A 30-year-old man changes jobs and leaves his 401(k) account with his former employer’s
plan. Over the next few years, the company is bought and sold twice, has a name change, and
switches 401(k) custodians. Meanwhile, the man moves but fails to update his address with his
former employer. One day he realizes he’s no longer receiving his 401(k) statements. When he
tries to contact his old employer, he finds they no longer exist.
A divorced woman remarries. Twenty years later, she passes away. Her second husband gathers
the paperwork from her four investment accounts and contacts the respective companies. He has
no problem with the first three, but when he inquires about the last and oldest account, he
finds he is not the beneficiary. The beneficiary on that account was never changed from his wife’s
first spouse, who will now inherit the money.
A retiree celebrates his 70th birthday and soon after begins required distributions from his traditional
IRAs. When determining how much he needs to withdraw, he forgets about an IRA he has at a financial
institution in another state. As a result, he underestimates his required distribution by $2,000.
Because this amount was not withdrawn, he owes a 50% penalty of $1,000 to the IRS.
Believe it or not, plenty of people have found themselves in these types of situations. And though
the scenarios seem vastly different, they all have one thing in common: the end result could have been
easily avoided through consolidation. Consolidating your investments makes it simpler to coordinate
minimum distributions, update beneficiary designations, and monitor your accounts while not sacrificing
your ability to choose a well-diversified investment.
An Investment Representative can help you simplify your finances through consolidation. Speak with a
representative today about opening an advisory account with Credit Union Investment Services (CUIS).
Investment advisory services offered through Credit Union Investment Services. Securities offered
through SECU Brokerage Services. Member FINRA/SIPC. Securities are not credit union deposits and are not
insured by the NCUA or any federal government agency. They are not obligations of, or guaranteed by, a
credit union, Credit Union Investment Services or SECU Brokerage Services. They are subject to investment
risks, including possible loss of principal.
Other Related Links:
July 2008 -
For 2008, anyone can make a full contribution to a Roth IRA regardless of age.
June 2008 -
Check out the newly reduced minimum to open an advisory account through Credit Union Investment Services (CUIS)!
May 2008
- In May, many households received a payment from the federal government as a result of the
Economic Stimulus Act of 2008.
April 2008
- In light of recent market fluctuations, some investors may be questioning their decision to invest in
securities such as stocks or mutual funds that invest in stocks.
January 2008 -
Check out our LifeStrategy, Target Retirement mutual funds as well as Vanguard’s Long-Term Tax-Exempt Fund
and see how they can help you.
December 2007 -
SECU and CUIS offer several IRA options for you to select the type that best fits your situation. These IRA options
include a traditional IRA, a Roth IRA and a SEP IRA.
