38: It is very hard to visualize what aging has, what the effect of aging is on our bodies as we go forward.

· 04.18: How you behave is much more important than having a finance degree or the things that you exercise to actually get ahead financially.

· 05.18: People often overlook when they take their social security and make it sure it's going to be around for a while or look at other guaranteed income sources to make sure that they have monies available to them.

· 06.43: Things are constantly changing in terms of the rules and regulations around RMD's and then of course, there is the social security thing to get around about when you are going to file strategically.

· 08.16: Planning retirement is for those whom you love, you should go through some planning to plan forward as if, hey, we are going to be around.

· 10.15: When we talk to plan participants in their 401K plans and other retirement plans, we often say hey, make sure you use the tools that you have available.

· 11.11: Andy talks about a book by Arthur Brooks. It is about making that transition from kind of the prime of your career to becoming going into where your faculties become less bright.

· 14.35: Andy and Bill talk about goal setting and how important it is.

Three Key Points

1. Bill and Andy talk about the importance of retirement planning and how important it is.

2. Bill and Andy discuss the importance of social aspects and communion with someone else and how important that is.

3. The importance of health is being healthy and being financially healthy.

Tweetable Quotes

· "If we behave well, we will probably be more healthy in retirement not maybe not more healthy than we are now but healthier than we would be if we made bad decisions." – Andy

· "I tell folks in retirement plans often, which is right now, you are earning your dollars to pay for the food on the table, the gas in the car, the insurance, and all the other things that you need. There is a time in the future where you will either no longer be able to work, or you no longer will want to work, and you are still going to have to put food on the table." - Bill

· "I think it is important when you kind of look at longevity is to not underestimate it because you do have to plan that your dollars need to stretch probably longer than you think." - Andy

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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 share what happened just before the New Year; some sweeping legislation was passed that had to do with retirement plans and retirement savings. It was called the SECURE ACT 2.0 and the “secure” part stands for setting every community up for retirement enhancement.

Episode Highlights

• 11: The secure part stands for setting every community up for retirement enhancement. Secure. 1.0 back then was just the Secure Act, was passed just a couple of years ago. But the new changes, have kind of been in talks for a while, but finally got a chance to move them through the process and got them approved.
• 32: Bill and Andy discuss the provision 331 act - it's the natural disaster. In the Baton Rouge and southern Louisiana areas, we encountered hurricanes in the past five or six years and some historic floods.
• 20: The act was signed on December 29th, 2022. By the way, there are some provisions that actually go into effect retroactively to the tax year 2020.
• 43: Some of the bigger provisions that are going to start taking place here in 2023 are really on the required minimum distributions.
• 30: Another good thing they did is addressing penalties for not taking RMDs. In the past the IRS could penalize you 50% of what you were supposed to take minus what you already did take. Now granted you could appeal that and usually they would alleviate that fine or penalty, but they have narrowed that penalty from 50% down to 25% and then further down to 10%.
• 22: Provision under 601 allows SEP and simple IRA's to be permitted to have Roth.
• 27: Section 304 has to do with distributions the cash-out limit increase the limit from 5000 to 7000, so a plan could roll you out into an IRA if you left that plan.
• 52: Section 314 distributions are penalty free withdrawals for domestic abuse victims.
• 15: Section 110 is the student loan matching program. An employer has to allow for that … it says if an employee has to pay back loans and they are doing that instead of putting dollars into their 401K, the employer can contribute a match of those dollars into the 401k
• 22: In the year 2024 there's going to be a thing called the starter 401K that is in section 121 and so that permits an employer that does not sponsor retirement plan to offer this starter 401K plan and it requires that all employees be default enrolled at 3% to 15%.
• 57: Section 127 is the emergency savings account that is allowed at an employer may offer to non-highly compensated employees and this allows them to kind of earmark a certain percentage of their contributions towards just emergencies, and that's capped out at $2500.
• 19: If you are already putting into retirement, that seems a little bit painless because it comes out of your paycheck. You can also kind of earmark a little bit that goes towards - The Emergency Fund.
• 55: What section 332 does is it allows you to replace the Simple IRA plan with the Safe Harbor 401K during the year.
• 00: In the Simple IRA plan, there were really two ways the employer contributed that. They either did the 2% of compensation, so kind of a non-elective whether the employee did anything or not or they did that 3% match. But SECURE 2.0 allows for more.
• 00: Bill and Andy are expecting to see some more revisions down in the act down the line. They have had the pleasure of being involved and appealing to the legislators in DC, voicing concerns on behalf of participants and plan sponsors

Three Key Points

1. Bill and Andy talk about section 307, which is the qualified charitable distribution rule. They just indexed those after the year 2022, the annual limit or annual exclusion was $100,000, but their indexing those going forward, it does allow for a one-time $50,000 distribution from an IRA.
2. 529 plan beneficiaries would be permitted to roll over unused 529 plans into a Roth IRA.
3. Bill and Andy discuss some of the key provisions that are out there that might impact you or your retirement plan, whether you are a plan sponsor or whether you are a participant.

Tweetable Quotes

• "They tell everyone to don't think of your 401K plan as a savings account for any ordinary type of event, or even a disastrous type of event. Have other savings in place if you can, but that is something that's out there and I know in 2016 that widespread flooding that occurred. Hit just about everybody in the Baton Rouge area. That was a big thing and people needed some dollars to recover from that." - Bill
• "The RMD age has now been bumped up starting in 2023 to age 73. That's the required minimum distribution. - Bill
• "A lot of folks who have already paid their house off and they may not itemize when it comes to taxes." - Andy

Resources Mentioned

• bbush@horizonfg.com
• abush@horizonft.com.
• www.horizonfg.com

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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 take a look at top financial regrets. There is a certain saying out there and it goes something like this - NO REGRETS. Bill and Andy discuss the top 5 regrets often made by young and old Americans.

Episode Highlights

• 01:41: As per Bill, for most folks if you reach a certain age, probably you do have some sort of regret. If you don't, that's great, but that is very uncommon.
• 03:08: For younger listeners Andy suggests by going through some sort of education and financial planning you can actually start to make great decisions and choices that when you look back when you are 72, then maybe you don't have as many regrets.
• 03:47: Number One Financial regret of older Americans shared by a thumping 57% of those surveyed was not having saved more for their retirement during their working years.
• 05:02: It is a good opportunity to point out that most 401K providers, record keepers, have a pretty robust set of calculators and tools that participants can log into. So, if you haven't used those resources, start using it.
• 06:47: The past is the past, you can't go change that, but you can start to change as you gauge into the future what it's going to look like, and those tools and those calculators do that. They don't give you the exactness of it, but they at least give you a ballpark of what's it going to look like when you are 65 or 70 or and what kind of income you are going to need based on the variables at hand today.
• 07:09: Number 2 on the regret list is not saving enough. Not buying long term care insurance to pay for nursing homes or similar retirement type of community or something along those lines.
• 08:42: As per Andy number 3 regret on the list is 37% of older Americans regret not working longer.
• 11:22: Number 4 is remarkably 33% of older Americans regretted not investing in some sort of guaranteed income.
• 13:11: When planning your retirement ask yourself how are you going to replace your income? Are you doing something to replace your income when you are no longer earning it?
• 13:56: Inside of the investment options there, it's happening more on the bigger mega plans more than it is smaller plans. But you are starting to see the opportunity for a plan sponsor to put in some sort of guaranteed income of sliver for an investment option, says Bill.
• 14:26: Number 5 on the list is about 23% of older Americans claimed social security too early.
• 16:41: If you file and start taking your benefits before what is called your FRA, think of that as a penalty or a haircut on what would have come to you, and if you delay that, you actually get delayed credits.
• 17:53: Healthcare is a big expense the older you get and is often the biggest expense for folks in their 70s and 80s. And so that is trying to be as preventative as you can and lead a healthy lifestyle now before you are retired.

Three Key Points

1. Bill and Andy discuss how saving rate matters and how it is in your control to put away the amount as per your requirement in future.
2. Bill and Andy explain how the cost of insurance of a long-term care policy is a very small solution to a much bigger problem.
3. Before claiming your Social Security, it is important to think about how long you might live? You need to ask that question rather than looking at it as if, well, the government's taking my money all of my working years, and I am going to get it back as soon as I can.

Tweetable Quotes

• "You can learn from the mistakes others have made. I am the youngest of six and I learned so many mistakes from what my older brothers did." - Andy
• "We have talked many times about Social Security and what it will replace in retirement. And for most folks, I think the best-case scenario might be its 40%, but probably not for most people. Most people, it's going to be probably 25 or less percent." - Bill
• "Raise your contribution rate up 1% each year for you know a number of years until you get to a good contribution level." - Bill
• "One of the things that are up and coming in the 401K world is the fact that Recordkeepers will start showing an illustration of what this pool of money might actually mean on a spread-out basis." - Bill

Resources Mentioned

• https://www.horizonfg.com/
• bbush@horizonfg.com
• abush@horizonfg.com

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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 take a look at changes in company retirement plan contribution limits for the coming year 2023 and will compare them with year 2022.

Episode Highlights

• 51: It is that time of year, that not only is fall or autumn, but it's the time of year that the IRS looks at contribution limits for the upcoming year and announces changes, if any.
• 48: Deferral limit for 2023 is going to be $22,500, an increase of $2000. If you are a participant in a 401K plan or 403B plan, your annual elective deferral limit for 2022 was $20,500.
• 44: As per Andy you don't have to wait until you hit 50 in 2023. Anytime you could become 50 and you can put the extra $7500 in all the way through and plan for it throughout the year.
• 52: There is a legislation being discussed right now that, authorities will likely even boost the catch-up contribution amounts even further, says Bill.
• 19: There is an overall plan limit of the dollars that can go in per individual per and in 2022 it was 61,000 for any individual. If you had the catch up, you could have done 67,500.
• 08: When you think about on the employer side of things in SIMPLE IRA, a non- elective employer deferral is 2% no matter what the employee is contributing, or doing or there's a match and it can be up to 3%.
• 10: They have changed the definition of highly compensated employee just a little bit based on the dollar amount and that HCE is always looking at the prior year. For HCE it was 135,000 in 2022 and that's moved up to 150,000 in 2023.
• 34: As per Andy, the traditional and Roth IRA's have contribution limits. In 2022, those are $6000 but next year they move up to 6500 but the catch-up provision stays the same at $1000.
• 20: There are ranges that are involved in traditional IRA contributions to be deductible depending on how you file your taxes and how much you make.
• 38: The income phases out range for taxpayers making contributions to a Roth IRA has been increased and it's going between $138,000 to $153,000 for singles, says Bill.
• 24: If you are married filing jointly and your modified adjusted income is above the $228,000 you cannot contribute to a Roth IRA in 2023.
• 08: When you cross over the 50-year mark, you really start to realize that I'm closer to retirement and I need to get my affairs in order because life is happening so quickly and the opportunities are becoming fewer and fewer, says Andy
• 43: All plans,allow you to change your contribution rates at the first of the year. But a lot of plans have other different points where they'll allow you to make changes.
• 44 Be intentional about saving rates because saving rates matter. You have the opportunity coming and opportunity is increasing for 2023.

Three Key Points

1. If you are in SIMPLE IRA plan, your elective deferral which you are allowed to make in your plan in 2022 is $14,000, but because of the step up in most everything else ,and the adjustments for inflation for 2023 the elective deferral limit has moved up to $15,500.
2. If the spouse making the IRA contribution and is covered by a workplace retirement, that phase is now increased from $116,000 to $136,000 because after $136k, it’s not deductible.
3. It doesn't matter what your income level is to make a contribution to a Traditional IRA but it does matter what your income level is if you have a workplace retirement plan to get tax deductibility for a Traditional IRA.

Tweetable Quotes

• “It's interesting that inflation happens because you would almost link deferral increases to wage inflation.” – Andy
• “There is definitely more capacity to put away dollars for retirement if you're in a company plan for 2023.” – Bill
• “You pay your social security tax on earnings up to 147,000 in 2022, but next year in 2023 you will pay social security tax on up to $160,200.” - Bill
• “There are also ways you can save for retirement outside of employer sponsored plans and that is IRA's and Roth IRA.” – Bill
• “If you're single filing single and you make more than $153k on your modified adjusted gross income, then you're not allowed to contribute to a Roth IRA.” - Bill

Resources Mentioned

• https://www.horizonfg.com/
• Podcast Editing

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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 take a look at the anatomy of a Recession, define what it is, what causes it and what are some of the traits around it.

Episode Highlights

• 01:30 – Recessions are not identified until they have passed and they've started to pass and leave. So it's kind of a look back to see when, and what causes the recession.
• 03:15 - Recessions are not rare they can occur several times during your lifetime.
• 05:05 – As companies maximize things, employment improves, and so employment has been pretty darn good during the pandemic.
• 07:30 - Interest rates increase and so you see contraction on the credit side of things.
• 09:55 - When it comes to the market, views of the economic activity expansions and contractions are important because it affects your portfolio.
• 11:15 – One of the indicators of recession is unemployment. When unemployment rises, it can lead to a decline in consumption, people going out, buying things, and then that affects the business output.
• 12:30 - Another leading indicator of a recession is Housing depending on their clients. Housing stocks are growing but they're not growing at a bigger rate than they used to.
• 14:30 – In case of uncertainties the first thing is that these things happen, so recognize that throughout your life as it is part of life.
• 16:40 – Inside the 401k retirement plans they tell investors to look at rebalancing their portfolio, or perhaps increase their contribution.

Three Key Points

1. The recession is when you see a declining gross domestic product over a period of a couple of quarters. When people lose their jobs, they're not spending as much, so then you start to see the revenues and earnings of companies coming down. There is a significant decline in economic activity that is spread out across the economy lasting more than a few months, and when you see the GDP drop real income, employment, industrial production, etc.
2. So the most recent grant that came out on inflation was really some areas came down, but some of the more critical areas like food, that everybody needs, we're going up. It's good because typically, as profit margins peak and companies are not making as much profit, they start to in the very layman’s sense trim the fat. They start to let some folks go who are not necessary or critical, and hence they lose their jobs. So what happens when the recession hits low economic activity? You start to see the slowdown and people start losing their jobs.
3. When you look at the consumer’s confidence in the economy when that bottoms out, there's a recession. Unemployment was about a little over five months ahead of a recession. So far, unemployment is at its nearly 50-year low. So on consumer confidence, it's really about three months before a recession, there has been an instance in the past where it had a double bottom so that could be something that we encounter this year.

Tweetable Quotes

• “One of the words we've heard a lot about is uncertain and recession.” – Bill Bush
• “So, we've already seen a couple of quarters of negative GDP.” - Bill Bush
• “The pandemic was a kind of a rare type of situation and in that, everything was halted in the sense for a good while.” – Andy Bush
• “So you start to see the labor market, start to tighten up, and then central bank policy starts to tighten too.” – Andy Bush
• “You start to see expansion GDP growth is positive so that gross domestic product is positive.” - Andy Bush
• “The leading Economic Index is also there when it's declined at least 1% from the previous year, about three and a half months later you start to see a potential of a recession.” - Andy Bush
• “Let’s stay calm, especially if you're fairly young and have a long career ahead, you got to think of the long-term perspective.” – Bill Bush
• “Recessions are natural they happen and they happen every business cycle.” - Bill Bush
• “If you have some worries and fears, we always say worry with us, don't worry alone.” – Andy Bush

Resources Mentioned

• Horizon Financial Group: Website
• Contact Information: Bill Bush Andy Bush
• The Runway Decade: Website
• Podcast Editing

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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 HSAs as a Retirement Strategy. They take us through Health Saving Plans which can also act as retirement plans, and these health saving accounts can actually be valuable over time that you can access in retirement. Bill and Andy are going to go through some of the basics and how it might work in your situation.

Episode Highlights

• 01:00 – You can only have an HSA (Health Savings Accounts) if you participate in a certain type of plan which is a high deductible healthcare plan.
• 03:00 - To draw the differences of the catch-up provision in a 401 K plan, that catch-up triggers at age 50. So, you can put more into your 401 k when you are 55.
• 06:00 – One advantage of a flexible spending account is that you can carry over dollars from year after year, and there's no time limit for using the money.
• 08:00 – HSA also covers some of the qualified medical expenses needed to maintain your health or maybe prevent certain health issues.
• 10:20 – Another benefit of having HSA is that not only would you be able to reimburse your future qualified medical expenses, but you can also start to reimburse your past qualified medical expenses and be able to get money out of an account tax-free.
• 12:00 – At the time of retirement if you had a major surgery where the out-of-pocket expense is a lot then if you had the qualified medical expenses balance saved up in the HSA, then you can use that.
• 14:00 - There's a spectrum here of how people use their HSA. So some people enroll in a high deductible plan and don't even use the HSA or they don't contribute.
• 16:30 - People that are in the higher income group, maybe the top 20% or top 40%, their life expectancy is a little longer than those that are in the lower income range.

