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Tall Clover in Rollovers

By ClientWise | May 19, 2011

Did you see this article in Investment News, "Rollover funds go a-begging"?

If you didn't, and you are a financial advisor who is interested in the rollover market, you should. Today in fact. Unless I am completely mistaken, this seems like it's an incredible educational and marketing opportunity.

In a recent Fidelity Investments Survey of individuals who have left a company retirement plan:

  • 66% of individuals did NOT move assets from their former employer's plan within 4 months of leaving the company,
  • 59% of those that left assets in the company plan did so because of: plan features, services, or access to a specific investment,
  • 27% of those that stayed in the company plan said the money was still there because they "haven't got around to it yet."

By any measure, the 66% figure is a number that must make the financial advisory community gasp! (Is this even correct? Really hard to believe!)

However, if it's close to true, I would think that forward-thinking financial advisors would be inspired to educate and explain as to why leaving assets in a former employer's plan is a grotesque mistake that unnecessarily complicates one's financial life.

Just wanted to pass this on...

Topics: Client Acquisition

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