Aug 2, 2019
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.
- 0:16 – Bill Bush and Andy Bush introduce the episode and guest
- 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
- 4:02 – How does Jon Anderson determine how much to contribute
- 5:54 – What is Jon’s take on people that view budgeting as a
- 6:30 – Is there an area where participants miss the mark?
- 7:18 – What makes financial planning so important?
3 Key Points:
- 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.
- Contributions and broader planning play a role in being
- 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.
- “I don’t think that I could be an expert or really in this
business at all and not
a participant, right? So, of course I participate. But, I’m
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
- “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.