Three Key Points

1. If you have a high deductible health plan, within HSA or Health Savings Account, you can contribute a pretty good amount into the Health Savings Account. You're still paying your premiums for the High Deductible Health Plan, but you can make contributions to this Health Savings Account and this is the definition of a High Deductible Health Plan. So, for 2022 IRS defines it as a plan with a deductible of at least $1400 for an individual, or 2800 for a family. The High Deductible Health Care Plan can't be more than $7,050 for an individual or 14,100 for a family, per year.
2. If you happen to be a healthy person, and you're in a High Deductible Health Plan that has an HSA, it can be a very valuable tool for you over time. You can reimburse yourself for qualified medical expenses from your HSA but there's no time limit on those medical expenses. So, you can start compiling any medical expenses you had in the past. if you can pay those out-of-pocket, you can do that, but not out of your HSA. Then down the road when you get into retirement, you can come back and reimburse yourself for those medical expenses. Another beautiful thing about the High Deductible Plan is that there is a limit to how much you're going to have to pay for things that are more catastrophic.
3. There was a great study done recently that dropped the spending state savings and spending study and what they saw was two of the top three retiree spending concerns are Health Care Premiums, Insurance Premiums, and Out-of-Pocket Health Care Expenses. People fear having to pay those because it's something they know that they're going to have to pay, but it's way out there in the future.

Tweetable Quotes

• “The maximum amount in 2022 that you can contribute to if you're a single person to the HSA is $3,650.” - Andy Bush
• “The first thing you need to check is if your employer offers an optimal health plan?” – Andy Bush
• “The beauty of HS is that there's just the Triple Tax Advantage.” – Bill Bush
• “A lot of the HSAs have a little card like a debit Fount.” - Andy Bush
• “You can save and this comes in handy for folks that have already maxed out their 401k and are looking for other places to put pre-tax dollars.” – Bill Bush
• “I think finally; Andy's favorite word is wherewithal.” - Bill Bush

Resources Mentioned

• Horizon Financial Group: Website
• Contact Information: Bill Bush Andy Bush
• The Runway Decade: Website
• Podcast Editing

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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 the Summary Plan Description of a 401(k) plan. Every participant should have a copy, and each plan's is unique....but what does it include? What's the Plan, Stan? The 401(k) Bros. break it down for you...

Episode Highlights

• 02:40 – First of all, they talk about who's eligible for the plan and what is Summary Plan Description.
• 4:45 – The Summary Plan Description answers all the questions that you might have in your mind and you can then go to the page that would correspond with the answer to that question.
• 06:25 - Article three of the Summary Plan Description gets into employer contributions.
• 08:45 - Some companies will do a Stretch Match where they're kind of stretching you out to make you put in more of your dollars, which is smart because ultimately it's your responsibility of saving for retirement.
• 10:00 - The other thing that is important to check out in the Summary Plan Description is whether you will share in that employer contribution if you leave during the year.
• 11:50 - If your plan is a Safe Harbor Plan, you are 100% invested in any safe harbor contributions that the employer makes as soon as it hits your account.
• 14:20 - There's a list of different hardships, you've got to be eligible for the hardship, you can't just claim that saying that you went through hardship.
• 16:00 – Bill says they have the plan documents on file with them. They can look it up sometimes, it takes a little while to get into the provision, but just use it as a resource.

Three Key Points

1. In all of the plans that they service they take what's the plan document or the adoption agreement which has all the features of the plan. Then they kind of boil that down into 8 to 12 different points that the participant needs to know about the most often asked questions about the plan like when can I get in or get out to the plan. So, every plan has what's called the ‘Summary Plan Description’ which should be available for all participants. They can request it from their HR person or whoever's kind of responsible one in their group for keeping those documents.
2. This is important to understand how is the employer going to contribute to your account, is it through Safe Harbor Non-Elective? If you don't put any dollars on your own, the employer is going to put in money for you that's a non-elective, it could be a Safe Harbor Match. This means for whatever percentage of your income you’re putting into your employer is going to match some percentage of that. So it could be $1 for a dollar up to a certain percentage. So in other words, some are $1 for a dollar for the first 4% others may match your dollar-for-dollar for the first 3%. But then for the next two, they’re only going to do half a percent of 50 cents on the dollar. So, those are Safe Harbor Matches.
3. The other way an employer could contribute is called a Profit Sharing Match or a Profit Sharing Contribution. Profit Sharing Contribution is something that is distributed to anybody, and everybody that is eligible, whether they participate or not, and there is a vesting schedule or ownership schedule on that. That is another way how the employer contributes. Make sure you know that because there could be some strategies involved.

Tweetable Quotes

• “We kind of boil it down to help the participants, especially the new participants in the plan” – Bill Bush
• “So often, you will see on the eligibility side, maybe it's 21 years of age and one year of service.” Andy Bush
• “We find now that about 75 to 80% of the plans do contain the Roth provision.” - Andy Bush
• “We've seen some that are a little difficult for people to figure out because it's a very weird formula.” - Bill Bush
• “So the other thing that the summary plan description will entail or spell out is the vesting schedule.” – Bill Bush
• “Article Six, and this is the one you're going to like its distributions prior to termination is hardship distributions.” – Andy Bush
• “So we do get a lot of calls from participants, and of course, as I mentioned, each plan is a little different.” - Andy Bush

Resources Mentioned

• Horizon Financial Group: Website
• Contact Information: Bill Bush Andy Bush
• The Runway Decade: Website
• Podcast Editing

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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 a project at Horizon that they have been working on for about a year and a half called ‘The Runway Decade’. It's something geared towards those people who are turning over 50 or close to retirement. So, there's a book that is out called ‘The Runway Decade’ as well as a website called runwaydecade.com

Episode Highlights

• 03:00 – ‘The Runway Decade’ book/website is about building a pre-retirement plan in your 50s so what are some of the things in your 50s that you should be thinking about to get intentional about in that 10 to 15 years for most folks before retirement.
• 05:05 - Maybe your kids are starting their own families and you're becoming a grandparent and you want to express your love and joy towards that child through sometimes gifts and things like that.
• 08:53 - No matter where or how you've arrived at this point, there's always progress to be made. The big thing is looking back in the history of things that were maybe scary when they happened, but there were plenty of great times.
• 10:50 – In this book, everybody's got something that they will get so excited about that.
• 12:35 - Chapter Five is called ‘Enter the Matrix’ and that is kind of one of the chief documents or covenants around our financial planning process.
• 14:30 - Chapter Eight is called ‘Create your Action Checklist’. That's something they do with people that go through their financial planning process.
• 16:00 - Reading the book you can find the holes or areas of improvement that you may have in your plan based on professional advice.
• 18:10 – For people that are in their 50s or maybe early 60s, there seems to be a lack of clarity. What you'll find in the book is you're going to gain clarity and confidence, and know what direction you need to be going.

Three Key Points

1. If you were born in 72 but you have people in their 50s, think of some of the historical things that have happened in your life. This is about some of the market volatility we may be experiencing at the moment. We tend to look at history if you have experienced those things in real-time when they happened like the hostage situation in Iran in 1980, etc. So they kind of draw on the common historical experience that folks in their 50s have, and then we get into anticipating that vision of the future. The key behind any of that is to continue to reinforce the confidence you have.
2. The book has 10 chapters plus an introduction and a conclusion. So the chapters will just go quick like where are you going, or where do you want to go? Then the obstacles to overcome in chapter two there's going to be things that you've probably already been hit with the common one is procrastination or overcoming inertia.
3. Once somebody's finished the book, they hopefully will have been motivated to take action, will be taking action at least have a lot more direction in their 50s as to what they need to do to handle that because that's the runway analogy. When you're at the beginning of the runway, it's moving pretty slow but it goes fast and you look outside and you see these reflectors passing by and it's like weeks and months of your life. Maybe you didn't take any action so there isn't an immediacy there to that kind of thing because believe it or not decades and runways both come to an end.

Tweetable Quotes

• “We're going to talk about a project we here at Horizon have coming up and the word is cross-promotion.” – Bill Bush
• “As we age, it's not uncommon for somebody in your cohort to have passed away. There's health scares either yours or your spouse's maybe sometimes divorce.” – Andy Bush
• “If you put some intention, some forethought, and vision then create some steps, you can make your situation better.” – Bill Bush
• “Chapter Three, where are you now kind of is like take a self-inventory of folks what we find in their 50s have changed careers many times” - Bill Bush
• “Chapter Six is what's working and what's not working.” - Bill Bush
• “If you've made it to 50, you know life can punch you in the face.” – Bill Bush
• “Then the other thing, we hope that it does is just instill that financial confidence.” - Bill Bush

Resources Mentioned

• Horizon Financial Group: Website
• Contact Information: Bill Bush Andy Bush
• The Runway Decade: Website
• Podcast Editing

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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, in their ‘Generation’s Series’, talk about the investment behaviors of ‘Baby Boomers’, the generation which includes the birth years 1946 to 1964.

Episode Highlights

• 01:30 – In the US, the ‘Baby Boomer’ generation comprises about 70 million people.
• 03:35 - Among the Baby Boomer generation, an EBRI survey found that 46% of this group reported accruing less than needed savings for retirement.
• 05:30 - Some boomers have said that they're going to need to work longer to pay off debt, but the actual study show, that they don't work longer.
• 07:20 - If you wait until full retirement, you're getting 100% of your Social Security benefit. If you wait after your full retirement, you're getting an 8% increase each year on top of whatever the cost of living adjustment might be.
• 08:54 - One thing that becomes important is the distribution phase, as we go from the accumulation phase of working to retiring, and then it's how to manage the withdrawals, which can be a tricky situation.
• 11:15 – As you grow older, instead of just on a whim of buying something, one needs to be a little more thoughtful of that by understanding what is the purpose of it.
• 13:30 - If you're relying on dollars, you just don't want to have to sell when the market drops down.

Three Key Points

1. Most ‘Baby Boomers’ generation is retired right now or about to face retirement. There are a good number that have already gone through retirement and they've maybe gone through their planning side of entering into retirement and then there are a bunch that are in that decade range till they check out for the last time at the workplace. As per the research Boomers carry an average household debt of alittle over $272,000. And the biggest part of that debt is likely going to be their house.

2. Some people said that due to the pandemic they’ll just work longer and pay off that debt. But the reality is, that often doesn't happen. The other thing that they talk about is filing for social security, people usually make the mistake offiling early. Filing early kind of locks in lower pay. If you wait until your full retirement, which is 66-67.. or somewhere in between for the Boomers group. So if you wait until fullretirement, you're getting 100% of your Social Security benefit.

3. Baby Boomers those that have not retired, for them the most important thing is that as you're getting much closer to retirement you need to establish a budget ify ou haven't. So that you understand what your spending habits are. Except for basic needs, make sure you know where your money's going.

Tweetable Quotes

• “That was post-war that there was a boom in babies.” – Bill Bush
• “Maybe some sort of debt that didn't exist the generation before.” - Bill Bush
• “Percentage of people that say, “Hey, I'll just have to work longer and the percentage that does is much lower because they become ill.” – Andy Bush
• “If you want more information about Social Security, we do have a webinar on the horizonfg website under Events, if you want to look into that a little more.” – Andy Bush
• “As you mentioned retiring without debt is an ideal situation.” – Bill Bush
• “You're going to have to probably be a little better at budgeting.” - Andy Bush
• “They want to make sure that they're not exposing themselves to significant market drops of money that they're going to rely on” - Andy Bush

Resources Mentioned

• Horizon Financial Group - Website
• Contact Information: Bill Bush Andy Bush
• Podcast Editing

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In this episode of the “Inside the Plan with the 401(k) Brothers”, hosts Bill Bush and Andy Bush, advisors at Horizon Financial Group, continue their ‘Generation’s Series’ where they go generation-by-generation and talk about some of the saving habits and what's on the minds of individuals. So, in this episode of the ‘Generation’s Series’, they will continue talking about ‘Gen – X’ and their behavior when it comes to retirement and savings. Episode Highlights

• 01:20 – People who were born in 1965 through 1980 come under Generation X, which is a pretty cool generation.
• 03:10 – According to a couple of researchers, by about the age of 40, Gen – X wants to try to have about three times their salary and by the age of 50, they try to make around six times their salary.
• 05:20 – In a study by JP Morgan, around 70% of working-class people say, “I will work longer and delay retirement”, but only about 27% are actually able to do that because of health issues, or because of downsizing in their company, etc.
• 07:00 – Bill says that the other thing that Generation X is faced with is as they began their working careers, pensions were on the downside. Companies stopped offering those defined benefit plans.
• 09:30 – A study by EBRI (Employee Benefit Research Institute) compared the financial status of Gen X families, and found that those families own about 67% of assets inside of retirement plan whereas Baby Boomers at the same age had 71.5%.
• 11:25 - Morgan Housel's book “Psychology and Money” talks about how generations behave based on their upbringing, and what they've experienced in their particular time of those formative years.
• 14:00 - When we do presentations for retirement plans, we do like to zoom out to those greater time periods, because you can get lost in the weeds sometimes about what's going on in the day, mentions Bill.
• 16:00 – Referring to Malls, Bill says, if you got a place where you used to be able to walk in and buy things, and now it's a fulfillment Centre, which is sending it to your house.
• 18:00 – Andy states that when it comes to investing and saving for retirement, it is about discipline, and it's about a habit.
• 20:45 – Retirement saving is how we're going to take care of our 80 or 85-year-old self.

Three Key Points

1. Generation X has experienced various crises including financial busts, and other geopolitical campaigns, like wars and things like that, that occurred in real-time, and they are very scary and uncertain. But at the same time, in the midst of us having some volatility in this current year 2022. As an investor in the stock market, you're not just throwing money into something that has some random value. It's a value based on your investment in the companies like Walmart, McDonald’s, IBM, Amazon, etc. So, you're investing in the value of what that company is worth.
2. For Generation X, if you're in your 40s and your 50s, possibly, and you are working, you probably need to think about retirement a little bit more. So, it is true that when your age flips to 50, and you say, it's just a number. But at the same time, you do realize that you are a lot closer to retiring, and you are a lot closer to other things. It is to sort of get people prepared to think that even if you haven't done much yet, there's still time left to invest in the retirement plan and to make the progress.
3. Andy says, it's not about some specific goal out there, it's about a lifestyle. It is the same thing with investing, create a lifestyle habit of putting dollars aside so that you realize as you're getting further down the runway, how quickly you're moving. That's the old expression - days are long, but yours are short.

Tweetable Quotes

• “Out of the six children that are Bush kids, there are five of us that are members of Generation X, and so we know this generation.” – Bill Bush
• “I think by this time in most of Gen-X’s lives, by about the age of 40, you want to try to have about three times your salary.” – Andy Bush
• “Experts kind of worry that Generation X maybe isn't placing retirement savings on the front burner.” - Bill Bush
• “The 401 K plans really started in the early 80s.” - Andy Bush
• “Once the kids are out of the house, it does give a family the opportunity to start putting more in, because their expenses are dropping, but their incomes better.” - Andy Bush
• “If you can turn in tune in to a financial channel, CNBC or MSNBC or any of those and it's going to tell you exactly what went well.” - Andy Bush
• “Now we seeing the speed and the immediacy of things, it's really changed the world.” - Bill Bush
• “I think brother Bill and brother Pete have written a book, and it'll be published maybe later in the summer this year, that is called ‘The Runway Decade’.” - Andy Bush

Resources Mentioned

• Horizon Financial Group - Website
• Contact Information: Bill Bush Andy Bush
• Podcast Editing

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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, continue their ‘Generations Series’ where they go generation-by-generation and talk about some of the saving habits and what's on the minds of individuals. So, in this second episode of the ‘Generations Series’, they're going to talk about Millennials and their behavior when it comes to retirement and saving as per surveys and other resources.

