Jan 4, 2022
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.
- 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
- 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
- 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
- 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.
- 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.
- 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.
- “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