I guess my last post got delete because of the server rash, so ill write it again to make sure you can read it.
There is a difference between building a engine stupid power and building a engine for reliable power. Take either my truck or vw bug. Both of them have forged cranks, rods and pistons. Both engines run better, more efficient and more reliable than stock. Truck 375 vs 290, vw bug 128 vs 56. With better parts and proper maintenance of course they'll run longer.
Now your Predator 420cc 13hp is an under carbed utility motor. With a aftermarket carb or proper jetting, intake and a header with that motor youll easily gain 2-4 hp. Next add a cam and net 1-2 hp. That right there leaves you with an almost stock 16-19hp motor. Now unhook the governor and reach the higher rpm that will gain you that last pony. That is were the bilit rod and flywheel come in place. Now i only would recommend these if you plan to have the motor at full blast for long periods of time, No the stock ones probably wont blow up on you, but like you you know higher rpm = shorter motor life.
for you i think you'll be fine with leaving the gov on, maybe adjust so you hit the 4k range.
here is what i am going to probably get for my honda gx390. Im going for more torque than hp. thow i should be sitting in the 16-18hp range
Gx390
mikuni 28mm or bore 390 carb- $56-$75
jets- $4
custom intake $3 in materials
custom header $3 in materials
280 Marine Grind cam $119
so ill be less than 200$ into my engine and be right were i want to be