Episode Highlights

• 01:24 – Andy states that Millennials’ birth years include 1981 to 1996. So that makes these cohorts 25 to 40 or 41 at this point and their size is about 72.1 million which one of the bigger generations.
• 03:46 – This Generation had a decade of their formative years, where the market was very volatile and experienced some huge events that created downward movements which led them to be a little more conservative than they needed to be.
• 05:05 - The younger side of that generation has more time and some of them may choose to work longer than 65 because of a profession or something they enjoy.
• 07:35 – As per the Wells Fargo Advisors survey, 48% of millennials said the stock market is not a good place to grow their retirement savings.
• 10:00 – The SHRM study reported that this age group is more likely to ask for mentors ...about 42% ...or ask for training, about 35%, than the preceding generation, so they do want to seek some help and inquire...and that's good.
• 12:58 – Andy says, more than 50% of the working force couldn't sustain a $1,000 emergency, expenditure. They don't have the dollars saved up.
• 14:30 – This generation has already experienced some 30% + downturns, says Andy.
• 16:30 – Bill says, next time we're going to look at not what's termed as the greatest generation, but a pretty darn good generation ...must be ours...Gen X.

Three Key Points

1. Many studies suggest and there's one that's probably pretty prominent...but a couple from Fidelity and JP Morgan both have some studies, they say by age 40, you should have already saved three times your salary... and at least six times your salary by age 50.
2. When we look at our future, we don't look at the possible bad things that could go wrong. We typically think of all good things. But there are a lot of bad things that could happen to us personally and it's not to say that we would desire that ...we don't desire the bad outcomes, but we do need to be aware that they can happen and not be naive that they could happen and be somewhat prepared.
3. To all Millennials, as you're raising kids, establishing a home, and other stuff but be prepared, you do have to prepare, you're going to have a rainy day somewhere, and more than likely, you're going to and so be prepared for it.

Tweetable Quotes

• “Morgan Housel says, your perception, growing up kind of controls a lot of your behavior.” – Andy Bush
• “30% said they will be unable to retire comfortably until the age 70 to 80.” – Andy Bush
• “Millennial workers tend to be receptive to advice.” - Andy Bush
• “A lot of millennials seek some digital solutions to get their investments and finances in the right order, but they still want that affirmation that they're doing the right thing from a person.” - Andy Bush
• “This study found that millennials are especially drawn to employers that have a good work-life balance and a flexible schedule.” – Andy Bush

Resources Mentioned

• Horizon Financial Group - Website
• Contact Information: Bill Bush Andy Bush
• Podcast Editing

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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, initiate the ‘Generation’s Series’ where they would go generation-by-generation and talk about some of the saving habits and what's on the minds of individuals. The majority of this generation holds a certain characteristic trend as they're at different stages in their lives. So, in this first episode of the ‘Generation’s Series’, they're going to talk about Generation Z and their behavior when it comes to retirement and saving as per surveys and other resources.

Episode Highlights

• 01:50 - Millennials are raising young kids right now, whereas Gen Xers are having children leave the house. Baby Boomers are probably grandparents now.
• 03:45 – Bill says, folks born between 1997 and 2012 belong to Gen Z. That generation size is about 67 million.
• 05:43 - The point is that even though for a 23, 24, or 25-year-old, it is nearly impossible for them to even imagine being 65, says Andy.
• 06:15 – Bill mentions that those pennies you're putting away in your early 20s become the dollars - tens of dollars, or hundreds of dollars over time.
• 09:30 – Andy states, as per the survey, 73% of Generation Z respondents are contributing at least 3% of their salary to the retirement plan.
• 11:10 – According to the CGK Survey, 28% of Gen Z respondents said that they plan to work in some capacity after retirement, and 52% said they will use personal savings to finance retirement, points out Andy.
• 13:16 – Andy highlights, you cannot control the stock market or the industry trends, but you can control your spending, and savings habits, and those are the things that are within your control.
• 15:23 – 38% reported tapping into the retirement fund for an unexpected medical cost while 23% said they did so to fund a travel or leisure activity, mentions Bill.
• 17:05 – 75% of Gen Z currently maximize their company's match, and 50% have up to their monthly contribution over the past year.
• 18:00 - Andy says that Gen Z is projected to hit $33 trillion in income by the year 2030. That'll be more than a quarter of the global income, so that's a big generation.

Three Key Points

1. It's hard to grasp when you're that young and making dollars for the first time, but it's the future goals, especially retirement goals are going to be funded by funds that you chose not to spend today. Essentially what saving for retirement is that I want to be funding something in retirement by not spending that dollar now? As a 20 something-year-old, that's hard to do, because they're coming into their own money for the first time.
2. You need to be able to save around 15% for your working career for you at the age of 65 to have the best option to retire or not. If you don't do that, then you get to 65 and you look up and say, how am I going to pay my bills?
3. You need to be careful about trying to identify your life with external stuff and travel. Now, you want to experience great things in life, but don't feel like you're missing out if you don't do that before you're 28 or 30.

Tweetable Quotes

• “Who's your best friend when it comes to investing? It’s time. Time is your best friend. So, the more the longer time you have, the better off you are.” - Andy Bush
• They had a study and 71% of the Gen Z’s and that surveyor said that they don't feel too young to begin saving for retirement, which is the encouraging part.” – Andy Bush
• “88% are actively saving every month, including into their retirement plan.” – Andy Bush
• “77% of the Gen- Z said thinking about finances causes them to stress.” – Andy Bush
• “75% of the participants in that study of Gen Zers reported credit card debt. Almost one in three said they owe more than $5,000.” – Bill Bush
• “Debt is kind of a little bit of cancer to folks that are trying to save.” – Andy Bush
• “The dollars from your younger life have more time to compound from growth over time, and if you strip those away, you can't replace them through the benefit of time.” – Andy Bush
• “Gen Z has a strong appetite for financial education and is opening a savings account at younger ages than did prior generation that comes from Kasasa.” – Bill Bush

Resources Mentioned

• Horizon Financial Group - Website
• Contact Information: Bill BushAndy Bush
• Podcast Editing

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In this episode of “Inside the Plan with the 401(k) Brothers”, Bill Bush and Andy Bush, advisors at Horizon Financial Group talk about the 21st Annual Transamerica Retirement Survey, discussing the top 8 retirement dreams of workers, what the results were of that survey, and then give their feedback into that.

Episode Highlights

• 02:26 - One of the main things they always tell people is that plan for it, and be intentional about your retirement.
• 04:00 –Bill and Andy interviewed and surveyed all of them. It was interesting as the ideal concepts for all these four groups were freedom, enjoyment, and stress-free retirement.
• 04:38 – In the survey, it was found that 5% of the polls had no dreams at all.
• 06:13 – The idea behind pursuing an encore career is that they've already secured enough for retirement, and now they kind of got to pursue their interests.
• 08:23 – In the survey, 21% of workers mentioned that they have the dream of taking care of grandchildren during retirement.
• 10:15 – Further, 51% of the survey respondents said, they would dream of pursuing hobbies in retirement.
• 11:17 – The 59% of folks cited the dream of spending more time with family and friends.
• 15:16 - Certain expenses cover your needs that you're going to have to pay for, and how do you do that if you haven't planned?

Three Key Points

1. If you have a plan, goal, and destination, even though some things may occur that knock you off of your path to that goal or destination, you're probably going to recover yourself and revert to your path.
2. In the survey, the eighth dream amongst the top eight dreams was to continue working in the same field; number seven was pursuing an encore career, something new that you haven't done; number six was starting a business; number five was taking care of grandchildren; number four was volunteering; number three was pursuing hobbies; number two was spending more time with family, and number one was traveling.
3. It's good to get intentional about your retirement and think about what is retirement going to mean for you?

Tweetable Quotes

• “About 17% of the respondents of this survey said they would be dreaming of pursuing an encore career in retirement.” – Bill Bush
• “Some folks in retirement move closer to their grandchildren.” –Andy Bush
• “26% of folks said they would enjoy doing volunteering to keep them busy.” – Bill Bush
• “Volunteering, giving back to the community certainly builds that sense of purpose.” – Andy Bush
• “59% of workers dream of traveling in retirement.” – Bill Bush

Resources Mentioned

• Horizon Financial Group - Website
• Contact Information: Bill Bush Andy Bush
• Podcast Editing

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In this episode of “Inside the Plan with the 401(k) Brothers”, hosts Bill Bush and Andy Bush, advisors at Horizon Financial Group talk about how the New Year is always a good time to plan for the upcoming year as well as reflect on the financial progress you've made.

Episode Highlights

• 01:25 – Andy mentions that in terms of the savings, especially in the company retirement plan, the new year brings some new opportunities because the contribution limits are going up.
• 03:18 – Andy refers to a book out there called ‘Thinking Fast and Slow’ by a behavioral scientist - Daniel Kahneman.
• 06:20 - There's that thing called ‘Present Bias’ where you put more value into what's going on right now rather than thinking about the future.
• 08:16 – They at Horizon tell people that they need to target around 15% as they are savings right and investing right for retirement.
• 10:20 – Andy thinks that a lot of times this information about retirement planning, and the thought of saving for the future is sometimes extremely difficult.
• 12:30 - You got to take care of yourself, and do what works for you.
• 14:20 - A lot of times you set a financial goal that you forget about, so make sure you check those, and put some new thoughts around how you're really operating with your plan.

3 Key Points

1. A lot of people make the mistake of signing up at a certain percentage and don't change it but that might not be enough. So you can make a million dollars a year but if your savings rate is trivial then that's not a good combination.
2. Wealth is something you don't see because you don't know the other side of that particular equation, what you're seeing and that can be very high.
3. If you're setting goals at the beginning of the year, don't set goals that are just so lofty that you might do for a week or two, instead make some small goals.

Tweetable Quotes

• “Now you know the limits for the upcoming year 2022, the year we're in now.” – Andy Bush
• “When you're 20 years old, you're not thinking I'm going to be gone.” – Andy Bush
• “It doesn't matter if you're making a million bucks a year you're making 20,000 bucks a year.” – Bill Bush
• “Whether 15% is going to work out perfectly for you or not, it's going to be better than if you only did 5%.” – Bill Bush
• “We've said this several times on the podcast before that use the tools that are available.” - Andy Bush

Resources Mentioned:

• Horizon Financial Group -- Website
• Contact Information: Bill Bush Andy Bush
• Podcast Editing

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In this episode of “Inside the Plan with the 401(k) Brothers”, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about and review some legislative moves made right before the Pandemic as the Secure Act was passed. They also look forward to and discuss several proposals on the board, which could affect individual savings and retirement plans including 401k, IRAs, IRAs, etc.

Episode Highlights:

• 02:40 – The hosts discuss about the ‘Secure Act’ which was passed in December of 2019. Under this act now that once you hit 72, you are required to take a minimum amount from all of your retirement accounts or you can take it from all only one, but you have to consider the value of all of your retirement accounts.
• 05:15 - Bill says that the ‘Secure Act’ that was passed in 2019 did in the maximum age for contributing to a traditional IRA.
• 06:30 – Andy states about the inclusion in the Secure Act which is that they allow for a penalty free withdrawal up to $5,000 from retirement accounts for funds that are used for qualified birth or adoption expenses. He encourages people to not take out of their retirement account if they possibly could but as an option he would like folks, because it really is a pretty common experience.
• 09:05 – As per Bill, “Another change potentially is Catch-up Contributions.”
• 11:10 – Andy mentions that he would be interested to see what the percentage of people are that actually take advantage of the $6500, let alone who will take advantage of the extra $3500 for the three years.
• 13:15 – He explains about ‘Roth Match’ - so what would happen here is if you did a Roth contribution, you would show that income coming in, pay the taxes on it, and then you're going to have to pay the taxes on the ‘Roth Match’.
• 15:30 – Andy reveals that some companies have already put things like ‘Student Loan Match’ in place. He thinks that such proposals would probably pass because a lot of people are accumulating pretty big amounts of student loan debt, and they need to pay those things off.
• 18:00 – Bill points out that “Napa National Association of Plant Advisors” had conference annually and they are proposing for sort of legislation based on, if an employer has five employees or more, they need to have available some way for those employees to save whether it's through an IRA or something as simple as that.
• 21:30 – Andy says that some of the credits they may be allowing for upstarting 401k plans with young companies is that they'll give them extra credits for doing auto enrol.

3 Key Points

1. Besides talking about the upcoming acts that are proposed to be passed, the hosts also discuss about the impact of the ‘Secure Act’ which was passed back in late 2019. They both talk about the various inclusions and clauses of this act.
2. They talk about the proposed acts and clauses including the first one being mandatory enrolment for defined contribution plans. The reason why this is proposed is because the behavioural psychology suggests that there're a lot of folks that would not save if they weren't forced to.
3. The other thing that they're proposing out not passed yet is some help to employers who want to start up 401k plans, a little bit better credit there for them. So, not just for the savers themselves, but also for the employers who may be opening and they're trying to really enforce a little more strictly that, if you've got X amount of employees, at least X number of employees, you're going to probably need to offer a retirement plan.

Tweetable Quotes

• “These aren't proposals that have passed yet, right but it is kind of good to at least familiarise yourself with, what's being discussed out there? What are the possibilities?” - Bill Bush
• “Particularly if you are not an owner or a less than 5% owner, and you're still working, you're not required to take out of your 401k.” – Andy Bush
• “So the next one allows parents to make withdrawals.” - Andy Bush
• • “Even if you don't have to wait till your birthday, you if your birthday is in December, you can plan for the year that you're going to turn 50.” - Andy Bush
  • “Another interesting one is ‘Roth Match’, that's kind of a change because usually an employer's contribution and match is not characterised as Roth.” - Bill Bush
  • “Here's another one that we mentioned this back in 2019, increase the age for RMDs. The proposal on the table would scoot that out even a little further.” - Bill Bush

  • “Other things being discussed for ‘Secure Act’ 2.0, again proposed not led or acted upon yet or approved yet, would be to establish a National Database, kind of to help people track down lost or missing retirement accounts.” - Andy BushResources Mentioned:

  • Inside The Plan with the 401(k) Brothers -- Podcast

  • Horizon Financial Group -- Website
  • Contact Information: Bill Bush Andy Bush
  • Podcast Editing

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about the ways to construct a plan that works for you and also discusses about the 5 points that participants need to follow during financial planning.

Episode Highlights:

• 1.48 – Andy says that people during summer go on a vacation and things they usually do get less focused and once school gets back in, they kind of get back into the routine.
• 3.05 – According to him, we need to look out in the future a little bit and need to ask things like, what it looks like there, are we doing okay, are we on the right track, and what are we doing?
• 4.13 – Bill shares that point number one in our piece is online learning. All plans mostly have some sort of online portal that keep up participants with their account.
• 5.23 – He states that one of the first things we asked them is, “Hey, have you set-up your access online?”
• 7.09 – Andy highlights, when we get back to routine, what we ask ourselves as a retirement plan participant is that what we need to be doing and learning for this semester.
• 8.52 – Andy refers to the book - “The Psychology of Money”, in which Morgan House states that behaviour and making good behavioural decisions is much more to your savings rate is much more important than actual return rate of return.
• 10.27 – He shares that, no matter what the match is in our plan that we do know it, and that we are aware that there is a way to maximize that now.
• 12.23 – Bill mentions that the summary plan description or the plan description, they are pretty brief but it does outline four or five different main point’s features.
• 13.24 – As per Andy, if we want to do more, we need to shoot for the moon in a sense that we've got a balance, living in here and now.
• 14.35 – Bill shares, we can bump-up our contribution whatever works for us or whatever works in the constructs of our plan.

3 Key Points

1. Things we need to do is, first to choose an online learning plan; second use the tools that are out there; third max, the match; fourth move-up a grade and final point is to seek out a tutor.
2. We can't control the market returns, regulations, law changes, taxation and all that, but we can at least have an idea of how much will be our nest egg be in 10, 20 or 30 years, it’s a very valuable viewpoint and gives us an awareness.
3. We all need to know how the employer is contributing to the plan, if there's a way to maximise on the case that we have a match, do that.

Tweetable Quotes

• “Two kids in college so, I say that I'm a part time empty nester” – Andy Bush
• ‘But I find that the beginning of school and the beginning of the New Year are typically at times when folks really kind of open their eyes to their situation.” – Bill Bush
• “What you really want to find out is that what the impact is going to be of what your actions are now.” – Bill Bush
• “Whether you're going to college or you're in high school, or even below is usually a teacher is going to tell you Hey! Class this is what we're going to be learning this semester.” – Andy Bush
• “And this example could impact you pretty well especially if you're fairly young.” – Bill Bush
• “The employer giving every person 3% whether they put any other money in or not. And what I would tell you is that if you're not putting your own money in that 3% is not going to be enough, definitely not going to be enough.”- Andy Bush
• “Hey, when my kid when my child moves-up a grade, I'm going to put more money in, you know, right, whatever works for you in whatever works in the constructs of your plan and what it's allowed to definitely look into that.” – Bill Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers -- Podcast
• Horizon Financial Group -- Website
• Contact Information: Bill Bush Andy Bush
• Podcast Editing

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about Social Security benefits. They share some facts about the program works, how benefits are calculated, and mention resources to use so that you can make more informed decisions about when to apply for Social Security.

