Consolidating 401 k plans
At Wealth & Pension Services Group, everything we do is aimed to help our clients achieve their financial goals and plan for a strong future.
New England Pension Consultants reported in its 2014 annual study that the median record-keeping fee for defined contribution plan participants that year was $70.
If a hypothetical 30-year-old changes jobs today and leaves behind a savings account in his/her former employer's retirement plan, the worker would lose $2,520 in fees on that stranded account by age 65 (assuming the account has a 5% annual rate of return).
However, from an investment perspective, the hypothetical saver isn't just losing $2,520 in fees on that stranded account — he/she is also losing future earnings from compound interest on the $2,520.
Whether it is comprehensive Since our last update, a lot has happened but not much has changed.
Volatility remains elevated, a number of economic, corporate and political issues endure, and investors remain confused and skeptical of the future.
Spencer Williams is president and CEO of Retirement Clearinghouse where he applies more than 25 years of experience in starting, building and leading businesses in the financial services industry.
Under his leadership, Retirement Clearinghouse introduced new industry best practices, been recognized for innovation and improved the operations of thousands of retirement plans.
Follow Spencer on Linkedin and read his company blog.
Did you know you can add at least ,000 to your retirement savings without having to change your 401(k) contributions or investments? All you have to do is consolidate what you've already saved into a single retirement account.
The average employee changes jobs at least seven times during a 40-year career, according to the Employee Benefit Research Institute (EBRI), and U. Census Bureau data suggests that one in six Americans will relocate in any given year.
These statistics indicate many of you reading this post have left behind multiple retirement savings accounts in moving from job to job.