Author Topic: Left my company- got a call from the old 401k provider  (Read 17914 times)

TheAnonOne

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Left my company- got a call from the old 401k provider
« on: April 08, 2016, 02:30:10 PM »
I left a job a few weeks ago because the contract got cut. I really liked the company and they liked me, I will probably go back once things calm down in 2017

That being said, today I got a call from the 401k provider which is one of the larger 'insurance' companies.

It went a little like this...

M> Hello
I> Hello, it's X from Y 401k provider
I> I saw that you left your company and I wanted to help you out with your 401k
I> Can I ask how old you are?
M> 25
I> Wow, 52k at 25 in your 401k your doing great, and you have so much time left before you retire....

At this point I wasn't quite sure what to say... I could tell them my plans to leave the workforce in my mid 30s or I could just let him assume I am a regular clueless guy.

M>Well I am planning on retiring in my mid 30s, I may still work, if I choose, I just want the option
I>(Silence)
I>Well, have you thought about how <Life, Disability, XYZ> insurance could help you?
M> I don't think I am your target demographic
I> (Tries again)
M> I don't think I am your target demographic
I> How are you going to accomplish this, I am very interested
M> (rant about 4% rule and other basic MMM things)
I> (More insurance babble)

Then after this, and after I told him I planned on rolling it into Vanguard a few times he finally stopped.

Really nice guy, but clearly had a salesman face on. Wanted to scheduled a face-to-face and other meetings when all I really want to do is roll my 50k into my other pile of money.

Now I am left feeling a bit weird. Objectively I didn't brag, but I feel like I did. So the whole situation made me feel a bit dirty.

Dezrah

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Re: Left my company- got a call from the old 401k provider
« Reply #1 on: April 08, 2016, 02:57:36 PM »
It's a common sales tactic to make the buyer feel guilty for this or that reason. You had no obligations beyond being polite which it sounds like you were. Whether you were "bragging" or not is irrelevant. Don't waste another ounce of emotion on the situation.

Indexer

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Re: Left my company- got a call from the old 401k provider
« Reply #2 on: April 08, 2016, 08:43:01 PM »
In my own opinion... insurance companies make terrible investment companies. They tend to cost a lot more and then they are always wanting to randomly throw insurance everywhere it doesn't belong.

AH013

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Re: Left my company- got a call from the old 401k provider
« Reply #3 on: April 09, 2016, 10:44:46 AM »
In my own opinion... insurance companies make terrible investment companies. They tend to cost a lot more and then they are always wanting to randomly throw insurance everywhere it doesn't belong.

You mean like selling annuities, an insurance-based tax-deferred savings vehicle, within a 401k, an investment-based tax-deferred savings vehicle?  Who wouldn't want to pay an admin fee to defer taxes on......something that will already be deferred anyway? :)

ender

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Re: Left my company- got a call from the old 401k provider
« Reply #4 on: April 09, 2016, 10:50:12 AM »
It's a common sales tactic to make the buyer feel guilty for this or that reason. You had no obligations beyond being polite which it sounds like you were. Whether you were "bragging" or not is irrelevant. Don't waste another ounce of emotion on the situation.

Fidelity did this to me too when I rolled a 401k into vanguard. Yes, I know your fees are not super expensive. No, I still want to roll it over. No, I don't want [misc minor perks that aren't important] and yes I do want to still move it to Vanguard.

Travis

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Re: Left my company- got a call from the old 401k provider
« Reply #5 on: April 09, 2016, 11:10:25 AM »
In my own opinion... insurance companies make terrible investment companies. They tend to cost a lot more and then they are always wanting to randomly throw insurance everywhere it doesn't belong.

You mean like selling annuities, an insurance-based tax-deferred savings vehicle, within a 401k, an investment-based tax-deferred savings vehicle?  Who wouldn't want to pay an admin fee to defer taxes on......something that will already be deferred anyway? :)

A couple years ago when USAA was managing my portfolio they put an annuity inside my Roth.

humblefi

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Re: Left my company- got a call from the old 401k provider
« Reply #6 on: April 09, 2016, 09:21:48 PM »
It's a common sales tactic to make the buyer feel guilty for this or that reason. You had no obligations beyond being polite which it sounds like you were. Whether you were "bragging" or not is irrelevant. Don't waste another ounce of emotion on the situation.

Fidelity did this to me too when I rolled a 401k into vanguard. Yes, I know your fees are not super expensive. No, I still want to roll it over. No, I don't want [misc minor perks that aren't important] and yes I do want to still move it to Vanguard.