Episodes Highlights

• 00:56 –Bill and Andy want people to be aware about Social Security and invite them to the webinar, which is going to happen at the end of the month as they will discuss ins & outs of Social Security.
• 03:10 - There's pre-determined part of amount of what they will receive, once they file for Social Security.
• 05:38 – Bill shares that a lot of people have a question that, if they are not paying into this account, how is the benefit going to be calculated and what is the math behind that?
• 07:22 – They reveal that we are first eligible for Social Security when we're 62, so we can take it then but our full retirement age is based on the year we were born.
• 09:46 – As per Andy, if we delay and even wait till full retirement, the breakeven point is not that far out there, and so we need to understand is what longevity look like in our family.
• 11:30 – Andy shares, we can go online there are plenty of calculators out there that will help us call the Social Security Administration office or can go online to ssa.gov and do some calculating on there too.
• 13:03 – According to Bill, our latest Social Security statement should have our earnings by year on there and we have to make sure it's accurate.
• 15:08 – Andy highlights the fact that up to 85% of our benefit could be taxable and then the other 15% would not be taxable at all.
• 16:40 - Guaranteed income coming from the government that will last our lifetime as long as we're living, we're going to have bills to pay and so we're going to need some of that income to help offset those bills.
• 18:40 - If we earn more than that Social Security is not taken out of our cheque anymore.

Three Key Points

1. If we waited past our full retirement age, we can get delay credits, and basically for each year that we delay, we are going to get an 8% step up on that earning.
2. It's also important to examine our earnings record statement.
3. We have to keep in consideration that when we get to retirement and calculate what is our taxable income then that's going to be part of it.

Tweetable Quotes

• “Social Security is only going to replace a portion of your pre-retirement income that average is about 40%, it's more of a percentage for the lower earning wage earner and less of a percentage for a higher wage earner.” – Bill Bush
• “It's thinking more clearly about your future income needs, because you are going to need income if you're still breathing at 85 or 87 or 90 or whatever, you know, you're still going to need a bill”. – Andy
• “And so, real quickly, just to reiterate on the early benefits you know if your full retirement age is 67, and you filed at 62 that ends up being a 30% reduction”. – Bill Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers -- Podcast
• Horizon Financial Group -- Website
• Horizon Social Security webinar info & registration

Contact Information: Bill Bush Andy Bush

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In this episode of ‘Inside the Plan with the 401(k) Brothers’, Bill Bush and Andy Bush, advisors at Horizon Financial Group talk about the benefits of doing a personal audit and share some tips on how to do that.

Episode Highlights:

• 01:18: - Andy says that last year during pandemic it seemed like there was almost a little bit more freedom as they were still working, but there weren't as many extracurricular activities going on.
• 03:20: - He says that he goes through some old pictures on phone and writes down some life events.
• 05:09: - Andy states that when you go through this exercise, maybe one of the rows would be how much I contributed.
• 07:25: - They discuss that in order to know whether you're making progress you need to ask yourself what things you can control and can do differently going forward?
• 09:30: - Bill mentions that in his 20s & 30s, he went through without contributing to a retirement plan.
• 11:30: He reiterates that an annual audit can be done at any time and this can be done on a sheet of paper or an Excel spreadsheet.
• 12:36: - Andy says that personal audit might help you curb your spending as well as saving habits.

3 Key Points:

1. The one thing you can do is to use the resources that you have available like put your previous year’s salary in there and identify what percentage of your salary did you actually contribute?
2. Going back in the past is great to see the history and the record and the trend, but then going forward you should ask yourself that can I do something differently that would make even a bigger impact.
3. Don't waste the opportunity ‘Inside your Plan’; use the tools that are available from your 401k provider. Ultimately, it's you that is going to need resources, so even the small dollar amounts in your 20s add up-to bigger.

Tweetable Quotes:

• “This may be different when you're listening to America, but just time to step back and say, hey, what have we accomplished?” – Andy Bush
• “Well, it's the things that we've talked about before of controlling the things you can control, right” - Andy Bush
• “And these things and saving for a retirement plan, it seems to be small amounts, and just a slow process getting boring.” – Bill Bush
• “If you don't want to go there, there's plenty of tools online, you can just Google those and just work out the assumptions.” - Bill Bush
• “You know, and so eventually I put away a little money in an IRA.” - Bill Bush
• “Well, it kind of reminds me in doing something like this an exercise, which is basically an annual audit.” - Bill Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers -- Podcast
• Horizon Financial Group -- Website

Contact Information:

• Bill Bush
• Andy Bush

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In this episode of ‘Inside the Plan with the 401(k) Brothers’, Bill Bush and Andy Bush, advisors at Horizon Financial Group answer some of the participants' questions on Financial / Tax / Retirement Planning from their recent meetings.

Episode Highlights:

• 01:30: - Andy and Bush answer the first question which comes from a participant, “How much tax will I pay when I withdraw from my 401(k)”?
• 03:30: - They discuss if there is a certain age limit required for disbursements.
• 05:10: - Both the brothers give a detailed answer on query related to the limit on number of times one can withdraw money from their 401(k).
• 07:55: - “How do I know I am invested in the right things?” answer Bill and Andy.
• 09:45: - Bill and Andy answer participant’s query related to depositing money from savings account to 401(k).
• 11:25: - The hosts answer and discuss query on the number of 401(k) plans that one can participate in simultaneously and the concerning limits.
• 13:45: - Bill asks this question from a participant that he’s still contributing to his employer’s 401(k) plan, but he’d like to roll over his existing balance to an IRA, can he do that?
• 15:34: - Andy and Bill talk about how one can change the beneficiary of 401(k) from Spouse to Children.

3 Key Points:

1. There are a couple of variables that decide how much tax you will be able to withdraw and how much money you can leave in your 401(k).
2. You have to remember that whatever amount you withdraw at a certain age from 401(k), you are going to pay taxes on it.
3. As per rule of 55 if you are working and terminate or quit service from a company and at the same time you turn 55 or older then you could take the distribution from 401(k).

Tweetable Quotes:

• “Where can I leave money in my 401(k)?” – Andy Bush
• “The year that you are hitting 72, you’re going to have to take out a disbursement is called the required minimum distribution and that is just the minimum.” – Bill Bush
• “I am invested in XYZ fund and ABC fund, is that the right thing for me? Well what is your time horizon?” – Bill Bush
• “You can participate in multiple plans at the same time, but there are limits and those limits are that contribution rate for the year….” - Andy Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers -- Podcast
• Horizon Financial Group -- Website

Contact Information:

• Bill Bush
• Andy Bush

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about tidying up financial clutter, strategies for getting rid of documents you no longer need, and how to stay on top of your economic situation.

Episode Highlights:

• 02:57 – What should you do with your financial documents that are laying around?

• 03:28 – Consider shredding old receipts.

• 04:35 – How far back do you need to save your tax documents?
• 05:16 – What should be your process with printed pay stubs?

• 06:16 – Secured cloud storage is a good way to protect financial documents like utility bills, annual tax returns, and receipts.

• 07:26 – What should be done about property records?

• 08:11 – How long should you keep bank statements?
• 10:37 – Keep your 401k-related statements.
• 12:04 – Which physical documents should you keep very secure and safe?
• 14:10 – The flood of 2016 affected many people that lost vital documents and pictures.

3 Key Points:

1. If you ever have to prove any purchases during an audit, have at least 7 years of tax receipts.
2. Hold onto property records because any improvements can increase the property value and capital gains.
3. Bank statements can be cleaned out annually.

Tweetable Quotes:

• “When it comes to tax documents, how far back do you need? You need about seven years of tax documents. Well, if I have 12, I surely don’t need those extra 5.” – Andy Bush

• “‘If you do get pay stubs, you may want to keep those around until you receive your annual W2 form. But then you don’t need them after that.” – Bill Bush

• “‘Investment documents. So, some of those play into, especially when we are talking about capital gains, are a part of your tax returns. So you kind of want to hang onto those.’” – Bill Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about returns, markets, and historical numbers associated with the S&P 500.

Episode Highlights:

• 01:12 – Bill Bush and Andy Bush talk about forms of volatility that have

affected the stock market, like the pandemic.

• 02:32 – Every generation has its own big issues that affect the stock market.

• 03:06 – What can you learn from looking at the S&P 500 in various periods?

• 06:34 – How far out are you going to need the money that you are investing?

• 08:04 – Keep in mind that there is a great chance that you or your spouse may live to 90.

• 08:42 – Everyone’s risk-tolerance is different.

• 10:40 – The pandemic caused people to rethink their original retirement plans.

• 12:15 – What is ‘dollar-cost averaging?’

• 18:40 – The 7 of the 10 best days of the market have occurred within 2 weeks of the worst 10 days market.

3 Key Points:

1. Looking at one-year periods since 1926, the S&P 500 has been positive just over 75% of the time.
2. Looking at five-year periods since 1926, the S&P 500 has been positive just about 84% of the time.
3. Looking at ten-year periods since 1926, the S&P 500 has been positive just about 90% of the time.

Tweetable Quotes:

• “Pull yourself out of the weeds of this moment and look at your portfolio more in a longer-term perspective.” – Andy Bush
• “‘Hindsight being 20/20, we have that benefit of knowing how things turned out. Whereas, as we experience anything today, we don’t know how it is necessarily going to turn out.” – Andy Bush
• “‘Past performance is no indication of future results.’” – Bill Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill and Andy Bush, advisors at Horizon Financial Group, share some tips envisioning what your retirement might look like, with best practices based on a recent survey conducted by the Employee Benefit Research Institute.

Episode Highlights:

• 1:10 - According to a recent survey, many retirees find that retirement does not live up to their expectations.
• 2:35 - Most retirees hoped to travel more, and obviously the pandemic disrupted their ability to do that.
• 3:30 - People generally wish they had saved more; only 18% of those surveyed felt that they saved more than they needed.
• 3:55 - Right now is the only time you have to plan for retirement.
• 4:45 - Even if you don’t have much to save right now, save something, because the dollars you put away now will have the most time to compound.
• 4:55 - Despite people wishing they had saved more, over 60% report still being able to maintain the same or a better standard of living as when they were working.
• 5:40 - Use the retirement savings calculators that come as part of your 401k plan or other retirement savings plan.
• 6:03 - Six in 10 respondents wanted to only spend a small portion of their assets, none of their assets, or grow their assets.
• 7:36 - The biggest reason given for this in the survey is to make sure they have enough for unforeseen costs later in retirement.
• 7:53 - Those big hits often come, but that’s why you also pay premiums for various insurance policies.
• 8:30 - HSAs are a good thing to look into for future health-related emergencies.
• 8:37 - You should also look into having some sort of liquid retirement fund.
• 8:52 - 64% of survey respondents agreed that saving as much as they could for retirement made them feel happy and fulfilled.
• 9:19 - Saving for retirement creates a lifelong habit of spending less than you earn.
• 9:59 - Priorities can change during retirement.
• 10:40 - You have to prepare for the fact that you could have something happen pre-retirement that impact your plan, like a pandemic.
• 11:07 - 8 in 10 respondents scored their retirement satisfaction as above average.
• 12:00 - Delineate what you want vs what you need in retirement.
• 12:39 - It’s fairly common for people to feel they’ve lost a sense of identity once they retire, so you have to be careful of depression.
• 13:45 - Remember that you’re retiring to something else, to another purpose, not from one purpose to nothing.
• 14:12 - Some of the things you can control are your savings rate and how that money is invested.
• 14:50 - You have some control over your longevity if you regularly see your doctor and take care of your health.
• 15:55 - You have no control over market returns and taxation and social security policies.
• 16:31 - You also control your attitude and approach, so shoot for the positive, realistic view of where you’re headed.

3 Key Points:

1. If you aren’t currently putting any money away for retirement, start now; if you are, increase the amount.
2. There are options besides a 401k for putting money aside for unforeseen circumstances.
3. Focus on the things you can control.

Tweetable Quotes:

• "When I run into folks that have retired, most of them say I'm busier now than I ever was. Which is good, because they're actually experiencing and living life to the fullest, which is what they should do."
• "I don’t think you’re ever carelessly going to be able to spend in retirement, but comfortably, you’ve got to do the work ahead of time."
• "Let’s say you retire at 67, by the time you’re 90, those priorities inside retirement are going to be changing."
• "I’m retiring to another purpose. I’m not retiring from something to nothing, I’m retiring to something."

Resources Mentioned:

• Horizon Financial Group: https://www.horizonfg.com/
• Email Horizon Financial Group: info@horizonfg.com
• Email Bill Bush: bbush@horizonfg.com
• Email Andy Bush: abush@horizonfg.com
• Inside the Plan Podcast: https://www.horizonfg.com/resources/podcasts

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about why getting life insurance is an act of love. They share insight into what goes into a term life insurance policy, how to estimate what you need from a policy, and more.

Episode Highlights:

• Double check that your beneficiaries are correct on your plan, especially if you’ve gone through a life transition like a marriage or divorce.
• The primary beneficiary is the first in line and the contingent beneficiary is next in line.
• You can also split between your beneficiaries by percentage.
• Bill and Andy suggest term life insurance for a certain period of time where the premium and death benefits are consistent over that period.
• To figure out how much life insurance you need, look at your income as a starting point.
• A typical guideline is that it’s 12x your income, but that may not be enough; the factors that go into it change over the course of your life.
• Think about whether you have young children, if there are debts your spouse will need to eliminate, if higher education costs are a factor, and how much income your family will need to derive from this.
• Main factors in the cost of your premium are how old you are when you buy it, the term of the policy, what the death benefits are, and your health.
• It’s possible that eventually you’ll be able to accumulate enough wealth that you won’t even need life insurance.
• Life insurance could give you liquid assets if other assets are tied up in investments or tax policy.

3 Key Points:

1. Make sure the beneficiaries on your life insurance policy are up to date.
2. Consider all the factors that may impact how much of a death benefit your beneficiaries might need, including debt, lost income, children, etc.
3. There are benefits to a life insurance policy beyond financially sustaining loved ones.

Tweetable Quotes:

• “Understand, if you’re buying it on your life, you’re not gonna be here if that thing gets enforced. So it’s really not for you, it’s for the ones you love.” –Bill and Andy

Resources Mentioned:

• Horizon Financial Group: https://www.horizonfg.com/
• Inside the Plan Podcast: https://www.horizonfg.com/resources/podcasts

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush, an advisor at Horizon Financial Group, talks with Jason Roussell from ADP about financial wellness, the programs they offer clients, the work they do with Louisiana businesses, and how stress is impacting employees and employers.

Episode Highlights:

• 01:06 – Jason Roussell describes his role with ADP.

• 02:05 – How does ADP see financial wellness fitting into the bigger picture?

• 03:06 – What is Jason Roussell seeing as far as strain on employees?

• 04:22 – What type of programs can ADP offer to clients?
• 07:00 – Jason Roussell discusses ADP Marketplace with 400 integrations.

• 08:08 – 29% of employees say their financial stress has been a distraction at work.

• 09:00 – Medical care costs keep going up and they affect retirement.

3 Key Points:

1. ADP makes sure workforces are educated about what is available to them and that they are preparing in the right way so that when it comes time for any major decision that they are viewing it from a holistic approach.
2. Prior to 2020, a statistic showed that the amount of time people spent on their phone daily was about 4 hours a day. In 2020 that number has almost doubled.
3. Most record keepers now have some sort of financial wellness resources.

Tweetable Quotes:

• “My role is that I serve in what’s called our major accounts division and what we do is we partner with organizations, based out of Louisiana, to help with human capital needs.” – Jason Roussell
• “For people that are entering into retirement age within the next 5 years, which is 65, 48% are projecting that they are going to have to push that back.” – Jason Roussell
• “54% of employees identify that finances are their top source of stress.” – Bill Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast
• Horizon Financial Group

• The Psychology of Money by Morgan Housel

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com
• Jason Roussell’s email: Jason.Roussell@ADP.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about planning for your plans, understanding that plans can go wrong, what things that can go wrong during retirement, and establishing a household budget.

Episode Highlights:

• 00:50 – Bill Bush and Andy Bush talk about the importance of planning.
• 02:09 – The year 2020 has been unpredictable financially.
• 04:00 – They discuss short-sided vs. long-term thinking.
• 04:53 – Be prepared the best you can for the unexpected.
• 06:40 – What things can go wrong in retirement?
• 08:28 – Past performance is no guarantee on future gains.
• 09:38 – Make sure you are controlling what you can control.
• 11:00 – What progress can you make in the next three years?
• 11:23 – Be intentional about having a household budget.

