Gary Allen on Business, Sunday, June 29, 2014 – Podcast Now Available

Retirement Rollover Blues – A Tale of Caution

Retirement PartyThousands of baby boomers are retiring every day and many of them rely on financial professionals to help them through the process. Often, advisors (insurance agents, brokers, financial planners/advisors) convince their clients to roll their money out of their retirement plan and into an IRA. There are several reasons why this can be a good idea but several others that would advise caution. A recent Bloomberg News article exposed the seedy underside of the 401(k) rollover business. The name of the article is, “Retirees Suffer as $300 Billion 401(k) Rollover Boom Enriches Brokers.” The author of the article is John Hechinger. It is well worth reading if you are at or near retirement and trying to figure out what you should do with your retirement nest egg. The article does a very good job of exposing some of the worst parts of the 401(k) rollover marketplace.

Here is a link to the article:

On my show, I review the article and provide some of my thoughts on the subject and how to protect yourself. It is a continuation of a conversation that I started in the previous week. Here is a summary of the show:

Segment 1: Review of previous week to catch folks up
Segment 2: Into the details on annuity rollover sales including commissions
Segment 3: More details focusing on non-traded REITs and commissions
Segment 4: Short segment on final thoughts

I hope you enjoy this program and remember to subscribe or follow my blog so you know when podcasts become available.


Gary Allen on Business, Sunday, June 22, 2014 – Podcast Available

Don’t Become a Rollover Victim!
At the time of retirement, many people are somewhat puzzled and overwhelmed with the decision of what to do with their retirement savings. Unfortunately, in my opinion, too many people are taken advantage of by slick salespeople offering false comfort. This program is the beginning of a conversation of what to look out for at the time of retirement so you are not taken advantage of. A hard hitting article by Bloomberg News on the IRA rollover business was the inspiration for this show. It is well worth reading and you can find a link to that article right here.

In far too many cases, people who have worked long and hard to save for retirement end up being ripped off (in my opinion), by salespeople primarily selling high priced insurance products. There are plenty of folks doing a good job for their clients, but there are far too many who are not. Buyer beware and look out for yourself before you make any financial decisions you might regret.

I hope you enjoy this podcast. Look for the 2nd half of this discussion in my upcoming program on June 29, 2014. That podcast will be available soon after the upcoming broadcast.

Gary Allen on Business
Gary Allen on Business

Retirement Rollover Blues – A Tale of Caution

Retirement Party

For the most part, private sector workers in America have become responsible for their own retirement. Whether they understand this or not, the switch from Defined Benefit plans to Defined Contribution plans (such as a 401(k)) over the past three decades has left individuals in charge of their own retirement.

While some pundits of 401(k) retirement plans complain about the broken system, many people have saved significant amounts of money. However, the media is calling attention to a troubling problem that may crush the best of plans for retirement. I speak of the rollover or distribution process from a 401(k) plan. As people retire or leave an employer for other reasons, they face the big decision of what to with their retirement account.

Federal law provides four basic options for a retirement account when someone leaves their employer:
1) Leave the money in their retirement account;
2) Have their money transferred to the retirement plan of a new employer;
3) Transfer their money into their own IRA account; or
4) Withdraw their money and take it in cash

Ultimately, each person has to look at the pros and cons of each choice to determine the most appropriate course of action for them. However, people are often pressured by salespeople into making financial decisions they may later regret. Rollovers represent so-called money in motion that attracts financial salespeople like moths to a brightly burning street light.

As thousands of boomers ease into retirement each day, billions of dollars are transferred out of plans and into IRA accounts. The numbers and the consequences are huge. According to researcher, Cerulli Associates, approximately $621 billion dollars flowed out of retirement plans during 2012 (the latest data available) alone.

Bloomberg News in a fascinating article, earlier this week, exposes the seedier side of the financial services industry and its pursuit of rollovers. The article uncovers and lays out the questionable rollover practices of several current and former brokers/advisors/insurance agents. While this article does not represent the practices of the entire financial services industry, it does provide a very cautionary tale. If you are nearing retirement and wondering what to do with your nest egg, I would suggest reading this article to get a feel for some of the challenges you face as you seek to implement a sound investment strategy.

On this weekend’s show, I will be taking a closer look at this article, and caution you on some of the things to look out for. The program is on from 8 AM to 9 AM on Sunday, June 22, 2014 on KNBR 680 AM San Francisco. Hope you can join us!

Gary Allen on Business
Gary Allen on Business

Gary Allen on Business – Sunday, June 15, 2014 – Podcast Available

The podcast for the June 15, 2014 episode of Gary Allen on Business is now available. On this father’s day edition of the show we covered a number of different subjects. Here is a summary of the four segments of this program:

Segment One – The simplest things are in many cases the smartest things.
Segment Two – Eight simple, straight-forward tenants for an enduring investment philosophy.
Segment Three – Supreme Court rules that inherited IRAs are not protected in bankruptcy. Also some basic thoughts on how to plan on withdrawing money during retirement.
Segment Four – Financial markets are not the problem…

I hope you enjoy the podcast of this program. As always, thank you for listening to the program.