Inside The Plan With The 401(k) Brothers Bill Bush and Andy Bush

In this enlightening episode, Bill and Andy Bush of Horizon Retirement Plans delve into the intricacies of planning for retirement, sharing personal anecdotes and professional insights. The brothers discuss expectations versus reality in retirement planning, the impact of health and work dynamics on retirement age, and strategies for ensuring a fulfilling and financially secure retirement.
Episode Highlights:
- **00:00:08:** The episode kicks off with introductions and a heartwarming recount of the Bush brothers taking their mother to the Kentucky Derby, setting a personal tone while hinting at the broader theme of family and retirement.
- **00:01:10:** The conversation shifts to the reality of aging and health as they compare their active mother to their slower-pacedbretired father, introducing the episode's core topic of retirement expectations.
- **00:02:01:** Bill and Andy discuss how most people's retirement age expectations do not align with reality, citing a significant statistical deviation discovered by the Employee Benefit Research Institute.
- **00:03:12:** The importance of understanding Social Security's full retirement age is highlighted, pointing out common misconceptions and the reasons people might retire earlier than planned, often due to health or unexpected job changes.
- **00:05:00:** Delving into the reasons people retire early, the dialogue covers health issues, family care responsibilities, and company downsizing, emphasizing the unpredictability of work and health on retirement plans.
- **00:05:58:** The brothers advocate for having a backup plan including disability insurance and saving aggressively, aiming for two years of expenses in a liquid account as a cushion for market downturns.
- **00:07:41:** Discussion about those who retire on their own terms, contrasting full retirement with partial retirement and examining reasons for continuing to work that range from financial needs to personal fulfillment.
- **00:09:26:** Exploring motivations behind part-time work post-retirement, distinguishing between working out of necessity versus desire, indicating a trend toward seeking engagement and fulfillment even in later years.
- **00:12:03:** The episode wraps up with an exploration of transitioning to retirement, emphasizing the need for purpose, proper use of time, socialization, and health management to make retirement fulfilling, borrowing concepts from JP Morgan's PUSH framework.
Key Takeaways:
1. Retirement expectations often do not match reality, with many retiring earlier due to health or employment changes.
2. Planning for retirement requires considering health insurance, adequate savings, and the timing of Social Security benefits.
3. Partial retirement and part-time work can offer financial flexibility, purpose, and social engagement, enhancing the retirement experience.
4. Purpose, use of time, socialization, and health (PUSH) are crucial for a fulfilling retirement, suggesting retirees need to plan not just financially, but holistically.
 
Tweetable Quotes:
- "Most people's retirement age expectations don't align with reality - plan not just for the when, but also for the unforeseen whys." -
Bill and Andy Bush
- "Retirement is more than just financial planning; it's about crafting a life that continues to bring purpose, joy, and health." - Bill and Andy Bush
 
Resources Mentioned:
- https://www.horizonfg.com/

In this thought-provoking episode, brothers Bill and Andy Bush of Horizon Retirement Plans share their insights on investment strategies, the value of diverse asset allocation, the underutilized potential of HSAs (Health Savings Accounts), and the link between financial literacy and wellness. The episode, rich with analogies from horse racing and personal anecdotes, guides listeners through a comprehensive journey of financial preparedness and strategic planning.

Episode Highlights

- **00:00:08 - Introduction of the Hosts:** Bill and Andy Bush, the 401k Brothers, introduce themselves and set the stage for the episode, touching on their familial connection and the unique perspective they bring to the financial world.
- **00:00:30 - Tradition of the Kentucky Derby:** The brothers discuss their annual tradition of attending the Kentucky Derby, providing a glimpse into their personal lives and interests outside of finance.
- **00:01:05 - Adding a Family Touch to the Derby:** They share plans to bring their mother to the Kentucky Derby for the first time, delving into the significance of family and memorable experiences.
- **00:02:09 - The Performance Derby in Investments:** A clever transition from horse racing to investment strategies introduces the concept of the "performance derby," emphasizing the importance of consistent, long-term investment planning over seeking quick
wins.
- **00:03:12 - Asset Allocation and Diversification:** The discussion delves deeper into the mechanics of asset allocation, comparing the unpredictability of top-performing asset classes to the changing leaders in a horse race, advocating for a diversified investment
approach.
- **00:06:46 - Zooming Out for a Broader Perspective:** The brothers advise on the importance of a long-term outlook on investments, likening it to viewing the entire track of a horse race to understand the full context.
- **00:06:56 - Health Savings Accounts (HSAs) as a Retirement Vehicle:** Andy introduces HSAs, explaining their benefits and how they can complement retirement planning, stressing the tax advantages and potential for investment growth.
- **00:09:29 - Investing HSA Contributions for Growth:** Further exploration into how leveraging HSAs for investment rather than
simply as savings accounts can significantly impact retirement preparedness.
- **00:11:47 - Financial Literacy's Impact on Wellness:** The brothers discuss findings from a recent survey linking financial literacy to reduced financial stress and improved well-being, advocating for education and proactive financial planning.
- **00:14:47 - Wrap-Up and Sign-Off:** The episode concludes with reflections on their upcoming Derby visit and a reiteration of the key financial insights shared throughout the discussion.

