If you still have a 401k with a former employer, you are running the risk of not having access to your money when you need it.
According to the Wall Street Journal, a growing number of individuals who had 401ks with small companies that are now defunct are finding it extremely difficult to get to their own money. Due to the laws that govern 401k plans, if there is no one from the former employer authorized to approve a 401k rollover, the financial-services company that manages the plan cannot release the funds.
It is estimated that about 2% of all such plans are left "orphaned" each year, held by financial institutions without an employer representative to oversee the plan. That translates into about 30,000 workers and over $850 million in retirement assets virtually held hostage by bureaucratic rules.
The Labor Department is about to propose new rules to alleviate this problem, but do you really want to rely on the federal government for access to your own money?
If you have a 401k at a former employer, get on the phone TODAY with the discount brokerage of your choice and get started with a rollover IRA. Not only will you have access to your money without the hassle of getting anyone’s approval, you’ll also be able to invest your money in all of the exciting new tools available to individual investors, such as my beloved Exchange Traded Funds (ETFs).
If you need a little help as to which ETFs are the best for the current market climate, or you want to know if the time is right to be in—or when to be out—of stocks, then my Successful Investing service is right for you. Click on the link below for more information on what my service can do for you: