Jul 10, 2023
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 and mid-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.
§ 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.
§ "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