3 Key Points:

1. Short-term views worry about the news of the moment and its impact on the finances.
2. Long-term views take into consideration the likelihood that things can and have gone wrong.
3. Plan on your plans not going according to plan.

Tweetable Quotes:

• “Plans are worthless. But planning is indispensable.” – Andy Bush
• “You can never predict what might happen.” – Andy Bush
• “When there is a lot of uncertainty, there is typically a lot of volatility in the market.” – Andy Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast
• Horizon Financial Group

• The Psychology of Money by Morgan Housel

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about traditions of the holiday season at the end of the year, the importance of making a retirement wish list, changes that happen during retirement, and planning for the future.

Episode Highlights:

• 01:17 – What do Bill Bush and Andy Bush think about when the holiday eason arrives?

• 04:24 – What if you had a retirement wish book?

• 05:52 – How will you engage your time during retirement?

• 06:49 – Relationships and the people in your life take on more important and priority during retirement.

• 08:00 – Think about your life 5-10 years ago and look at what has happened that you planned for and didn’t plan for.

• 10:25 – Retirement planning is a balancing act between the present and the future.

• 11:15 – Bill Bush talks about periodically view his savings progress.

• 13:06 – What things are on Bill and Andy’s Christmas wish lists?

3 Key Points:

1. Plan a retirement wish list of accomplishments and experiences you would like to have.
2. Once you get to retirement, you want to be able to keep yourself busy.
3. Most regrets of older people after retirement are in reference to relationships in their lives.

Tweetable Quotes:

• “There is something about this bucket list that is starting to pop up for me, the wishlist if you will, of what do I want to accomplish?” – Andy Bush
• “You don’t retire into retirement. You are retiring from something. But you are retiring towards a purpose.” – Andy Bush
• “Look at all of the things that we have accumulated that we really aren’t using.” – Andy Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about times and strategies to make changes in your 401(k) plans and your retirement savings.

Episode Highlights:

• 01:18 – Bill Bush and Andy Bush talk about how the change in seasonal weather can signal other changes in your life.

• 02:11 – Is it time to change your contribution rate?

• 03:31 – New Year's resolutions are a time to reflect on your investment changes.

• 05:16 – What can you do in the next 30 days to have a better outcome in your life?

• 07:35 – Make sure you are comfortable with the risk you are taking.

• 06:50 – Identify what makes your life meaningful instead of just buying random things just because other people have them.

• 08:30 – Budgets are controls over you, it is you being in control of where your money goes.

• 09:00 – Use a retirement plan calculator to see where your goals are at currently.

• 11:20 – Unfortunately, people will spend more time planning a two-week vacation then they will spend reviewing their retirement.

3 Key Points:

1. Birthdays, especially milestones like 30, 40, and 50, are times to make retirement changes.
2. When your car is paid off, you can start reinvesting that money that is now freed up.
3. Write down your goals, make them intentional, and hold yourself accountable.

Tweetable Quotes:

• “Anytime there is a change in temperature, change in season, it is a change, and so you can maybe think through, ok, well is it time to change something else in my life?” – Andy Bush
• “Is it time to change your investment philosophy if you haven’t changed your funds in a while?” – Andy Bush
• “The last 30 days, did you do something that was instrumental in your life or did you just kind of go about your life?.’” – Andy Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about behavioral finance and statistics over a 20-year period of investing that JP Morgan has provided. They also discuss investment biases, the behaviors that impact your decisions, and how you can understand how to make better financial choices.

Episode Highlights:

• 01:00 – Bill Bush and Andy Bush talk about how your emotions during difficult financial times like the pandemic can affect your judgement and JP Morgan stats.
• 02:58 – What are the core emotions that impact investments?
• 04:42 – What does ‘mental accounting’ refer to?
• 06:48 – How does ‘herd behavior’ affect financial decisions?
• 08:09 – What is an ‘emotional gap?’
• 10:28 – ‘Anchoring’ is attaching a spending level to a certain reference.
• 11:24 – ‘Self-attribution’ is making choices based on confidence in personal knowledge.
• 12:42 – What is ‘disposition bias,’ confirmation bias,’ and ‘experiential bias?’
• 18:00 – Bill and Andy Buss discuss ‘loss aversion’ and ‘familiarity.’

3 Key Points:

1. According to JP Morgan, the S&P from 1999 to 2019 has had an annual return of 6.1%.
2. According to JP Morgan, in the S&P from 1999 to 2019 the average investor has only averaged 2.5% returns.
3. Herd behavior is the tendency that people have to mimic the financial behavior of offers, or ‘the herd.’

Tweetable Quotes:

• “You think about investing and a lot of people will think about the emotions of it, right? There is greed, and there is fear, and then there is really confidence.” – Andy Bush
• “‘Mental accounting’ in referring to the propensity for people to allocate money for specific purposes.” – Andy Bush
• “‘Emotional gap’ is really when you are making decisions based on the emotions, right? There is a gap between how you feel and rationality.’” – Andy Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk with Jenee Olivier, Human Resources Director/Safety Coordinator at Sigma Engineers and Constructors in Baton Rouge, Louisiana about 401(k) planning.

Episode Highlights:

• 00:48 – Bill Bush and Andy Bush introduce Jenee Olivier.
• 01:51 – How does Jenee Olivier view her 401(k) plan?
• 03:42 – How does Sigma place importance on their employees plans?
• 06:07 – How does Sigma look at plan design regularly?
• 06:02 – Is her company satisfied with the way that participation and

contribution rates are looking?

• 09:42 – Who owns the 401(k)?
• 11:40 – Helping small businesses is a focus of Jenee’s.

3 Key Points:

1. Think about your own 401(k) situation and ask yourself, are your retirement goals on track and will they be enough?
2. A 401(k) plan is not something you set up and forget about. It is ever-evolving.
3. Jenee Olivier is consulting on the human resources side and safety training.

Tweetable Quotes:

• “As a participant, I think the biggest thing that I look at in terms of the plan is value and what we’re getting and ease of use.” – Jenee Olivier
• “Each quarter we do a lunch and learn on a bunch of topics and try and bridge that gap and take a little bit of that pressure off of our employees, allow them the ability to ask questions in a less formal environment.” – Jenee Olivier
• “Most of my experience has been in the HR sector and working with small business and seeing it from a different perspective as both an HR and an owner, and kind of making those decisions.” – Jenee Olivier

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com

• Abush@horizonfg.com

• Jenee Olivier’s Contact Information:

• businessboutiqueLA@gmail.com
• (225) 235-4430

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about the TransAmerica Center for Retirement Studies survey, how Baby Boomers, Generation X, and Millenials are approaching retirement.

Episode Highlights:

• 00:41 – Bill Bush and Andy Bush talks about the the TransAmerica Center

for Retirement Studies survey.

• 02:18 – How confident are Baby Boomers are about retirement after

COVID-19.

• 04:11 – Age 35 is the median age that Baby Boomer investors started

saving for retirement.

• 04:45 – Baby Boomers are contributing 10% of their annual income.
• 06:02 – 68% either expect to or are already working past the age of 65.
• 06:30 – $144,000 is the average saved by Baby Boomers for retirement.
• 08:00 – How much of Generation X carries credit card debt and how much

are they saving?

• 10:00 – How confident is Generation X about retirement after COVID-19.
• 11:39 – Student loan debt is a big issue for Millenials.
• 12:47 – Age 24 is when Millenials are saving for retirement and $3000 is

the average amount saved for emergencies.

3 Key Points:

1. TransAmerica Center for Retirement Studies survey has retirement data on Baby Boomers (1946-1964), Generation X (1964-1978), and Millenials (1979-2000).
2. 84% of Baby Boomers are saving for retirement in a company-supported 401(k) plan or similar plan outside of the workplace.”
3. 52% of Generation X has credit card debt, starting to save for retirement at the median age of 30, and 10% of annual salary is getting saved.

Tweetable Quotes:

• “32% of the Baby Boomers say their confidence in their ability to retire comfortably has declined in light of COVID-19.” – Bill Bush
• (Baby Boomers) “$15,000 is the amount saved for emergencies to cover unexpected major financial setbacks.” – Bill Bush
• (Millennials) “26% do have student loan debt of this age cohort, which is quite a bit.” – Bill Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about Andy Bush turning 50-years-old. What ways is he approaching his retirement and which lifestyle changes matter to him more now? Learn strategies to let your retirement be a planned scenario instead of letting it creep up on you empty-handed.

Episode Highlights:

• 00:50 – Andy Bush talks about turning 50-years-old.
• 01:38 – How does turning age 50 affect Andy’s retirement plans?
• 03:32 – What age do people start focusing on retirement?
• 05:20 – Generation X is facing a lot of credit card debt.
• 09:32 – Has Andy Bush done anything with his asset allocation?
• 08:22 – 50 is the milestone in life and lifestyle changes.
• 10:25 – AARP typically sends out information at 50.
• 13:10 – Most providers have great tools to research a retirement plan.
• 13:40 – Bill Bush reminisces about Andy Bush being born on the day of the Major League Baseball All-Star Game.

3 Key Points:

1. Our inAge 45 used to be the typical age people started getting serious about saving for retirement.
2. 53% of Generation X have credit card debt.
3. What things can you do at 50 that will make your life easier at 70, such as diet?

Tweetable Quotes:

• “The things I do now are certainly going to impact my final picture as far as what I have accumulated.” – Andy Bush
• “Time relentlessly keeps on ticking and whether you use it in a good way or a bad way, time has no regard for how you use it.” – Andy Bush
• “The Glide Path is I’m really aggressive when I’m 30, mostly invested in stocks, and The Glide Path is the glide to become more conservative.” – Andy Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about how to prepare your retirement investments, how to prioritize your spending, and ways to improve the potential quality of life for your future self.

Episode Highlights:

• 0:43 – Bill Bush and Andy Bush introduce this episode’s subject regarding the future of retirement.

• 1:35 – It is hard for people to wrap their mind around the slow pace of incremental growth that retirement investing often yield.

• 3:40 – The decisions you make now have an impact on your future self.

• 6:06 – Be clear and honest about what really gives your life meaning and fulfillment.

• 6:49 – Don’t keep comparing your life to others for validation or to chase happiness.

• 9:11 – Write letters to your future self to make your current goals for the future more tangible.

• 11:06 – Remove the dangers of your life to make the future smoother.

• 11:40 – How often can you change your 401(k) contributions?

How do the 401k Brothers envision their future selves? Take a look here:

https://www.youtube.com/watch?v=KEWHMFBXpeM

3 Key Points:

1. When looking at your retirement investment progress, look at it over longer periods of time to see more of its impact.
2. Anticipate and plan as if you are still breathing at 75 and 80. Otherwise you will be limited in what you can do.
3. Keep it positive when working to improve your future.

Tweetable Quotes:

• “When it comes to retirement saving, it is such a long, long, long delayed gratification. You are putting in these little bits of your paycheck, from paycheck to paycheck that go into investments.” – Andy Bush
• “As your account grows, those percentages translate into bigger dollar amounts. They also translate to it on the downside too. That’s why you have to be a little more cautious as you grow your balance to a bigger amount.” – Andy Bush
• “If something doesn’t have a long-term benefit, then is it even worthwhile doing?” – Bill Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about the ways that our thoughts and behaviors impact our lives, the effects of COVID-19 on savings and spending habits, and how all of this has an effect on our 401(k) strategies.

Episode Highlights:

• 00:41 – Bill Bush and Andy Bush talks about Phase 1 of the pandemic.

• 02:47 – How does James Clear’s book Atomic Clear speak to how we approach our 401(k) plans?

• 05:41 – What are the stories you tell yourself, thoughts, beliefs, actions and the habits you live the most?

• 06:22 – The stock market is investing in companies that will be more valuable later.

• 09:23 – What are the stats on personal savings and spending in April 2020?

• 07:22 – Are there 401(k) opportunities during this COVID-19 moment?

• 13:50 – Bill Bush and Andy Bush talk about how coronavirus impacted them personally and tightening up on spending.

• 15:30 – How do you want your savings to be put to use?

3 Key Points:

1. Our internal monologues we have about ourselves guide our lives.
2. Write out your thoughts and beliefs about retirement and prioritize them.
3. Personal savings in the United States in April 2020 hit a historic high of 33% as spending declined by a record of 13,6% for the month.

Tweetable Quotes:

• “You are the average of the 5 stories you tell yourself the most.” – Andy Bush (quote by James Clear)
• “You have to believe that what you do today is going to impact you down the road when you do get to retirement.” – Andy Bush
• “20% of how you spend your time makes up 80% of the results.” – Andy Bush

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com

• Abush@horizonfg.com

• Atomic Habits - Book by James Clear

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk with Melissa Terito, CPA, Partner and Third-Party Administrator at Sentinel Pension about some frequently asked questions that plan sponsors have been reaching out to her with.

Episode Highlights:

• 00:37 – Bill Bush and Andy Bush introduce Melissa Terito.
• 01:21 – How does COVID-19 sick pay play into what is counted as wages?
• 02:57 – When can a participant get back in after dropping below zero on

referrals?

• 04:31 – What can be done with plans that have safe harbor contributions?
• 06:42 – What if more than 20% of the employees are terminated, does that

mean that everyone becomes 100% vested in the plan?

• 07:36 – Can you pre-fund retirement contributions to an unallocate account?

• 08:52 – If a plan didn’t adopt the coronavirus-related distribution or the expanded loan provision, but a participant wanted to take a distribution, could they still do that and classify it as a coronavirus distribution?

• 11:22 – Where is the talk of a triple contribution limit increase coming from?

• 14:28 – Melissa has been impressed with her team at Sentinel.

3 Key Points:

1. With the Family’s First Coronavirus Response Act, if an employee qualifies for sick pay, those wages are subject to 401(k).
2. Once you suspend your safe harbor, you no longer have the top-heavy relief, which means you may have to make at least a 3% contribution.
3. Communication with clients is highly important, especially during the uncertainty caused by the pandemic.

Tweetable Quotes:

• “The Family’s First Coronavirus Response Act basically expanded on sick pay that you have to pay employees in family medical leave.” – Melissa Terito
• “First, and foremost, if you have received a PPP loan and you are making your safe harbor match on a per-payroll basis, keep making the match, because those benefits are included in your PPP loan.” – Melissa Terito
• “A partial plan termination is going to be based upon the entire plan year.” – Melissa Terito

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com

• Abush@horizonfg.com

• Linkedin - Linkedin for Melissa Terito

• Sentinel Pension Contact Information:

• Phone: (225) 300-8478
• 401(k) Email: 401k@chooseSentinel.com
• Website: choosesentinel.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk with Melissa Terito, CPA, Partner and Third-Party Administrator at Sentinel Pension about plan sponsors, issues they are facing during the COVID-19 pandemic, and the CARES Act.

Episode Highlights:

• 00:39 – Bill Bush and Andy Bush introduce Melissa Terito.
• 01:08 – Plan sponsors have new measures to adapt to with the CARES

Act.

• 01:55 – What types of calls is Melissa Terito receiving from clients?
• 02:25 – A lot of clients have contacted Melissa Terito about payment

protection.

• 02:55 – What is involved in this CARES Act special coronavirus-related

Distribution to qualify?

• 04:16 – What kind of limits are involved for what an employee can take?
• 05:07 – The employee is going to self-certify.
• 05:59 – What are the pros and cons of the distribution provision.
• 07:36 – Budget the best you can and try to only take out a little bit at a time.
• 09:11 – Are plan sponsors going to be the ones issuing the form to get the

money?

• 10:28 – You can pay the distributions back in three years like a defacto

loan.

• 11:16 – How does the Special Loans provision of the CARES Act work?
• 13:22 – You are still a fiduciary and you still need to abide by your duties.
• 14:12 – Have good communication with your employees.
• 14:43 – What can employees do about the employer match and the

employer contribution during these times?

• 17:03 – They discuss the Paycheck Protection Program.
• 19:32 – Dentists and elective surgeries have been hit hard by COVID-19.
• 20:44 – What deadlines are in place?

3 Key Points:

1. To qualify for the CARES Act coronavirus distribution you must either be diagnosed with COVID-19, have a spouse or dependent diagnosed with COVID-19, or have experienced adverse financial consequences as a result of a quarantine, furlough, layoff, or reduction in work hours.
2. Through the end of 2020, an employee can take up to $100,000, spread out over more than one time if needed, from their vested account. That would be prorated for taxes or a 3-year time period, unless the participant elects otherwise, and they have the option to roll it back into the plan as an indirect roll-over within 3 years.
3. Try not to overreact to the pandemic and overspend your retirement.

