Retirement Plan Horror Stories, Ep #202

There’s so much we can overlook with retirement plans.

On this special Halloween-themed episode we’re sharing some retirement plan horror stories to avoid in your own wealth-building journey.

Zombie plans

Everyone knows that zombies are a slow-moving danger in horror movies. One way that retirement accounts could be in danger is with slow-moving transfers. This isn’t something that typically happens with larger providers like Schwab or Fidelity. It is usually an issue with smaller custodians and brokerage firms.

Occasionally changes in 401K providers can leave your funds sitting out of the market for an extended period. If this happens during a market swing, you could lose out on thousands of dollars.

Usually, when there is a provider change it is positive, however, horror stories can happen. Listen in to hear one way that you could combat this little-known risk.

Orphaned accounts

As people stay in jobs for shorter periods of time, it can be easy to leave behind a retirement account. The situation worsens when groups of small accounts get swept off to a different custodian. Often it can be hard to figure out which accounts you had and where they went.

To add insult to injury, when those accounts transfer custodians, they often end up sitting in cash. Don’t miss out on critical compounding years. Consolidate your 401Ks or roll them into an IRA.

Find out how Financial Symmetry clients use an account aggregator to see all of their accounts in one place, regardless of the provider.

Bitten by technicalities

Vampire stories are notorious for their rules of engagement.  Do vampires burn or shimmer in the sun?  Can they enter your home freely, or must they be invited in? Pay close attention or you could fall victim to having your blood sucked.

Retirement accounts and the tax code follow a similar script. If you don’t carefully abide by the rules, they could come back to bite you. Listen in to hear some truly scary stories where not following the rules came back to bite the people who were trying to peacefully enjoy their retirement savings.

Don’t let these horrible scenarios attack your retirement plan. If any of these horror stories have you cowering in the dark clutching your account statements, contact us to see how we can help.

A financial advisor can wade through the horrors so that your retirement doesn’t fall victim to the various monstrosities lurking in the shadows.

Outline of This Episode

  • [1:42] Zombie plans
  • [5:02] Orphaned accounts
  • [7:37] Bitten by technicalities
  • [15:32] The monster mash
  • [23:30] Frankenstein plans
  • [28:52] Learn how we can help

Resources & People Mentioned

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