E*TRADE Introduces 401k Rollover Program
NEW YORK, NY, October 2, 2012 -- E*TRADE today introduced OneStop Rollover, an online program that makes it faster and easier for individual investors to invest their 401k savings from a previous employer into a professionally-managed portfolio. In addition to simplifying the rollover process, E*TRADE is addressing the growing interest of investors to have a professional review their investment allocations and manage their portfolios day-to-day.
A recent E*TRADE study found that 37 percent of adults in the U.S. would like to work with a professional to help manage their retirement accounts but don't think they have enough savings and investments to do so. In addition, results showed that 56 percent of U.S. adults think that managing an IRA requires more financial know-how than they have right now. E*TRADE's OneStop Rollover, with only a $25,000 minimum, is a great solution for investors who would like professional guidance in planning for their future retirement.
By answering a few simple questions in E*TRADE's online IRA application, investors will receive a recommendation for a diversified portfolio, comprised of ETFs or mutual funds, tailored to suit their retirement goals and risk tolerance. When the rollover deposit arrives, it is automatically invested in the portfolio that the investor reviewed and approved. The investor also benefits from on-going automatic rebalancing of their assets by a team of professionals who consistently monitor account performance, eliminating the time, burden and potential stress associated with the day-to-day management of retirement investments.
"Many investors realize that leaving a 401k at a former employer may not be in their best interests, however they are often reluctant to start the rollover process because they are unaware of their choices or overwhelmed by the steps involved," explained Lena Haas, SVP, Investing and Retirement at E*TRADE. "With the OneStop Rollover, E*TRADE now offers a faster, easier way to invest retirement savings." In addition, E*TRADE provides access to dedicated Rollover Specialists to further simplify the process of transferring 401k assets from a previous employer.
The introduction of OneStop Rollover coincides with the implementation of federal law that requires full fee disclosure to each individual 401k account. "High fees can have a staggering impact on portfolio returns," Ms. Haas said. According to research by Demos1, a two-earner household, where each partner earns the median income for their gender each year over their working lifetime, will pay an average of $154,794 in 401k fees and lost returns.
"We believe the new 401k fee disclosures are a real wake-up call for investors to look at their 401k expenses and move their 401k assets when appropriate," Ms. Haas continued. "E*TRADE provides many low cost investing alternatives and now we offer a uniquely simplified professional money management experience for 401k rollovers."
Survey Methodology
This survey was conducted online within the United States by Harris Interactive on behalf of E*TRADE from August 20-22, 2012 among 2,399 adults ages 18 and older. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact Jaime Stein (646-521-4418; jaime.stein@etrade.com.)
About E*TRADE Financial
The E*TRADE Financial family of companies provides financial services including online brokerage and related banking products and services to retail investors. Specific business segments include Trading and Investing and Balance Sheet Management. Advisory products and services, including OneStop Rollover, are offered through E*TRADE Capital Management LLC an investment adviser registered with the Securities and Exchange Commission. A copy of E*TRADE Capital Management's Form ADV Part 2A, which describes, among other things, affiliations, services offered and fees charged, is available at no cost upon request. Securities products and services, including Investing & Retirement Solutions and Rollover Specialists, are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries and affiliates. More information is available at www.etrade.com. ETFC-G
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