The first two times I moved, Fidelity did exactly what you said....had a headache after those calls. The next time, it was real easy...I was wondering why and then concluded that they bug you more based on how much money is there in the account...the latest move had only appx $30K in it.

I.e. I am guessing somewhere there is a commission based system ..... so, don't feel bad about it.

TheAnonOne

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Re: Left my company- got a call from the old 401k provider
« Reply #7 on: April 11, 2016, 02:45:10 PM »
In my own opinion... insurance companies make terrible investment companies. They tend to cost a lot more and then they are always wanting to randomly throw insurance everywhere it doesn't belong.

Yea, the guy just sent me some disability insurance sheet showing how some dentist got carpal tunnel and got a $1m payout when he couldn't work...

Seeing as how I program computers, I could type in a number of different ways... (Using only 1 hand if I must) so I don't see this as a concern... especially over the next 8ish years to FIRE..


Also the lowest fee fund in that account is 1.66% ...brutal

nereo

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Re: Left my company- got a call from the old 401k provider
« Reply #8 on: April 11, 2016, 02:49:21 PM »
This is why I had Vanguard initiate all of my asset transfers. 
I never had to speak to any of the companies I was leaving.  I just printed out my latest statement, filled in a few forms and Vanguard did the rest.

Is that cowardly of me?  Now that I think about it, it's kind of like breaking up with someone using an intermediary.  Nah - it's just $.

TheAnonOne

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Re: Left my company- got a call from the old 401k provider
« Reply #9 on: April 11, 2016, 02:56:53 PM »
This is why I had Vanguard initiate all of my asset transfers. 
I never had to speak to any of the companies I was leaving.  I just printed out my latest statement, filled in a few forms and Vanguard did the rest.

Is that cowardly of me?  Now that I think about it, it's kind of like breaking up with someone using an intermediary.  Nah - it's just $.

Again, they called me... it has not even been long enough to get a statement yet.

Travis

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Re: Left my company- got a call from the old 401k provider
« Reply #10 on: April 11, 2016, 03:34:11 PM »
This is why I had Vanguard initiate all of my asset transfers. 
I never had to speak to any of the companies I was leaving.  I just printed out my latest statement, filled in a few forms and Vanguard did the rest.

Is that cowardly of me?  Now that I think about it, it's kind of like breaking up with someone using an intermediary.  Nah - it's just $.

Not cowardly or really breaking up with someone. It's business.  You paid them for a service. You didn't like how they provided it. You moved on.  It's only an emotional attachment if you made it one. You don't owe them anything beyond whatever fees you were paying them.

ender

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Re: Left my company- got a call from the old 401k provider
« Reply #11 on: April 11, 2016, 05:16:29 PM »
This is why I had Vanguard initiate all of my asset transfers. 
I never had to speak to any of the companies I was leaving.  I just printed out my latest statement, filled in a few forms and Vanguard did the rest.

Is that cowardly of me?  Now that I think about it, it's kind of like breaking up with someone using an intermediary.  Nah - it's just $.

Fidelity is stupid though and makes sure they are an intermediary.

Apparently sending YOU the check in between is more secure than mailing it directly to Vanguard, too... waaaat.

JZinCO

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Re: Left my company- got a call from the old 401k provider
« Reply #12 on: April 11, 2016, 05:38:40 PM »

Now I am left feeling a bit weird. Objectively I didn't brag, but I feel like I did. So the whole situation made me feel a bit dirty.

Really, I wouldn't have even gone into detail. At least for me, when they try to pretend to care about the 'why', they're just looking for an in to get you to change your mind, consider some fault in your plan where they can supplement with selling a product, etc. So, I stopped giving them an opportunity.
As an example, I had 3 chase cards open. Each one was opened just for a promo bonus. I called to close two (the third still has rewards I needed to use). So I called to say, 'yeah I'm closing the freedom'. And then they asked why and I gave some bs response like 'It's not giving me the rewards I want' to which they replied 'yeah but you're keeping the aarp open which has poorer benefits than freedom so why not keep freedom open'...  argh, they called my bs.
I've gotten smarter and now I say 'I want to close my account... I respectfully decline to answer why... No, I just want to close it.....No, I just want to close...Okay, thank you."

It's like ender wrote. Tell them exactly what you want and don't give sale people your rationale. The sooner you show you won't play in the customer/salesman role, they soon they stop trying to sell.

