Any day now, the Department of Labor will issue the final version of the long-awaited “Fiduciary Rule” which will redefine the term “fiduciary” under ERISA. Much has been written about the impact on advisors and broker-dealers, given their service models to retirement plans.
Consolidation Corner Blog
Consolidation Corner is the Retirement Clearinghouse (RCH) blog, and features the latest articles and bylines from our executives, addressing important retirement savings portability topics.
In his March 3rd column in MarketWatch, RCH President & CEO Spencer Williams establishes an important link between the board games we played as children (ex. – Candy Land, Trivial Pursuit and Snakes & Ladders) and the “games” we can play in adulthood, while managing our retirement savings. The children’s games are harmless, fun and instructive, but the adult retirement games (ex. – Cashing Out, Stranding Accounts, and Not Updating Your Address) are anything but.
In a previous post, Tales from the Roll-In Front Lines, Part I, we described a roll-in transaction gone awry: a comedy of errors that occurs all too often when service providers are unfamiliar with consolidating retirement savings from one plan into another.
In his 1/20/16 MarketWatch column (Four New Year’s Resolutions for Retirement Savers), Retirement Clearinghouse CEO Spencer Williams offers four New Year’s resolutions that all 2016 job-changers should take to heart, including:
In his 11/16/15 MarketWatch article Boomers need to consolidate retirement accounts immediately RCH President & CEO J. Spencer Williams notes that the baby boomer generation, which is closest to retirement age, stands to benefit the most from consolidating their retirement savings, vs. leaving their accounts behind at former employers.
Chris Garza, RCH’s Service and Consolidation Team Manager, provides insight into the top five mistakes that participants make when changing jobs.
I can still vividly recall the summer afternoon that my mom burst through our front door, anxiously asking where my little sister was. I was 10 at the time, and my sister was 7. “She’s in the backyard with her friends….why do you ask?” One look out the window gave me the answer: our next door neighbor had been changing his oil, when the car slipped off the jack, crushing him beneath its weight.
Leaving Your Retirement Savings Behind When You Change Jobs Will Cost You!
In his July 30th, 2015 MarketWatch article titled, Leaving Your 401K Behind When Changing Jobs Will Cost You, RCH’s CEO Spencer Williams gives sage advice to America’s mobile workforce, urging job-changing retirement savers to take the initiative and to consolidate their retirement savings.
Today, it’s a commonly-accepted practice for plan sponsors to focus on three major initiatives in order to promote retirement adequacy: participation, saving and diversification. While these concepts are proven, the emerging best practice is to incorporate the principle of consolidation, so that plan sponsors will begin to focus on participation, consolidation, saving and diversification.