Tweetable Quotes:

• (CARES Act) “Right now we have about 10% of our clients who have even asked about it and about 5% who have adopted either one of the provisions or both of them through the CARES Act.” – Melissa Terito
• (CARES Act) Most times, plans only allow hardships for employees that are still employed or participants that are still employed, and anyone can take this type of distribution, whether they are employed or not.” – Melissa Terito
• “There is no notice requirement when you adopt these provisions because you actually haven’t formally amended the plan. Now, I think it is nice to let your participants know that you adopted it.” – Melissa Terito

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com

• Abush@horizonfg.com

• Linkedin - Linkedin for Melissa Terito

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In this episode of Inside the Plan with the 401(k) Brothers, Bill and Andy Bush of Horizon Financial Group discuss ways to handle finances during challenging times. The Coronavirus pandemic has changed life for most Americans in profound ways, and it’s anyone’s guess how long it will be before things get back to normal. The shutdown has forced layoffs, furloughs, and financial hardships on many people. Andy and Bill discuss some steps to take if you find yourself stressed over your finances during these unprecedented times.

In addition to the information mentioned in the podcast, you may want to check out these resources:

A resource article about mortgage relief can be found here:

https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/

A resource article on car payment relief can be found here:

https://www.edmunds.com/car-news/coronavirus-car-payment-relief-programs.html

Louisiana Unemployment Information:

https://www.louisianaworks.net/hire/vosnet/Default.aspx

Internet/Cable providers Covid-19 policies:

https://www.cox.com/residential/support/coronavirus-response.html?campcode=tnt-home-alert

https://about.att.com/story/2020/att_expands_online_support_covid_19.html

https://www.eatel.com/news/2020/3/18/keep-community-connected

https://www.suddenlink.com/coronavirus

Louisiana Utility Providers:

DEMCO:

https://about.att.com/story/2020/att_expands_online_support_covid_19.html

Entergy:

https://www.entergy.com/covid-19/

CLECO:

https://www.cleco.com/coronavirus

Contact info:

Bill Bush: bbush@horizonfg.com

Andy Bush: abush@horizonfg.com

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In this episode of Inside The Plan with the 401(k) Brothers, Andy and Bill Bush of Horizon Financial Group discuss the recently passed Conronavirus, Aid, Relief, and Economic Stimulus (CARES) Act, and what options are available to company retirement plan participants and IRA holders. The 401(k) Brothers will discuss the distribution relief and loan provisions available and the parameters on each.

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In this episode of Inside The Plan with the 401(k) Brothers, Andy and Bill Bush of Horizon Financial Group take a look at the most-Googled 401(k) related questions in the past 30-days of the coronavirus pandemic. What are plan participants hoping to find answers about during these times of crisis? Bill and Andy answer questions like: Should I cash out my 401(k) account? Should I stop contributing? Why did I lose money in my 401(k)? What should I do with my 401(k)…and many others.

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Commentary from the 401(k) Brothers on the recent market conditions. (see attachment)

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, address a question that often comes up when they are working with their clients, can I retire now? In many cases, this involves early retire. Bill and Andy offer tips on how to prepare for making this pivotal financial decision.

Episode Highlights:

• 0:49 – Customers often ask Bill Bush and Andy Bush about whether or not

they can retire early.

• 1:30 – What is the number one thing to think about when thinking

about retiring now?

• 3:32 – One of the common mistakes people make is filing their social

security too early.

• 4:20 – What happens if you take on a new job after retirement?
• 5:03 – If you retire too early you have less time to save money.
• 6:00 – How early can you access your 401(k)?
• 7:12 – You might need to withdraw less money so that you don’t run out

during retirement.

• 8:18 – What do statistics says about withdrawing 4-5% against a 60% stock

portfolio and a 40% bond portfolio with a 6-7% return?

• 9:34 – Healthcare is an expense that increases as you get older.
• 10:41 – If you have an HSA, make tax-free contributions but don’t use

them.

• 12:20 – Have your house paid off before you retire.
• 13:02 – What happens when you retire early and you get bored?

3 Key Points:

1. The full social security age is 67.
2. 40% of working people tend to file their Social Security early at age 62.
3. There is a 50% chance of a married couple that is 65 that one of them lives to be 90.

Tweetable Quotes:

• “If you are retiring early, at say 62, which is early by the way when it comes to social security, what it means is a reduced income from social security and it is pretty much locking that in.” – Andy Bush.
• “Let’s say you do retire, you take social security at 62, but then for whatever reason you get a job. Now you are making income. Now there is that income test that kicks in and you could actually further reduce your payout.” – Bill Bush.
• “If you do have to access 401(k) IRA, 59 ½ is your magic number.” – Bill Bush.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, discuss New Year’s Resolutions plan participants should consider for the year 2020. In addition, they talk about the newly passed and signed SECURE Act, the most significant retirement plan legislation to be enacted in over a decade.

Episode Highlights:

According an article in US News, 80% of New Year resolutions fail by the 2nd week of February! Ouch. Here we offer 7 resolutions you should consider making, when it comes to your company retirement plan account:

1. Set up your online account access. This sounds simple, but you’d be surprised at how few people actually do this. We live in the digital age, where you can do just about anything on your phone or computer. So, make the leap and set up your online access.
2. Log in to your online account at least 3 times this year. (Spread throughout the year, of course). Check things out, review your balance, see what your return is, and look at your fund options. Opt for electronic delivery of your statements, if you can. The point is, you have access, so use it regularly. And if you log in 3 times or more this year, you’ll be using the tool more than most participants.
3. Use your provider’s online calculator 1 time this year. “Am I doing enough”? A common question when it comes to retirement savings. What does the percentage you’re saving now going to mean in the future? Most providers we deal with have online calculators to help you answer those questions. Usually, you can add in other outside funds, including your spouse’s info, as well as Social Security into the calculator to help you figure if you are on track or not. It’s an exercise worth doing once a year.
4. Increase your contribution. This also is a way to help you reach what may be another of your resolutions: save more money. Check with your plan administrator to see how often you can change your contribution rate (these vary by plan). At the next opportunity, think about upping your rate by a percent or 2. Over time, it could make a big impact in your account…and your future self will thank you! Your online calculator can help you figure out what the impact might be.
5. Learn the maximum you can contribute, and set a goal to reach it. Many folks often aren’t sure of the maximum they can defer to a company retirement plan. For instance, some think they can only put in what the company match is…NOT TRUE. The annual limits are actual dollar amounts, and vary depending on the type of plan you are in. If you try to max-out your contribution each year, remember some of the limits have changed for 2018, so you may need to change your contribution rate. (for 401k, 403b, and most 457 plans the limit is now $19,500…for those 50 and older, you have available catch-up contribution opportunities also.) For more information on the limits, ask your plan administrator.
6. Review your asset allocation. Whether you do this online, or with your next quarterly statement, it’s worth taking a look at, at least once a year. There has been solid growth in the stock market over the past year, so is your percentage of equities in your portfolio still consistent with your risk tolerance and time horizon? Worth checking out. You may need to re-balance…or set your account up to automatically rebalance online, if available.
7. Review your beneficiary designation. If you’ve had a significant change in your life recently, you may need to update the beneficiary/beneficiaries on your account. Marriage, divorce, death of a spouse, or other events could trigger the need to review this, but sometimes it’s overlooked.

Good luck with those resolutions! If you need any help with your retirement account, give us a call at 225-612-3820.

SECURE ACT PROVISIONS:

Delayed Required Distributions

For participants in 401(k) and other defined-contribution plans, or individual retirement account (IRA) holders, the bill allows retirees to delay taking required minimum distributions (RMDs) until age 72, up from the current age of 70 1/2. RMDs are the minimum amount participants must withdraw from their retirement accounts each year, set by actuarial tables. The change applies only to people who turn 70 1/2 after Dec. 31, 2019.

In a related development, the IRS proposed changes to the RMD rules on Nov. 7, updating the life expectancy tables used in calculating required distributions. The new tables were developed based on projected mortality rates for 2021 and, if finalized, they would reflect longer life expectancy assumptions and, consequently, reduce required distribution amounts.

In-Plan Annuities

To address the 401(k) plan "annuity conundrum," the SECURE Act creates a safe harbor that employers can use when choosing a group annuity to include as an investment within a defined-contribution plan, with new provider-selection rules. For instance, the legislation will protect employers from liability if they select an annuity provider that, among other requirements, for the preceding seven years has:

• Been licensed by the state insurance commissioner to offer guaranteed retirement income contracts.

• Filed audited financial statements in accordance with state laws.

• Maintained reserves that satisfy all the statutory requirements of all states where the annuity provider does business.

The SECURE Act also increases the portability of annuity investments by letting employees who take another job or retire move their annuity to another 401(k) plan or to an IRA without surrender charges and fees.

. The SECURE Act authorizes a solution for companies to include in their plans insured guaranteed lifetime income."

