In this episode of the “Insidethe Plan with the 401(k) Brothers”, hosts Bill Bush and Andy Bush, advisorsat Horizon Financial Group, continue their ‘Generation’s Series’ where they gogeneration-by-generation and talk about some of the saving habits and what's onthe minds of individuals. So, in this episode of the ‘Generation’s Series’, theywill continue talking about ‘Gen – X’ and their behavior when it comes toretirement and savings.
· 01:20– People who were born in 1965 through 1980 come under Generation X, which is apretty cool generation.
· 03:10– According to a couple of researchers, by about the age of 40, Gen – X wantsto try to have about three times their salary and by the age of 50, they try tomake around six times their salary.
· 05:20– In a study by JP Morgan, around 70% of working-class people say, “I will worklonger and delay retirement”, but only about 27% are actually able to do that becauseof health issues, or because of downsizing in their company, etc.
· 07:00– Bill says that the other thing that Generation X is faced with is as theybegan their working careers, pensions were on the downside. Companies stoppedoffering those defined benefit plans.
· 09:30– A study by EBRI (Employee Benefit Research Institute) compared the financialstatus of Gen X families, and found that those families own about 67% of assetsinside of retirement plan whereasBaby Boomers at the same age had 71.5%.
· 11:25- Morgan Housel's book “Psychology and Money” talks about how generationsbehave based on their upbringing, and what they've experienced in theirparticular time of those formative years.
· 14:00- When we do presentations for retirement plans, we do like to zoom out tothose greater time periods, because you can get lost in the weeds sometimes aboutwhat's going on in the day, mentions Bill.
· 16:00– Referring to Malls, Bill says, if you got a place where you used to be ableto walk in and buy things, and now it's a fulfillment Centre, which is sendingit to your house.
· 18:00– Andy states that when it comes to investing and saving for retirement, it isabout discipline, and it's about a habit.
· 20:45– Retirement saving is how we're going to take care of our 80 or 85-year-oldself.
Three Key Points
1. GenerationX has experienced various crises including financial busts, and othergeopolitical campaigns, like wars and things like that, that occurred in real-time,and they are very scary and uncertain. But at the same time, in the midst of ushaving some volatility in this current year 2022. As an investor in the stockmarket, you're not just throwing money into something that has some randomvalue. It's a value based on your investment in the companies like Walmart,McDonald’s, IBM, Amazon, etc. So, you're investing in the value of what thatcompany is worth.
2. ForGeneration X, if you're in your 40s and your 50s, possibly, and you areworking, you probably need to think about retirement a little bit more. So, itis true that when your age flips to 50, and you say, it's just a number. But atthe same time, you do realize that you are a lot closer to retiring, and youare a lot closer to other things. It is to sort of get people prepared to thinkthat even if you haven't done much yet, there's still time left to invest in theretirement plan and to make the progress.
3. Andysays, it's not about some specific goal out there, it's about a lifestyle. Itis the same thing with investing, create a lifestyle habit of putting dollarsaside so that you realize as you're getting further down the runway, howquickly you're moving. That's the old expression - days are long, but yours areshort.
· “Outof the six children that are Bush kids, there are five of us that are membersof Generation X, and so we know this generation.” – Bill Bush
· “Ithink by this time in most of Gen-X’s lives, by about the age of 40, you wantto try to have about three times your salary.” – Andy Bush
· “Expertskind of worry that Generation X maybe isn't placing retirement savings on the frontburner.” - Bill Bush
· “The401 K plans really started in the early 80s.” - Andy Bush
· “Oncethe kids are out of the house, it does give a family the opportunity to startputting more in, because their expenses are dropping, but their incomes better.”- Andy Bush
· “Ifyou can turn in tune in to a financial channel, CNBC or MSNBC or any of thoseand it's going to tell you exactly what went well.” - Andy Bush
· “Nowwe seeing the speed and the immediacy of things, it's really changed theworld.” - Bill Bush
· “Ithink brother Bill and brother Pete have written a book, and it'll be publishedmaybe later in the summer this year, that is called ‘The Runway Decade’.” -Andy Bush
· Horizon Financial Group - Website
· Contact Information: Bill Bush Andy Bush