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Want help with your 401K Rolllover?
Old 06-17-2014, 10:25 AM   #1
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Want help with your 401K Rolllover?

This article certainly makes a good case being a DIY investor which most here are. Not sure why anyone would be willing to place their life's savings in the control of any AIG company after the last financial collapse but some of us never learn.

Retirees Suffer as 401(k) Rollover Boom Enriches Brokers - Bloomberg

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Kathleen Tarr says AT&T Inc. (T) employees looked to her as “their de facto 401(k) expert.” Visiting their homes and offices, she advised them on their retirement plans as they called up balances on computer screens.

Actually, Tarr worked for Royal Alliance Associates, a brokerage firm owned by insurer American International Group Inc. (AIG) She encouraged hundreds of departing AT&T employees to roll over their retirement money into the kind of risky high-commission investments that Wall Street’s self-regulatory agency warns against on its website.

Tarr and her business partner reaped hundreds of thousands of dollars a year in commissions and trips to the Bahamas and Florida resorts. Not all of her clients fared as well, and 37 of them have filed complaints against her, according to Financial Industry Regulatory Authority records reviewed by Bloomberg News. Tarr and Royal Alliance say the investment choices were appropriate.
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Old 06-17-2014, 12:43 PM   #2
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Tarr and her business partner reaped hundreds of thousands of dollars a year in commissions and trips to the Bahamas and Florida resorts. Not all of her clients fared as well, and 37 of them have filed complaints against her, according to Financial Industry Regulatory Authority records reviewed by Bloomberg News. Tarr and Royal Alliance say the investment choices were appropriate.
Oh my! This could actually result in a permanent note in her FINRA record, which I doubt any retiree would ever see. (Do you know ANYONE who looks up the FINRA or SEC entry for their salesperson advisor?)

http://www.finra.org/Investors/Tools...s/BrokerCheck/


I bet she's just quaking in her flipflops, while ordering another mai-tai.

Here's the whole sordid story. Royal Alliance let her go to try and detach itself from her record. She just went down the road (literally) to SII Investments and racked up more complaints.

http://brokercheck.finra.org/Support...kerKey=4215307
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Old 06-17-2014, 09:42 PM   #3
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The cynical part of me thinks 401ks are nothing but a scheme by insurers to fund annuities.

"Tarr cultivated some employees for years, such as Mae Holloway, who started her 40-year career at AT&T as a telephone operator and ended up overseeing maintenance in Oakland. Tarr would stop by Holloway’s desk, encouraging her to come up with a budget for her retirement. "

Really? I have this image of annuity salespeople trolling the halls for suckers customers.....Unprofessional and seems to suggest some liability on the employer. OTOH my daughter met with an annuity seller in the teacher's lounge at school.which I think the union was responsible for.
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Old 06-18-2014, 07:23 PM   #4
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The cynical part of me thinks 401ks are nothing but a scheme by insurers to fund annuities.

"Tarr cultivated some employees for years, such as Mae Holloway, who started her 40-year career at AT&T as a telephone operator and ended up overseeing maintenance in Oakland. Tarr would stop by Holloway’s desk, encouraging her to come up with a budget for her retirement. "

Really? I have this image of annuity salespeople trolling the halls for suckers customers.....Unprofessional and seems to suggest some liability on the employer. OTOH my daughter met with an annuity seller in the teacher's lounge at school.which I think the union was responsible for.

No one should ever accuse the ones I met as an investment advisor...Salesman is as far as it goes. All states are different but in my state, I do not know why any educator would even consider investing in a 403b. Let's see you spend half your life putting money away into one of these in the 15% tax bracket, only to be forced to withdraw it into the 25% tax bracket. Doesn't make any sense to me.... Oh wait, I was one of those dumb ones myself not knowing what I was doing. Fortunately I figured out a way to burn the almost 100k out of it, to buy service years tax free, and retire with a bigger pension instead.


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Old 06-18-2014, 10:01 PM   #5
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No one should ever accuse the ones I met as an investment advisor...Salesman is as far as it goes. All states are different but in my state, I do not know why any educator would even consider investing in a 403b. Let's see you spend half your life putting money away into one of these in the 15% tax bracket, only to be forced to withdraw it into the 25% tax bracket. Doesn't make any sense to me.... Oh wait, I was one of those dumb ones myself not knowing what I was doing. Fortunately I figured out a way to burn the almost 100k out of it, to buy service years tax free, and retire with a bigger pension instead.


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I have no problem whatsoever with the 403b. When I looked into it, the choices included mutual funds from Fidelity and others, but Fido does not send salespeople to the teacher's lounge.
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