Key Takeaways 
 Importance of Tradition and Family: Integrating personal experiences with professional insights can enrich life's journey. "Performance Derby" Analogy: Consistency and long-term strategic planning in investments can outweigh the allure of short-term wins.  Diversified Asset Allocation: Emphasizing the significance of diversification to mitigate risks and optimize returns over time. Utilizing HSAs for Retirement Planning: HSAs offer triple tax advantages and can be a crucial component of a comprehensive
retirement strategy. Financial Literacy as a Pillar of Wellness: Knowledge and application of financial literacy can greatly reduce stress and improve overall financial health.  
Tweetable Quotes

- "Financial literacy is not just about knowing; it's about planning, executing, and thriving." - Andy
- "In our financial performance derby, slow and steady wins the race. Diversification is key." - Andy
- "An HSA is not just a saving tool; it's a strategic asset for your retirement." - Bill Resources Mentioned:

- https://www.horizonfg.com/

In this episode of "Inside the Plan with the 401(k) Brothers", hosted by Bill and Andy Bush, the hosts discuss the impact of inflation on household budgets and the psychology of spending and saving. They touch upon various points made by financial writer Morgan Housel, exploring the two ways money can be used: as a tool for a better life or as a yardstick for measuring status.
 
Episode Highlights:
·         01:26: The hosts delve into how inflation is impacting household budgets, shedding light on the challenges rising prices pose to personal finances and purchasing power.
·         02:54: Despite a slight cooldown, the hosts note that prices aren't dropping rapidly. The conversation highlights recent news about inflation surpassing expectations and its continued effects.
·         05:29: The hosts discuss the struggles of their college-bound children in a high-inflation era, especially regarding the increasing cost of groceries from their personal experiences.
·         07:44: Building on Morgan Housel's insights, the hosts explore the psychological side of spending. Money is viewed as both a tool for a better life and a status measure, prompting a discussion on mindful financial habits.
·         09:43: Referencing Warren Buffett's wisdom, the hosts discuss money's dual role as a yardstick for status. They stress the importance of striking a balance between spending and saving for a secure financial future.
·         11:16: The conversation shifts to the psychology of desire and scarcity, exploring how the longing for what can't be had influences consumer behavior and perceptions.
·         14:56: Introducing the concept of discerning between "nice" and "fancy" purchases, hosts advocate for considering the value and utility of acquisitions rather than focusing solely on price tags.
·         16:37: Reflecting on the relative nature of wealth, the conversation explores the dangers of constant comparison. The importance of gratitude and contentment with one's financial situation is highlighted.
·         18:32: The hosts emphasize the need for balance between immediate enjoyment and saving for the future, underscoring the significance of making mindful financial decisions.
·         20:49: Introducing the concept of hormesis, the hosts discuss its application to personal finance. They draw parallels between applying stressors for financial growth and maintaining a healthy lifestyle.
·         22:56: The hosts reiterate the need for balance and emphasize the importance of maintaining a healthy financial balance for overall well-being.
 
Key Points:
1.    The hosts discuss the challenges posed by inflation on household budgets, emphasizing its impact on personal finances.
2.    Exploring insights from Morgan Housel, the hosts delve into the psychological aspects of spending and saving, emphasizing the dual nature of money as a tool and a status measure.
3.    Throughout the conversation, the hosts stress the importance of finding a balance between present enjoyment and future financial planning, advocating for mindful spending and savings.
 