Villanelle

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Re: Left my company- got a call from the old 401k provider
« Reply #13 on: April 11, 2016, 05:51:46 PM »
I called today to roll an old 403b into an IRA.  I told her I wanted to roll it into an outside IRA because I no longer work at that job and I want to consolidate my accounts.  (What I meant by that was that I have the relatively--for our overall networth--small sum in a random fund, and for the sake of ease of tracking and rebalancing, I want it all in as few places as possible.)  "Well you can consolidate it with us."  "Um, I'm hoping to have fewer accounts in general to track."  "You could put the rest of your money here, with us."  Sigggghhhh.  I just want you to do what I'm telling you to do, lady.  "No thank you.  The fee structure is better where I have the rest of my money."  I'd been trying to avoid details, because that just gives them something with which to argue.  She started on some sales pitch and I interrupted as politely as possible and said, "I'd just like to roll it into an existing IRA, please."  Thankfully, she gave up at that point. 
 

Jack

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Re: Left my company- got a call from the old 401k provider
« Reply #14 on: April 11, 2016, 06:09:40 PM »
You had no obligations beyond being polite which it sounds like you were.

Who says you have an obligation even to be polite?

If you (the telemarketer) call me to waste my time, especially trying to sell me some shitty product that will enrich you while harming me, you deserve whatever pejoratives, expletives and (figurative) air-horns you get!

Like Chevy Chase, I'll politely say "no" about three times before my tone... devolves.

Sibley

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Re: Left my company- got a call from the old 401k provider
« Reply #15 on: April 18, 2016, 11:15:32 AM »
When I rolled my accounts over, I had Vanguard do it.

Last year I helped my dad consolidate his to Vanguard. So, called Vanguard first, and thanks to the structure of his accounts we had to call 3 different companies. Dad and I were both on the phone. He'd talk first, tell them I was helping and on the phone too. Then I'd talk with them, and he'd just chime in with authorization/approvals as needed. I had the worst time with Fidelity, they took 3x longer than the other 2 companies. I finally got a little short with them. Both my parents are sitting in the room, one is on the phone listening. Mom comments that I was a little rude when we finally got off the phone. Dad just said, "they required it".

Kaspian

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Re: Left my company- got a call from the old 401k provider
« Reply #16 on: April 18, 2016, 02:19:46 PM »
Haha...  Love stories like this!

Mine last year:

Financial Advisor:  "Hi this is Brenda from your bank."
Me:  "Hi, Brenda."  (No, I don't know her.)
Brenda:  "We see that your portfolio did EXCEEDINGLY WELL last year and we were wondering if you'd like to come in to discuss some NON-index mutual fund options."
Me:  [Silence.]  "...Wait.  ...What?"

Gin1984

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Re: Left my company- got a call from the old 401k provider
« Reply #17 on: April 18, 2016, 02:26:33 PM »
Haha...  Love stories like this!

Mine last year:

Financial Advisor:  "Hi this is Brenda from your bank."
Me:  "Hi, Brenda."  (No, I don't know her.)
Brenda:  "We see that your portfolio did EXCEEDINGLY WELL last year and we were wondering if you'd like to come in to discuss some NON-index mutual fund options."
Me:  [Silence.]  "...Wait.  ...What?"
Now you have me doing that.  What was she selling annuities?  Hedge funds? 

MrMoogle

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Re: Left my company- got a call from the old 401k provider
« Reply #18 on: April 18, 2016, 02:32:18 PM »
Haha...  Love stories like this!

Mine last year:

Financial Advisor:  "Hi this is Brenda from your bank."
Me:  "Hi, Brenda."  (No, I don't know her.)
Brenda:  "We see that your portfolio did EXCEEDINGLY WELL last year and we were wondering if you'd like to come in to discuss some NON-index mutual fund options."
Me:  [Silence.]  "...Wait.  ...What?"
You're doing exceedingly well, so we need to stop that.  Let me show you some 2% fee funds...

Kaspian

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Re: Left my company- got a call from the old 401k provider
« Reply #19 on: April 18, 2016, 02:48:40 PM »
You're doing exceedingly well, so we need to stop that.  Let me show you some 2% fee funds...

Exactly it!  "We need to shitify your account again--like we did for years and years with zero returns, 3%+ MER, before you got all smartypants and learned about index funds."

Now you have me doing that.  What was she selling annuities?  Hedge funds?

She was selling some high-fee mutual fund--one that had a couple in white clothes frolicking through a field of daisies on the glossy cover.   Had some really stupid name--like "[Bank name] Whole Life Freedom and Sunshine Out My Ass Fund".  It was made of just a crappy random mix of equities and bonds and cost close to 4%.


merula

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Re: Left my company- got a call from the old 401k provider
« Reply #20 on: April 18, 2016, 03:29:40 PM »
She was selling some high-fee mutual fund--one that had a couple in white clothes frolicking through a field of daisies on the glossy cover.   Had some really stupid name--like "[Bank name] Whole Life Freedom and Sunshine Out My Ass Fund".  It was made of just a crappy random mix of equities and bonds and cost close to 4%.

