Rollover firm on a roll

The lousy economy hasn't been bad for everyone.
NOV 08, 2009
The lousy economy hasn't been bad for everyone. More companies and workers have abandoned 401(k) plans amid the downturn, and that has helped Millennium Trust Co. LLC, which provides rollover services to companies that terminate 401(k) plans or are unable to contact 401(k) account holders who have left. The accounts must have less than $5,000 in them, and they average about $3,000 each. Millennium Trust is able to find between 60% and 75% of such account holders annually, according to Terry Dunne, senior vice president and a director of automatic rollovers at the company. In addition to companies' going out of business because of the poor economy, the high unemployment rate has led to more 401(k) account holders' losing their jobs and not letting companies know what they want done with their 401(k) balances, he said. Further, more companies are turning to auto-rollover individual-retirement-account specialists to handle abandoned plans, because they aren't equipped to track down former employees, Mr. Dunne said. “The economy is such that more employees are on the street. There's a greater number of people that are not communicating with the company as to what it is they want to do with their retirement balances,” Mr. Dunne said. Assets in auto-rollover IRAs set up by Millennium Trust increased 77% in the first 10 months of this year, compared with a 73% increase for all of 2008, he said. Assets increased to $195 million at the end of last month, from $110 million at the beginning of the year, Mr. Dunne said. At year-end 2008, the company had $95 million in auto-rollover IRA assets, up from $55 million at the beginning of the year. The number of auto-rollover IRAs at Millennium increased to 70,000 by the end of October, a 56% increase from 45,000 accounts at the beginning of the year, Mr. Dunne said.

Latest News

Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May
Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May

Big-name defections from Morgan Stanley, UBS, and Merrill Lynch headline a busy two weeks of recruiting for the wirehouse.

Why uncertainty is making behavioral coaching more valuable than ever
Why uncertainty is making behavioral coaching more valuable than ever

Markets have always been unpredictable. What has changed is the amount of information investors are trying to process and the growing role advisors play in helping clients avoid emotional decisions

Florida investor hits real estate syndicator with fraud suit over $750K
Florida investor hits real estate syndicator with fraud suit over $750K

Six apartment deals, one "big account," and $2.7M in undocumented insider loans. Now the lawsuit lands

Chicago’s 'Mr. Finance' posed as advisor in loan scheme, according to Illinois regulators
Chicago’s 'Mr. Finance' posed as advisor in loan scheme, according to Illinois regulators

The Illinois order refers to Brandon Ellington’s investment program as a “Ponzi-like scheme.”

Bezos calls for zero income tax on bottom half of earners
Bezos calls for zero income tax on bottom half of earners

But the Amazon executive chair seems to want it both ways, arguing that taxing the ultra-wealthy won't help struggling Americans.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline