jump to navigation

Fidelity admits people drain 401K when switching jobs…Really? August 29, 2008

Posted by shaferfinancial in Uncategorized.
Tags: , , , , , ,

For the second day in a row, there was an article in the St. Petersburg Times, that reinforces what I have been saying.  Yea, I’m saying, “I told you so!”  Being right of course is not the point, changing behavior is the point.

When workers lose their jobs, they drain their 401K’s to pay for their mortgages, credit card debt, and of course living expenses until they get another job.  Of course Fidelity Investments, the sponsor of the study, had to spin it as workers being naughty and not being able to save/invest enough.  But the truth is exactly what I have been telling you.  The advice Fidelity and other mutual fund companies have been giving is appropriate for another time, a time when layoffs didn’t occur, defined pensions were provided, and trillions of dollars were not spent encouraging workers to buy stuff.  And Fidelity is admitting if you use your retirement funds for your expenses (after a layoff or sickness) then the whole house of cards that their suggested strategies builds, comes falling down on top of you.  No mention from Fidelity on the issue of poor performance of the stock markets this decade.  After all, that couldn’t be troublesome to folks could it?

Its not just me that is telling you the current strategy suggested by the main stream financial planning community fails, its the mutual fund industry itself! Are you going to keep following these folks advice???



1. stlwest - October 4, 2008

People also are locked into Fidelity and have more options if they roll over funds to an IRA. I think it is wrong that Fidelity can have a lock on your money just because you don’t want to quit your job to free your money, very un-American.

If Fidelity had more choices, like how about a short or bear fund so I can make some money when the market is going down.

Why can’t I take some of my funds and buy into a few stocks if I want to? Fidelity, if you give people more choices they might not rush out of the jail you have setup for thier money. Loans taken on a 401k should not be recallable if you quit your job either.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: