Money Guy Show: Episode Summary

Title: BIG Changes Are Coming To Your 401(k) - What You Need To Know
Hosts: Brian Preston and Bo Hanson
Release Date: August 13, 2025

1. Introduction to Upcoming 401(k) Changes

In this episode, hosts Brian Preston and Bo Hanson delve into significant changes poised to impact 401(k) plans. They emphasize the importance of staying informed about these alterations to maximize retirement savings effectively.

Bo Hanson [00:07]:
"We know that for most people, their 401k is one of the single most valuable tools that they have in their wealth building toolkit."

2. Overview of the Executive Order

Brian and Bo discuss a recent executive order focused on expanding investment options within 401(k) plans. Signed on August 7th, the order aims to democratize access to alternative assets, including private equity, cryptocurrencies, and real estate.

Brian Preston [00:37]:
"Is potentially coming to your 401k... here's actually what it said."

Bo Hanson [01:21]:
"The Secretary of Labor shall reexamine guidance on fiduciary duties... define alternative assets under plans like 401ks and 403bs."

3. Implications for 401(k) Investors

The hosts break down what the executive order means for everyday investors. They highlight the potential introduction of new asset classes in retirement accounts, which traditionally required accredited investor status.

Bo Hanson [03:29]:
"This potentially could open up $12 trillion in retirement assets, or about 20% of the overall market to invest in these types of asset classes."

Brian Preston [04:18]:
"Your current regular investments, they're not going away. Don't get distracted by chasing the hot dot."

4. Key Takeaways and Cautions

Brian and Bo caution listeners against immediately diving into new investment options introduced by the executive order. They stress the importance of maintaining core investments, such as S&P 500 index funds, which typically offer solid returns with manageable risk.

Bo Hanson [08:07]:
"Higher risk does not always guarantee higher returns. We want you to think through that."

Brian Preston [06:34]:
"Majority of people still need to stay in the level of just core investments, the index funds and so forth."

5. Audience Q&A Highlights

The latter part of the episode features a Q&A session where Brian and Bo address various listener questions related to personal finance.

• Handling Old 401(k)s:
  Bo Hanson [16:14]:
  "When you leave an employer, you really have four options of what to do with that old 401k."

  Brian Preston [20:09]:
  "Should we go ahead and create the taxes, do the Roth conversion... it's definitely something you want to measure twice, cut once."

• Managing Credit Card Debt:
  Bo Hanson [39:25]:
  "What I'd love to see you do is just buckle down and finish the drill, whatever that means."

  Brian Preston [40:21]:
  "If you go take on more debt or these 0% credit cards... just don't want these things to be a distraction from the ultimate celebration is when you're completely out of high interest debt."

• Preparing for a Sabbatical:
  Bo Hanson [32:03]:
  "You need to build a sabbatical fund to cover six months of living expenses, plus maybe even a few more."

  Brian Preston [33:14]:
  "Let's make it purposeful... requiring planning and preparation as well."

• Deciding to Move Out While Maintaining a Savings Rate:
  Bo Hanson [51:42]:
  "Most 25-year-olds aren't able to have a 25% savings rate. That's okay."

  Brian Preston [53:16]:
  "Ask yourself, what is my best version of myself in my 20s, 30s, 40s, 50s and beyond."

• Applying the Financial Order of Operations to a Business:
  Bo Hanson [57:00]:
  "The principles surrounding the financial order of operations apply, but the steps are a little bit different because businesses are very unique."

  Brian Preston [58:49]:
  "Cash is an unbelievable wealth builder in the long term... it's like step eight of the financial order of operations."

6. Conclusion and Final Advice

Brian and Bo wrap up the episode by reiterating the importance of sticking to tried-and-true investment strategies, especially in the face of new opportunities. They encourage listeners to utilize available resources, such as moneyguy.com, to make informed financial decisions.

Bo Hanson [11:07]:
"We love that we get to be here in this place, doing that. We also love that every Tuesday morning at 10am Central, we can load you up with information."

Brian Preston [49:11]:
"We want people to use our system, take advantage of all of our free stuff, go to moneyguy.com resources and lean into the free stuff."

Notable Quotes:

• Bo Hanson [00:11]:
  "Most people their 401k is one of the single most valuable tools that they have in their wealth building toolkit."

• Brian Preston [06:34]:
  "Don’t get distracted by chasing the hot dot."

• Bo Hanson [08:07]:
  "Higher risk does not always guarantee higher returns."

• Brian Preston [40:21]:
  "Just don't want these things to be a distraction from the ultimate celebration is when you're completely out of high interest debt."

Final Thoughts

This episode serves as a crucial guide for anyone invested in a 401(k) or considering their retirement planning options. By breaking down complex legislative changes and providing actionable advice during the Q&A, Brian and Bo equip listeners with the knowledge to navigate their financial futures confidently.

For more detailed advice and resources, visit moneyguy.com/resources.