Sep 8, 2021
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.
- 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
- 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
- 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
- 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
- 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.
- 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.
- “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
- “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