Monday, May 08, 2006
Elderly loose funds from retirement accounts
Most retirement accounts for the elderly require an up-to-date physical address. This is at a time when many of all ages use the Internet for their financial management.
If physical mail is bounced back due to a change of address, the funds become blocked, and firms such as KEANE in PA find the elderly person (as if the funds manager could not!) and tell them that for some large percentage of their funds, they will help them recover what is left.
I feel that these companies are leaches on the elderly that are using the Internet to manage their accounts. The fund account management companies such as T Rowe Price readily freeze the elder person's account, and make no attempt to contact them by phone and email. This exposes the elderly to losing 30% to 50% of their precious retirement funds.
This is outrageous in our modern society - that fund management companies can not contact their clients by anything other than the USPS!
We live in a Global Cyber Community where retail, wholesale business, finance, banking, etc. are all conducted on the Internet.
I suggest that our governments (Federal and state) must take immediate action to reverse the vulnerability of all investors especially the elderly.
Please provide us with your experiences.