Over the years we have noticed once an Employee leaves a company, certainly their status goes down, but often times they seem to have trouble getting answers, controlling their old plans, and in particular, working with their old 401k provider.
From our perspective, as you may imagine a latest Cerulli report not only clarifies why these experiences occur, but also confirm our suspicions!
Cerulli Report Confirms “They don’t want your old 401k Money!”
As of this post, we have requested a copy of the report that will certainly make a full appearance again here at street-cents and likely in our Newsletter – (This report is only a week old and privy to professional media members AT THIS TIME)
This Financial Advisor Article caught our attention as in disbelief we read the abbreviated story on the Cerulli Report:
This from the article:
Overall, plan sponsors don’t seem especially interested in keeping their retired workers’ assets, according to Cerulli. A recent survey by the firm of 800 plan sponsors found that 59 percent preferred that workers take their assets and leave. About 27 percent of respondents said they preferred keeping such assets in their plan
The problem with this is that workers forced (or feeling forced/neglected) to take their funds, without direction – frequently tend to cash out their plans, sacrificing their future!
We look forward to expanding on this story as we receive more details. We will also give you the real life experiences we have come across along with the limitations many providers have.
For now, if you have left your company and are not feeling the love, so to speak… you know why!
Have a Great “Understanding of the Lost love 401k” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth