May 3, 2022
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.
- 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
- 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
- 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
- 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
- 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
- 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.
- “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
- “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