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
Management firm.
jkfinancialinc
street-cents
$treet-¢ents 
Q 2 2019 Newsletter Video Audio Podcast Review By John Kvale
Welcome to our Video and Audio Podcast Review of our Q 2 2019 Newsletter. For those on the road or just unable to grab the time to read, our podcast type review gives you the behind the scenes insight to our thoughts, observations and deep views of the entire Newsletter.
Click Here for direct link to an electronic version (an early peek-good ole fashion paper versions are on their way to you shortly) and here for our Newsletter page
Let’s get going!
Q 2 2019 Newsletter
And here is your review!
Capital Market Talk
Recession and the Inverted Yield Curve
Ask any long distant runner what happens when they start out too fast and they will tell you it is not good new – The saying goes for every minute you go out too fast, you come back two minutes slower than normal…
In our main capital market article we discuss the reasons why we may have a recession by definition, but why it may not be a big deal (hopefully).
The Inverted Yield Curve (Short term interest rates higher than long term rates) and infrequent event, did occur for five days – so far – just after our Newsletter went to the publisher. The Inversion has been a good signal of recession, EVENTUALLY – some times as long as two years in advance.
They Don’t Want Your old 401k
A recent Cerulli study finds that once you leave the company, most really do not want your funds anymore. We have long suspected this.
Are a few items we have run into over the years!
Iron Clad Trustee
General order of Trustee or other important people to execute your wishes when you are incapacitated or deceased, generally go like this:
As we can all imagine, this list can easily be very short and insufficient.
In our deep dive of the Institutional Trustee Services, we discuss the handiness of having such a great service as well as the ability to offer these services ourselves.
Choose Your Beneficiaries Carefully
In this article that fit nicely with our Trustee article we mention different types of Beneficiaries and most importantly. Make sure you confirm that your beneficiaries are correct as this will over ride you other documents, including a Will or Trust.
We hope you enjoy … talk to you in the Summer!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com
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Posted in Audio, FOMC, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Newsletters, Vault, Video
Tagged 401k, Beneficiary, Cerulli, Inverted Yield Curve