Tweetable Quotes:
·         "Inflation isn't just numbers on a chart; it's shrinking personal budgets. Your dollar won't stretch as far as it used to." - Bill
·         "Comparison can be a motivator or a joy thief. Cultivate gratitude for where you are and aspire wisely." - Andy
·         "Nice stuff vs. Fancy stuff: Understand the value, not just the price tag. Your choices reflect your financial health." - Andy
 
Resources mentioned:
·         Horizon Financial Group

In this episode of "Inside the Plan with the 401(k) Brothers", hosted by Bill and Andy Bush, the hosts discuss the intersection of behavior, savings, and retirement mindset. They delve into a tool called The Passport® available on the Horizon website, addressing mindsets in various aspects of life, including finances. The conversation is inspired by a piece from Goldman Sachs, exploring optimal mindsets that contribute to better retirement savings.
 
Episode Highlights:
·         02:58: The speaker discusses findings related to retirement and behavioral factors affecting it, focusing on optimism and future orientation.
·         04:02: Saving for retirement is compared to building habits, emphasizing the need for regular efforts.
·         05:08: Four behavioral factors affecting retirement are discussed: optimism, future orientation, risk-reward orientation, and financial literacy.
·         06:27: The importance of understanding individuals' backgrounds and environments in financial literacy discussions is mentioned.
·         07:24: Top 10 takeaways from a survey are shared, starting with the disconnect between retirement intentions and savings outcomes.
·         08:46: The correlation between optimal behaviors (optimism, future orientation, etc.) and easier retirement preparation is discussed.
·         09:53: Optimistic individuals tend to take more action, emphasizing the importance of proactive financial planning.
·         10:55: Savers threatened by the financial vortex seek professional help, showing interest in automatic features and guaranteed income options.
·         12:14: Savers with lower financial literacy are more action-oriented, highlighting the need for informed actions with financial education.
·         13:40: Traits common in vulnerable savers include low optimism, low future orientation, low financial literacy, and a risk-focused mindset.
·         15:20: Product preferences align with retirement mindset, with action-oriented individuals seeking a broader range of services and tools.
·         16:46: A positive view of the future reinforces motivation to save, emphasizing the importance of knowing what you're saving for.
 
Key Points:
1.       The podcast highlights four key behavioral factors influencing retirement planning: optimism, future orientation, risk-reward perspective, and financial literacy.
2.       The importance of aligning intentions with actual savings outcomes is emphasized, suggesting that one's mindset towards the future impact’s retirement preparedness.
3.       The discussion covers the significance of taking proactive actions aligned with a positive outlook, the role of future orientation in saving more, and the impact of financial literacy on informed decision-making for retirement planning.
 
Tweetable Quotes:
·         "Financial literacy is the compass for retirement readiness – understanding the basics lays the foundation for informed decisions and effective actions in securing your financial future."
·         "Risk and reward evolve with age – recognizing the importance of asset classes over time helps navigate the balance between security and achievement in pursuing financial goals."
·         "The most vulnerable savers share common traits – low optimism, future orientation, financial literacy, and a focus on risk over reward. Building resilience starts with addressing these key factors."
 
Resources mentioned:
Your Expansion Passport®
Your Walkaway Passport®
Retirement Mindset Matters

In this episode of "Inside the Plan with the 401(k) Brothers", hosted by Bill and Andy Bush, the hosts discuss a year-end financial checklist to help listeners maximise benefits for the current year and prepare for the next. The discussion includes insights on upcoming changes in contribution limits for 2024 and highlights key considerations for individuals to review in their financial lives before the year concludes.
 
Episode Highlights:
·         01:52: The hosts start discussing the first category: taxes. They emphasize the consideration of deductions to maximize benefits for the year, mentioning options like contributing more to retirement plans or utilizing IRAs and Roths.
·         04:36: The hosts touch on the uncertainty of future tax rates and mention that the current rates are set to sunset in 2025. They highlight the potential for changes in tax brackets and advise listeners to consult with their CPA or accountant for accurate information.
·         05:30: Moving to the investment category, the hosts discuss the importance of reviewing asset allocation during the year-end. They briefly mention the concept of gifting to family members, including the annual limit of $17,000 and the need to file gift tax paperwork for amounts exceeding this limit.
·         06:19: The hosts begin discussing the investment side of the checklist, focusing on asset allocation and the potential need for rebalancing due to volatility in the past year.
·         07:05: Further details on the investment side include reviewing outstanding loans and mortgages, revisiting income and savings needs, and considering dividend distributions, emphasizing the tax implications of such distributions.
·         09:13: The hosts suggest self-employed individuals consider opening a retirement plan and highlight the potential tax advantages. They also mention tax breaks for businesses with under 100 employees, especially under 50, regarding retirement plans.
·         10:19: Moving on to the insurance category, the hosts recommend reviewing insurance plans, including property and casualty, and life insurance. They emphasize the need to adapt coverage to changing life circumstances.
·         13:40: The hosts discuss milestones, focusing on specific ages and corresponding financial considerations, such as catch-up contributions, Social Security decisions, and required minimum distributions (RMDs).
·         16:18: Health-related considerations, including open enrolment, reviewing health plans, and understanding flexible spending accounts (FSAs), are covered in the health category.
·         19:41: In the family category, the hosts recommend contributing to education accounts, considering 529 plans, and making charitable contributions, including qualified charitable distributions (QCDs) for RMDs.
·         21:54: The hosts conclude by encouraging a holistic approach to financial planning, considering both short-term and long-term opportunities. They stress the importance of clear thinking and planning beyond immediate concerns.
 
