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.
Episode Highlights
- 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 retirement.
- 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 you.
- 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.
Tweetable Quotes
- “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
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