Inside The Plan

Survey Says...

In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, talk about a Schwab survey of 1000 401k participants. Learn from Bill and Andy some of the key truths regarding retirement planning that were revealed and can be applied to your own life.

Episode Highlights:

  • 0:20 – Bill Bush and Andy Bush introduce the topic of a Schwab survey that involved 401k participants.
  • 1:41 – How much money do the survey participants feel they need to save for retirement?
  • 2:07 – What is the safe withdrawal rate for annual retirement spending?
  • 4:38 – What is the typical view of investing and saving for retirement?
  • 6:27 – Are people more likely to use a savings account for retirement?
  • 7:37 – What are some less volatile investment options to go beyond just a savings account?
  • 9:01 – Half of the Schwab survey participants are contributing 10% or less to their 401k plan.
  • 10:50 – One-third of participants chose a percentage for their 401k that they were comfortable with.
  • 14:11 – 52% have said they have used a retirement plan calculator.

3 Key Points:

  1. The media typically convinces people that they need at least $1 million to retire with.
  2. Two-thirds say that a 401k plan represents their first experience with investing.
  3. Most view themselves as savers rather than investors.

Tweetable Quotes:

  • “On average, (401k) participants (Charles Schwab retirement survey) think they need $1.7 million saved for retirement.” – Bill Bush.
  • (Annual retirement spending) “We always look at kind of the safe withdrawal rate of being about 4%.” – Andy Bush.
  • “Nearly 6 out of 10 people say their 401k is their only or their largest source of retirement savings.” – Bill Bush.

Resources Mentioned:

Contact Information:

  • bbush@horizonfg.com
  • Abush@horizonfg.com

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