Key Points:
1.    The hosts discuss a comprehensive checklist covering taxes, retirement, investments, insurance, milestones, health changes, family, and life changes.
2.    Emphasis on maximizing deductions, contributing to retirement plans, tax loss harvesting, and considering potential changes in tax rates. Consultation with a CPA is recommended.
3.    Retirement actions key points include maximizing 401(k) contributions, exploring Social Security filing strategies, and considering additional retirement plans for the self-employed.
 
 
 
 
Tweetable Quotes:
·         "Year-end financial planning is like a short-term roadmap, but don't forget to zoom out and plan for the next three years—think holistically about your life and financial goals."
·     

In this episode of "Inside the Plan with the 401(k) Brothers", hosted by Bill and Andy Bush, the hosts provide insight about the contribution limits of 2024 to know what you're getting into for the upcoming year which IRS announce every year around this time.
 
Episode Highlights:
·         01:04 Discussion on inflation-indexed contribution limits, highlighting that most plans saw an approximate $500 increase from 2023 to 2024, with 401K plans moving from $22,500 to $23,000.
·         02:13 No change in catch-up contributions for 2023 and 2024, remaining at $7,500, leading to a total limit of $30,500 for eligible participants in 401K, 457, and certain 403 B plans.
·         04:10 Individual IRA limits also rose by $500 to $7,000 for 2024, and the catch-up contribution remained at $1,000, totaling an $8,000 potential contribution for those turning 50.
·         05:08 Eligibility for contributing to a Roth IRA in addition to a 401K depends on modified adjusted gross income (AGI). In 2024, single individuals earning less than $146,000 or married couples filing jointly earning less than $230,000 can contribute to both.
·         06:49 For traditional IRAs, if you're covered by a retirement plan at work, the deductible contribution income limits are lower: less than $77,000 for singles and less than $123,000 for married filing jointly.
·         07:23 Contributions to a traditional IRA without tax deductions must be tracked as after-tax contributions to ensure taxes are not paid upon withdrawal for the contribution amount.
·         08:52 The hosts reflect on the tendency of individuals to focus on financial planning towards the end of the year, emphasizing the importance of progress towards a secure financial life.
·         11:22 The hosts suggest stepping back to gain perspective on one's financial journey and the importance of planning, rather than only dealing with day-to-day needs.
·         12:53 The hosts discuss the passport package for self-assessment, highlighting different mindsets between those under and over 45 years of age. The assessments are based on the work of Carol Dweck on growth versus fixed mindsets.
·         14:22 They introduce the Horizon Financial Group's website where listeners can take the passport assessments – 'Expansion Passport' for those under 45 and 'Walkaway Passport' for those over 45.
·         15:56 The hosts encourage listeners to step back from daily life and evaluate their mindsets, suggesting this tool can aid in identifying areas for growth.
 
 
Key Points:
1.    For 2024, the contribution limits for 401K plans have increased by $500 from the previous year, now standing at $23,000, with the catch-up contribution remaining at $7,500, making a total of $30,500 possible for those eligible.
2.    Individuals with a modified AGI below specific thresholds can contribute to a Roth IRA in addition to their 401K.
3.    The hosts emphasize the importance of assessing one's financial mindset and introduce a self-assessment tool called the passport package, which helps individuals gauge their financial health and progress towards goals, with distinct versions for those under and over 45 years of age.
 
 
Tweetable Quotes:
·         "Get ready for 2024! Most 401(k) plans are upping the ante with contribution limits increasing by about $500. Time to max out your financial growth!”
·         "Whether you're aiming for a Roth IRA or sticking to traditional, knowing your AGI can unlock new opportunities for your retirement contributions in 2024.”
·         "End the year strong by reflecting on your financial journey. Take the 'passport' to assess your mindset – are you growing or just going with the flow?”
 
 
Resources Mentioned
·         Horizon Financial Group