I would like to tell a story about trying to rollover an old 401k into a new 401k and how it will drive you to madness. But wait, you know that story. Anyone who has ever tried to do this must face the same problems: paperwork, circular logic, more paperwork, confusing paperwork, and then some more forms and paperwork.
I have been fiscally irresponsible with my retirement accounts, letting two accounts started with former employers sit and not do anything for me for many years. One has been sitting for three years, so, you know, that's not so bad. It didn't fall when the stock market crashed or grow when the stock market rebounded. It's just been sitting there. Earning "interest," if that's what the kids call it these days. I'm going to roll that into my current account, trying to make the money "work for me" and "grow" and whatever. OK. Fine. The paperwork is a serious pain in my you-know-what (keepin' it clean for the kids!), but I can deal.
The real problem is the other account. The one from an employer I left in 2002. That one, too, has just been sitting there. The problem is, it was set up oddly, or I invested poorly, or who knows because I was 22 years old and didn't know my you-know-what from my elbow. So it is some kind of an annuity (is that a thing?) and if I want to roll it over into my current 401k I have to do it in installments over 10 years. TEN YEARS. That is almost how long I've been out of that job! Grr. SUCH A PAIN IN THE...well, you get the point.
So, whatever. I'm trying to do the right thing. I suppose I should just suck it up and start moving that annuity over a little bit at a time for ten freakin years and actually get the money into an account that can make more than 1% interest. Or maybe I should leave it in case...I don't know. I hate money and finance. Hate.
When I was in college my mom tried to force me to take a dance class and a computer programming class. The former was fine (hello, tap dance!), but I never took that computer class. I think I turned out just fine. But when Evelyn goes off to school, I think I'm going to encourage her to take a few business/finance classes. This stuff is complicated, but good to know. I wish I knew more.
But in the meantime, I hate 401k accounts and annuities and rollovers and PAPERWORK.
2 comments:
I am impressed with your fortitude. I once tried to rollover from NCSL and I gave up trying after I couldnt figure one of the 800 forms out. I mean, you have to get your new plan to "accept" your money. Please. I am sure they would love to have it and I dont need their special signature. So now it just sits there. I tell myself that I am waiting until the market turns around and the value goes up (you really shouldnt sell low) but I am lying to myself.... I am being lazy. : )
I think I have $450 in my 401K. That's how much you get for working a whopping year for a public university. woo.
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