Money

Follow the Money Like a Bloodhound on Speed and Never Be a Financial Patsy Again

A few days ago I opened a personal finance newsletter and read this:

WTF?

Rolling your 401K into an IRA (Individual Retirement Account) is always free. The recipient of your IRA is thrilled to get their grubby little paws er…. hands on your money. They’re delighted to have you transfer funds from your company 401K plan into a newly opened or pre-existing IRA.

Every additional dollar they add in assets is very profitable. Custody, brokerage, and asset management are all businesses with a lot of operating leverage.

Whether you call the shots and they charge you for holding your money, or you pay them to run your money, they are not going to ever charge you to take your money.

It made no sense, and I smelled a rat.

So I clicked on the link,

Which led me to Capitalize, a company that “makes rollovers easy.” It specializes in finding “forgotten” or “left behind 401Ks” — that is 401Ks people leave at a former employer.