Annual Disclosure of Projected Income

```The SECURE Act will require plan sponsors to annually disclose on 401(k) statements an estimate of the monthly payments participants would receive if their total account balance were used to purchase an annuity for the participant and the participant's surviving spouse. The DOL will devise assumptions 401(k) plans can use to estimate the monthly income workers’ 401(k) balances are likely to generate over their lifetime, and the disclosure must be made on workers’ 401(k) statements a year after regulators finalize those assumptions. The Secretary of Labor is also directed to develop a model disclosure.

Other Defined-Contribution Plan Changes

The SECURE Act will also:

• Expands 529 education savings plans to include student loan repayments and the costs of apprenticeship programs under the definition of qualified higher education expenses. Student loan interest paid for with tax-free 529 plan earnings is not eligible for the student loan interest deduction.

• Require employers to include long-term part-time workers as participants in defined-contribution plans except in the case of collectively bargained plans. Eligible employees will include those who completed at least 500 hours of service each year for three consecutive years.

• Provide penalty-free withdrawals from retirement plans of up to $5,000 within a year of the birth or adoption of a child to cover associated expenses.

• Prohibit the distribution of plan loans through savings plan credit cards so that funds are not easily available for routine or small purchases.

• Permit employers to add a safe harbor feature to their existing 401(k) plans once the year has started if they contribute at least 4 percent of employees' pay instead of the regular 3 percent. This flexibility will help employers to correct failed ADP/ACP or top-heavy tests by shifting to a safe harbor plan and making a 4 percent nonelective contribution to participants.

• Extend the period of time for companies to adopt new plans beyond the end of the year to the due date for filing the company tax return, giving employers additional time to cover their employees with a profit-sharing contribution.

• Convert custodial accounts from terminated 403(b) plans into IRAs.

• Impose a new 10-year distribution maximum for death benefits from IRAs and defined-contribution plans for nonspouse beneficiaries. Currently, spending down from inherited accounts can be stretched over the life of beneficiaries to mitigate taxes. This provision is intended to generate tax revenue and offset the cost of the act's tax credits.

• Eliminate the age limit for traditional IRA contributions. Those who are still working can continue to contribute to a traditional IRA, regardless of their age, instead of eligibility to contribute ending at age 70 1/2.

• Allow exception to the 10 percent penalty for birth or adoption. New parents can now withdraw up to $5,000 from a retirement account within a year of a child’s birth or adoption without the 10 percent penalty those younger than 59 1/2 would normally owe. The distribution, which is still subject to tax, can be repaid to a retirement account.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, discuss the pre-2001 Tax Act changes regarding 401(k) plans, new contribution rates for 2020, as well as the rates for simple IRAs, IRAs, and Roth IRAs, and benefits you receive if you turn 50 during 2020.

Episode Highlights:

• 0:37 – Bill Bush and Andy Bush reflect on the first episode of this podcast.
• 1:17 – What are the differences between the pre-2001 Tax Act and now regarding 401(k) plans?
• 1:48 – Is maxing out 6% or is that a different amount?
• 2:38 – What is the new contribution rate into a 401(k)?
• 3:46 – What are you eligible for if you turn 50 in 2020?
• 4:48 – What are simple IRAs and the contribution matches?
• 7:08 – What do you need to keep in mind for IRAs?
• 10:05 – What has changed regarding Roth IRAs?

3 Key Points:

1. The contributions rate into a 401(k) in 2020 has been raised to $19,500 for any participant that has earned that amount.
2. If you turn 50 in 2020, you can contribute up to $26,000.
3. With simple IRAs, for companies with no more than 100 employees, employees can put in $13,500 for 2020.

Are you considered “covered” by a Company Retirement Plan?

From the IRS website:

You’re covered by an employer retirement plan for a tax year if your employer (or your spouse’s employer) has a:

• Defined contribution plan (profit-sharing, 401(k), stock bonus and money purchase pension plan) and any contributions or forfeitures were allocated to your account for the plan year ending with or within the tax year;
• IRA-based plan (SEP, SARSEP or SIMPLE IRA plan) and you had an amount contributed to your IRA for the plan year that ends with or within the tax year; or
• Defined benefit plan (pension plan that pays a retirement benefit spelled out in the plan) and you are eligible to participate for the plan year ending with or within the tax year.

Box 13 on the Form W-2 you receive from your employer should contain a check in the “Retirement plan” box if you are covered. If you are still not certain, check with your (or your spouse’s) employer.

The limits on the amount you can deduct don’t affect the amount you can contribute. However, you can never deduct more than you actually contribute.

Additional Resources:

Tweetable Quotes:

• “The pre-2001 tax act, that you were maxed out at 15% of your income in a 401(k). There are still a lot of people that say, ‘How much can I do, 15%?’ And that is not the case.” – Andy Bush.
• “How much are you maxing out? ‘Well, I am doing the 6%. Well, what they are talking about is, they are actually maxing out the employer match, and so those are different numbers.” – Bill Bush.
• “If you turn 50 in the year 2020, no matter when you turn 50, you can go ahead and plan at the beginning of the year to do the catch-up contribution, which is $6500. It used to be $6000 for 2019.” – Andy Bush.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, discuss the areas of financial market that you can’t control that may cause you fear and the areas that are within your control that can be adjusted in your favor.

Episode Highlights:

• 1:14 – What scares you with 401(k) plans?
• 2:07 – What scared Andy as a kid?
• 4:10 – What are the risks of investing in companies?
• 6:06 – What other things can you not control?
• 8:00 – You are in 100% in control of how much you invest and what you spend
• your money on.
• 11:37 – You can have some control over how much you are earning and the
• distance of your drive to work.
• 12:27 – FOMO stands for the Fear Of Missing Out.

3 Key Points:

1. You can’t control the risks of the market.
2. You can control what you invest in, not investing outside of your risk profile, how much you contribute, and how you spend your money.
3. You can’t control political climates and policies.

Tweetable Quotes:

• “’Unknowns, in many ways, in many areas of our lives create fear and these emotions that pop up.” – Andy Bush.
• “’We try to control our environments. We try to control the way we handle our money or the way our money is being handled and sometimes fears can have a negative effect on those things. ” – Andy Bush.
• “’Some people are so gripped by the fear of the stock market, and it may have some very substantial foundation or some route because or this fear. For instance, 2008, early 2009, the stock market dropped a great recession.” – Andy Bush.

Resources Mentioned:

• Inside the Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com

• Abush@horizonfg.com

View Details

In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, go through various budgeting scenarios based on average American age brackets, their typical household incomes, and the expenses that affect their spending.

Episode Highlights:

• 0:40 – Bill Bush and Andy Bush talk about household budgeting.
• 1:30 – If you are in your 20s or 30s, get into the habit of a household budget.
• 2:30 – Your best option
• 4:00 – What is the breakdown of the average American spender?
• 7:35 – People are spending beyond their means.
• 8:35 – What are the averages for taxes, food, housing, transportation, insurance.
• 13:10 – What is the average savings?

3 Key Points:

1. The is the average American household income before taxes is $78,635 between the ages under 25 to over 75.
2. Under 25, the average income is $32,000. But the expenses for that age group is also $32,000.
3. People over the age of 75 on average are spending beyond their annual income.

Tweetable Quotes:

• “It all comes down to income and expenses.” – Andy Bush.
• “The thought of budgeting to me seemed restrictive. But the truth is, budgeting is really the opposite. It is freeing because there is freedom in that you have income that might have otherwise not been disposable.” – Andy Bush.
• “Most people are going to probably need to put 15% in for retirement.” – Andy Bush.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast
• Horizon Financial Group

Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

View Details

In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, go through a checklist of financial anxieties and fears that typically keep people up at night.

Episode Highlights:

• 0:41 – Bill Bush and Andy Bush talk about sleepwalking and growing up on a farm in Indiana.
• 2:28 – What keeps you up at night and creates financial anxiety for you?
• 4:33 – Lack of confidence creates anxiety.
• 4:51 – Financial Anxiety #1 is retirement.
• 6:53 – Financial Anxiety #2 is money saved for education.
• 7:45 – Financial Anxiety #3 is life events.
• 10:09 – Financial Anxiety #4 is elder care.
• 11:35 – Financial Anxiety #5 is estate planning.
• 13:44 – Financial Anxiety #6 is financial basics.
• 15:46 – Not having a budget can lead to stress.

3 Key Points:

1. Saving up enough for your children’s college education can determine which schools they are able to enroll in.
2. Know what is involved in taking care of your parents and the expenses involved.
3. Estate planning is not just for rich people. Estate Planning is the value of your life with all your assets included.

Tweetable Quotes:

• “How do I know if I am going to have enough? Is my money going to last? Am I going to outlive my money or is my money going to outlive me? Those are important answers to get.” – Andy Bush.
• “If you get married, there is how to handle the finances. Who is going to do what? Do you combine things? Do you not? ” – Andy Bush.
• “If you are living and relying on both of your incomes here and now, you’re likely going to live and rely on both of your retirement incomes in retirement. And so, start saving, both of you.” – Andy Bush.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers – Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, share the important questions you need to be asking yourself and your spouse to properly prepare for retirement and adjust your 401(k) plan accordingly.

Episode Highlights:

• 1:20 – Bill Bush and Andy Bush introduce the episode topic of when is the

last time you have checked the balance and performance of your

401(k) plan?

• 2:19 – There are tools to see where you stand in your 401k) plan.
• 2:59 – Bill tells a story of someone not viewing their 401(k) in over 10

years.

• 4:00 – You don’t have to look at your 401(k) plan everyday.
• 4:24 – Who is going to be in your retirement picture?
• 6:08 – Science says you need a strong vision of your future.
• 9:25 – When is the last time that you have used the online calculator and

other tools to plug your retirement planning numbers in?

• 11:48 – Add 1% to what you are contributing once a year for 5 years

straight.

3 Key Points:

1. When is the last time you have checked the balance and performance of your

401(k) plan?

1. When is the last time you have rebalanced your account?
2. When is the last time that you have thought and visualized what your future financial self looks like?

Tweetable Quotes:

• “From time to time, go online and just take a look. So know, not just to take a look to see what your balance is, but to see how your money is invested.” – Andy Bush.
• “A lot of record keepers, have an auto feature that allows you to select: I want to rebalance every 6 months or once a year or maybe even quarterly.” – Bill Bush.
• “There have been studies, probably years ago, that have been done that kind of showed the difference between doing it (rebalancing) quarterly, every 6 months, or annually. There isn’t a lot of difference.” – Andy Bush.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, share the various questions you need to be asking yourself in order to properly plan for retirement so that it doesn’t unexpectedly creep up on you later when you are unprepared.

Episode Highlights:

• 1:00 – Bill Bush and Andy Bush introduce the episode topic of developing a

retirement vision.

• 1:20 – People often forget the transition into retirement.
• 2:25 – Married couples may live longer in retirement than expected.
• 3:07 – Think beyond the ‘honeymoon’ phase of retirement excitement and

plan for those mundane days too.

• 4:59 – It is never too early to start planning for retirement.
• 6:45 – Who will do your chores in retirement?
• 7:05 – Who is going to be in your retirement picture?
• 8:30 – Revisit your future glimpse.
• 9:58 – Make a plan for your future health.

• 10:29 – Seek someone who is already retired and ask them how they planned for it and handle it.

• 11:11 – What is your married life going to be like when you are home together now that you both aren’t working.

• 11:57 – Retirement isn’t an end. Be positive about it.

3 Key Points:

1. Retirement questions to ask yourself include: what will you be doing, accomplishing, setting new goals, what makes you happy, and what do you value?
2. It is never too early to start planning for retirement.
3. Don’t forget to plan for yard work and physical labor routines that you may have to pay someone to do for you during your retirement years.

Tweetable Quotes:

• “Maybe it’s 2-3 weeks. Maybe it's 2-3 months where you are so elated that you don’t have to wake up and go to work. But then after that its, ‘how am I going to use my time that is useful and beneficial?” – Andy Bush.
• “There is a 50% chance of a married couple that is 65 today that one of them lives to be 90.” – Bill Bush.
• “Wives tend to outlive their husbands.” – Andy Bush.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

View Details

In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, are on the road at their live event in Denver, Colorado. They have a chat with Jon Anderson, Head of Retirement at Cetera Financial Group in the Greater San Diego Area, about the importance of retirement planning.

Episode Highlights:

• 0:16 – Bill Bush and Andy Bush introduce the episode and guest Jon

Anderson.

• 1:11 – Is Jon Anderson a 401k participant?
• 1:51 – Why does Jon use a target-date fund?
• 2:42 – What elements play into being retirement-ready?
• 3:22 – Professional investment management frees up your time to focus on

priorities.

• 4:02 – How does Jon Anderson determine how much to contribute to a

401k?

• 5:54 – What is Jon’s take on people that view budgeting as a restriction?
• 6:30 – Is there an area where participants miss the mark?
• 7:18 – What makes financial planning so important?

3 Key Points:

1. The data shows that if you are concerned about your investments and you make changes, all you are going to do is decrease your chances of being ready for retirement.
2. Contributions and broader planning play a role in being retirement-ready.
3. Budgeting frees you up to live today, because you don’t have to worry if you are spending too much for the future.

The target date of a target date fund may be useful starting point in selecting a fund, but investors should not rely solely on the date when choosing a fund or deciding to remain invested in one. Investors should consider the fund's asset allocation over the whole life of the fund. Often target date funds invest in other mutual funds, and fees maybe charged by both the target date fund and the underlying mutual funds. A fund with higher costs must perform better than lower cost fund to generate the same net returns over time.

Tweetable Quotes:

• “I don’t think that I could be an expert or really in this business at all and not

participate as a participant, right? So, of course I participate. But, I’m also

on our Cetera investment committee.” – Jon Anderson.

• “To be perfectly transparent, what I like about my plan is I don’t have to think about it. What I like about my plan is I can choose one of the options that is more turn-key.” – Jon Anderson.
• “Why wouldn’t I use a target-date fund? I think my time is better spent thinking about my personal life, thinking about my family, thinking about my job.” – Jon Anderson.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com

• Abush@horizonfg.com

• Jon Anderson: Linkedin

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about a Schwab survey of 1000 401k participants. Learn from Bill and Andy some of the key truths regarding retirement planning that were revealed and can be applied to your own life.

Episode Highlights:

• 0:20 – Bill Bush and Andy Bush introduce the topic of a Schwab survey that involved 401k participants.

• 1:41 – How much money do the survey participants feel they need to save for retirement?

• 2:07 – What is the safe withdrawal rate for annual retirement spending?

• 4:38 – What is the typical view of investing and saving for retirement?
• 6:27 – Are people more likely to use a savings account for retirement?

• 7:37 – What are some less volatile investment options to go beyond just a savings account?

• 9:01 – Half of the Schwab survey participants are contributing 10% or less to their 401k plan.

• 10:50 – One-third of participants chose a percentage for their 401k that they were comfortable with.

• 14:11 – 52% have said they have used a retirement plan calculator.

3 Key Points:

1. The media typically convinces people that they need at least $1 million to retire with.
2. Two-thirds say that a 401k plan represents their first experience with investing.
3. Most view themselves as savers rather than investors.

Tweetable Quotes:

• “On average, (401k) participants (Charles Schwab retirement survey) think they need $1.7 million saved for retirement.” – Bill Bush.
• (Annual retirement spending) “We always look at kind of the safe withdrawal rate of being about 4%.” – Andy Bush.
• “Nearly 6 out of 10 people say their 401k is their only or their largest source of retirement savings.” – Bill Bush.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about the main fears people have of retirement, the importance of paying down debts, and not getting bogged down by the past and focusing on what you can do to benefit your retirement right now.

Episode Highlights:

• 0:38 – Bill Bush and Andy Bush introduce the topic of “we’re participants,too.”

• 1:10 – What are the major fears around retirement?

• 2:38 – When do I want to retire and what is the spending going to look like?

• 4:25 – Some careers are less taxing on your body and your time and can allow for a longer retirement age.

• 5:00 – Paying down debts before you retire is vital.

• 6:11 – Don’t dwell on the past that you can’t change. Make the most of your future.

• 7:23 – What are the benefits of delaying retirement?

• 8:27 – Start saving for retirement early and never look back.
• 9:48 – How difficult is it to save extra?
• 12:19 – See what changes you can make to your retirement plan.

3 Key Points:

1. Increase your retirement contributions every year if that is possible.
2. The effect of delaying retirement by one year is usually positive.
3. Make the financial sacrifice now to add for a better tomorrow.

Tweetable Quotes:

• “Try not to dwell on the past. But make the most of the opportunities that are available now.” – Bill Bush.
• “All you can do is right now.” – Andy Bush.
• “Take care of the debts. The house being paid off before I retire is certainly a goal.” – Bill Bush.

Resources Mentioned:

• Inside the Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, address a a familiar comment from plan participants: "I don't know what to do!" Bill and Andy talk about the various retirement funding types for those who find themselves not knowing what to do, and how those options apply to various retirement goals. Also the 401(k) bros. talk about where to seek out answers.

Episode Highlights:

• 1:28 – What is involved in managed accounts?
• 3:09 – What is a target date fund?
• 5:49 – Which types of growth funds are available?
• 7:10 – If you don’t know, seek out some education.
• 7:55 – What financial vehicles are best to get you to your retirement goals?

• 8:25 – Know what your employer match is and when you can make changes.

• 9:11 – What is involved in the do-it-yourself way of retirement funds?

3 Key Points:

1. The three ways to have your money invested for those who don't want "to do it themselves" are third-party managed accounts, target date funds, and a balanced fund.
2. Target dates funds are age-appropriate and are scheduled close to your retirement and target risk funds are more risk-averse and conservative for participants further away from retirement with risks that aren’t changing.
3. Educate yourself with the help of a financial advisor.

Tweetable Quotes:

• “A lot of plans have built-in vehicles for those that just don’t understand things” – Bill Bush.
• “Growth, moderate growth, moderate, moderate conservative and conservative are usually the five that you find there. If they don’t have those, you might see something called a balanced fund.” – Andy Bush.
• “They say knowledge is power. But really, knowledge in action is power.” – Andy Bush.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Network, discuss what you need to know when managing your retirement income. Learn from Bill and Andy about common and potential financial sources of retirement funds, when to withdraw them, and what RMDs are.

Episode Highlights:

• 0:40 – Andy Bush describes some myths related to the transition into retirement.
• 2:14 – What are the common financial buckets people retire with?
• 5:49 – What are potential retirement income sources?
• 8:06 – When managing your withdrawals, what should be the proper order?
• 9:57 – What are the required minimum distributions?
• 11:28 – What is the bottom-line when summarizing what you should do to manage retirement income?

3 Key Points:

1. The three common forms of retirement income sources are social security, defined benefit pension programs, and annuitized defined contribution plans.
2. Potential retirement incomes include tax advantage retirement income accounts, personal savings, rental income, and reversed mortgages.
3. Don’t underestimate life longevity in your retirement game plan.

Tweetable Quotes:

• “Everybody retires at 65 and it just happens’…that’s just not true. You have to do some planning and some forethought into, ‘how am I going to pay for these bills?” – Andy Bush.
• “When you are planning, obviously, the main thing there is to make sure that your needs are being met by guaranteed income.” – Andy Bush.
• “Taxes, that is a big thing because, a huge withdrawal, a lump sum in one particular year could bump you up into another tax bracket.” – Bill Bush.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:
  bbush@horizonfg.com

• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about what exactly “vesting” means, the various distinctions between vesting schedules, and the ways these vested money options operate.

Episode Highlights:

• 0:40 – Bill Bush shares where the word “vest” comes from.
• 1:03 – What does vesting mean?
• 2:14 – What is a cliff vesting schedule?
• 3:04 – How does a graded vested schedule work?
• 5:06 – How can safe harbor plans operate?
• 6:05 – What should you know about loans for vested money?
• 6:43 – What can prevent you from getting your employer match money?
• 7:57 – Which exceptions can occur in vesting schedules?

3 Key Points:

1. Vesting schedules have to do with the employer’s contributions.
2. Cliff vesting schedule means you are a 0% owner in that money for three years, then you are 100% owner of it after that.
3. Plans with loans typically have borrowing minimums of $1000 and maximums of $50,000, which have to be at least 50% of the vested amount.

Tweetable Quotes:

• “When we’re talking about what vesting means is ownership. Of course, in a 401(k) plan, when a participant defers their dollars, they own 100% of those dollars going in, they are vested in their contributions.” – Bill Bush.
