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Did Fidelity Mess Up My 401K Allocation With My 1st Withdrawal of Retirement?
Withdrawing money from your 401K can be a complex process, and it’s important that everything goes smoothly to avoid any unexpected surprises. When customers find that their 401K allocations have been mishandled, it can be a major cause for concern and frustration.
Recently, there have been reports of Fidelity, one of the largest and most well-known investment companies in the United States, making mistakes with customers’ 401K allocations when they made their first withdrawal of retirement funds. This has left many individuals questioning the company’s handling of their hard-earned money.
The 401K is a vital part of retirement planning for millions of Americans, and any errors made by the institution managing these funds can have significant consequences for individuals’ financial well-being. It’s crucial that investment firms like Fidelity handle these accounts with the utmost care and attention to detail.
So, what can individuals do if they believe Fidelity has mishandled their 401K allocations during their first withdrawal of retirement funds? The first step is to carefully review all documentation related to the withdrawal, including transaction records and account statements. This can help individuals determine whether there have been any errors in the allocation of their funds.
Next, individuals should contact Fidelity directly to raise their concerns and request a thorough investigation into the matter. It’s important to stay persistent and assertive when dealing with financial institutions, especially when it comes to the handling of retirement funds.
If Fidelity fails to resolve the issue satisfactorily, individuals may need to seek legal counsel and consider filing a complaint with the appropriate regulatory authorities. It’s essential to ensure that investment firms are held accountable for any mistakes made in managing their customers’ retirement accounts.
In the meantime, individuals should also consider taking steps to safeguard their retirement funds, such as reviewing their investment strategy and exploring alternative options for managing their 401K. It’s crucial to stay informed and proactive when it comes to protecting one’s financial future.
Ultimately, Fidelity and other investment firms have a responsibility to ensure that their customers’ retirement funds are handled with the highest level of care and accuracy. Any mistakes made in the allocation of 401K funds during a withdrawal can have serious implications for individuals’ financial well-being, and it’s essential that these issues are addressed and resolved promptly.
In conclusion, if you believe that Fidelity has mishandled your 401K allocation during your first withdrawal of retirement funds, it’s important to take action to address the issue. Carefully review all documentation, contact Fidelity to raise your concerns, and consider seeking legal counsel if necessary. Protecting your retirement funds is of the utmost importance, and it’s essential to hold investment firms accountable for any errors in managing these vital accounts.
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Karen Cosmann
I keep 2 years of living expenses in a money market fund. I refill it when my stock accounts are up. I don’t withdraw from them when they’re down. I know I’ll pay a penalty for having that much cash out of the market. Right now the cash account is doing ok from the interest. But, in retirement I’m not trying to maximize my gains. I’m trying to make my money last and sleep at night. I wouldn’t want someone deciding for me when to withdraw and from what accounts.
In most 401k plans withdrawals are proportionate. They also have fees that may exceed an AUM financial planner and you probably have fewer choices. Three reasons to roll into an IRA
Go Blue !
Since you may be limited to 4 withdraws per year then you only need to re-allocate 4x per year.
My fidelity account i sell and move stocks when i want too, like you said to the cash core account and withdraw at your leisure. I can't imagine letting someone else control my withdrawals.
Go huskies!
When it comes to rebalancing, some people rebalance every ninety days, which also depends on where your assets are held in brokerage versus qualified plans and the tax ramifications of whether it is practical to do it that way. Others will also set a range for their allocation such that if it is no more than 5%, even up to 10%, they let it float until the range has been met and then rebalance. Rebalancing is more a risk control measure than portfolio optimization and maximizing returns. Thanks for the great video. It's good to hear your mother is on the mend.
We have my 401k as our safe bucket and my husband’s 401k is our risky. When it’s doing well, comes from his. When it’s down, it comes from mine.
I still would like to always have the choice to withdraw the money as I see fit. I'm calling the company that handles mine tomorrow and if they won't, I'm moving it
I commented on your first withdrawl video, but in response to this one, regardless of how you allocate your funds, there should always be enough in your cash bucket to pull your withdrawls from, so there is no delays. Second, ETF's are a better vehicle for easy movement of funds, as they trade immediately, just like stocks. There is an ETF available for probably any index fund you have. Go BLUE!
You can also do a partial IRA conversation — once it's in the IRA it's easy to withdraw and pick & choose how to get money online without need to call anyone. (you could consider the IRA your bucket 1 and keep the 401K as bucket 2/bucket 3 if that makes sense)
I retired in 2023 and planed on keeping my 401k and taking withdraws like you are. I soon realized how much more flexibility I would have in an IRA rather than the stable value fund. CDs were paying more than 2X what I was getting from the stable value. I did a direct roll over to an IRA and now making more money and have the ability to move money to and from anywhere at any time, not to mention a lot more options for investing. Something to think about.