I would almost buy that fund.

Indexer

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Re: Left my company- got a call from the old 401k provider
« Reply #21 on: April 23, 2016, 08:33:48 PM »
She was selling some high-fee mutual fund--one that had a couple in white clothes frolicking through a field of daisies on the glossy cover.   Had some really stupid name--like "[Bank name] Whole Life Freedom and Sunshine Out My Ass Fund".  It was made of just a crappy random mix of equities and bonds and cost close to 4%.

In my earlier post I said insurance companies make bad investment companies. Banks are almost as bad as insurance companies.

lhamo

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Re: Left my company- got a call from the old 401k provider
« Reply #22 on: April 23, 2016, 09:22:30 PM »
"[Bank name] Whole Life Freedom and Sunshine Out My Ass Fund". 

Once again, I am very glad I didn't happen to be drinking anything while reading the forums.  \\

Kaspian, I think you need a second gig as a Stupid Investment Name Generator. 

Seppia

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Left my company- got a call from the old 401k provider
« Reply #23 on: April 24, 2016, 02:01:28 AM »
This is why I had Vanguard initiate all of my asset transfers. 
I never had to speak to any of the companies I was leaving.  I just printed out my latest statement, filled in a few forms and Vanguard did the rest.

Is that cowardly of me?  Now that I think about it, it's kind of like breaking up with someone using an intermediary.  Nah - it's just $.

Fidelity is stupid though and makes sure they are an intermediary.

Apparently sending YOU the check in between is more secure than mailing it directly to Vanguard, too... waaaat.

Same with adp.
I left my USA job and came back to Europe, instead of just rolling over the funds they sent me a check via intercontinental mail, that I now have to mail back intercontinental AGAIN.
they tried to convince me to stay with them
"We have target retirement funds that are low fee!"
"Madam, sorry but 0.95% is very far from low fee"


Now you have me doing that.  What was she selling annuities?  Hedge funds?

She was selling some high-fee mutual fund--one that had a couple in white clothes frolicking through a field of daisies on the glossy cover.   Had some really stupid name--like "[Bank name] Whole Life Freedom and Sunshine Out My Ass Fund".  It was made of just a crappy random mix of equities and bonds and cost close to 4%.

It's very distressing that people in those covers always dress in white linen and seem to walk barefoot everywhere.

Are advertising agencies secretly promoting hippie lifestyle? Or maybe some sort of sect?

Also, what if I live in a very cold place? It would seem suboptimal to walk barefoot in linen clothes while living in northern Norway

Kaspian

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Re: Left my company- got a call from the old 401k provider
« Reply #24 on: April 24, 2016, 11:36:10 AM »
"Madam, sorry but 0.95% is very far from low fee"

Nice!

It's very distressing that people in those covers always dress in white linen and seem to walk barefoot everywhere.

Right?!  I almost didn't write about the couple in the field of daisies because it was so cliche I thought nobody would believe it.  ...Should have been a field of poppies.  There would at least be some humour in that.

Petunia 100

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Re: Left my company- got a call from the old 401k provider
« Reply #25 on: April 24, 2016, 01:49:45 PM »

Now I am left feeling a bit weird. Objectively I didn't brag, but I feel like I did. So the whole situation made me feel a bit dirty.

Really, I wouldn't have even gone into detail. At least for me, when they try to pretend to care about the 'why', they're just looking for an in to get you to change your mind, consider some fault in your plan where they can supplement with selling a product, etc. So, I stopped giving them an opportunity.
As an example, I had 3 chase cards open. Each one was opened just for a promo bonus. I called to close two (the third still has rewards I needed to use). So I called to say, 'yeah I'm closing the freedom'. And then they asked why and I gave some bs response like 'It's not giving me the rewards I want' to which they replied 'yeah but you're keeping the aarp open which has poorer benefits than freedom so why not keep freedom open'...  argh, they called my bs.
I've gotten smarter and now I say 'I want to close my account... I respectfully decline to answer why... No, I just want to close it.....No, I just want to close...Okay, thank you."

It's like ender wrote. Tell them exactly what you want and don't give sale people your rationale. The sooner you show you won't play in the customer/salesman role, they soon they stop trying to sell.

I never call.  I write a brief letter and enclose the card.