Inside The Plan

The Brothers Hit the Road: A Chat with an Industry Professional

Aug 2, 2019

In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, are on the road at their live event in Denver, Colorado. They have a chat with Jon Anderson, Head of Retirement at Cetera Financial Group in the Greater San Diego Area, about the importance of retirement planning.

Episode Highlights:

  • 0:16 – Bill Bush and Andy Bush introduce the episode and guest Jon Anderson.
  • 1:11 – Is Jon Anderson a 401k participant?
  • 1:51 – Why does Jon use a target-date fund?
  • 2:42 – What elements play into being retirement-ready?
  • 3:22 – Professional investment management frees up your time to focus on priorities.
  • 4:02 – How does Jon Anderson determine how much to contribute to a 401k?
  • 5:54 – What is Jon’s take on people that view budgeting as a restriction?
  • 6:30 – Is there an area where participants miss the mark?
  • 7:18 – What makes financial planning so important?

3 Key Points:

  1. The data shows that if you are concerned about your investments and you make changes, all you are going to do is decrease your chances of being ready for retirement.
  2. Contributions and broader planning play a role in being retirement-ready.
  3. Budgeting frees you up to live today, because you don’t have to worry if you are spending too much for the future.

he target date of a target date fund may be useful starting point in selecting a fund, but investors should not rely solely on the date when choosing a fund or deciding to remain invested in one.  Investors should consider the fund's asset allocation over the whole life of the fund.  Often target date funds invest in other mutual funds, and fees maybe  charged by both the target date fund and the underlying mutual funds. A fund with higher costs must perform better than lower cost fund to generate the same net returns over time.

Tweetable Quotes:

  • “I don’t think that I could be an expert or really in this business at all and not participate as a participant, right? So, of course I participate. But, I’m also on our Cetera investment committee.” – Jon Anderson.
  • “To be perfectly transparent, what I like about my plan is I don’t have to think about it. What I like about my plan is I can choose one of the options that is more turn-key.” – Jon Anderson.
  • “Why wouldn’t I use a target-date fund? I think my time is better spent thinking about my personal life, thinking about my family, thinking about my job.” – Jon Anderson.

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