• “A graded vested schedule is usually going to go in 20% increments, where the first year would be zero.” – Andy Bush.
• “Depending on the plan, plans can put in place. Where they say, ‘You have to be employed on the last calendar day of the year to receive their discretionary match.” – Andy Bush.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast
• Horizon Financial Group

• Contact Information:
  bbush@horizonfg.com

• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, provide us with insight into what a 401(k) plan hardship withdrawal is, what the rules and restrictions involved in hardship withdrawals are, and how law changes have affected the regulations of hardship distributions.

Show Notes:

• 0:30--- Are hardship withdrawals an optional feature in a 401(k) plan
• 0:48--- What is a hardship withdrawal
• 2:44--- What are the costs involved in hardship withdrawals
• 3:25--- What are some of the regulations of a hardship loan
• 4:33--- How does the Tax Cut and Job Act effect hardship withdrawals
• 6:11--- You used to not be able to defer or contribute to your 401(k) plan for 6 months
• 7:33--- How can you avoid the 10% penalty fee for hardship withdrawals

3 Key Points:

1. The reasons you can take a hardship withdrawal: medical expenses, purchase of your principal residence, to prevent eviction, post-secondary education, funeral expenses, and to repair home damage.
2. There is a 10% withdrawal fee for hardship withdrawals if you aren’t at least 59 1/2 years old.
3. Hardship withdrawals don’t need to be paid back.

Tweetable Quotes:

• “Hardship withdrawals aren’t free. There is a cost involved in that, and that would be…they are taxable.” – Bill Bush.

• “The hardship withdrawal cannot exceed the amount of the need.” – Andy Bush.

• “Most people are going to look for other measures first, I would think, before they tap into their retirement savings.” – Andy Bush.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

|

| |

|

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, Advisors at Horizon Financial Group provide us some useful information regarding loans inside a 401(k) plan. Learn the positive and negative sides to pulling a loan from your 401(k), what the payback structure will typically look like, and what limitations are involved.

Show Notes:

• 0:25--- Does your 401(k) plan even offer loans
• 1:07--- What are the borrowing limits of your 401(k) plan
• 2:48--- The payback on 401(k) loans starts right away
• 4:01--- Will there be a credit check and interest on a 401(k) plan loan
• 5:00--- Are 401(k) plans paid back post-tax
• 5:39--- What fees are attached to setting up a 401(k) loan
• 6:26--- What are some of the negatives of taking a 401(k) loan

3 Key Points:

1. Find out if your 401(k) plan offers loans.
2. The minimum loan size you can take is $1000 from 401(k) plans.
3. The maximum loan size from 401(k) plans has an upper limit of $50,000.

Tweetable Quotes:

• “If you do have a loan prevision inside your plan, there are certain borrowing limits that you need to know about.” – Bill Bush.

• “If you are getting $1000, you are going to need just a little bit higher than $2000 invested balance in order to get that $1000, because there is a cost to processing the loan.” – Andy Bush.

• “401(k) plans, 403(b)s, those are retirement plans and meant for the long hall and not to take a loan from unless you can absolutely help it.” – Bill Bush.

Resources Mentioned:

• Inside The Plan with the 401(k) Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

|

| |

|

• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan, Bill Bush and Andy Bush, Advisors at Horizon Financial Group, get down to business with the hard facts and stats that affect all of our retirement decisions. The importance of preparing for retirement can’t be stressed enough. What are the retirement statistics for people’s life expectancies beyond 65, the number of people retiring earlier, and how gender, health, and fear play a role in this information?

Show Notes:

• 0:38---Many Americans are relying on social security and retirement savings for retirement.
• 1:23--- How much money is it going to take to retire?
• 2:10--- How traditional gender roles affect retirement savings
• 3:15--- Baby boomers have doubt about how much they have saved for retirement.
• 4:21--- You have to deal with your debt before you get to your retirement years.
• 7:25--- 35% of people 64-74 and 21% of people over 75 are still paying mortgage debt.
• 5:52--- What is the average age for retirement?
• 7:09--- 55% of retirees retire earlier than expected.
• 8:00--- Employees may miss out on an extra $1,300 on retirement matching each year.
• 9:01--- A couple will spend approximately $245-280,000 on healthcare during retirement.
• 9:33--- Nearly 60% of retirees don’t budget for entertainment and activities.
• 10:12--- How much longer do men and women at age 65 tend to live?
• 10:31--- What is the saver’s tax credit?

3 Key Points:

1. More than half of Americans have less than $10,000 saved for retirement.
2. Women are 27% more likely to have no retirement savings.
3. 76% of baby boomers aren’t confident that they have saved enough for retirement.

Tweetable Quotes:

• “One in three Americans has nothing saved for retirement.” – Bill Bush.

• “If you are creating habits of spending using both incomes, than you need to create habits of saving using both incomes.” – Andy Bush.

• “The number of seniors declaring bankruptcy has grown to 7% and nearly ⅓ of homeowners of retiring age still have mortgage dept.” – Bill Bush.

Resources Mentioned:

• Inside The Plan- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

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• bbush@horizonfg.com
• Abush@horizonfg.com

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In this episode of Inside the Plan, Bill Bush and Andy Bush, Advisors at Horizon Financial Network, give us some valuable insight on which choices you can make for your 401K plan when leaving an employer. Learn the pros and cons on everything from withdrawing from your 401K plan too early, to rolling over your old plan into your new employer’s plan.

Show Notes:

• 0:57--- Some of what you can do when you leave an employer resides in the plans document.
• 2:32--- What are the “pros” of leaving your money in a 401K after leaving an employer?
• 3:39--- What are the downside of leaving your money in a 401K after leaving an employer?
• 4:37--- What will happen if you cash out your 401K too early?
• 6:14--- Rolling your old account into your new employer’s plan is an option.
• 7:25--- What can be expected when you roll your old 401K into an IRA?
• 8:45--- You are not going to be able to borrow against an IRA.

3 Key Points:

1. Force Out provisions occur for 401K plans below $5000.
2. You may be eligible to withdraw from your 401K penalty-free, depending on your age.
3. Removing money from your 401K early means increasing your taxable income and a premature distribution penalty of 10%.

Before deciding whether to retain assets in a 401(k) or roll over to an IRA, an investor should consider various factors including, but not limited to, investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock. Please view the Investor Alerts section of FINRA website for additional information

Tweetable Quotes:

• “Know your employer plan specifications. You can find that in the summary plan description usually.” – Bill Bush.

• “Your going to have to keep up with more accounts if you still got that one at the old 401K.” – Andy Bush.

• “Maybe their IRA is serving as kind of a basket of some of those old 401K tombstones, and its collecting all of those dollars into one spot. And, they likely have an advisor that is guiding them.” – Andy Bush.

Resources Mentioned:

• Inside The Plan with the 401k Brothers-- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

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• bbush@horizonfg.com
• Abush@horizonfg.com

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Summary:

Do you have retirement plans from multiple companies? Are you ready to consolidate them? The 401K brothers take us through the simple steps to consolidate your 401K accounts.

Show Notes:

• 1:00 - 401K Retirement Plan rollovers
• 2:30 - The first step is to reach out to your old employer and request the 401K rollover forms from them
• 3:02 - The check must be made out to the new holder of your 401K stating that it is for benefit of you. This is the most common way: a direct rollover.
• 4:00 - On an indirect rollover, where the check is made out to the participant only, you will be deducted 20% tax from the amount rolling over.
• 6:05 - Make sure to always update your beneficiaries on all of your accounts
• 7:30 - Reach out to your financial advisor to figure out what kind of rollovers are best for you

3 Key Points:

1. It isn’t difficult to have many 401K accounts with several different employers.
2. To consolidate your accounts, you can request a form from your old employer to start rolling over your account.
3. Make sure the check is made out to the next institution that will be holding the money otherwise you will have to pay penalties.

Tweetable Quotes:

• “Folks have a lot of tombstones from their old workplaces with their 401K plans” –Andy

• “Reasons to rollover is to consolidate.” -Bill.

• “Check with your new employer.” –Bill.

Resources Mentioned:

• Inside the Plan- Discover more about the Podcast
• Horizon Financial Group

• https://www.irs.gov/pub/irs-tege/rollover_chart.pdf

• Contact Information:

  • bbush@horizonfg.com
  • Abush@horizonfg.com

Securities and advisory services offered through Cetera Advisors LLC, member FINRA/SIPC, a Broker/Dealer and Registered Investment Advisor. Cetera is under separate ownership from any other named entity.

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Age matters when you are managing your 401K. There are several important ages that you need to be aware of. The 401K brothers take us through the important dates of our plans and discuss catch-ups, social security and distributions.

Show Notes:

• :30 - 21 years of age is what most plans to put as the entry age.
• 1:22 - Age of 50 is important because at 50 you are able to do the catch- up provision in your 401K plan. This means you can start contributing more money to your plan.
• 2:42 - 66 and 67 are important because this is typically the age of most folks who hasn't´´ retired yet hit the full social security retirement age.
• 3:57 - Sit down and do an analysis to see if you are really getting the best benefit of social security. If you wait until this age, you will get the full benefit without tax implications.
• 4:54 - 59 ½ is the first age you can take from any retirement account without paying the 10% penalty.
• 5:57 - 70 ½ is the age you have to start taking out of the retirement plans. It is the required minimum distribution amount. If you are still working and you aren't a 5% owner of a plan, you are not required to take it at that time.
• 7:18 - There is a lot of information to understand to do the distribution of those plans.
• 7:56 - No matter what age you are at, check your account.

3 Key Points:

1. There are many important ages to know when managing your 401k account.
2. While the age you enter into a plan can be around 21 years, there are many other important ages as you progress through life.
3. It is important to know these ages so you can plan your retirement distributions.

Tweetable Quotes:

• “No matter what age you are at, check your account.” –Bill.

• “Look at all the little habits of how you save and spend your money. It will let you know how long your money will last in retirement” –Bill.

• “The year you turn 50 you are able to do the catch-up provision in your 401K plan. ” –Bill.

Resources Mentioned:

• Inside the Plan- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

  • bbush@horizonfg.com
  • Abush@horizonfg.com

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There are several different assets you can choose to invest in within your 401K. How do you know which to choose? There is a range of different risks and rewards associated with each asset. Today, the 401K brothers add some light to the different investments and their risk.

Show Notes:

• :30 - Why are there so many different asset classes to choose from in your 401k
• :40 - Some people have a greater appetite for risk especially. We also must keep mind that people from their 20´s to 60´s are investing in these asset classes.
• 1:26 - The different types of assets
  • 1: 30 - Cash - you know what you will get. However, cash or cash equivalents do not outpace inflation. It is a safe haven over a short period of time.
  • 2:56 - Bond funds - You look at this like an I owe you. You are lending the company your money. A little more risk than cash however you have a little bit more return.
  • 4:20 - Large- cap Stock - When you buy a stock, you are buying ownership of that company. Large cap are like Exxon, McDonalds, Walmart, etc.
  • 5:25 - Mid-cap - Funds that are smaller than the large cap. These are maturing companies. They are not mature like Exxons and Walmarts. They carry a little more risk.
  • 6:27 - Small- cap - Companies that are valued at less than $2 B. There is more uncertainty in this class.
  • 7:30 - International Funds - These are companies outside of the US. You have no idea about the politics, it is a different currency, and you have no say in either of these things.
• 8:30 - It is good to understand the risk and reward scale to understand what you are comfortable with.
• 9:22 - If you have a shorter time window to retirement, you need to understand that you will have a smaller tolerance for risk.
• 10:00 - Specialty funds and Balanced funds - Specialty funds are geared towards a certain sector ie healthcare, energy, or real estate fund. Balanced funds are based on age appropriate or risk associated funds. It is a blended balance depending on what you select.

3 Key Points:

1. There are several different classes within a 401k plan.
2. Each asset class varies on the risk scale.
3. The different classes of assets on a scale from less risk to more risk are cash, Bond, Large caps, Mid-cap, Small-cap, International funds.

Tweetable Quotes:

• “Cash or Cash equivalents do not outpace inflation.” –Bill.

• “More risk and more reward.” –Bill.

• “It is important to know the risk rewards scales because within a 401k plan you are taking on risk and it depends on what you are comfortable with. ” –Bill.

Resources Mentioned:

• Inside the Plan- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

  • bbush@horizonfg.com
  • Abush@horizonfg.com

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Have you ever wanted an easy button for your 401k investing? Target Date Funds are a one-stop investment option for a 401k participant. Today, we sit down with Andy and Bill Bush to get a better idea of how we can use target date funds to enhance our own retirement portfolio.

Show Notes:

• :30--- Introduction of today's topic: Target date funds
• :44-- What is a target date fund?
• :50-- A target date fund is a one stop shop for your retirement investment needs
• 1:50-- For this fund, the major deciding characteristic is time.
• 2:37-- The fund that corresponds with your retirement year contains the right amount of risk for you.
• 3:50-- When you are almost to your retirement, you do not want as much risk in your portfolio
• 4:33-- There will always be some exposure to stocks because there is no way to predict how long you will be in retirement
• 4:57-- Target date funds are an ¨easy button¨ for retirement investments
• 6:22-- The target date is not a guarantee
• 7:00-- Over time they typically increase
• 7:12-- Target date funds are managed over a length of time. They are not actively managed
• 8:06--Target fund with the same date and different providers are different.

3 Key Points:

1. Target date fund is a fund that targets your retirement date. It is pre-picked with funds that give you the correct amount of risk for your age group.
2. The major characteristic that decides which assets are in each fund is time.
3. Target Date Funds are not a guarantee. The are not actively managed and are meant to be held until retirement.

Tweetable Quotes:

• “If I didn't know anything about investing and didn't want to select my own funds, I could select the 2035 fund.” –Bill.

• “Bonds and cash are the most conservative investments whereas stocks are more risky.” –Bill.

• “Target Date Fund is a way, an easy button to make one selection when enrolling in a plan. ” –Bill.

• “Target Date Fund is not a guarantee. ” –Bill.

Resources Mentioned:

• Inside the Plan- Discover more about the Podcast
• Horizon Financial Group

• A video on Target Date Funds

• Contact Information:

  • bbush@horizonfg.com
  • Abush@horizonfg.com

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It is an age old question that has existed for as long as a 401K has: How much should I contribute to my 401k? Hosts Bill Bush and Andy Bush, Financial Advisors with the Horizon Financial Group, cut to the chase and give us the information we need to plan for a successful retirement. They give us tools to plan and learn about our personal 401K.

Show Notes:

• 1:00--- The age old question: How much should you put into your 401K account? It is a different answer for each person depending on their life, budget, and many other variables.
• 3:20--- The assumptions you make today will affect how much money you will have in retirement.
• 4:00--- Some key factors to look at: your planned retirement age, bills, replacement income (social security) and current income.
• 7:24--- A Case Study: If you start saving at 35 yo without any money set aside for retirement and you have a $100,000 income, you will need to set aside 20% of your income each year.
• 9:22--- How to check-in along the way: At age 35, you need to have two times your yearly income set aside in savings.
• 10:45--- Many banks or companies have tools available to help you calculate how much you should set aside for your family.

3 Key Points:

1. The age old question when it comes to 401K and retirement is ¨how much do I need to put in it to be ok in retirement?
2. The answer to this question varies depending on your current income, planned retirement age, and present and future bills.
3. In general, many companies offer tools to enable you to calculate the percentage that fits your life.

Tweetable Quotes:

• “We direct people to 401k calculators to help people know what they need to contribute.” –Bill.

• “How much of your income are you trying to replace.” –Bill.

• “Social security represents a greater piece of replacement income for lower income families.” –Bill.

Resources Mentioned:

• Inside the Plan- Discover more about the Podcast

• Horizon Financial Group

• Contact Information:

  • bbush@horizonfg.com
  • Abush@horizonfg.com

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Beneficiaries are a critical piece of your 401K. If you were to die, this person receives the benefits from your 401K. Andy and Bill Bush go in depth about contingent and primary beneficiaries and what we need to take care of today.

Show Notes:

• :30--- Beneficiary is someone who gets your 401 K benefits once you die
• 1:00--- The thing is, once you die, you can´t change your beneficiary
• 1:47--- There are two different types of beneficiaries: Primary and contingent. If primary would perish, your contingent beneficiary will receive your benefits.
• 3:29--- Marriages, divorces, and deaths can cause beneficiaries to change.
• 3:45--- If your primary passes away and you do not have a contingent, you will have to go through the estate process.
• 5:16--- Put a reminder each year to review your beneficiaries
• 5:45--- Use the tools that you have to remind yourself to check your beneficiaries just like you check your investments

3 Key Points:

1. Beneficiary is the person who receives the benefits of your 401k when you die.
2. There are primary and contingent beneficiaries. Upon death of the primary beneficiary, the contingent beneficiary receives your benefits.
3. Make sure you review your beneficiary information each year to ensure that the right people are in line to get your benefits.

Tweetable Quotes:

• “Once you die, you can't change it.” –Andy.

• “Use the tools that you have.” –Bill.

• “Make sure it is correct as long as you are living.” –Bill.

Resources Mentioned:

• Inside the Plan- Discover more about the Podcast

• Horizon Financial Group (Inside the Plan is a part of the Retirement Group at Horizon Financial Group)

• Contact Information:

  • bbush@horizonfg.com
  • Abush@horizonfg.com

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In this episode of Inside the Plan, Bill Bush and Andy Bush, Advisors at Horizon Financial Group give us more information about social security. They talk about what social security is and what we can do about it.

Show Notes:

• 1:00--- Social Security was taken for people to take at 62 when life expectancy was 58. IT was a source of emergency income.
• 1:52--- Myth: Social security is predicted to be depleted by 2034.
• 2:20--- Legislation needs to be made to correct the shortcomings of Social Security.
• 4:00--- Be sure you know what your full retirement age is.
• 4:40--- You do not have your own social security account. All you are getting is income benefit.
• 5:52--- You can't guarantee what the market will be but you can guarantee you will receive social security.
• 7:00--- If you take social security early while you are still working, the amount you take will be diminished. If you take it at your full retirement age and take social security while working, your amount won´t be reduced..
• 9:00--- You can look online to see what you benefits will be a ssa.gov

3 Key Points:

1. Social Security was created many years ago (when life expectancy was 58) to act as an emergency source of money for people.
2. Social security could be reduced by 2034 if no legislative action is taken.
3. You can look at your benefits and full retirement age at ssa.gov.

Tweetable Quotes:

• “The full retirement age for most people now is 67.” –Bill.

• “You don´t have your own account. You are paying for the generation that is retiring now” –Andy.

• “It is going to pay a benefit.” –Andy.

• “You need to think about how you are going to pay for things in the future.” –Bill.

Resources Mentioned

• The Confident Wealth Podcast- Discover more about the Podcast
• Horizon Financial Group

• gov

• Contact Information:

  • bbush@horizonfg.com
  • Abush@horizonfg.com

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In this episode of Inside the Plan, Bill Bush and Andy Bush, Advisors at Horizon Financial Group give us the 411 on fees associated with our 401k. The delve into why we pay for our plans and how we can get the most value out of our plan.

Show Notes:

• 1:00--- There are fees associated with your 401k.
• 1:52--- There is a cost associated with the recordkeeper--the company keeping track of your investments and sending you statements.
• 2:40--- The investing itself also costs money even if it is a passive holding account. It costs even more when the advisor.
• 4:16--- Retirement fund advisors provide education. A lot of times these services exist but participants pay without using these services.
• 6:20--- Depending on the size of the plan, fees can vary greatly. you can find more information on the fees on your statement. The plan sponsor has a responsibility to give this report to participants if it is not in your statement.
• 7:20--- When you look at your statement, the number you see is the number after fees.
• 8:22--- Any service you get you pay for it. Make sure you are taking advantage of the advisor available to you.

3 Key Points:

1. If you have a 401k plan, chances are you are paying fees to have the service.
2. The fees are associated with the recordkeeping company as well as how you are making investments.
3. Keep track of your fees via your statements to ensure you are getting the most value out of your plan.

Tweetable Quotes:

• “Inside a 401k plan, there are fees.” –Bil.

• “There is a misconception that 401k are free.” –Andy.

• “What in life is free? The air.” –Bill and Andy.

Resources Mentioned:

The Confident Wealth Podcast-- Discover more about the Podcast

Horizon Financial Group

• Contact Information:
  • bbush@horizonfg.com
  • Abush@horizonfg.com

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In this episode of Inside The Plan, the 401(k) Brothers discuss the differences between traditional and Roth deferrals...

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In this episode Bill and Andy Bush talk about the contribution limits in company retirement plans...