Thursday, January 3, 2013

Rollover

My wife has held several different jobs since we've been married.  Five years ago she left a job with a workplace savings plan similar to a pension.  We received statements from it for the first two years after she left that employer, but they didn't send us statements for the next two years.  I surprisingly had forgotten about its existence (very out of character for me) until we received another statement last week with a letter explaining the reason that statements had not been sent out for the previous two years (something about changes to the plan that made them not want to send any correspondence until it was finalized).

After getting this reminder, I dug into the details a bit more and learned that after two years of leaving her former job, the plan ceased to pay her any more interest (one of the changes they made recently).

What this means is we've had retirement assets sitting in an account for my wife earning absolutely nothing for the past three years.  I'm a little irritated at myself for not following up on this sooner.  The total value of the account was not such that we missed out on a huge chunk of earnings, but it's certainly a non-trivial amount that we could have put to better use in another type of investment.  Regardless, my wife is taking steps to roll this account over to an IRA in her name so those assets can start working for us again in the near future.

Continuing the recent trend of my wife's increased participation in the details of our personal finances, I asked her if she wanted to take responsibility for deciding how the rollover cash is invested once the transfer is complete.  She told  me she'd be up for the challenge as long as I am willing to talk to her about her ideas (which of course I am).  I'll be interested in following her decision process and seeing her take a more active role managing part of our long-term savings.

2 comments:

  1. Do you plan to start dividend investing with this rollover?

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    1. That's one possibility. Other possibilities include passive index investing or more speculative growth investing. Really I'd like my wife to decide what approach she finds most appealing and move from there.

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